Finding the Balance Between Greed and Altruism

yin-yang-1024035-mAre greedy managers or altruistic managers more successful? The answer may not be so black and white. According to Katalin Takacs Haynes, Matthew Josefy, and Michael A. Hitt, authors of “Tipping Point: Managers’ Self-Interest, Greed, and Altruism” from Journal of Leadership and Organizational Studies, harmony between the two characteristics is actually the most beneficial to firm performance.

The abstract:

We explore the potential effects of managers’ greed and altruism on their behaviors and firm outcomes. Greed represents extreme self-interest whereas altruism reflects concern for others. We argue that managerial greed leads to a focus on short-term decisions JLOS_72ppiRGB_powerpointand short-term firm performance. Alternatively, managerial altruism normally produces a focus on longer term decisions and long-term firm performance. Managerial greed is also more likely to produce wrongdoing, whereas managerial altruism produces greater corporate citizenship behaviors. Managerial greed is likely to lead to turnover for non-performance–related reasons whereas managerial altruism is more likely to produce managerial turnover for performance reasons. Overall, we conclude that measured self-interest keeps managers focused on the firm’s goals and measured altruism helps the firm to build and maintain strong human and social capital. The extremes of either greed or altruism likely will harm firm performance. Thus, balance between managerial self-interest and managerial altruism leads to the greatest success.

You can read “Tipping Point: Managers’ Self-Interest, Greed, and Altruism” from Journal of Leadership and Organizational Studies for free by clicking here. Want to know about all the latest research like this from Journal of Leadership and Organizational Studies? Click here to sign up for e-alerts!

This entry was posted in Firm Performance, Leadership, Management, Motivation, Organizational Behavior, Organizational Studies, Performance, Personality, Power, Psychology, Strategy, Trust, Turnover, Work environment and tagged , , , by Cynthia Nalevanko, Editor, SAGE Publishing. Bookmark the permalink.

About Cynthia Nalevanko, Editor, SAGE Publishing

Founded in 1965, SAGE is the world’s leading independent academic and professional publisher. Known for our commitment to quality and innovation, SAGE has helped inform and educate a global community of scholars, practitioners, researchers, and students across a broad range of subject areas. With over 1500 employees globally from principal offices in Los Angeles, London, New Delhi, Singapore, Washington DC, and Melburne, our publishing program includes more than 1000 journals and over 900 books, reference works and databases a year in business, humanities, social sciences, science, technology and medicine. Believing passionately that engaged scholarship lies at the heart of any healthy society and that education is intrinsically valuable, SAGE aims to be the world’s leading independent academic and professional publisher. This means playing a creative role in society by disseminating teaching and research on a global scale, the cornerstones of which are good, long-term relationships, a focus on our markets, and an ability to combine quality and innovation. Leading authors, editors and societies should feel that SAGE is their natural home: we believe in meeting the range of their needs, and in publishing the best of their work. We are a growing company, and our financial success comes from thinking creatively about our markets and actively responding to the needs of our customers.

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