# Motivation and emotion/Book/2024/Bottom-line mentality and motivation

* Multimedia presentation (3 min)

## Overview

* Figure 1. Employee focusing on laptop
* Scenario
* Imagine you are an employee at a large financial firm who has been employed at the company for a few years now. You have always enjoyed your job, the work culture is very positive, you enjoy a full hour long lunch time which allows you to go for a walk outside everyday, and you feel good about working hard and performing for your supervisors. One day you are told a new CEO will take over, a CEO with a reputation for strong leadership and high level performance.
* A few months in, you soon realise the CEO prioritises profits above all else, leading to staff cuts and increased workloads. You have begun working overtime without pay, skipping breaks to ensure avoiding being labeled as lazy or underperforming. The pressure quickly feels immense and the positive work culture you once enjoyed has disappeared, leaving employee morale low.
* Over time, you begin to notice that the performance quality and customer service has dropped significantly. Meanwhile, management remains focused on cost-cutting and pushing employees harder and harder. Eventually, customers express unhappiness for the lack of good service the company once had, performance has noticeably dropped, and the company's reputation suffers, ultimately revealing the unfortunate consequences in its relentless bottom-line mentality.
A bottom-line mentality (BLM) has been defined as “1-dimensional thinking that revolves around securing bottom-line outcomes to the neglect of competing priorities” (Greenbaum et al., 2012). It is often, but not always, showcased in an organisational setting, where a tunnel vision focus on achieving the bottom-line sees the disregard of competing work and life priorities (Greenbaum et al., 2023).
The term “bottom line” is typically described as the “results that count” or the “final summing up” within its particular context (Wolfe, 1988). For example, in a workplace setting, the bottom-line is usually defined in terms of performance and financial outcomes which implicate the success of the organisation or employee. However, the bottom line mentality is a concept reflecting a narrow frame of mind with a tunnel vision focus on achieving the outcomes which support an individual or organisation’s financial viability and success (Greenbaum et al., 20120). As such, the BLM has been heavily researched in this area, identifying both favourable (e.g., increased performance outcomes (Babalola et al., 2020)) and unfavourable outcomes (e.g., unethical conduct (Ge, 2018)).
* Focus questions:
* What is the relationship between bottom-line mentality and motivation?
* What are the positive and negative implications of a bottom-line mentality?
* How can a focus on the bottom-line enhance motivation in some contexts while undermining it in others?

## A bottom-line mentality in the workplace

BLM has been heavily focused in the context of organisational settings, as a company’s success and longevity are driven by its economic well-being and ability to maintain profitability (Carroll, 1991). Likewise, existing literature exploring BLM reveals an intertwined relationship between employee and organisation. Employees achieving their own bottom-line metrics (e.g., reaching X target, selling X products) benefits the organisation’s profitability, the same way the organisation achieving their bottom-line metrics (e.g., increasing shareholder value) positively affects employees (e.g., shared profits, job security) (Greenbaum et al., 2023).

### Leadership

The leader-member exchange (LMX) is an exchange process between supervisors and their subordinates, where leaders establish either high or low quality relationships with employees. This essentially leads to increased or decreased effort, loyalty, and performance (Dionne et al., 2010), which has been found to be reflective in a BLM in both parties, highlighting the importance of leadership styles in the workplace (Quade et al., 2019). Research reveals the impact of LMX, as supervisor behaviours and attitudes play a key role in shaping employee’s attitudes and behaviours, often reflecting that of their superiors (e.g., Duffy et al., 2002). Hence, leaders with a high BLM display a one-dimensional leadership approach, almost exclusively focusing on reaching organisational targets and goals. As such, employee wellbeing, psychological safety, learning, and collaboration is neglected. This style of leadership fails to provide the support necessary to encourage intrinsic motivation necessary for high performance and happy employees (Lin et al., 2022).

### Employee performance

In the context of BLM, employee performance and productivity is identified to be greatly dependent on the LMX relationship with the supervisor, which is further complicated by the employee’s individual BLM, regardless if it matches or misaligns with their supervisor, essentially reflecting in their performance. This is important as extant research shows how supervisor BLM impacts employee emotions and subsequent behaviours (Bonner et al., 2017), as well as employee BLM effects disfavourable employee behaviours (Eissa et al., 2020). Quade and colleagues[grammar?] (2019) findings supported much of the existing literature, suggesting that employees suffer when their supervisor has a high BLM, regardless if their own BLM is high or low. They found that when employees and supervisors alike had a high BLM, the negative effect on performance was not mitigated, only buffered, revealing that no degree of supervisor BLM is particularly beneficial.

## Outcomes and implications associated with a bottom-line mentality

A BLM results in a wide range of behavioural and performance outcomes, as the mentality is constructed around achieving certain goals. As such, positive and negative implications may arise, both revealing short-term and long-term consequences.

