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Does relative performance information lower group morale?

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  • Heursen, Lea

Abstract

Social comparisons are known to increase individual work morale, but because they could foster competition, they may also negatively impact how well co-workers work together. This paper uses a novel experiment to explore this potential tradeoff. The experiment varies whether members of a reference group receive relative performance information on a knowledge task and measures how this affects the willingness to subsequently help the productivity of others by sharing knowledge with them. The findings reveal that relative performance information spurs competition between members of a reference group when compared to the baseline with no such information. Yet, there is no evidence that relative performance information substantially lowers group morale, that is, the willingness to help the productivity of others in the group. These findings advance our understanding of how relative performance concerns among co-workers affect the way they work together.

Suggested Citation

  • Heursen, Lea, 2023. "Does relative performance information lower group morale?," Journal of Economic Behavior & Organization, Elsevier, vol. 209(C), pages 547-559.
  • Handle: RePEc:eee:jeborg:v:209:y:2023:i:c:p:547-559
    DOI: 10.1016/j.jebo.2023.03.004
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    More about this item

    Keywords

    Relative performance information; Relative performance evaluation; Rank feedback; Social incentives; Social and self-image; Knowledge-sharing; On-the-job help; Collaboration; Experiment;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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