Effect Of Relative Performance Information Research Articles

Motivating Corporate Social Responsibility Investment and Social Impact through Relative Performance Information

ABSTRACT Firms often struggle to motivate managers’ CSR performance, and little attention has been paid to how performance evaluation can assist in this effort. We address this gap by examining the effects of relative performance information (RPI) on risky CSR investment decisions. Compared to when no RPI is provided, we find that providing RPI based on the size or impact rate of CSR investments improves performance on the ranked dimension, although effects are weaker in more risk-averse managers. We also find that providing both types of RPI separately may lead to similar performance as providing just one type, and that RPI based on a single composite measure that combines performance dimensions leads to the greatest performance along each dimension. Our study contributes to research and practice by identifying how RPI can motivate larger, more impactful CSR investments and by highlighting the role that managers’ risk preferences can play in these decisions. Data Availability: Data are available upon request.

The Effects of Relative Performance Information and Transparency on Knowledge Sharing and Productive Effort

Using a real-effort experiment, we investigate individuals’ simultaneous decisions regarding how much effort to exert and how to allocate this effort when working on a productive task (productive effort) and sharing knowledge (knowledge-sharing effort). Specifically, we examine the effects of relative performance information (RPI) and the transparency of individual knowledge-sharing decisions (transparency). We find that RPI increases productive effort but reduces knowledge-sharing effort over time. In contrast, transparency does not influence productive effort but increases knowledge-sharing effort. Furthermore, the results indicate that transparency can counteract the adverse effect of RPI on knowledge-sharing effort over time without impeding productive effort. We link our results to the psychological concepts of social comparison, impression management, and reciprocity. Implications for research and practice are discussed.

The Effects of Relative Performance Information and Transparency on Knowledge Sharing and Productive Effort

The Effects of Relative Performance Information and Transparency on Knowledge Sharing and Productive Effort

The Effects of Relative Performance Information and Training Type on Employees’ Skill Development: An Experimental Investigation

The Effects of Relative Performance Information and Training Type on Employees’ Skill Development: An Experimental Investigation

Which Peer Group to Choose? The Effects of Relative Performance Information on Employee Self-Selection and Performance

Which Peer Group to Choose? The Effects of Relative Performance Information on Employee Self-Selection and Performance

Which Peer Group to Choose? The Effects of Relative Performance Information on Employee Self-Selection and Performance

Which Peer Group to Choose? The Effects of Relative Performance Information on Employee Self-Selection and Performance

How relative performance information affects employee behavior: a systematic review of empirical research

PurposeThis paper provides an overview of the empirical findings on how relative performance information (RPI) affects employee behavior. Additionally, the review identifies future research opportunities based on a systematic analysis of the literature that incorporates findings across several disciplines and provides replicable, extensive coverage.Design/methodology/approachThis paper addresses a research gap via synthesis, drawing on the empirical literature identified and analyzed systematically. A conceptual framework is developed to integrate the studies.FindingsThe effect of RPI on performance through enhanced effort is positive; moreover, publicity and performance-dependent compensation strengthen the effect. However, RPI has also been found to increase sabotage among employees, and it can lead to less honest reporting. Future research could examine critical mediators and moderators of the RPI-performance relationship and thus complement the findings. Additionally, the effects of group-based RPI remain underrepresented. Future work could help to assess in greater detail how RPI interacts with culture and norms and whether RPI is due to personal expectations. There is also room for further research regarding the effects of RPI on cooperation, its consequences for learning, how it affects budgeting decisions and its implications for risk taking.Originality/valueThis paper presents the first literature review in the field of RPI. It provides synthesized knowledge about whether RPI is beneficial or detrimental to organizational performance.

