Performance Appraisals and the Impact of Forced Distribution: An Experimental Investigation
AbstractA real effort experiment is investigated in which supervisors have to rate the performance of individual workers who in turn receive a bonus payment based on these ratings. We compare a baseline treatment in which supervisors were not restricted in their rating behavior to a forced distribution system in which they had to assign differentiated grades. We find that productivity was significantly higher under a forced distribution by about 8%. But also in the absence of forced distribution, deliberate differentiation positively affected output in subsequent work periods.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5020.
Length: 46 pages
Date of creation: Jun 2010
Date of revision:
Publication status: published in: Management Science, 2013, 59 (1), 54-68
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Other versions of this item:
- Johannes Berger & Christine Harbring & Dirk Sliwka, 2013. "Performance Appraisals and the Impact of Forced Distribution--An Experimental Investigation," Management Science, INFORMS, vol. 59(1), pages 54-68, June.
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
- M52 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
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- Agne Kajackaite, 2014. "If I close my eyes, nobody will get hurt. The effect of ignorance on performance in a real effort experiment," Cologne Graduate School Working Paper Series 05-03, Cologne Graduate School in Management, Economics and Social Sciences.
- Dohmen, Thomas, 2014. "Behavioural Labour Economics: Advances and Future Directions," IZA Discussion Papers 8263, Institute for the Study of Labor (IZA).
- Kampkötter, Patrick & Sliwka, Dirk, 2011. "Differentiation and Performance: An Empirical Investigation on the Incentive Effects of Bonus Plans," IZA Discussion Papers 6070, Institute for the Study of Labor (IZA).
- Sliwka, Dirk & Manthei, Kathrin, 2013. "Multitasking and the Benefits of Objective Performance Measurement - Evidence from a Field Experiment," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79968, Verein für Socialpolitik / German Economic Association.
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