IDEAS home Printed from https://ideas.repec.org/a/ibn/ijefaa/v9y2017i9p147-156.html
   My bibliography  Save this article

Human Resource Management and Nudging: An Experimental Analysis on Goal Settings in German Companies

Author

Listed:
  • Mara Grunewald
  • Andrea Hammermann
  • Beate Placke

Abstract

We analyse how human resource managers and directors in German companies can become aware of the application of incentive systems like goalsetting and performance-based pay. In particular, we analyse to what extent a nudge can increase the interest of experts in goalsetting and performance-based pay. The nudge consists of giving information concerning the diffusion rate of goalsetting and performance-based pay, as well as the potential productivity increase. In fact, surveyed HR managers who received the information reported a higher interest in goalsetting and performance-based pay compared to the control group of HR managers without such information. Furthermore, the study showed a consistent answering behaviour between statements about intended activities with the performance management and statements about the actual implementation one year later.

Suggested Citation

  • Mara Grunewald & Andrea Hammermann & Beate Placke, 2017. "Human Resource Management and Nudging: An Experimental Analysis on Goal Settings in German Companies," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(9), pages 147-156, September.
    • Handle: RePEc:ibn:ijefaa:v:9:y:2017:i:9:p:147-156
    as

    Download full text from publisher

    File URL: http://ccsenet.org/journal/index.php/ijef/article/view/70155/38227
    Download Restriction: no
    File URL: http://ccsenet.org/journal/index.php/ijef/article/view/70155
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mathias Drehmann & Jörg Oechssler & Andreas Roider, 2005. "Herding and Contrarian Behavior in Financial Markets: An Internet Experiment," American Economic Review, American Economic Association, vol. 95(5), pages 1403-1426, December.
    2. Vischer, Thomas & Dohmen, Thomas & Falk, Armin & Huffman, David & Schupp, Jürgen & Sunde, Uwe & Wagner, Gert G., 2013. "Validating an Ultra-Short Survey Measure of Patience," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 120(2), pages 142-145.
    3. Michael Naef & Jürgen Schupp, 2009. "Measuring Trust: Experiments and Surveys in Contrast and Combination," SOEPpapers on Multidisciplinary Panel Data Research 167, DIW Berlin, The German Socio-Economic Panel (SOEP).
    4. Hammermann, Andrea & Stettes, Oliver, 2014. "Lebensphasenorientierte Personalpolitik: Theoretisches Konzept und empirische Evidenz," IW-Analysen, Institut der deutschen Wirtschaft (IW) / German Economic Institute, volume 97, number 97.
    5. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    6. Ewers, Mara & Hammermann, Andrea & Placke, Beate, 2016. "Zielvereinbarung und ergebnisorientierte Vergütung: Ergebnisorientiert Führen als Alternative zur Präsenzkultur," IW-Kurzberichte 36.2016, Institut der deutschen Wirtschaft (IW) / German Economic Institute.
    7. Lux, Thomas, 1995. "Herd Behaviour, Bubbles and Crashes," Economic Journal, Royal Economic Society, vol. 105(431), pages 881-896, July.
    8. Altmann, Steffen & Falk, Armin & Marklein, Felix, 2009. "Eingeschränkt rationales Verhalten: Evidenz und wirtschaftspolitische Implikationen," IZA Standpunkte 12, Institute of Labor Economics (IZA).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vivien Lespagnol & Juliette Rouchier, 2015. "What Is the Impact of Heterogeneous Knowledge About Fundamentals on Market Liquidity and Efficiency: An ABM Approach," Lecture Notes in Economics and Mathematical Systems, in: Frédéric Amblard & Francisco J. Miguel & Adrien Blanchet & Benoit Gaudou (ed.), Advances in Artificial Economics, edition 127, pages 105-117, Springer.
    2. Jørgen Vitting Andersen & Ioannis Vrontos & Petros Dellaportas & Serge Galam, 2014. "Communication impacting financial markets," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00982959, HAL.
