Arbeitspapier

The Role of Performance Appraisals in Motivating Employees

In many organizations, reward decisions depend on subjective performance evaluations. However, evaluating an employee's performance is often difficult. In this paper, we develop a model in which the employee is uncertain about his own performance and about the manager's ability to assess him. The manager gives an employee a performance appraisal with a view of affecting the employee's self perception, and the employee's perception of the manager's ability to assess performance. We examine how performance appraisals affect the employee's future performance. The predictions of our model are consistent with various empirical findings. These comprise (i) the observation that managers tend to give positive appraisals, (ii) the finding that on average positive appraisals motivate more than negative appraisals, and (iii) the observation that the effects of appraisals depend on the employee's perception of the manager's ability to assess performance accurately.

Language
Englisch

Bibliographic citation
Series: Tinbergen Institute Discussion Paper ; No. 12-034/1

Classification
Wirtschaft
Personnel Economics: Compensation and Compensation Methods and Their Effects
Personnel Economics: Labor Management
Asymmetric and Private Information; Mechanism Design
Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
Subject
Subjective Performance Appraisal
Credibility
Cheap Talk
Arbeitsproduktivität
Leistungsmotivation
Leistungsbeurteilung
Entscheidung bei Unsicherheit

Event
Geistige Schöpfung
(who)
Kamphorst, Jurjen J.A.
Swank, Otto H.
Event
Veröffentlichung
(who)
Tinbergen Institute
(where)
Amsterdam and Rotterdam
(when)
2012

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Arbeitspapier

Associated

  • Kamphorst, Jurjen J.A.
  • Swank, Otto H.
  • Tinbergen Institute

Time of origin

  • 2012

Other Objects (12)