"The Effect of Performance Information (Dis)aggregation on Subjective Performance Evaluation"
|Date||11 May 2021|
Technology has shifted the information environment in firms, increasing the frequency of performance reporting, but also facilitating data aggregation and analysis. We investigate how increased frequency (temporal disaggregation) and summary metrics (explicit aggregation) affect managers’ subjective evaluations of employee performance. In our experiment, graduate business students evaluate the performance of a hypothetical employee. We manipulate aggregation at three levels: frequent reporting (i.e., temporally disaggregated), infrequent reporting (i.e., temporally aggregated), and infrequent reporting with summary metrics (i.e. both temporally and explicitly aggregated). We also manipulate participants’ directional goal (fire vs. promote the employee). We predict and find that temporal disaggregation leads to more negative performance evaluations. We also predict and find that while participants’ directional goals affect their performance evaluations, these directional effects are reduced when there is explicit aggregation. Our results contribute to the literature on performance evaluations and provide clear implications for practitioners.
*Co-authored with Kyle M. Stubbs (Utah Valley University)
This seminar will be organised via Zoom. If you are interested in joining this seminar, please send an email to the secretariat of Amsterdam Business School.