Interaction of information and control systems: How the perception of behavior control affects the motivational effect of relative performance information

This study investigates the motivational effect of relative performance information (RPI) under working environments with or without surveillance, i.e., a behavioral control. We predict that surveillance negatively affects the performance-increasing effect of providing RPI and conduct a laboratory experiment to test this prediction. We manipulate surveillance by having participants work either with or without video surveillance. Consistent with our prediction, we find that the motivational effect of RPI diminishes if surveillance is present. Furthermore, we investigate the underlying mechanisms that drive our results. In particular, we find that surveillance increases perceived behavior control, eliciting individuals to perceive RPI more as a control mechanism. Our findings have important implications for firms using RPI and reveal the need to further investigate the effectiveness of incentive systems under behavior controls.

Task satisfaction: the effect of relative performance information versus outcome feedback

PurposeIn this empirical study, the primary aim is to examine whether the type of feedback provided, relative performance information (RPI) vs outcome, affects individual's task satisfaction in a context without financial incentives. A secondary objective is to explore whether differences in individuals' task satisfaction were associated with their performance level.Design/methodology/approachParticipants completed a mundane, effort-based task in a 1 × 2 between-subjects experimental design where the type of feedback was manipulated at two levels (RPI vs outcome).FindingsThe results revealed a positive link between providing RPI feedback to individuals and their self-reported task satisfaction compared to individuals provided with outcome feedback. We find that individuals' task satisfaction is not associated with their task performance, supporting our prediction that the level of knowledge of results affects individuals' task satisfaction.Research limitations/implicationsThe experimental task used in this study was mundane and effort intensive. Consequently, future research may be needed to examine whether the results generalize to more creative, less effort-intensive tasks. This study also utilized student participants as a proxy for employees, which is appropriate for the task, but may not generalize to organizational settings requiring specialized knowledge or task experience.Practical implicationsThe findings suggest that organizations may find providing employees with RPI to be a relatively low-cost, non-financial incentive for improving employee task satisfaction, a construct documented to reduce employee turnover and absenteeism.Originality/valueWhile prior research focuses on the effects of providing RPI on individuals' performance and effort, this study extends prior research to individuals' task satisfaction, an affective construct, illustrating that RPI is multi-dimensional. Our results also have implications for theory. We extend the feedback proposition of the widely applied Job Characteristics Model (JCM) by illustrating the type of feedback provided to individuals has task satisfaction effects beyond those associated with the mere presence of feedback.

The Effect of Relative Performance Information, Peers’ Rule-breaking, and Controls on Employees’ own Rule-breaking

This study investigates how relative performance information (RPI) and peers’ rule-breaking affect an employee’s own rule-breaking in both the absence and presence of weak formal controls. We vary the presence of RPI (absent vs. present), the level of peers’ rule-breaking (low vs. high), and the presence of weak formal controls (absent vs. present). We find that in the absence of formal controls, RPI provision increases an employee’s rule-breaking when he/she perceives that his/her peers’ rule-breaking is high but not when his/her peers’ rule-breaking is low. We attribute this finding to the increased importance of the behavior of others when RPI is present. Further, we provide evidence that the presence of weak formal controls increases rule-breaking relative to no controls. We argue that such controls alter employees’ perception of the context and induce a more calculative focus on the economic benefits than the costs, while ethical motivations are crowded out. Finally, we show that ethical considerations triggered by RPI in situations of low levels of peers’ rule-breaking become less important when weak controls are present. Overall, this study informs accountants about the effects of RPI, a crucial performance evaluation system, on the critical aspect of rule-breaking.

Volume or value? How relative performance information affects task strategy and performance

Employees face volume–value trade-offs when they perform tasks with multiple characteristics, leaving them with a choice between different strategies towards the goal of maximizing the total value of their output. Either they produce many, less valuable units of output (volume strategy); or fewer, more valuable units (value strategy). In such a situation, the provision of relative performance information (RPI) may be useful for both, motivating employees to exert high levels of effort, and helping them to find the optimal strategy relative to their individual abilities. The study investigates how useful two common forms of RPI—simple and detailed—are in improving the performance of employees who face volume–value trade-offs. In particular, it analyzes how group composition in terms of the group members’ relative abilities moderates the behavioral consequences of RPI. Results of a laboratory experiment suggest that the behavioral effects of RPI depend on group composition, indeed: While in homogeneous groups, performance is highest under simple RPI, in heterogeneous groups, performance is highest under detailed RPI.

