| The influence of positive-affect on expectancy motivation: Integrating affect and cognition into motivation theories |
| | Erez, Amir | U. of Florida | ereza@dale.cba.ufl.edu | (325) 392-3716 |
| | Isen, Alice M. | Cornell U. | AMI4@Cornell.edu | (607) 255-4687 |
| | Purdy, Christopher P. | U. of Florida | crpurdy@ix.netcom.com | (352)-392-5883 |
| | This study integrates affect and cognition into a motivation framework by
empirically investigating the impact of positive-affect on expectancy
theory. The influence of positive-affect on expectancy motivation was
explored using two studies that employed two tasks differing in complexity,
and involved two different contexts: performance and decision making.
Preliminary results show that subjects induced by the positive-affect manipulation
were more motivated to perform the tasks than controls. The process by which positive-
affect influenced this motivation to perform was explored using hierarchical linear modling.
The ruslts of this analysis suggest that positive-affect influenced motivation
through its effect on individuals' perceptions of expectancy, instrumentality
and valence. Thus, the combined results of study 1 and 2 show that positive-
affect influences motivation to perform through its influence on the cognivite
process invloved in motivation.
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| | Keywords: Affect; Cognition |
| Trading on Illusions: Unrealistic Perceptions of Control, and Trading Performance |
| | Fenton-O'Creevy, Mark | Open U. | m.p.fenton-ocreevy@open.ac.uk | +44 1628 525157 |
| | Nicholson, Nigel | London Business School | nnicholson@lbs.ac.uk | +44 (0)171 2625050 |
| | Soane, Emma | London Business School | esoane@lbs.ac.uk | +44 (0)171 262 5050 |
| | Willman, Paul | London Business School | pwillman@lbs.ac.uk | +44 (0)171 262 5050 |
| | This paper examines the impact of illusory control beliefs on the performance of traders in financial instruments. It is argued that the task and environment faced by traders is particularly conducive to the development of illusion of control. A field study of 92 traders tested hypotheses concerning the relationship between illusion of control and trader performance. Propensity to illusion of control was found to have a significant, inverse, association with performance as measured by traders’ self-ratings of profit performance, analytic ability and risk management, managers’ ratings of trader performance and by total remuneration |
| | Keywords: illusions; control; cognition |
| The Impact of Positive Illusions on Performance |
| | Cannon, Mark D. | Vanderbilt U. | mark.d.cannon@vanderbilt.edu | (615)-354-8768 |
| | This project identifies and probes a relatively unexplored tension between the research on positive
illusions, which suggests that positive illusions enhance performance, and the literature on performance
appraisal and learning, which suggests that accurate feedback is essential for enhancing performance.
This research takes the position that both positive illusions, and accurate feedback and self-perceptions,
can either help or hinder performance depending on the circumstances. This research addresses the
question: under what conditions do positive illusions facilitate performance, and under what conditions do
positive illusions hurt performance? Two studies examine the impact of positive illusions on performance
in the context of problem solving. This project overcomes some of the limitations of previous research on
positive illusions by carefully verifying and documenting the illusions that people have in this context.
Study 1 demonstrates a set of conditions under which positive illusions hurt performance. Specifically,
positive illusions can hurt performance by leading people to the false conclusion that they have achieved
their performance objectives and that they have little to gain by exerting additional effort. In this case,
participants' performance is enhanced by receiving accurate feedback that challenges their illusions.
Study 2 illustrates a set of conditions under which positive illusions facilitate performance. Positive
illusions can give people confidence that they can achieve challenging goals, and thus lead them to
maintain a high level of performance, whereas receiving accurate feedback discourages them and results
in reduced effort.
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| | Keywords: learning; feedback; motivation |
| The Effects of Overconfidence on the Performance of Product Introductions: Evidence from an Exploratory Field Study |
| | Simon, Mark | Oakland U. | Simon@oakland.edu | (248)-370-3295 |
| | Houghton, Susan M. | Georgia State U. | mgtsmh@langate.gsu.edu | (404)-651-1893 |
| | Savelli, Sonia | Oakland U. | Simon@oakland.edu | (248) 370-3295 |
| | Research suggests that managers of product introductions are especially likely to fall prey to the overconfidence bias, that is, they fail to know the limits of their knowledge and treat assumptions based upon unreliable information as facts. Some argue that overconfidence may be detrimental to a firm because it generates misperceptions. Others, however, contend that overconfidence may actually be beneficial because the manager's certainty generates commitment from others, as well as firm action that leads to learning. Yet, to date, no empirical research has explored these issues in the context of introducing products.
We, therefore, conducted a longitudinal study of the product introductions of 60 small, young firms in the computer industry. Specifically, we developed competing hypotheses about the relationship between a manager's overconfidence and a product's economic performance using the assumptions underlying two different theoretical perspectives. The planning perspective suggested that overconfidence would decrease the product's success and increase problems related to demand, delays, and technology. In contrast, the enactment perspective led to hypotheses in the opposite directions. Results supported the enactment perspective in that managers with greater overconfidence had greater success and encountered less difficulty during their introductions. Implications of the findings are discussed and future research directions are offered. |
| | Keywords: Overconfidence; Planning; Product |