### Negative implications

Kamran and colleagues (2022) propose that a majority of unethical workplace practices, such as workplace cheating, is caused by undue performance pressure from supervisors which create a highly competitive workplace environment driven by a BLM. As such, several disfavourable BLM-related behaviours are likely to express themselves, such as increased coworker undermining (Greenbaum et al., 2012), abusive supervisions (Mawrtiz et al., 2017), and unethical behaviours in the workplace (Mesdaghinia et al., 2019). While these behaviours are highly problematic in a workplace setting, they risk reflecting negatively for individuals on a cognitive and emotional level. For example, Mitchell et al. (2018) discusses how a BLM triggers workaholism, leading to psychological entitlement. This may be equally as dangerous as performance pressure leading to anger, triggering self-protection, leading to self-serving cognitions, and then resulting in individuals engaging in unethical behaviours for self-gain. Although these behaviours are showcased in the process of bottom-line attainment, and may be deemed as “worthwhile” for company performance, this is often not the case. High BLM supervisors solely signal the importance of task performance to their subordinates, and in turn, they create low quality relationships. Therefore, the employees are likely to reciprocate by withholding what BLM supervisors desire most - performance and results (Mawritz et al., 2017). As such, this desire for bottom-line attainment ultimately inflicts harm to the organisation itself (Mitchell et al., 2018).

### Positive implications

Despite the seemingly extensive breadth of negative implications that can arise in a workplace characterised by a bottom-line attainment, extant research reveals evidence to support a BLM and suggests positive implications exist. This is likely due to individual differences among employees and supervisors, as not all subordinates working for a BLM supervisor exhibiting a high BLM demonstrate the same unethical behaviours (Farasat et al., 2020). Research has found that a focus on bottom-line attainment can in fact lead to an enhanced organisational performance and employee productivity (Friedman, 2007), increased task performance from employees (Babalola et al., 2020), elevated shareholder value (Farasat et al., 2020), and essentially, overall organisational success - the incentivising goal of a BLM (Davidsson et al., 2009). Quade et al. (2019) & Lim et al.'s (2021) research reveals a summary of positive implications derived from a BLM when the supervisor and employee share similar goals, including clarity and focus on process and outcomes, and enhanced task efficiency. However, they emphasise that these are short-term successes, and are often overshadowed by long-term negative consequences.
* Food for thought...
* Are the positive outcomes related with a BLM worth the costs of the negative implications?
* Is it truly possible for leaders to foster a positive workplace environment for employees when demonstrating a high BLM themselves?
* Are particular industries or fields at a higher risk of negative BLM consequences compared to others?

## Motivational dynamics of a bottom-line mentality

Several motivational-related theories have been considered when exploring individuals’ motives behind engaging in a BLM. It is clear that there are several influencing factors that can contribute to a BLM (e.g. Quade et al., 2019; Lin et al., 2022). Likewise, extant research suggests the interpersonal dynamic between supervisors and employees can heavily contribute to the expression and motivation of a BLM.

### Social information processing theory

Social information processing theory (SIP) (Salancik & Pfeffer, 1978) is often discussed in the context of a workplace, exploring what motivates individuals to make decisions and form attitudes in a social context. The theory suggests that individuals will shape their attitudes and behaviours based on the social information provided to them in their organisation's environment. Lin et al. (2021) use SIP as a framework in their research to explore how BLM impacts a team’s motivation. In the case of a high BLM supervisor, employees are more likely to internalise the idea that their primary goal is to avoid failure and achieve the bottom-line at all costs based on social cues emphasising profit, cognitive processing of BLM norms, and behavioural adaption. As such, teams are at risk of developing a team performance avoidance goal orientation, a shared motivational state characterised by an obsession of avoiding mistakes and achieving success, which comes with its own risks. Thus, SIP can help explain how individuals can be influenced by their social environment, which is a key enforcer and perpetuator if the BLM mindset within teams or entire organisations.

### Social exchange theory and reciprocity

Social exchange theory (Blau, 1964) explores the interaction between social relationships and structures, viewing interpersonal relations in terms of costs and benefits exchanged between parties. The theory helps to explain behaviours of individuals based on the concept of reciprocity - if one party provides something valuable, the other is expected to reciprocate. This can often result in transactional, self-interested exchanges which weaken long-term relationships, trust, and positive organisational culture. As such, a high BLM supervisor is a poor exchange partner, since they prioritise bottom-line over employee wellbeing, essentially resulting in low LMX. Quade et al. (2019) suggests this expresses itself in the form of negative reciprocity, where employees withhold effort and reduce performance. The absence of positive LMX diminishes employee’s intrinsic motivation, leading to lower task performance. While BLM focuses on maximising financial gain, individuals may overlook the long-term value of maintaining healthy, equitable social exchanges, ultimately harming the wellbeing of both individuals and organisations.

