The Provision of Relative Performance Feedback: An Analysis of Performance and Satisfaction

34 Pages Posted: 20 Jan 2016

See all articles by Ghazala Azmat

Ghazala Azmat

Sciences Po

Nagore Iriberri

University of the Basque Country

Date Written: Spring 2016

Abstract

This paper studies the effect of providing relative performance feedback on individuals’ performance, under two incentive schemes. In a laboratory setup, agents perform a real‐effort task. We show that relative performance feedback increases performance when performance is related to pay (piece‐rate) but has no effect on performance when pay is independent of performance (flat‐rate). These effects are independent of the agent's relative position. Subjects are also asked to rate their satisfaction during the experiment. We find that under flat‐rate, feedback has no effect on agents’ satisfaction, while under piece‐rate, feedback about relative position affects satisfaction.

Suggested Citation

Azmat, Ghazala and Iriberri, Nagore, The Provision of Relative Performance Feedback: An Analysis of Performance and Satisfaction (Spring 2016). Journal of Economics & Management Strategy, Vol. 25, Issue 1, pp. 77-110, 2016, Available at SSRN: https://ssrn.com/abstract=2718669 or http://dx.doi.org/10.1111/jems.12151

Ghazala Azmat (Contact Author)

Sciences Po ( email )

27 rue Saint-Guillaume
Paris Cedex 07, 75337
France

Nagore Iriberri

University of the Basque Country ( email )

Barrio Sarriena s/n
Leioa, Bizkaia 48940
Spain

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