EFFECTS OF PERSONALITY ON INDIVIDUAL EARNINGS: LEADERSHIP ROLE OCCUPANCY AS MEDIATOR
SUMMARY:
Personality plays a major role towards work behavior and work-related outcomes. Among the 11 traits from Multidimensional Personality Questionnaire results, the researchers chose three – Social Potency, Achievement, and Stress Reaction. People high in Social Potency are forceful and decisive, persuasive and like to influence others, and take charge of and likes to be noticed in events (right column, page 2). People high in Achievement work hard, enjoy demanding projects, persist where others give up, and put work and accomplishment before many other things (right column, page 2). People high in Stress Reaction are nervous, vulnerable, sensitive, and prone to worry, and are likely to experience emotions without reason (right column, page 2). The researchers conducted longitudinal surveys drawn from Minnesota Twin Registry in testing their hypothesis. Their sample was 209 white males and the controlled variable was human capital, which was very large. After the survey, they found out that Social Potency and Achievement are positively correlated to earnings. Unfortunately, the survey failed to show significant relationship between Stress Reaction and earnings. There were 3 major limitations to this study. First, this study is only focused on white male employees due to lack of female samples with the same age. Second, their sample size (209 white males) was not ratio to their controlled variable (human capital). Third, the researchers still believe that there is a third variable that may impact both Achievement and Social Potency. They advise that further study must be conducted and the future researchers would conduct true longitudinal designs and measures. To conclude, Social Potency and Achievement positively affect earnings aside from traditional human capital variables. The researchers added that, “Personality may be treated as psychological capital because it is positively related to leadership role occupancy, which in turn leads to higher earnings”.

REACTION: I was impressed at first. But as I was reading further, I was disappointed when they conducted the survey with white males only. If I were them, I wouldn’t make “lack of female sample with comparable age” an excuse. There are many workplaces around their area, for sure. If I wanted this thesis to be a success, I would think ahead and think of the possible factors that could affect my research so I could think of a solution right away. On the other hand, I find this paper very interesting. As a reporter of this article, it really helped me realize the DOs and DON’Ts of being an effective leader. I could use the things I learned in this article when I reach college and even when I have a job already. The techniques they used in their study are very impressive. In fact, my group mates and I plan to base the techniques that we are going to use from the article.