Illusions of Management Control? Effects of Self-Serving Attributions on Resource Commitments and Confidence in Management

Abstract

Past research has demonstrated that executives discussing the performance of their organizations tend to take credit for good performance and lay blame on the environment for poor performance. Two experiments were conducted to test the effects of this pattern of self-serving attributions on student subjects' confidence in management and their allocation of financial resources. Results of both experiments showed that executives' communications taking credit for good performance reduce recipients' confidence in management and resource commitments. Implications of these results for management practice and for future research are discussed.