Do leaders seek the best decisions? Effect of power on sales leader evaluation, the moderating role of the predisposition to seek the best decision
(A2023-114427)

AUTHORS

Behnoush Kangarlou, GBSB Global Business School; Rubén Huertas-Garcia, University of Barcelona – UB; M.Luisa Sole-Moro, University of Barcelona

ABSTRACT

In this study, we examine the relationship between maximizing leaders (those who seek to make the best decision) versus satisficing leaders (those who settle for a good enough decision). We evaluated their ability to make decisions regarding the remuneration allocation of their employees (sales team) and themselves in a business decision-making simulation game. The participants were divided into Maximizers and Satisficers through a quasi-experiment, and their decisions were analyzed. We found that while Maximizers sought to make the best decisions, they rewarded their sales team's short-term performance more than Satisficers. In addition, Maximizers awarded the effort made by their sales team to a lesser extent and punished quality failures more extensively than satisficing ones.