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The Effect of Economic Consequences on Social Judgment and Choice: Reward Interdependence and the Preference for Sociability versus Competence

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  • Belmi, Peter

    (University of Virginia)

  • Pfeffer, Jeffrey

    (Stanford University)

Abstract

Competence and sociability (warmth) are fundamental dimensions of social judgment in organizations. However, these qualities are frequently seen as negatively related, with mixed evidence on which is more important. In three studies (N = 993) we investigated the effects of reward interdependence on the preference for sociability versus competence. We predicted that reward interdependence would elicit a more instrumental, calculative mindset, which in turn, would lead individuals to value competence more. Study 1 surveyed working adults who were in actual work groups and found that those who worked in more (vs. less) reward interdependent environments were more likely to think instrumentally and calculatively when considering potential colleagues. This mindset, in turn, was associated with a greater tendency to value competence over sociability. Studies 2 and 3 used an experimental design and found that when people imagined or anticipated working in a situation in which their economic outcomes depended in part on others, they were more likely to adopt an instrumental focus and choose a "competent jerk" over a "lovable fool". These results call into question a vast social judgment literature that has made claims about the importance of sociability and related constructs without considering the context, and particularly the reward interdependence, often inherent in organizational contexts.

Suggested Citation

  • Belmi, Peter & Pfeffer, Jeffrey, 2018. "The Effect of Economic Consequences on Social Judgment and Choice: Reward Interdependence and the Preference for Sociability versus Competence," Research Papers repec:ecl:stabus:3640, Stanford University, Graduate School of Business.
  • Handle: RePEc:ecl:stabus:repec:ecl:stabus:3640
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    File URL: https://www.gsb.stanford.edu/gsb-cmis/gsb-cmis-download-auth/458386
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    Cited by:

    1. Boyle, Erik S. & Mintchik, Natalia & Warne, Rick C., 2023. "When it pays to be a friend: Investigating nonprofessional investors' judgments toward CSR companies following an accounting restatement," Advances in accounting, Elsevier, vol. 60(C).
    2. Joo Hun Han & DuckJung Shin & William G. Castellano, & Alison M. Konrad & Douglas L. Kruse & Joseph R. Blasi, 2020. "Creating Mutual Gains to Leverage a Racially Diverse Workforce: The Effects of Firm-Level Racial Diversity on Financial and Workforce Outcomes Under the Use of Broad-Based Stock Options," Organization Science, INFORMS, vol. 31(6), pages 1515-1537, November.
    3. Derfler-Rozin, Rellie & Isaakyan, Sofya & Park, Hyunsun, 2022. "Swiftly judging whom to bring on board: How person perception (accurate or not) influences selection of prospective team members," Organizational Behavior and Human Decision Processes, Elsevier, vol. 173(C).
    4. Qiu, Judy & Kesebir, Selin & Günaydin, Gül & Selçuk, Emre & Wasti, S. Arzu, 2022. "Gender differences in interpersonal trust: Disclosure behavior, benevolence sensitivity and workplace implications," Organizational Behavior and Human Decision Processes, Elsevier, vol. 169(C).
    5. Daniel N. Jones & Steven M. Mueller, 2022. "Is Machiavellianism Dead or Dormant? The Perils of Researching a Secretive Construct," Journal of Business Ethics, Springer, vol. 176(3), pages 535-549, March.
    6. Hur, Julia D. & Lee-Yoon, Alice & Whillans, Ashley V., 2021. "Are they useful? The effects of performance incentives on the prioritization of work versus personal ties," Organizational Behavior and Human Decision Processes, Elsevier, vol. 165(C), pages 103-114.

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