We investigate the use of performance appraisal (PA) in German Firms. First, we derivehypotheses on individual and job … and alsoexplore the impact of PA on performance pay and further career prospects... …

mitigated by pay-for-performance incentives for managers who decide upon promotion. Second, we analyze matched employer … indeed substantially higher when managers receive performance-related pay or participate in gain sharing plans …

substantial negative impact on the probability that an employee's pay is performance contingent …

. Moreover, VR allows us to ceteris paribus control for the performance of the virtual peer (humanoid avatar), and thus to get an … the avatar's performance.Based on a first experimental phase, we match our subjects with an avatar yielding a specific … output. We observe that the subjects' performance is highest in a homogeneous tournament, i.e., when they compete against an …

We run two field experiments within a large retail chain showing that the effectiveness of performance pay crucially … hinges on prior job experience. Introducing sales-based performance pay for district- and later for store-managers, we find … performance pay decreases with experience and may even vanish in the limit. We provide empirical evidence in line with this …

, ex-post losses in shareholder value may be offset by ex-ante gains in performance through higher employee motivation …