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Praise for Proactivity: the Role of Leadership and Supervisor Personality in Rewarding Employee Proactivity

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Praise for Proactivity: the Role of Leadership and Supervisor Personality in Rewarding Employee Proactivity PRAISE FOR PROACTIVITY: THE ROLE OF LEADERSHIP AND SUPERVISOR PERSONALITY IN REWARDING EMPLOYEE PROACTIVITY Katherine N. Alexander A Thesis Submitted to the Graduate College of Bowling Green State University in partial fulfillment of the requirements for the degree of MASTER OF ARTS December 2009 Committee: Charlotte Fritz, Advisor Michael Zickar Robert Carels ii ABSTRACT Charlotte Fritz, Advisor Previous research has suggested that proactivity in the workplace can be beneficial at both the individual and the organizational level, but little is known about when proactivity is appreciated by supervisors. This study examined when supervisors reward proactivity by providing more positive performance evaluations to their subordinates. I proposed that the supervisor’s leadership style, their quality of relationship with their subordinate, and their personality would moderate the relationship between proactivity and performance evaluations. I investigated three types of proactivity: taking charge, voice, and issue selling. I also examined three different leadership styles, namely transformational, transactional, and laissez-faire leadership, as well, as leader-member exchange, and the supervisor’s neuroticism, agreeableness, and openness to experience. The sample consisted of 140 employees and their direct supervisors who were employed at various non-profit organizations across the United States. All measures were available online and participants received a $10 gift card for their participation. Results indicated strong relationships between proactive behaviors and performance evaluations, suggesting that supervisors do reward employee proactivity. However, the moderator hypotheses were not supported. The implications of these results for research and practice are discussed. iii ACKNOWLEDGEMENTS I am extremely grateful to my advisor, Charlotte Fritz, for her support, guidance, and direction throughout this process. She has made this a rewarding experience and has encouraged my enjoyment for research. I would also like to thank my committee members, Mike Zickar and Rob Carels, for their feedback and advice. Finally, I would like to thank my family and friends for their continued encouragement. iv TABLE OF CONTENTS Page INTRODUCTION................................................................................................................. 1 Proactivity in the Workplace ..................................................................................... 2 Leadership Style......................................................................................................... 4 Leader-Member Exchange......................................................................................... 8 Personality ............................................................................................................ 9 METHOD............................................................................................................................... 13 Participants................................................................................................................. 13 Procedure.................................................................................................................... 13 Measures.................................................................................................................... 13 RESULTS............................................................................................................................... 18 Additional Analyses................................................................................................... 20 DISCUSSION ........................................................................................................................ 21 Strengths and Limitations .......................................................................................... 23 Implications and Future Research.............................................................................. 24 Conclusions.................................................................................................................. 26 REFERENCES....................................................................................................................... 27 APPENDIX A ........................................................................................................................ 33 APPENDIX B ........................................................................................................................ 36 v LIST OF TABLES Table Page 1 Descriptive Statistics and Internal Consistencies ...................................................... 38 2 Intercorrelations among Variables............................................................................. 39 3 Regressions for the Moderating Role of Transformational Leadership..................... 41 4 Regressions for the Moderating Role of Transactional Leadership........................... 42 5 Regressions for the Moderating Role of Laissez-Faire Leadership........................... 43 6 Regressions for the Moderating Role of LMX............... ........................................... 44 7 Regressions for the Moderating Role of Neuroticism............... ................................ 45 8 Regressions for the Moderating Role of Openness to Experience............... ............. 46 9 Regressions for the Moderating Role of Agreeableness............................................ 47 vi LIST OF FIGURES Figure Page 1 Histogram of the Distribution of Performance Evaluation Ratings........................... 48 1 INTRODUCTION Given the increasing complexity and uncertainty of today’s workplace, proactivity among employees has become a critical determinant of organizational success and survival (Aragon- Correa, 1998). Proactive behavior at work refers to anticipatory action that employees take to improve current circumstances in the workplace (Crant, 2000). For example, proactive employees may foresee problems and take measures to resolve them before the situation becomes worse. It is important to note that workplace proactivity is not always welcomed or appreciated. For example, supervisors may view proactivity as a threat or a distraction (Chan, 2006; Frese & Fay, 2001; Grant, Parker, & Collins, 2009) and consequently may not reward these potentially beneficial behaviors. But why do some supervisors recognize and reward proactivity whereas other supervisors do not? The purpose of this study is to investigate whether employee’s proactive behaviors are recognized by supervisors and the conditions under which proactivity is rewarded. I intend to examine how aspects of leadership, specifically leadership style and leader-member exchange, as well as supervisor personality can affect how an employee is rewarded for behaving proactively. In the current study, a reward for proactivity is conceptualized as a positive performance evaluation for the employees, as supervisors do not always have the authority or control to provide other types of rewards (e.g., monetary rewards) for their employees’ proactive behaviors. Overall, this research poses considerable value for understanding proactivity in the workplace. The current study is among the first to investigate the outcomes of proactivity and also the first to examine the role that the supervisor plays in how proactivity is promoted within a work unit or organization. In order to encourage and promote continuous proactivity amongst employees, supervisors must be able to reward these behaviors. Otherwise, proactivity is likely 2 to diminish or disappear if employees are not being recognized, or are even being reprimanded, for their potentially beneficial behaviors. Therefore, it is critical to investigate the role of the supervisor in this process as he or she is ultimately able to ensure that proactivity is maintained within an organization. Findings from this research may also be useful in recruitment and selection procedures because they may provide evidence in support of hiring or promoting certain supervisors who are likely to support the expression of proactivity among their employees. Proactivity in the Workplace Proactive employees are those who take self-directed action in order to support organizational effectiveness (Crant, 2000) and do not just apathetically accept the present conditions. For example, an employee may develop means to perform a task more efficiently or may bring attention to potential problems. Several different concepts of proactivity have been proposed in the literature. This study focuses on three specific types, namely taking charge, voice, and issue selling. Taking charge refers to change-oriented behavior that is aimed at improving how work is executed (Morrison & Phelps, 1999). An example of this type of behavior is when an employee attempts to institute new methods for work that are more effective for the organization. Voice involves making suggestions for change that may improve workplace performance even when others disagree (Hirschman, 1970). For instance, an employee may communicate their thoughts about changing work procedures even if their opinion differs from others in the group. Finally, issue selling involves actively persuading upper-level management to pay attention to issues (Dutton, Ashford, O’Neill, & Lawrence, 2001). An example of issue selling is when an employee presents information and logic to management regarding a matter they believe concerns the organization. 3 All of these behaviors are similar in that they attempt to
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