New York University A private university in the public service Status Dynamics & Managerial Agility Steven L. Blader June 12, 2014 In collaboration with… Ya-Ru Chen, Cornell University Adam Galinsky, Columbia University Nicholas Hayes, New York University Alice Lee, Columbia University Aiwa Shirako, New York University 2 Hierarchy: What and Why? Hierarchy: “an implicit or explicit rank order of individuals or groups with respect to a valued social dimension” (Magee & Galinsky, 2008) Hierarchy… Emerges spontaneously Is ubiquitous Is consequential Is essential for group functioning …i.e., hierarchy is fundamental to social relations Blau, 1964; Cartwright, 1959; Fiske & Berdahl, 2007; Goffman, 1959; Homans, 1961; Magee & Galinsky, 2008; Ridgeway, 1997; Russell, 1938; Weber, 1964 3 Hierarchy is not a unitary concept… Formal structure Leadership Socioeconomic status (SES) Influence Power Dominance Status Prestige Competence Respect 4 However… Dimensions of social hierarchy often confounded » » » » » Power and status used synonymously Power as influence (and vice versa) Status as influence (and vice versa) SES as power, status Dominance as power, status Clarity/consensus around hierarchical dimensions is lacking » Definitions/conceptualizations vary » Relatively little empirical work distinguishing them 5 Status and power Status and power are particularly prominent bases of hierarchy (Blau, 1964; Magee & Galinsky, 2008; Weber, 1964) » “Status orderings naturally emerge whenever humans gather” » “The most basic force behind human behavior is power” Status and power are fundamental to the psychology of holding higher rank (Fiske, 2010) Status and power are distinct 6 Status and power Status: » Evaluation of a person (or a group) as worthy of esteem, respect, and prestige (Anderson & Kilduff, 2009; Fiske & Berdahl, 2007; Goldhammer & Shils, 1939; Ridgeway, 2001; Zelditch, 1968) » Social regard Power: » Capacity to modify others’ states by providing or withholding resources or administering punishments » Resource control Frequently confounded (Fiske, 2010; Fiske & Berdahl, 2007; Magee & Galinsky, 2008) » Though not always (Cheng et al., 2013; Fast et al., 2012; Fragale, Overbeck, & Neale, 2011; Hays, 2013; Henrich & Gil-White, 2001; Sachdev & Bourhis, 1985) 7 Prior research Research Focus Power Status Antecedents Psychological consequences for rankholder Consequences of rank on interaction partners 8 Psychology of power Power is associated with: » » » » » » Egocentric focus Increased social distance Increased focus on power-holder’s goals Decreased attention to context and constraints Decreased attention to others Action orientation Power “reveals the self”, as it draws power-holders inward… 9 Prior research Research Focus Power Status Antecedents Psychological consequences for rankholder Consequences of rank on interaction partners Research on the psychology of status is relatively lacking » Especially as compared to research on the psychology of power 10 Research goal To develop an understanding of the psychology of social status » With an eye towards highlighting similarities and differences with the psychology of power Why? » Critical for understanding the effect of status hierarchies on groups Particularly important for understanding those holding higher rank, e.g., for understanding leadership » Understanding the psychology of status may present opportunities for cultivating leaders who are more responsive to constituents’ needs…and in that way, more AGILE. 11 Key elements to the psychology of status 1. Like power, status is positively associated with selfperceived efficacy » i.e., agency 2. Unlike power, status is positively associated with otherorientation » i.e., communality 12 Status and efficacy Status, like power, will lead to enhanced efficacy (and thus action orientation) » High status individuals… Given more opportunities to contribute, more influence Given more positive feedback for their contributions Interpret feedback more positively Hold more positive expectations of others’ reactions to them Have stronger control beliefs » And as a result… Have greater motivation and performance (Felson, 1984; Lovaglia et al., 1998; Stajkovic & Luthans, 1998) Have higher self-efficacy (Gecas & Seff, 1989) 13 Status and other-orientation Status, unlike power, will lead to increased other-orientation High status greatly valued » Status maintenance—prominent concern for high status individuals (Blader & Chen, 2011; Flynn et al., 2006) » Status loss—highly aversive Status originates externally » Status gains meaning from lower status parties—status conferral Low status exchange deference for proximity; high status must attend to low status (Gould, 2002) » This prompts a focus on perspectives, opinions & needs of other parties To verify one’s (high) status position (Blader & Chen, 2011) To perpetuate one’s (high) status position 14 Predictions These elements of the psychology of status may lead to effects on: » » » » » Physiology (e.g., cortisol) Judgment and decision-making (e.g., social vs non-social risk taking) Emotions (e.g., positive affect) Behavior (e.g., inhibition, constraints/norms) Interpersonal relationships Today: » Perspective taking » Justice 15 Perspective Taking 16 Perspective taking Perspective taking: The tendency to take others' vantage points and to understand their feelings, concerns, and perceptions Power decreases perspective taking (Galinsky, Magee, Inesi, & Gruenfeld, 2006) » At least under many conditions (cf. Overbeck & Park, 2006; Schmid Mast et al., 2009) Prediction: Status will increase perspective taking » Perspective taking key index of other-orientation 17 Study 1 Texoil negotiation simulation » Negotiation over the sale of a service station » Two roles: Station owner and Texoil representative » Integrative negotiation Context where perspective taking is important n=68 U.S. MBA students taking a negotiations course » 34 Texoil reps » Average age = 29 years old; 45% female Pilot study, 2 conditions: High status, High power 18 Study 1: Conditions Power » Your position in the company is the Vice President for Operations. You have a great deal of power within the company, since you manage one of the largest budgets and you control a relatively major portion of the organization’s resources. Further, after many years at the firm you have developed a strong reputation as someone who is quite powerful. Status » Your position in the company is the Vice President for Operations. You have a great deal of status within the company, since you have earned much esteem and prestige among everyone that works there. Further, after many years at the firm you have developed a strong reputation as someone who has high status, i.e., as someone who people hold in high regard and respect. 19 Study 1: Dependent variable Sellers rated buyer’s perspective taking: » To what extent did your counterpart try to see things from your point of view? » To what extent did your counterpart try to ‘put themselves in your shoes’? » How much effort did your counterpart put into trying to understand why you were selling the station? » Did you feel like your counterpart understood your perspective in this negotiation? 20 Study 1: Results 4.5 4 3.5 3 2.5 2 High Power Higher numbers represent greater PT High Status 21 Study 2 Performance review study » Think of a specific subordinate, and imagine preparing for their upcoming performance review. Instructed to think of an average subordinate, not their best or worst Wrote a few sentences describing subordinate n=51 upper-level executives taking an executive education course in China » Average age = 44; Average years work experience = 21; 80% male 3 conditions: High status, High power, Control 22 Study 2: Conditions Power: You obviously possess a great deal of power at your firm. That is, you have control over important resources at your company, especially as compared to others at your firm who have not gained as much power as you. The resources that you control are highly valued by others, and this makes you a very powerful member of your organization. Status: You obviously possess a great deal of status at your firm. That is, you are highly respected and held in high esteem at your company, especially as compared to others at your firm who have not gained as much status as you. People look up to you and admire you, and this positions you to be a very high status member of your organization. Control: You obviously work very hard at your firm. 23 Study 2: Dependent variable Please answer the following questions about how you would approach this performance review: » 8 items, adapted from IRI. » Sample items (1-strongly disagree; 6-strongly agree): I will take the time to see things from the employee’s point of view I will try to consider all perspectives before I make a decision about the employee’s performance I will try to understand my employee better by seeing things from his/her perspective 24 Study 2: Results 6 5 4 3 High power Higher numbers represent greater PT Control High status 25 Study 3 Spatial perception task (Todd, Hanko, Galinsky & Mussweiler, 2011; Tversky & Hard, 2009) n=396 participants recruited from M-Turk » Average age=32 » 53% female 5 conditions: Low power, High power, Low status, High status, Control » “Recall an incident in which you felt you had (low/high) (power/status) …” » Control: “Recall your day yesterday…” 26 Study 3: Recall prompt Power condition: “Please recall a particular incident in which you had power over another individual or individuals. By power, we mean a situation in which you controlled the ability of another person or persons