When Should Leaders Share Information with Their Subordinates?

Abstract

We show that when leaders share some of their information with subordinates, decision making is subject to a motivational bias; leaders make the decisions their subordinates want to see. As this bias increases with the quality of the shared information, an improvement of an organization's information might even decrease its efficiency. As a consequence, information sharing is not always optimal. We show however that self-confidence can help the leader to overcome his motivational bias, thus making information sharing more attractive. Conversely, we find that information sharing can help to curb the autocratic tendencies of a self-confident leadership. We conclude that a policy of information sharing and the appointment of a self-confident leadership are most effective when they go hand in hand. (1997, p. 193) states that "no matter how brilliant the strategy may be, We thank Ottaviani and participants at various seminars and conferences for valuable suggestions. We are especially grateful to Michele Piccione and Andrea Prat for their guidance and support.

Concept Analysis: Confidence/Self-confidence

“…Prior to the attainment of self‐confidence various earlier acquisitions of knowledge must be achieved (Hilgenkamp & Livingston, 2002; Vidal & Moller, 2007). In order for the prelicensure nursing student to achieve knowledge, formal or informal education must occur, and either means of education may produce knowledge, which is accurate or inaccurate (Hilgenkamp & Livingston).…”

“…De Cremer and Van Hiel (2008) Background/outcomes: attributes-doubt and uncertainty and the effect on self-esteem. Vidal and Moller (2007) Background: information sharing in relation to confidence.…”

Self-Confidence: A Concept Analysis

“…24). Another component of self-awareness is intuition or gut-feeling Vidal & Moller, 2007). Thus, this author believes this multifactorial and complex phenomenon called self-awareness is an essential attribute of self-confidence.…”

“…Prior to the attainment of self‐confidence some acquisition of knowledge must be achieved (Hilgenkamp & Livingston, 2002; Nokelainen et al., 2007; Vidal & Moller, 2007). “No amount of self‐confidence can produce success when prerequisite knowledge and some level of skill are not present” (Schunk & Pajares, 2005, p. 94).…”

The Need for Management Information Systems on Strategic Planning Process in Libyan Health Service Organizations

“…This indicates that the implementation of a policy of information sharing can help an organization to avoid value destroying, overconfidence-driven mergers. According to Vidal and Moller (2007), granting workers access to information enables them to form an opinion about a merger"s viability. Because this opinion affects their motivation in the job, the CEO can find himself effectively restrained from pursuing mergers which are unduly based on his "gut feeling."…”