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Social comparison in deterrence policy

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Listed:
  • Kean Siang
  • CH’NG

Abstract

Management meted out punishment to enforce rules and encourage adherence. However, the effectiveness depended on how the employees perceive and interpret the policy. This study tested the effect of reducing individual lateness in a plastic factory. Field experiment was conducted to test the behavioral reaction of employees to fines in two different conditions. In the first condition, employees paid fines to employer and in the second condition employees paid fines to co-worker. While the two conditions relied on cost and benefit to reduce misconduct, employees in condition two could also compare the difference of fines received/paid by him and his co-worker. The results showed that the attendance only improved in the second condition and not in the first condition. The result suggested the importance of social norm (e.g. distributive fairness) in the enforcement policy.

Suggested Citation

  • Kean Siang & CH’NG, 2012. "Social comparison in deterrence policy," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 2(1), pages 1-2.
    • Handle: RePEc:spt:admaec:v:2:y:2012:i:1:f:2_1_2
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    6. Prasad, Ravita D. & Bansal, R.C. & Raturi, Atul, 2017. "A review of Fiji's energy situation: Challenges and strategies as a small island developing state," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 278-292.
    7. Adnan RASHID & Naveed YOUSAF, 2015. "Linkage of financial development with electricity-growth, nexus of India and Pakistan," EuroEconomica, Danubius University of Galati, issue 2(34), pages 151-160, November.
    8. Quirapas, Mary Ann Joy Robles & Lin, Htet & Abundo, Michael Lochinvar Sim & Brahim, Sahara & Santos, Diane, 2015. "Ocean renewable energy in Southeast Asia: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 799-817.

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