Leadership & Organizational Behavior

In an environment where trading volume affects security prices and where prices are uncertain when trades are submitted, quasi-arbitrage is the availability of a series of trades that generate infinite expected profits with an infinite Sharpe ratio. We show that when the price impact of trades is permanent and time-independent, only linear price-impact functions rule out quasi-arbitrage and thus support viable market prices. When trades have also a temporary price impact, only the permanent price impact must be linear while the temporary one can be of a more general form.

Griliches' 1994 presidential address considers the limited success economists had in trying to account for the productivity slowdown of the 1970s and 1980s and "urges us toward the task of observation and measurement." In the 1990s, the high rates of productivity growth emphasized the need for new models of productivity, this time turning to estimating organization-level determinants of productivity focusing on businesses' use of new computer-based information technologies (IT), and new methods of work organization (Timothy Bresnahan et al., 2002).

Perspective-taking, by means of creating an overlap between self and other cognitive representations, has been found to effectively decrease stereotyping and ingroup favoritism. In the present investigation, the authors examined the potential moderating role of self-esteem on the effects of perspective-taking on prejudice. In two experiments, it was found that perspective-takers, but not control participants, with temporarily or chronically high self-esteem evaluated an outgroup more positively than perspective-takers with low self-esteem.

How do people react to those who have helped them? The authors propose that a recipient's evaluation of a helper's intentions and the recipient's own attitudes about future interactions with the helper depend partly on the recipient's perceptions of how the helper decided to assist: on the basis of affect, of role, or of cost-benefit calculation.

Two experiments explored the hypothesis that the impact of activating gender stereotypes on negotiated agreements in mixed-gender negotiations depends on the manner in which the stereotype is activated (explicitly vs. implicitly) and the content of the stereotype (linking negotiation performance to stereotypically male vs. stereotypically female traits). Specifically, two experiments investigated the generality and limits of stereotype reactance.

For more than two decades, businesses have been warned to "change or perish." Yet a growing number of companies are perishing because of change. What's going on? Columbia Business School Professor Eric Abrahamson argues that although change is necessary for companies to grow and prosper, many organizations have blindly taken the mandate too far. The "creative destruction" advocated by change champions has resulted in a painful cycle of initiative overload, change-related chaos, and widespread employee cynicism.

The present study sought to examine the relationship between managers' perceptions of employee motivation and performance appraisal by surveying managers and employees in three distinct cultural regions (North America, Asia, and Latin America) within a single global organization. Although the patterns of employee self-perceptions did not vary across the six countries sampled, three distinct cultural patterns emerged in the theories managers held about their subordinates.

In this paper, we examine the relationship between people's actual interpersonal sensitivity (such as their ability to identify deception and to infer intentions and emotions) and their perceptions of their own sensitivity. Like prior scholars, we find the connection is weak or non-existent and that most people overestimate their social judgment and mind-reading skills. Unlike previous work, however, we show new evidence about who misunderstands their sensitivity and why.

Studies of the relationship between human resource management and establishment performance have heretofore focused on the manufacturing sector. Using a unique longitudinal dataset collected through site visits to branch operations of a large bank, the author extends that research to the service sector. Because branch managers had considerable discretion in managing their operations and employees, the HRM environment could vary greatly across branches and over time. Site visits provided specific examples of managerial practices that affected branch performance.