We compare evaluations of employee performance by individuals and groups of supervisors, analyzing a formal model and …-rater evaluations if groups rationally aggregate their signals about employee performance. Our controlled laboratory experiment confirms … performance. …

We examine the benefits of objective performance measurement in a field experiment conducted in a retail bank. At the … outset objective performance measures of pro fits in each branch were only available on the branch level and managers … to individual performance measures. We find a significant positive impact of objective performance measurement on effort …

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

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

We study the incentive effects of grating supervisors access to objective performance information when agents work on … objective measures but assess performance subjectively by gathering information. This incentive loss is more pronounced when the … experiment conducted in a bank. In the treatment group managers obtained access to objective performance measures which raised …

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

performance measurement is costly. If social norms matter such that some agents' reliability is influenced by their beliefs on the …

Economists have for a long time argued that performance-based bonuses raise performance. Indeed, many firms use bonuses … tied to individual performance to motivate their employees. However, there has been heated debate among human resources … professionals recently, and some firms have moved away from individual performance bonuses toward fixed wages only or collective …