Relationships Between Leader Reward and Punishment Behaviour and Group Processes and Productivity

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Rechts- und Wirtschaftswissenschaftliche Fakultät der Universität Erlangen-Nürnberg Fachbereich Wirtschaftswissenschaften
Lehrstuhl für Psychologie, insb. Wirtschafts- und Sozialpsychologie (Prof. Dr. Klaus Moser)

Relationships between Leader Reward and Punishment Behaviour and Group Processes and Productivity

Date: 14-7-2011

Team Management (SS 2011)
Course: RUW 33701
Theory paper
Lecturer:

Study year:1st
Study major:International Business Studies
Area of study: IBS (Erasmus)
Student ID:21576637
Content
Content2
1Introduction3
2The Study5
2.1Background and expectations5
2.2Methods of research7
2.3Results8
3Discussion10
References12
Statement13
Appendix 114

Introduction
The aim of this term paper is to discuss the review article Relationships between Leader Reward and Punishment Behavior and Group Processes and Productivity by Philip M. Podsakoff and William D. Todor. The article was published in Journal of Management in 1985. The leadership issue had been discussed since decades. After the failure of Traits theories, which considered personal characteristics and qualities as the main attribute of a leader, the Behavioural theories developed in late 40´s to 60´s (Robbins, Judge & Campbell, 2010). These theories proposed that what makes difference between leader and non-leaders is a specific behaviour. Since then, many different leadership theories and approaches were developed. One of them differentiates between Transactional and Transformational leadership. Robbins, Judge and Campbell (2010) defines Transactional leaders as leaders who “guides and or motivate their followers in the direction of established goals by clarifying role and task requirements” while Transformational leaders “inspire followers to transcend their own self-interest for the good of the organization and are capable of having a profound and extraordinary effect on followers”(p. 345). Podsakoff conducted many researches on on transactional and transformational leadership processes in organizations (Philip M. Podsakoff; n.d.). In the hereby discussed study he together with Todor focused on four different leader behaviour: contingent reward (CR), which is an attribute of transactional leaders, contingent punishment (CP), non-contingent reward (NCR), and non-contingent punishment (NCP). Moreover they examined the effect of various leader behaviours on group processes and productivity at group level rather than individual. The reason for that was uncertainty whether reward and punishment contingencies, which had been proven to have functional effects at the individual level, can have the opposite effects at the group level. As Podsakoff and Todor (1985) pointed: “Leaders who administer contingent rewards, for example, may not only increase the motivation of their subordinates to perform, but also may increase the competitiveness of these individuals. Such competition, while not inherently bad, may prove dysfunctional if the task performed by the subordinates requires cooperation” (p. 57).

The group processes examined in the study are group drive and cohesiveness as well as group productivity. The study was administrated through the use of questionnaires distributed among 827 employees from three different organizations.

The Study
In this section the study conducted by Podsakoff and Todor (1985) is described in details. The section is divided into three chapters: Background and expectations, Methods of research and Results. Background and expectations

Within this chapter the theoretical background with references to earlier conducted studies is provided. Then the important terms are defined and explained. Finally, the expectations of the researches are summarized. Earlier studies

Many studies have been conducted upon Leader behaviour and its effect on subordinates (e.g. Szilagyi, 1980; Podsakoff, Todor & Skov, 1982) and most of them proved contingent reward to have a positive effect...
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