Promotions and Group Identity
Speaker: Prof Maroš Servátka
Affiliation: Macquarie Business School
Location: Room 443, Michie Building (#09), St Lucia Campus
Zoom: https://uqz.zoom.us/j/82603079317
Abstract: How does group identity influence promotion decisions, and what impact does it have on the performance of organizations through promotions? We provide answers based on two experiments in which we identify the effect of group identity on the employers’ preferences regarding whom to promote, their expectations of the post-promotion effort of promoted and non-promoted workers, and the post-promotion effort itself. In both experiments, we find robust evidence that group identity biases the employers’ preferences. The observed group identity bias in the promotion decision significantly reduces efficiency. Contributions to the literature on promotions in organizations and social identity theory are discussed.
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