How Relative Performance Information Affects Employee Performance: A Systematic Review of Empirical Research

This paper provides an overview of empirical findings on how Relative Performance Information (RPI) affects employee performance through various facets of behavior. Additionally, the review identifies future research opportunities. It moreover contains a systematic analysis of the literature incorporating findings across several disciplines and providing replicable, extensive coverage. The studies are integrated in a novel conceptual framework. The results indicate that the effect of RPI on performance through enhanced effort is positive. Publicity and performance-dependent compensation strengthen the effect. However, RPI has also been found to increase sabotage among employees and it can lead to less honest reporting. Future research may examine critical mediators and moderators of the RPI-performance relation and thus complement the findings. Additionally, the effects of group-based RPI are still underrepresented. Future work needs to assess in further detail how RPI interacts with culture and norms and how individuals react to RPI due to their personal expectations. Additionally, there is a need for further research regarding the effects of RPI on cooperation, its consequences for learning, on how it affects budgeting, and its implications for risk taking.

Experimental Examination of the Relationship between Relative Performance Information, Goal Setting and Performance

Manuscript type: Research paper. Research aims: This study experimentally examines the relationship between relative performance information (RPI), goal setting and performance. Hypotheses are developed based on social comparison theory, goal setting theory and relevant prior studies. Design/Methodology/Approach: This study deploys multiple sessions of experiments with 110 undergraduate students as the participants. The two manipulated variables are the provision of RPI and the level of goal difficulty. Research findings: Results from the experiment indicate that the presence of RPI is positively associated with performance, and an attainable goal is associated with high goal commitment and eventually, higher performance. More importantly, this study finds an interaction between RPI and goal commitment, where the positive effect of RPI on performance is more pronounced in a condition where individual’s goal commitment is high. Theoretical contributions/Originality: This study contributes to the accounting literature by providing empirical evidence that the positive effect of RPI on performance can be enhanced to a greater degree by individual’s high commitment towards the assigned goal. Practitioner/Policy implications: This study has a practical implication by providing empirical evidence on how RPI and goal setting can be used strategically by firms to escalate employee’s performance. Research limitations/Implications: Limitations related to the types of RPI, goal levels and experiment task applied. Future studies may address these limitations and use a different type of task that is more closely associated with the current workplace situation. Keywords: Relative Performance Information, Goal Setting, Performance, Experimental ExaminationJEL Classification: M41

The Effect of Relative Performance Information on Knowledge Sharing among Employees

This study examines the effect of relative performance information (RPI) on knowledge sharing among employees. Additionally, we investigate whether the effect of RPI on knowledge sharing differs when employees can observe each other’s knowledge-sharing decisions. Based on the concepts of social comparison, impression management, social norms, and reciprocity, we predict and find that the presence of RPI reduces knowledge sharing among employees and that the observability of individual knowledge-sharing decisions increases knowledge sharing. Concerning the interaction of RPI and observability, theory suggests that observability mitigates the negative effect of RPI on knowledge sharing. However, we find that observability reduces the negative effect of RPI on knowledge sharing only in the short term. Over time, observability leads to increased knowledge sharing when RPI is absent but not when RPI is present. Hence, mere observability cannot completely suspend the negative effect of RPI. Implications for research and practice are discussed.

Performance Effects of Relative Performance Information and Mutual Monitoring

Using an experiment in which workers pay depends only on their own performance (output), I examine the interactive effects of mutual monitoring (opportunity to observe peer effort) and relative performance information (RPI) on productivity (performance per unit of time spent). I predict and find a positive effect of mutual monitoring on productivity. I also predict and find that RPI provision moderates this effect, such that the positive effect of mutual monitoring on productivity is weaker in a setting with RPI compared to a setting without RPI. I highlight a downside of providing RPI to workers who can mutually monitor peer effort, as RPI decreases the effect of mutual monitoring on productivity. My results extend prior research on management control by identifying the substitutive effect of two common features of management control environment.

