Performance Ratings in Co-located and Virtual Teams: A Social Relations Analysis

Abstract

Peer ratings are common components of performance appraisals for many organizations, including companies relying on team-based work. Peer ratings may represent the best way to monitor performance in both co-located and virtual teams. However, biases may affect performance ratings in the form of perceiver tendencies (e.g., leniency) or relationship-specific effects. The current study uses the social relations model to examine the relative contribution of the ratee (i.e., target), rater (i.e., perceiver), and their unique relationship to the variance in performance ratings. This study also examines the extent to which teammates’ ratings exhibit reciprocity. The results indicate that all three factors contribute to variance in the ratings of co-located and virtual team members. However, there is only evidence of reciprocity in ratings in co-located teams.