Hiring and Escalation Bias in Subjective Performance Evaluations: A Laboratory Experiment
In many organizations the measurement of job performance can not rely on easily quantifiable information. In such cases, supervising managers often use subjective performance evaluations. We use laboratory experiments to study whether the way employees are assigned to a manager affects managers’ and co-employees’ subjective evaluations of employees. Employees can either be hired by the manager, explicitly not hired by him and nevertheless assigned to him or exogenously assigned to him. We present data from three different treatments. For all three we find escalation bias both by managers and by co-employees. Managers exhibit a positive bias towards those employees they have hired or a negative one towards those they have explicitly not hired. Managers’ and employees’ biases are connected. Exogenously assigned employees are biased in favor of employees hired by the manager and against those explicitly not hired.
References listed on IDEAS
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.:
- Canice Prendergast, 1999. "The Provision of Incentives in Firms," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 7-63, March.
- Berger, Johannes & Harbring, Christine & Sliwka, Dirk, 2010.
"Performance Appraisals and the Impact of Forced Distribution: An Experimental Investigation,"
IZA Discussion Papers
5020, Institute for the Study of Labor (IZA).
- 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.
- Falk, Armin & Heckman, James J, 2010.
"Lab Experiments are a Major Source of Knowledge in the Social Sciences,"
CEPR Discussion Papers
7620, C.E.P.R. Discussion Papers.
- Armin Falk & James J. Heckman, 2009. "Lab Experiments are a Major Source of Knowledge in the Social Sciences," Working Papers 200935, Geary Institute, University College Dublin.
- Armin Falk & James J. Heckman, 2009. "Lab Experiments are a Major Source of Knowledge in the Social Sciences," CESifo Working Paper Series 2894, CESifo Group Munich.
- Falk, Armin & Heckman, James J., 2009. "Lab Experiments Are a Major Source of Knowledge in the Social Sciences," IZA Discussion Papers 4540, Institute for the Study of Labor (IZA).
- Christine Harbring & Bernd Irlenbusch, 2011. "Sabotage in Tournaments: Evidence from a Laboratory Experiment," Management Science, INFORMS, vol. 57(4), pages 611-627, April.
- Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer, vol. 10(2), pages 171-178, June.
- Brandts, Jordi & Solà, Carles, 2010.
"Personal relations and their effect on behavior in an organizational setting: An experimental study,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 73(2), pages 246-253, February.
- Jordi Brandts & Carles Solà, 2006. "Personal Relations and their Effect on Behavior in an Organizational Setting: An Experimental Study," UFAE and IAE Working Papers 692.07, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Prendergast, Canice & Topel, Robert, 1993. "Discretion and bias in performance evaluation," European Economic Review, Elsevier, vol. 37(2-3), pages 355-365, April.
- Jeffrey Carpenter & Peter Hans Matthews & John Schirm, 2010.
"Tournaments and Office Politics: Evidence from a Real Effort Experiment,"
American Economic Review,
American Economic Association, vol. 100(1), pages 504-17, March.
- Jeffrey Carpenter & Peter Hans Matthews & John Schirm, 2007. "TOURNAMENTS AND OFFICE POLITICS: Evidence from a real effort experiment," Middlebury College Working Paper Series 0709, Middlebury College, Department of Economics.
- Carpenter, Jeffrey P. & Matthews, Peter Hans & Schirm, John, 2007. "Tournaments and Office Politics: Evidence from a Real Effort Experiment," IZA Discussion Papers 2972, Institute for the Study of Labor (IZA).
- Canice Prendergast & Robert H. Topel, 1993.
"Favoritism in Organizations,"
NBER Working Papers
4427, National Bureau of Economic Research, Inc.
- George A. Akerlof, 1997. "Social Distance and Social Decisions," Econometrica, Econometric Society, vol. 65(5), pages 1005-1028, September.
- Mark Granovetter, 2005. "The Impact of Social Structure on Economic Outcomes," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 33-50, Winter.
- Bikhchandani, Sushil & Hirshleifer, David & Welch, Ivo, 1992.
"A Theory of Fads, Fashion, Custom, and Cultural Change in Informational Cascades,"
Journal of Political Economy,
University of Chicago Press, vol. 100(5), pages 992-1026, October.
- Sushil Bikhchandani & David Hirshleifer & Ivo Welch, 2010. "A theory of Fads, Fashion, Custom and cultural change as informational Cascades," Levine's Working Paper Archive 1193, David K. Levine.
- Daniel C. Feiler & Jordan D. Tong & Richard P. Larrick, 2013. "Biased Judgment in Censored Environments," Management Science, INFORMS, vol. 59(3), pages 573-591, January.
- Klimoski, Richard & Inks, Lawrence, 1990. "Accountability forces in performance appraisal," Organizational Behavior and Human Decision Processes, Elsevier, vol. 45(2), pages 194-208, April.
- Abhijit V. Banerjee, 1992. "A Simple Model of Herd Behavior," The Quarterly Journal of Economics, Oxford University Press, vol. 107(3), pages 797-817.
When requesting a correction, please mention this item's handle: RePEc:beb:wpbels:201402. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Fatma Aslan)
If references are entirely missing, you can add them using this form.