Playing favorites: the influence of leaders' inner circle on group processes and performance.

Leaders frequently form stronger relationships with certain subordinates moreso than others, creating an inner circle of close friendships and an outer circle of more distant relationships. Three studies examine the effects of inner-circle membership on group dynamics and interpersonal influence in hierarchical teams. Study 1 finds that, compared to outer-circle members, inner-circle members feel safer and participate in the group discussion more, and leaders recognize them as making a greater contribution and allocate a larger bonus to them. Consequently, inner-circle members influence the groups' decisions more, and team decision quality improves when inner-circle members possess expert knowledge. Study 2 finds that leaders attended to and recalled suggestions from their inner circle more regardless of argument strength, suggesting heuristic information processing. Study 3 replicates these findings using intact teams in a large governmental agency. Implications for leadership and group decision making are discussed.