How Internal and External Supervisors Influence Employees' Self-Serving Decisions

41 Pages Posted: 11 Mar 2015

See all articles by Melanie de Waal

Melanie de Waal

De Nederlandsche Bank - Research Department

Floor Rink

University of Groningen

Janka Stoker

University of Groningen

Date Written: March 5, 2015

Abstract

The current investigation examined the effects of internal and external supervisors (i.e., formally installed institutions that hold employees accountable for their actions) on employees’ self-serving decisions. In two studies, it was found that internal supervisors reduced self-serving decisions more strongly than external supervisors did because they hold more position power over employees. The findings further suggest that the presence of both supervisors did not provide additive advantages, as employees primarily responded to internal supervisors. We discuss the theoretical and practical implications of these findings.

Keywords: self-serving decisions, internal supervision, external supervision, power bases

JEL Classification: G30, D23, C93

Suggested Citation

de Waal, Melanie and Rink, Floor and Stoker, Janka, How Internal and External Supervisors Influence Employees' Self-Serving Decisions (March 5, 2015). De Nederlandsche Bank Working Paper No. 464, Available at SSRN: https://ssrn.com/abstract=2575562 or http://dx.doi.org/10.2139/ssrn.2575562

Melanie de Waal (Contact Author)

De Nederlandsche Bank - Research Department ( email )

P.O. Box 98
1000 AB Amsterdam
Netherlands

Floor Rink

University of Groningen ( email )

P.O. Box 800
9700 AH Groningen, Groningen 9700 AV
Netherlands

Janka Stoker

University of Groningen ( email )

P.O. Box 800
9700 AH Groningen, Groningen 9700 AV
Netherlands

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