    3. Thomas J. Brennan & Andrew W. Lo & Ruixun Zhang, 2018. "Variety Is the Spice of Life: Irrational Behavior as Adaptation to Stochastic Environments," Quarterly Journal of Finance (QJF), World Scientific Publishing Co. Pte. Ltd., vol. 8(03), pages 1-39, September.
    4. Jonathan E. Alevy & Michael S. Haigh & John List, 2006. "Information Cascades: Evidence from An Experiment with Financial Market Professionals," NBER Working Papers 12767, National Bureau of Economic Research, Inc.
    5. Andrey Kudryavtsev & Gil Cohen & Shlomit Hon-Snir, 2013. "“Rational” or “Intuitive”: Are Behavioral Biases Correlated Across Stock Market Investors?," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 7(2), June.
    6. Torsten Trimborn, 2018. "A Macroscopic Portfolio Model: From Rational Agents to Bounded Rationality," Papers 1805.11036, arXiv.org, revised Oct 2018.
    7. Hott, Christian, 2009. "Herding behavior in asset markets," Journal of Financial Stability, Elsevier, vol. 5(1), pages 35-56, January.
    8. Mikhail Anufriev, 2008. "Wealth-driven competition in a speculative financial market: examples with maximizing agents," Quantitative Finance, Taylor & Francis Journals, vol. 8(4), pages 363-380.
    9. Fu, Jie & Zhang, Xiaoqi & Zhou, Wenyuan & Lyu, Yang, 2024. "A continuous heterogeneous agent model for multi-asset pricing and portfolio construction under market matching friction," International Review of Economics & Finance, Elsevier, vol. 89(PA), pages 267-283.
    10. Raquel Almeida Ramos & Federico Bassi & Dany Lang, 2020. "Bet against the trend and cash in profits," CEPN Working Papers halshs-02956879, HAL.
    11. Olivier Mesly & François-Éric Racicot, 2017. "A stylized model of home buyers’ and bankers’ behaviours during the 2007-2009 US subprime mortgage crisis: a predatory perspective," Applied Economics, Taylor & Francis Journals, vol. 49(9), pages 915-928, February.
    12. Federico Bassi & Raquel Ramos & Dany Lang, 2023. "Bet against the trend and cash in profits: An agent-based model of endogenous fluctuations of exchange rates," Journal of Evolutionary Economics, Springer, vol. 33(2), pages 429-472, April.
    13. Llopis Abella,Jimena & Fruttero,Anna & Tas,Emcet Oktay & Taj,Umar, 2020. "Urban Design, Public Spaces, and Social Cohesion : Evidence from a Virtual Reality Experiment," Policy Research Working Paper Series 9407, The World Bank.
    14. Brice Corgnet & Camille Cornand & Nobuyuki Hanaki, 2021. "Emotional Markets: Competitive Arousal, Overbidding and Bubbles," Working Papers 2117, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    15. Park, A. & Sgroi, D., 2009. "Herding and Contrarian Behavior in Financial Markets: An Experimental Analysis," Cambridge Working Papers in Economics 0938, Faculty of Economics, University of Cambridge.
    16. Demirer, Rıza & Kutan, Ali M. & Zhang, Huacheng, 2014. "Do ADR investors herd?: Evidence from advanced and emerging markets," International Review of Economics & Finance, Elsevier, vol. 30(C), pages 138-148.
    17. Shi, Leilei & Wang, Binghong & Guo, Xinshuai & Li, Honggang, 2021. "A price dynamic equilibrium model with trading volume weights based on a price-volume probability wave differential equation," International Review of Financial Analysis, Elsevier, vol. 74(C).
    18. Anufriev, Mikhail & Bao, Te & Tuinstra, Jan, 2016. "Microfoundations for switching behavior in heterogeneous agent models: An experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 129(C), pages 74-99.
    19. Sergiy Gerasymchuk, 2008. "Asset return and wealth dynamics with reference dependent preferences and heterogeneous beliefs," Working Papers 160, Department of Applied Mathematics, Università Ca' Foscari Venezia.
    20. Xianfang Su & Huiming Zhu & Xinxia Yang, 2019. "Heterogeneous Causal Relationships between Spot and Futures Oil Prices: Evidence from Quantile Causality Analysis," Sustainability, MDPI, vol. 11(5), pages 1-17, March.

    More about this item

    Keywords

    behavioural economics; human resources; managers; compensation;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibn:ijefaa:v:9:y:2017:i:9:p:147-156. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.