Using German survey data, we estimate the determinants of employee quits examining the roles of performance appraisal and performance pay. We show that employees subject to performance appraisals are less likely to quit. Yet, this influence depends upon the financial consequences that flow from...

In repeated principal-agent problems and games, more outcomes are implementable when performance signals are privately observed by a principal or mediator with commitment power than when the same signals are publicly observed and form the basis of a recursive equilibrium. We investigate the...

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"...

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 investigates performance appraisal practices (PAPs), such as performance feedback, financial reward, job promotion, performance recognition, and training and their respective influence on employee engagement and performance. Responses were gathered from 203 employees of Malaysian...

This study explores biases in performance appraisal systems within Indonesian government institutions and proposes a tailored framework to address these challenges. Identified biases include confirmation, similarity, central tendency, anchoring, status quo, and leniency/severity biases,...

Performance appraisal is a vital human resource management component for evaluating employee contributions and productivity. It plays a significant role in aligning employee performance with organizational goals by assessing achievements and recognizing efforts through tangible rewards. This...

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...

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...

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 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...

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...

We study a novel dynamic inspection game in which a regulator commits to a detection technology, and a regulated firm chooses whether to engage in harmful conduct and, if detected and sanctioned, whether to incur a redesign cost that generates a modified violation requiring renewed detection. In...

This paper examines what affects supervisors' considerations about (not) using monitoring technologies to keep track of their subordinates and their work performance. Following a cost-benefit calculus approach we hypothesize that employers weigh costs and benefits of monitoring their...

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 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...

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...

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...

The main purpose of the current study was to evaluate the effectiveness of performance appraisal system that highlights the role of performance appraisal reactions (i.e. performance appraisal fairness and performance appraisal satisfaction) in the relationship between leader-member exchange and...

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...

Purpose: Based on the feedback intervention theory, the main objective of this study was to explore the association of supervisor positive feedback with employee performance and the roles of feedback seeking and feedback orientation. Design/methodology/approach: Hierarchical regression and...

Advances in artificial intelligence and data analytics have notably expanded employers' monitoring and surveillance capabilities, facilitating the accurate observability of work effort. There is an ongoing debate among academics and policymakers about the productivity and broader welfare...