Selection system orientations as an explanation for the differences between dual leaders of the same organization in their perception of organizational performance

Pawan V Bhansing,Mark A A M Leenders,Nachoem M Wijnberg

doi:10.1007/s10997-015-9330-4

Pawan V Bhansing, Mark A A M Leenders + Show 1 more

Open Access

https://doi.org/10.1007/s10997-015-9330-4

Copy DOI

Abstract

We investigate to what extent individual managers operating in a dual leadership structure have different perceptions of how well his/her organization is performing. Using selection system theory we develop hypotheses on the relationships between a leader’s selection system orientation and his/her perception of performance along multiple dimensions: market performance, expert performance and peer performance. The hypotheses are tested using dyadic data from 59 organizations in the performing arts led by two—hierarchically equivalent—managers. Our results show that dual leaders’ differences in terms of market orientation and expert orientation relate positively to perceived performance differences along the same dimensions. This relationship is not found with respect to peer selection orientation. Generally, the relationship between orientation differences and perceived performance differences is stronger if the process of interpreting signals to construct a perception of organizational performance leaves more room for equivocality and uncertainty.

Highlights

Most organizations have more than one organizational objective (Cuccurullo and Lega 2013; Denis et al 2012)
We investigate to what extent individual managers operating in a dual leadership structure have different perceptions of how well his/her organization is performing
We followed Lincoln (1984) and modeled perceived performance differences to account for the similarity/dissimilarity between the dual leaders’ selection system orientations

Summary

Introduction

Most organizations have more than one organizational objective (Cuccurullo and Lega 2013; Denis et al 2012). One possible structural solution to handle multiple strategic objectives in small and large firms is the dual executive leadership structure (i.e. co-CEO structure) (Alvarez and Svejenova 2005; Denis et al 2012; Reid and Karambayya 2009), in which the organization is led by two hierarchically equivalent executives, each of whom is responsible for one of the main objectives. When one leader thinks achieving aim x is more important than aim y, he/she will want to prioritize actions leading to x, while his/her colleague has the opposite opinion This can lead to fruitless conflict and issues with respect to politics and power (Eisenhardt and Zbaracki 1992), and useful tensions and the need to present more evidence and stronger arguments for one’s views than a single CEO would do (Amason and Sapienza 1997). As Mezias and Starbuck (2003) already noted, managers within the same organization often have a personal perception of the organization’s performance which may only be weakly related to the organization’s real performance (see : Denrell 2004; Starbuck 2004)

Objectives

Results

Conclusion