### Goal orientation theory and expectancy theory

Lin et al. (2021) attribute goal orientation theory (VandeWalle, 1997) to explain the shift from intrinsic to extrinsic motivation under a BLM supervisor. The theory recognises the difference between performance-approach goals (seeking to demonstrate competence) and performance-avoidance goals (seeking to avoid failure) (see fig. 4), which can be expressed on both an individual and group level. A supervisor high in BLM can cause their subordinates to adopt a performance avoidance goal orientation within their groups. To avoid failure, teams experience fear-based motivation, inhibiting optimal employee wellbeing and team performance in order to simply achieve the bottom-line results. This theory ties in cohesively with expectancy theory (Vroom, 1964) which attempts to explain how fear-based motivation arises between individuals, suggesting people are motivated to act based on the expectation their actions will result in desired outcomes. As such, employees are at risk of engaging in workplace behaviours aligned with avoiding punishment to satisfy a high BLM supervisor. This leads to individual’s prioritising short-term, tangible outcomes instead of long-term ethical ones, highlighting the adopted transactional mindset that emphasises completing minimum requirements (Quade et al., 2019).

#### Quiz
## The Enron Scandal

[Provide more detail]

### Background

The Enron scandal is a well-known act of company misconduct which perfectly engaged in professionally unethical acts aligning with a BLM. An accounting scandal involving Enron Corporation (see fig. 5), an energy company based in Houston, Texas, which saw key executives identifying accounting loopholes, misusing market-to-market accounting, special purpose entities, and poor financial reporting, ultimately leading to the company hiding billions of dollars in debt from failed projects and deals. The fraudulent activity was revealed after Enron filed for bankruptcy at the end of 2001, where investigations exposed Enron for using off-balance-sheet special purpose entities in order to simultaneously hide debts and inflate profits. Auditors from Arthur Andersen, another accounting firm, were also implicated for shredding documents. This essentially led to one of the largest corporate fraud cases in history.

### Bottom-line mentality at Enron Corporation

The Enron corporation set ambitious financial goals, leading to aggressive goal setting, intense pressure and expectations for employees, a picture-perfect environment for a workplace characterised by high BLM. As such, this led to a culture of fear, motivation and competition among employees, and a lack of good leadership. Employees developed a mindset of “doing whatever it takes” (Gibney, 2005) to meet the high sales goals and engaging in unethical acts (e.g., criminal accounting practices) in order to receive large bonuses (Ackman, 2002). Achieving bonuses meant achieving bottom-line attainment, essentially shifting the corporate’s culture to one heavily defined by a BLM.

### Consequences and reflection

Enron's fraudulent engagement was eventually exposed which consequently saw one of the biggest corporate bankruptcies in history (see fig. 6). It provides a perfect example of how a BLM can have extreme consequences for a company and its stakeholders. The implications were disastrous - over $60 billion in market value was erased after the company filed for bankruptcy, thousands of people lose[grammar?] jobs, pensions, and investments, top executives were convicted of fraud, and new legislation (The Sarbanes-Oxley Act, 2002) was induced to increase financial transparency and corporate accountability. These outcomes highlight the importance of balancing financial goals with ethical consideration, transparency, and long-term perspective. Regardless of the dire outcomes, companies worldwide have fallen victim to a BLM, leading to large-scale scandals. Some of these include WorldCom who engaged in accounting fraud in order to inflate earnings, eventually leading to a massive collapse, and Theranos, who misled investors about its technology, resulting in a prioritisation of growth over truth and transparency. Each case, including the Enron scandal, perfectly illustrates how a BLM can lead to failure on an extreme scale.

## Conclusion

A BLM, while not exclusive to, is most often showcased in an organisational setting. It is a mindset which is characterised by “one dimensional thinking” that focuses entirely on achieving the “bottom line” - goals, standards, or outcomes that an individual or organisation defines as success (Greenbaum et al., 2023). A BLM is often expressed by employees who have a high BLM supervisor, where their LMX relationship results in the subordinate engaging in attitudes and behaviours that align with the leader.
Although positive implications exist, such as enhanced organisational performance (Friedman, 2007) and enhanced employee performance (Babalola et al., 2020), these likely do not outweigh the potential negative consequences. Individuals risk engaging in unethical behaviours in the workplace (Mesdaghinia et al., 2019), increased coworker undermining (Greenbaum et al., 2012), and abusive supervisions (Mawrtiz et al., 2017).
Theories such as social information processing (Salancik & Pfeffer, 1978) and social exchange theory (Blau, 1964) help explain how interpersonal relationships in the workplace motivate individuals to engage in particular behaviours based on the connections they have with their coworkers and supervisors. Goal orientation theory (VandeWalle, 1997) and expectancy theory (Vroom, 1964) identify how individuals’ motivation shifts from intrinsic to extrinsic, and how these behaviours express themselves when people adopt fear-based motivation and work to achieve the bottom-line attainment.
Essentially, a BLM motivates individuals to behave in particular ways which may be beneficial short-term, but often overlook longevity and ethical considerations. Examples such as the Enron scandal illustrate this perfectly, also revealing the detrimental consequence that may arise. As such, individuals should be mindful when adopting a BLM.
* Key Takeaways
* The relationship between leader and subordinate helps shape the attitudes, beliefs, and behaviours within the workplace
* Adopting a BLM is often beneficial in the short-term, but nearly always is detrimental to the longevity of individuals and the organisation
* A BLM is nearly always expressed within the workplace, but can be applicable to other areas of life too