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Multitasking and the Benefits of Objective Performance Measurement - Evidence from a Field Experiment

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  • Sliwka, Dirk
  • Manthei, Kathrin

Abstract

We examine the benefits of objective performance measurement in a field experiment conducted in a retail bank. At the outset objective performance measures of pro fits in each branch were only available on the branch level and managers allocated bonuses to their employees based on subjective assessments. In a subset of the branches, managers then obtained access to individual performance measures. We find a significant positive impact of objective performance measurement on effort and financial performance. This productivity increase is mainly driven by larger branches and higher sales for non-core products which is well in line with a formal economic model on the optimal allocation of monitoring efforts under subjective evaluations in multitask environments.

Suggested Citation

  • Sliwka, Dirk & Manthei, Kathrin, 2013. "Multitasking and the Benefits of Objective Performance Measurement - Evidence from a Field Experiment," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79968, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc13:79968
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    References listed on IDEAS

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    Cited by:

    1. Breu, Maximilian, 2017. "Focusing Attention in Multiple Tasks," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168264, Verein für Socialpolitik / German Economic Association.

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    More about this item

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights

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