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Peer pressure and manager pressure in organisations

Author

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  • Battiston, Diego Ezequiel
  • Blanes I Vidal, Jordi
  • Kirchmaier, Tom
  • Szemeredi, Katalin

Abstract

We study the interaction between horizontal (peer) and vertical (manager) social factors in workers' motivation. In our setting, individuals work using open-plan desks. Using a natural experiment, we identify a sharp increase in workers' productivity following the occupation of adjacent desks. We link this peer pressure effect to two key aspects of the worker-manager relation. First, we find stronger peer pressure when managers monitor workers less. Second, we find stronger peer pressure among workers performance-evaluated by the same manager. In a set of counterfactual exercises, we illustrate how organisations could take advantage of these interdependencies to increase worker productivity.

Suggested Citation

  • Battiston, Diego Ezequiel & Blanes I Vidal, Jordi & Kirchmaier, Tom & Szemeredi, Katalin, 2023. "Peer pressure and manager pressure in organisations," LSE Research Online Documents on Economics 121319, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:121319
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    File URL: http://eprints.lse.ac.uk/121319/
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    References listed on IDEAS

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    More about this item

    Keywords

    social incentives; teamwork; peer pressure; monitoring; managers; peer effects; organisations; productivity;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management

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