This paper describes a structured interview process intended to support managers in developing their employees. In response to the challenges with traditional feedback and performance management practices, the feedforward interview provides an alternative discussion format where the manager is...

This study analyzes the gender gap in self- and peer evaluations based on a laboratory experiment. Five players performed a creativity task in a high-stakes winner-takes-all tournament. The treatment without validation informed all players that evaluations that they will conduct determine who...

The mandatory rotation of independent directors upon the expiration of their term is a key institutional design in China, aimed at safeguarding their independence and enhancing the effectiveness of their supervision. However, whether reappointing these directors after a "cooling-off period"...

Advances in digitalization have led employers to increasingly adopt electronic performance monitoring technologies that allow supervisors to observe, analyze and evaluate not only employees' work activities, but also their cognitive and behavioral data. This has significant implications for...

We compare evaluations of employee performance by individuals and groups of supervisors, analyzing a formal model and running a laboratory experiment. The model predicts that multi-rater evaluations are more precise than single-rater evaluations if groups rationally aggregate their signals about...

Purpose Firms have already begun integrating artificial intelligence (AI) as a replacement for conventional performance management systems owing to its technological superiority. This transition has sparked a growing interest in determining how employees perceive and respond to performance...

We compare evaluations of employee performance by individuals and groups of supervisors, analyzing a formal model and running a laboratory experiment. The model predicts that multi-rater evaluations are more precise than single-rater evaluations if groups rationally aggregate their signals about...

Teamwork has become widely embraced in recent decades; however, its adoption carries significant implications that require thorough understanding. In this paper, we study the relationship between teamwork and selection intensity. The use of teams may increase the value of investing in...

Presenteeism behavior, i.e. working despite illness, is a common phenomenon wordwide and can have severe consequences for employees and firms alike. In this study, we investigate the relation between the use of company performance appraisals and employees' presenteeism behavior. We use...

We study the impact of monitoring in a workplace context where both firms and employees are unable to perfectly observe the individual worker contribution to total output. Therefore, in our setting monitoring is not aimed at reducing information asymmetries but still affects effort and output....

We study a repeated principal-agent model with transferable utility, where the principal's evaluation of the agent's performance is subjective. Our focus is on equilibria which are robust to the addition of small privately observed shocks to the payoffs. Existing constructions of positive-effort...

This paper analyzes the role of works councils as gatekeepers safeguarding employee's interests in the adoption of monitoring practices. We first introduce a formal model predicting that (i) the introduction of monitoring practices leads to a stronger increase (or weaker decrease) in job...

Consumer behavior observations warrant a rationale for backlash against aggressive marketing instruments like assertive ads. This study examines the effects of a principal's control over an agent's behavior, employing a dynamic principal-agent model with hidden information on the agent's...

We investigate how the gender gap in confidence affects the views that evaluators (e.g., employers) hold about men and women. If evaluators fail to account for the confidence gap, it may cause overly pessimistic views about women. Alternatively, if evaluators expect and account for the...

Managers frequently monitor employees to ensure they act in accordance with organizational goals. However, prior research has widely documented employees respond negatively to managerial monitoring – the hidden cost of control. To help reconcile these empirical facts, I examine whether and how...

In teamwork settings, providing effective leadership can be challenging for team leaders due to multitasking and the difficulty in measuring and rewarding leadership input. These challenges might lead to underprovision of leadership activities, which can ultimately impede the productivity of the...

In a multi-agent setting, we study the optimal design of the monitoring and compensation scheme to uniquely implement work when a limited number of contractible messages are available. When only two messages can be used, the optimal incentive contract features two sub-teams competing for a...

We develop a dynamic principal-agent model in which conditioning future pay-for-performance on monitoring signals is a perfect substitute for contemporaneous pay-for-performance in providing incentives. Average pay-for-performance is higher when monitoring is less efficient, because the...

We investigate the influence of peer quality on subjective performance evaluation using 75,413 ratings of 130 employees from 6,908 raters in a business school setting. We find that subjective performance ratings are lower for employees with higher quality peer groups in both randomized and...

Today's working climate demands a great deal of commitment and effort from Employees, who in turn naturally expect a great deal more from their Employers. Performance Appraisal must be seen as an intrinsic part of a Manager's responsibility and not an unwelcome and time-consuming addition to...

Since the onset of the COVID-19 pandemic, the world has seen a dramatic increase in the prevalence of remote work, with far-reaching financial, economic, social, and environmental consequences. This has also resulted in an unprecedented expansion of the use of digital monitoring tools by...

Punishment institutions for curtailing free-riding in social dilemmas rely on information about individuals’ behavior collected through monitoring. We contribute to the experimental study of cooperation-enhancing institutions by examining how cooperation and efficiency in a social dilemma...

This paper analyzes the role of works councils as gatekeepers safeguarding employee's interests in the adoption of monitoring practices. We first introduce a formal model predicting that (i) the introduction of monitoring practices leads to a stronger increase (or weaker decrease) in job...

This paper examines supervisors' considerations about (not) using monitoring technologies to keep track of subordinates and their work performance. We conduct a factorial survey experiment. The hypothetical descriptions of workplace situations - so-called vignettes - create a situation where the...