to get something they wanted, or were in a position to evaluate those individuals. Please describe this situation in which you had power — what happened, how you felt, etc.” Status condition: “Please recall a particular incident in which you had status over another individual or individuals. By status, we mean a situation in which you felt respected and admired by others, a situation in which you felt that others held you in high regard. Please describe this situation in which you had status— what happened, how you felt, etc.” 27 What side of the table is the book on? 28 Study 3: Results 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 High Power Control High Status Higher numbers represent greater PT Low Status Low Power 29 Study 4 Affective perspective taking Emotion recognition (Galinsky et al., 2006; Moeller, Lee, & Robinson, 2011) Participants view 24 photos and indicate emotion expressed in photo Select between anger, sadness, fear, or happiness DV: Number of errors n=249 participants recruited from M-Turk » Average age=31 » 50% female Same 5 conditions 30 Guess the emotion being expressed For each picture, your options are: 1. 2. 3. 4. Happiness Anger Sadness Fear 31 Results—Perspective taking 6 5 4 3 2 High Power Control High Status Low Power Low Status DV: # errors (i.e., higher numbers = weaker emotion recognition, less perspective taking) 32 Perspective taking: Summary Status increases perspective taking, in contrast to power » Diverse paradigms, manipulations, dependent variables Consistent with prediction that status increases otherorientation What about a more “tangible” outcome? » Justice 33 Justice 34 Status & justice Justice perceptions shape engagement in groups & organizations » Yet little is known about the antecedents of justice Status will be positively related to justice towards others Justice follows from other orientation More likely to care about others, intrinsically want to treat them fairly, understand what they will regard as fair Justice important for status maintenance Shapes judgments of leader legitimacy & satisfaction Normative for “respected” leaders Part of social exchange between higher and lower ranked parties 35 Power & justice Hypothesis: Power will be negatively related to justice towards others » » Egocentric orientation diminishes likelihood of justice Approach-system/goal-directed behavior diminishes likelihood of justice May reduce focus on process, treatment, etc. Less behavioral inhibition = reduced accordance with role norms …caveat: EXCEPT if dispositionally other-oriented… 36 Study 1 Synertech-Dosagen negotiation simulation » Negotiation over the sale of a pharmaceutical manufacturing plant » Straightforward distributive negotiation » Two roles: Synertech (buyer) & Dosagen (seller). Synertech more dominant (annual sales of $700M vs $150M) » Manipulations embedded in the Synertech role n=188 U.S. MBA students taking a negotiations course. » 188 students total; 94 Synertech reps 3 condition design: Power, Status, Control 37 Study 1: Dependent variables Procedural justice as rated by the negotiation partner ( = .71) 1. 2. 3. Would you characterize the negotiation process as fair? Do you feel your counterpart listened to your concerns? Did your counterpart consider your wishes, opinions, or needs? Feelings about the relationship—rated by partner ( =.85) 1. 2. 3. 4. What kind of overall impression did your counterpart make on you?” Did the negotiation make you trust your counterpart(s)? How satisfied are you with your relationship with your counterpart as a result of this negotiation? Did the negotiation build a good foundation for a future relationship with your counterpart? First offers (Magee et al., 2007) **Negotiation partners (raters) blind to condition 38 Study 1: Conditions Power » “You are quite well known in the industry as a powerful individual. Your company is one of the most profitable in the industry—with one of the largest revenue streams—and through your connections have access to a great deal of additional resources.” Status » “You are quite well known in the industry as a high status individual. You are one of the most respected people in the industry. People really hold you in high regard, and you have a great deal of esteem from others.” Control 39 “How important was it that your negotiation opponent show respect for you during the negotiation?” 