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Hiring and Escalation Bias in Subjective Performance Evaluations: A Laboratory Experiment

Author

Listed:
  • Andrej Angelovski

    (Department of Business Economics,Universitat Autonoma de Barcelona)

  • Jordi Brandts

    (Department of Business Economics,Universitat Autonoma de Barcelona
    Institutd'AnalisiEconomica(CSIC)
    Barcelona GSE)

  • Carles Sola

    (Department of Business Economics,Universitat Autonoma de Barcelona)

Abstract

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.

Suggested Citation

  • Andrej Angelovski & Jordi Brandts & Carles Sola, 2014. "Hiring and Escalation Bias in Subjective Performance Evaluations: A Laboratory Experiment," BELIS Working Papers 2014-02, BELIS, Istanbul Bilgi University.
  • Handle: RePEc:beb:wpbels:201402
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    References listed on IDEAS

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    Cited by:

    1. Lenten, Liam J.A. & Crosby, Paul & McKenzie, Jordi, 2019. "Sentiment and bias in performance evaluation by impartial arbitrators," Economic Modelling, Elsevier, vol. 76(C), pages 128-134.
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    3. Fogoroş Teodora Elena & Maftei Mihaela & Biţan Gabriela Elena & Kurth Bastian L., 2020. "Study on methods for evaluating employees performance in the context of digitization," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 14(1), pages 878-892, July.
    4. Loberg, Linda & Nüesch, Stephan & Foege, Johann Nils, 2021. "Forced distribution rating systems and team collaboration," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 18-35.

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    More about this item

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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