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Subjective performance appraisal and inequality aversion

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Author Info

  • Christian Grund
  • Judith Przemeck

Abstract

Making use of a subjective performance appraisal system, it is a well-established fact that many supervisors tend to assess the employees too good (leniency bias) and that the appraisals hardly vary across employees of a certain supervisor (centrality bias). We explain these two biases in a simple theoretical model and discuss determinants of the size of the biases.

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File URL: http://hdl.handle.net/10.1080/00036846.2011.560109
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 44 (2012)
Issue (Month): 17 (June)
Pages: 2149-2155

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Handle: RePEc:taf:applec:44:y:2012:i:17:p:2149-2155

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Cited by:
  1. Golman, Russell & Bhatia, Sudeep, 2012. "Performance evaluation inflation and compression," Accounting, Organizations and Society, Elsevier, vol. 37(8), pages 534-543.
  2. Lucia Marchegiani & Tommaso Reggiani & Matteo Rizzolli, 2013. "Severity vs. Leniency Bias in Performance Appraisal: Experimental evidence," BEMPS - Bozen Economics & Management Paper Series BEMPS01, School of Economics and Management at the Free University of Bozen.

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