7 6.5 6 5.5 5 4.5 4 Control Power Status 40 Study 1: Procedural justice 7 6.5 PJ Ratings by negotiation partner 6 5.5 5 4.5 4 Control Power Status 41 Study 1: Relationship 7 6.5 6 Relationship ratings by negotiation partner 5.5 5 4.5 4 Control Power Status 42 Study 1: First offers 43 Study 2 Communicating bad news » Role-play manager who has to layoff an employee » Circumstances require written notification of layoff » Primary task: Writing the layoff notice n=77 working adults from national panel (Qualtrics) » Average age = 42 years old; 57% female; avg work experience=22 years 3 condition design: Power, Status, Control Measured dispositional other-orientation 44 Study 2 conditions Power » “…hold a great deal of power within your organization. Indeed, you are one of the most powerful individuals in the company, since the Sales area is so critical to the organization’s revenue stream. You are personally given control over a great deal of the organization’s resources, compared to your peers who head other departments.” Status » “…hold a great deal of status within your organization. Indeed, you are one of the most respected individuals in the company, since the Sales area is so highly regarded within the organization. You are personally held in very high esteem among everyone in the organization, even compared to your peers who head other departments.” 45 Study 2: Dependent variables Procedural justice of the memo (4 items) » Coded by 2 independent raters Perceived importance of procedural justice (5 items, = .75) » As rated by the participant Attentiveness toward recipient (4 items, = .85) » Rated by participant To what extent attentive about recipient’s a) reaction to layoff, b) feelings, c) respect for them, d) liking of them 46 Study 2: Procedural justice 4 3.5 Coded procedural justice rating 3 2.5 2 Control Power Status 47 Study 2: Importance of procedural justice 7 6.5 6 Imp of procedrual 5.5 justice 5 4.5 4 Control Power Status 48 Study 2: Attentiveness to recipient 6 5.5 5 Attentiveness 4.5 4 3.5 3 Control Power Status Also moderated by RISC, EC 49 The Psychology of Status Distinct from the psychology of power Opposite effects for some dependent variables Similar effects on others Implications for Agility: » Status may play a social-regulatory function Fostering leaders who are more understanding and responsive to their constituents Caveats » In some contexts, status may be associated with dominance Status will prompt normative reactions » In some cases, status gained solely by power Status maintenance will be associated with power tactics 50 Future research Field research » …where status, power distinction is messier » Opportunity to test moderating influence of context Status attainment vs. maintenance » Difference in nature of other-orientation? 51 Study 3 Texoil negotiation simulation » Negotiation over the sale of a service station » Two roles: Station owner and Texoil representative » Integrative negotiation—negative bargaining zone Requires interest-based discussion & trust n=208 U.S. MBA students taking a negotiations course. » 208 students total; 104 Texoil reps » Average age = 29 years old; 45% female 2 x 2 design » Power (low, high) » Status (low, high) 52 Study 3 conditions Power » Your position in the company is the Vice President for Operations. You have a great deal of power within the company, since you manage one of the largest budgets and you control a relatively major portion of the organization’s resources. » Your position in the company is the Vice President for Operations. You have relatively little power within the company, since you manage one of the smallest budgets and you control a relatively minor portion of the organization’s resources. Status » …Furthermore, after many years of working at Texoil, you have attained a great deal of status and prestige within the company. People at the organization genuinely respect you and hold you in high regard. The admiration people have for you is something that you value and which means a lot to you. » …Furthermore, despite many years of working at Texoil, you have very little status or prestige within the company. People at the organization seem to have little respect for you and seem to hold you in low regard. This lack of admiration for you is something that you have given up trying to change. 53 Study 3: Dependent variables Procedural justice (rated by partner) Feelings about the relationship (rated by partner) First offers Likelihood of reaching an integrative agreement 54 “How important was it that your negotiation opponent show respect for you during the negotiation?” 6 5 4 Low status No effect of power condition; no interaction High status 55 Study 3 Procedural justice 6 5 PJ Ratings by negotiation partner 4 3 Low Power Status: F (1, 100) = 3.99, p<.05 Power: F (1, 100) = 4.45, p<.05 Status x power: F (1, 100) = 13.29, p<.001 Low Status High Power High Status 56 Study 3 Relationship ratings 6 5 Relationship ratings by negotiation partner 4 3 Low Power Status: F (1, 100) = 8.79, p<.01 Power: F (1, 100) = 3.22 p<.10 Status x power: F (1, 100) = 23.65, p<.001 Low Status High Power High Status 57 Study 3 Integrative agreements 60 50 % integrative agreements 40 30 20 10 0 Low Power Low Status High Power High Status 58