RT Journal Article
T1 Performance feedback and productivity: Evidence from a field experiment
A1 Awaysheh, Amrou
A1 Bonet, Rocio
A1 Ortega, Jaime
AB We theorize that employees use the performance feedback they receive to reassess their beliefs about the marginal benefit of their effort, which may lead them to increase or reduce their effort. To test our model, we conduct a field experiment at the distribution center of a Fortune 500 firm where employees receive individual performance pay, and we study two types of feedback, individual and relative. The results show that employees react to feedback content in a way that is consistent with the model: They increase their effort if the information provided implies that the marginal benefit of increasing effort is high and decrease it if they learn that it is low. Moreover, performance feedback has a greater impact on the lower quantiles of the distribution of productivity.
PB Wiley
SN 1059-1478
YR 2023
FD 2023-01-01
LK https://hdl.handle.net/10016/38437
UL https://hdl.handle.net/10016/38437
LA eng
NO We thank Anil Arya, the senior editor, and two anonymous reviewers for their comments and suggestions. Earlier versions of this paper were presented at the Strategic Management Society annual meeting (Berlin, September 2016), Madrid Work and Organizations Workshop (May 2017), and Wharton People and Organizations conference (Philadelphia, PA, October 2017), and at seminars at CUNEF and Indiana University. We are grateful to participants at these conferences and to Benjamin Barber for their comments and suggestions. All remaining errors are our own. Jaime Ortega acknowledges partial financial support from grant PGC2018-098767-B-C21 (MCI/AEI/FEDER, UE) and from the Madrid Government (Comunidad de Madrid-Spain) under the Multiannual Agreement with UC3M in the line of Excellence of University Professors (EPUC3M12), and in the context of the V PRICIT (Regional Programme of Research and Technological Innovation). Rocio Bonet acknowledges partial financial support from the Spanish Ministry of Economy and Competitiveness (MCIU), State Research Agency (AEI), and European Regional Development Fund (ERDF) Grant No. PGC2018-098767-B-C22.
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RD 17 jul. 2024