EC 9

Question 1

Leadership-Cardinaels et al. (2023)

Answer 1

Assessing the sources of employee motivation is an important step in order to design an appropriate management control system

The extrinsic incentives bias suggests that (1) we are not very good in correctly assessing the importance of intrinsic motivation and (2) the reliance on performance- based incentives is likely to be higher than what is strictly needed

Experience with the employee’s task leads to a better assessment of the employee’s motivational sources and reduces the reliance on performance-based incentives but (1) the experience needs to be long enough and (2) with exactly the same task

Question 2

Leadership – Dierynck & Vandenbogaerde (2018)

Answer 2

Behavioral integrity of senior auditors can help to mitigate the drop out in the auditing profession
- A direct effect through the development of more trust
- An indirect effect through the development of a more psychologically safe team environment

Question 3

Leadership-Nelson & Proell (2018)

Answer 3

Speaking up is valued positively during performance evaluation and this effect is stronger when the issue raised is in line with the focus of the supervisor (in contrast with other research about employee voice who documents a negative effect of employee voice on performance evaluation)

Speaking up leads to irritation of the team leader ‘in the moment’ and this effect is stronger when the issue raised leads to additional audit effort (effectiveness-oriented issue)

Inconsistency between initial reaction of the supervisor and the reaction during performance evaluation which can lead to less sharing of necessary information

PCAOB AS 10
▪ The good news is that speaking up is valued positively during performance evaluation
▪ Room for improvement as the initial reaction of speaking up is irritation and speaking up about issues not aligned with the supervisor’s focus are rewarded less during performance
evaluation