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How and when perceptions of top management bottom-line mentality inhibit supervisors’ servant leadership behavior

Journal: Journal of Management

Date: 2023

Author: Mayowa T. Babalola, Samantha L. Jordan, Shuang Ren, Chidiebere Ogbonnaya, Wayne A. Hochwarter, Gbemisola T. Soetan

Abstract:
Extending existing bottom-line mentality (BLM) perspectives, we provide a new theoretical account of how supervisors’ perceptions of top management BLM influence supervisors’ servant leadership (SL) behavior. Using role theory, we propose that these perceptions inhibit supervisors’ SL behavior by reducing their SL role conceptualization or the extent to which supervisors consider SL part of their work responsibility. Further, given that the process underlying the relationship between perceived top management BLM and supervisor SL behavior may be explained by social learning theory and human adaptive capacity perspectives, we examine the incremental validity of supervisor SL role conceptualization versus supervisor BLM and empathy as mediating mechanisms. We also propose low perspective-taking among supervisors as a boundary condition that exacerbates the negative effect of perceived top management BLM on SL role conceptualization, which then results in less servant leader behavior. Data from two multiwave field studies in China and the United Kingdom provided some support for our hypotheses. Across unique cultural contexts, our findings highlight the value of a role theory perspective in understanding perceptions of top management BLM. We discuss critical theoretical and practical implications of these findings and avenues for subsequent research.

Link: Google Scholar

Background and Context

What's Bottom-Line Mentality (BLM)?

A one-dimensional mindset focused exclusively on financial outcomes and profitability at the expense of competing priorities like employee well-being.

What's Servant Leadership (SL)?

A leadership approach that prioritizes subordinates' well-being, development, and creating value for the community while still contributing to organizational goals.

Research Methodology

Two multi-wave field studies were conducted - one in China (259 supervisor-subordinate dyads) and one in the UK (287 supervisors) - with data collected across three time points.

Top Management BLM Reduces Supervisors' Servant Leadership Behavior

Top Management Bottom Line Mentality Reduced Servant Leadership
  • When supervisors perceive top management as focused solely on profits, they reduce their own servant leadership behaviors.
  • This effect was consistent across both studies in China and the UK, showing cross-cultural validity.
  • The irony is that reducing servant leadership may ultimately harm the bottom line that management prioritizes.

Role Conceptualization Explains Why Supervisors Reduce Servant Leadership

Top Management BLM Lower SL Role Conceptualization Reduced Servant Leadership Behavior
  • Supervisors who perceive top management BLM are less likely to view servant leadership as part of their role.
  • This reduced role conceptualization mediates the relationship between perceived top management BLM and reduced servant leadership behaviors.
  • Role theory provides a strong explanation for why supervisors don't act as servant leaders in profit-focused environments.

Role Theory Provides Incremental Validity Beyond Other Explanations

Explanatory Mechanisms Role Theory: SL Role Conceptualization ✓ Social Learning: Supervisor BLM Human Adaptation: Empathy Width indicates explanatory power
  • Role theory provides additional explanation beyond traditional social learning and human adaptation theories.
  • This suggests supervisors' reduced servant leadership is more about how they define their role than simply mimicking behaviors.
  • All three mechanisms (role conceptualization, supervisor BLM, and empathy) contribute to explaining the relationship.

Cross-Cultural Consistency Shows Universal Application of Findings

Study Results Across Cultures CHINA Negative Effect of Top Management BLM on SL Role ✓ UK Negative Effect of Top Management BLM on SL Role ✓
  • The relationship between perceived top management BLM and servant leadership was consistent in both China and UK.
  • This cross-cultural validation strengthens the findings' generalizability across different national and cultural contexts.
  • Results suggest this is a universal organizational phenomenon rather than a culture-specific effect.

Contribution and Implications

  • Organizations should carefully balance bottom-line communications with messages encouraging leaders to consider people's well-being.
  • Training programs should help managers broaden their role conceptualization to include servant leadership behaviors.
  • Selecting and developing supervisors with higher perspective-taking abilities can buffer against negative effects of profit-focused cultures.
  • Ironically, an exclusive focus on profits through BLM may harm the bottom line by reducing servant leadership.
  • The study reveals the power of role theory in understanding how perceptions shape leadership behaviors.

Data Sources

  • The visualizations are based on conceptual findings from the authors' theoretical model (Figure 1 in the article).
  • The moderating effect visualization is based on the interaction plots shown in Figures 2 and 3 in the article.
  • Mediational findings visualized were drawn from Tables 3 and 4 showing indirect effects of perceived top management BLM.
  • Study 1 (China) included 259 supervisor-subordinate dyads, while Study 2 (UK) included 287 supervisors.
  • Both studies collected data at multiple time points with strong retention rates (above 80%).