Subjective Performance Evaluations and Employee Careers
AbstractFirms commonly use supervisor ratings to evaluate employees when objective performance measures are unavailable. Supervisor ratings are subjective and data containing supervisor ratings typically stem from individual firm level data sets. For both these reasons, doubts persist on how useful such data are for evaluating theories in personnel economics and whether findings from such data generalize to the labor force at large. In this paper, we examine personnel data from six large companies and establish how subjective ratings, interpreted as ordinal rankings of employees within narrowly defined peer-groups, correlate with objective career outcomes. We find many similarities across firms in how subjective ratings correlate with earnings, base pay, bonuses, promotions, demotions, separations, quits and dismissals and cautiously propose these as empirical regularities.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6373.
Length: 42 pages
Date of creation: Feb 2012
Date of revision:
Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Find related papers by JEL classification:
- M5 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-03-08 (All new papers)
- NEP-BEC-2012-03-08 (Business Economics)
- NEP-CBE-2012-03-08 (Cognitive & Behavioural Economics)
- NEP-HRM-2012-03-08 (Human Capital & Human Resource Management)
- NEP-LAB-2012-03-08 (Labour Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Frederiksen, Anders, 2010. "Earnings Progression, Human Capital and Incentives: Theory and Evidence," IZA Discussion Papers 4863, Institute for the Study of Labor (IZA).
- Thomas J. Dohmen & Ben Kriechel & Gerard A. Pfann, 2004.
"Monkey bars and ladders: The importance of lateral and vertical job mobility in internal labor market careers,"
Journal of Population Economics,
Springer, vol. 17(2), pages 193-228, 06.
- Dohmen, Thomas & Kriechel, Ben & Pfann, Gerard A., 2003. "Monkey Bars and Ladders: The Importance of Lateral and Vertical Job Mobility in Internal Labor Market Careers," IZA Discussion Papers 867, Institute for the Study of Labor (IZA).
- Oriana Bandiera & Iwan Barankay & Imran Rasul, 2005.
"Social Preferences and the Response to Incentives: Evidence from Personnel Data,"
The Quarterly Journal of Economics, MIT Press,
MIT Press, vol. 120(3), pages 917-962, August.
- Orana Bandiera & Iwan Barankay & Imran Rasul, 2005. "Social preferences and the response to incentives: Evidence from personnel data," Natural Field Experiments 00212, The Field Experiments Website.
- DeVaro, Jed & Waldman, Michael, 2006.
"The signaling role of promotions: Further theory and empirical evidence,"
1550, University Library of Munich, Germany.
- Jed DeVaro & Michael Waldman, 2012. "The Signaling Role of Promotions: Further Theory and Empirical Evidence," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 30(1), pages 91 - 147.
- Gadi Barlevy & Derek Neal, 2009.
"Pay for percentile,"
Working Paper Series, Federal Reserve Bank of Chicago
WP-09-09, Federal Reserve Bank of Chicago.
- Flabbi, Luca & Ichino, Andrea, 1998.
"Productivity, Seniority and Wages: New Evidence from Personnel Data,"
CEPR Discussion Papers
1966, C.E.P.R. Discussion Papers.
- Flabbi, Luca & Ichino, Andrea, 2001. "Productivity, seniority and wages: new evidence from personnel data," Labour Economics, Elsevier, vol. 8(3), pages 359-387, June.
- Ichino, A. & Flabbi, L., 1998. "Productivity, Seniority and Wages. New Evidence form Personnel Data," Economics Working Papers eco98/11, European University Institute.
- Robert Gibbons & Michael Waldman, 1999. "A Theory Of Wage And Promotion Dynamics Inside Firms," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 114(4), pages 1321-1358, November.
- Medoff, James L & Abraham, Katharine G, 1980.
"Experience, Performance, and Earnings,"
The Quarterly Journal of Economics, MIT Press,
MIT Press, vol. 95(4), pages 703-36, December.
- Anders Frederiksen & Előd TakÃ¡ts, 2011. "Promotions, Dismissals, and Employee Selection: Theory and Evidence," Journal of Law, Economics and Organization, Oxford University Press, Oxford University Press, vol. 27(1), pages 159-179.
- Giorgio Topa & Elizabeth Setren & Meta Brown, 2012.
"Do Informal Referrals Lead to Better Matches? Evidence from a FirmÂ’'s Employee Referral System,"
2012 Meeting Papers
648, Society for Economic Dynamics.
- Brown, Meta & Setren, Elizabeth & Topa, Giorgio, 2014. "Do Informal Referrals Lead to Better Matches? Evidence from a Firm's Employee Referral System," IZA Discussion Papers 8175, Institute for the Study of Labor (IZA).
- Meta Brown & Elizabeth Setren & Giorgio Topa, 2012. "Do informal referrals lead to better matches? Evidence from a firm's employee referral system," Staff Reports 568, Federal Reserve Bank of New York.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).
If references are entirely missing, you can add them using this form.