I Know Something You Don't Know: The Effect of Relative Performance Information and Individual Performance Incentives on Knowledge Sharing

ABSTRACTWhen employees share knowledge with their colleagues, the efficiency of the colleagues' performance improves, which positively affects their productivity. However, employees can engage in counterproductive behavior by choosing not to share knowledge (passive behavior) or by choosing to share inaccurate knowledge with their colleagues (active behavior). In this study, we examine how providing relative performance information (RPI) and rewarding individuals with performance-based incentives can jointly affect individuals' choices to engage in counterproductive knowledge sharing behavior. Using an experiment, we identify an interactive effect of RPI and individual incentives, such that participants engage in counterproductive knowledge sharing behavior most frequently when they receive RPI and are assigned individual performance-based incentives. We also observe that RPI increases the frequency of both active and passive counterproductive knowledge sharing behavior.

The Effect of Relative Performance Information Type on Creative Problem-Solving

Innovation requires creative problem-solving which takes a never-before noticed feature of the problem and then build a solution based on that feature. While prior research has focused primarily on the effect of relative performance information (RPI) in a setting where performance could be improved by an increase in task related effort, it remains unclear how RPI affects performance in a setting where creative problem-solving skills, not greater effort, are required to improve performance. In this study we investigate how feedback type (full or partial RPI) affect performance in a setting where task performance is improved by identifying important but obscure features in problems. We find evidence that non-top performers perform better when provided partial RPI feedback than when provided full RPI feedback, but only when the individuals reside in larger groups which afford the ability to ‘hide in the crowd’. The results differ for top performers who are not affected by the form of RPI feedback.

Evaluating the Effectiveness of Government Mandated Performance Management Systems: A Field Experiment

The public sector has attempted to improve organizational performance by borrowing elements of performance management systems (PMS) from the private sector and imposing those systems on organizations. The health care sector has provided the setting for numerous implementations of such systems aimed at improving quality. However, the effectiveness of those PMS is unclear. We analyze the effectiveness of government mandated PMS by addressing two research questions. First, does the public disclosure of relative performance information (RPI) improve firm performance? Second, is there an incremental effect of mandated pay-for-performance (P4P) plans? We study two such concurrent initiatives in health care to tease out the respective effect of RPI and P4P: the reporting and public disclosure of relative performance measures by acute hospitals (implemented nationwide by CMS, the Centers for Medicare & Medicaid Services) and the Massachusetts P4P plan (implemented by MassHealth).Examination of process measures of quality used in the United States over a six-year period demonstrates the effectiveness of RPI. Yet, the Massachusetts P4P plan does not appear to be associated with incremental performance improvement. These results are consistent with our argument that the P4P plan implemented by MassHealth might have been crowded out by the CMS reporting and disclosure plan and did not provide sufficient motivation to individual employees to improve above and beyond the informational effect of RPI. Findings from this study are especially important as CMS is revamping its payment system and focusing on value-based purchasing.

The Effect of Relative Performance Information and Other Employee Behavior on Noncompliance

The Effect of Relative Performance Information and Other Employee Behavior on Noncompliance

The Effects of Relative Performance Information on Individualss Satisfaction with the Work Itself

Organizations have a vested interest in minimizing employee turnover. Because prior empirical evidence demonstrates that task satisfaction is negatively related to employee turnover, this study examines whether relative performance information (RPI) can be used to reduce employee turnover by empirically testing the Job Characteristics Model’s feedback proposition (Hackman & Oldham, 1976) to determine whether individuals receiving RPI report higher task satisfaction than individuals not receiving RPI. In an experiment where student participants proxied as production workers in a mundane, effort-intensive task, the presence or absence of RPI was manipulated. Consistent with the prediction of the Job Characteristics Model, this study’s results demonstrate that providing RPI to individuals improves their task satisfaction, contributing to the body of literature that empirically validates theory. Further, this study’s findings should also be of interest to organizations seeking to reduce employee turnover.