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The "ratchet effect" refers to a phenomenon where workers whose compensation is based on productivity strategically restrict their output, relative to their capability, because they rationally anticipate that high levels of output will be met with increased or "ratcheted-up" expectations in the...
Persistent link: https://www.econbiz.de/10011484559
for employees and firms alike. In this study, we investigate the relation between the use of company performance … apply pooled Poisson as well as linear fixed effects estimations. We show that the use of performance appraisals is … of a works council strengthens the negative relationship between performance appraisals and presenteeism. The results are …
Persistent link: https://www.econbiz.de/10014502956
our model on a 20-year panel of pay and performance measures from a single, large firm (the Baker-Gibbs-Holmstrom data …). Incorporating performance measures yields two key innovations. First, the panel structure implies that we have repeat measures of … literature on employer learning. -- employer learning ; productivity ; performance evaluations ; personnel …
Persistent link: https://www.econbiz.de/10008689037
We investigate how bonus payments affect satisfaction and performance of managers in a large, multinational company. We … performance. The effects tend to be mitigated if information about one's relative standing towards the reference point is withheld …. -- Reference points ; incentives ; bonus payments ; job satisfaction ; job performance …
Persistent link: https://www.econbiz.de/10003941775
In less developed countries the state does not extends its legality homogenously. A share of the population suffers its absence or its illegal presence. In this article we argue that such irregular state intervention has more negative consequences that previously thought. Individuals who suffer...
Persistent link: https://www.econbiz.de/10012033462
Conventional wisdom suggests that an increase in monetary incentives should induce agents to exert higher effort. In this paper, however, we demonstrate that this may not hold in team settings. In the context of sequential team production with positive externalities between agents, incentive...
Persistent link: https://www.econbiz.de/10009230143
Do employees work harder if their job has the right mission? In a laboratory labor market experiment, we test whether subjects provide higher effort if they can choose the mission of their job. We observe that subjects do not provide higher effort than in a control treatment. Surprised by this...
Persistent link: https://www.econbiz.de/10009534884
Rank-order relative-performance evaluation, in which pay, promotion and symbolic awards depend on the rank of workers … in the distribution of performance, is ubiquitous. Whenever firms use rank-order relative-performance evaluation, workers … discuss implications of our findings for the optimal design of firms' performance feedback policies, workplace organizational …
Persistent link: https://www.econbiz.de/10011308986
We introduce the "ball-catching task", a novel computerized real effort task, which combines “real” efforts with induced material cost of effort. The central feature of the ball-catching task is that it allows researchers to manipulate the cost of effort function as well as the production...
Persistent link: https://www.econbiz.de/10010528809
-assessments can be detrimental to workers' performance. In the controlled environment of a laboratory gift-exchange experiment, our …
Persistent link: https://www.econbiz.de/10010467800