Leadership & Organizational Behavior

The authors argue that high self-monitors may be more sensitive to the status implications of social exchange and more effective in managing their exchange relations to elicit conferrals of status than low self-monitors. In a series of studies, they found that high self-monitors were more accurate in perceiving the status dynamics involved both in a set of fictitious exchange relations and in real relationships involving other members of their social group.

Microsoft Corporation prepared its July 20, 2004 press release detailing its plan to pay out $75 billion over the next four years. Cassius King, a senior analyst in the Microsoft treasury department, pondered their imminent decision to 1) pay a one-time special dividend of $3.00 per share, for a total of $32 billion; 2) double the regular quarterly dividend from $0.04 to $0.08 per share, paying approximately $3.5 billion annually; and 3) repurchase up to $30 billion in MSFT shares over the next four years.

We develop a model of lending and borrowing in markets where the lender has no access to physical collateral and where the borrower is heavily capital constrained. Our model of micro loans, which incorporates a) the absence of access to physical collateral, b) peer monitoring, c) threat of punishment upon default, and d) costly monitoring by lenders is used to determine the equilibrium borrowing rates. Monitoring by lenders is shown to be critical for an equilibrium to exist in our model if the maturity of the loan is too long.

We analyze the relationship between conglomerates' internal capital markets and the efficiency of economy-wide capital allocation, and we identify a novel cost of conglomeration that arises from an equilibrium framework. Because of financial market imperfections engendered by imperfect investor protection, conglomerates that engage in winner-picking (Stein, 1997 [Internal capital markets and the competition for corporate resources.

Workforce diversity continues to be a key focus for organizations, driven by globalization of the U.S. economy and the desire for organizations to more accurately reflect the demographic diversity of the US population. Yet, most research on diversity in organizations has focused on the outcomes associated with workforce diversity and not on the processes that can enhance diversity in organizations.

Many organizations, such as banks, airlines, telecommunications companies, and police departments, routinely use queueing models to help determine capacity levels needed to respond to experienced demands in a timely fashion. Though queueing analysis has been used in hospitals and other healthcare settings, its use in this sector is not widespread.

A general theory of cultural evolution is formulated using a cognitive dimension reduction scheme. Rational but cognitively limited agents iteratively invent and redefine abstract concepts in order to best represent their natural and social environment. These concepts are used for decision-making, and determine the agents’ overall behavior. The collection of concepts an agent uses constitutes his/her cultural profile.

Five studies investigated the hypotheses that the sense of power increases optimism in perceiving risks and leads to more risky behavior. In Studies 1 and 2, individuals with a higher generalized sense of power and those primed with a high-power mind-set were more optimistic in their perceptions of risk. Study 3 primed the concept of power nonconsciously and found that both power and gain/loss frame had independent effects on risk preferences. In Study 4, those primed with a high-power mind-set were more likely to act in a risk-seeking fashion (i.e., engage in unprotected sex).