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Subjective performance appraisal and inequality aversion

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  • Christian Grund
  • Judith Przemeck

Abstract

Making use of a subjective performance appraisal system, it is a well-established fact that many supervisors tend to assess the employees too good (leniency bias) and that the appraisals hardly vary across employees of a certain supervisor (centrality bias). We explain these two biases in a simple theoretical model and discuss determinants of the size of the biases.

Suggested Citation

  • Christian Grund & Judith Przemeck, 2012. "Subjective performance appraisal and inequality aversion," Applied Economics, Taylor & Francis Journals, vol. 44(17), pages 2149-2155, June.
    • Handle: RePEc:taf:applec:44:y:2012:i:17:p:2149-2155
    DOI: 10.1080/00036846.2011.560109
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    1. Gary E. Bolton & David J. Kusterer & Johannes Mans, 2015. "Inflated reputations: Uncertainty, leniency & moral wiggle room in trader feedback systems," Cologne Graduate School Working Paper Series 06-04, Cologne Graduate School in Management, Economics and Social Sciences, revised 29 Jul 2016.
    2. Ricardo Pagan & Miguel Ángel Malo, 2021. "Performance Appraisal and Job Satisfaction for Workers Without and With Disabilities by Gender," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 153(3), pages 1011-1039, February.
    3. Thu Doan Ngoc Vuong & Loi Tan Nguyen, 2022. "The Key Strategies for Measuring Employee Performance in Companies: A Systematic Review," Sustainability, MDPI, vol. 14(21), pages 1-21, October.
    4. Lucia Marchegiani & Tommaso Reggiani & Matteo Rizzolli, 2013. "Severity vs. Leniency Bias in Performance Appraisal: Experimental evidence," BEMPS - Bozen Economics & Management Paper Series BEMPS01, Faculty of Economics and Management at the Free University of Bozen.
    5. Marchegiani, Lucia & Reggiani, Tommaso & Rizzolli, Matteo, 2016. "Loss averse agents and lenient supervisors in performance appraisal," Journal of Economic Behavior & Organization, Elsevier, vol. 131(PA), pages 183-197.
    6. Grund, Christian & Sliwka, Dirk & Titz, Krystina, 2019. "Works Councils and Performance Appraisals," IZA Discussion Papers 12670, Institute of Labor Economics (IZA).
    7. Gary E. Bolton & David J. Kusterer & Johannes Mans, 2019. "Inflated Reputations: Uncertainty, Leniency, and Moral Wiggle Room in Trader Feedback Systems," Management Science, INFORMS, vol. 65(11), pages 5371-5391, November.
    8. Angel Sharma, 2016. "Managing diversity and equality in the workplace," Cogent Business & Management, Taylor & Francis Journals, vol. 3(1), pages 1212682-121, December.
    9. Grund, Christian & Soboll, Alexandra, 2023. "Monetary Rewards, Hierarchy Level and Working Hours as Drivers of Employees' Self-Evaluations," IZA Discussion Papers 16042, Institute of Labor Economics (IZA).
    10. Golman, Russell & Bhatia, Sudeep, 2012. "Performance evaluation inflation and compression," Accounting, Organizations and Society, Elsevier, vol. 37(8), pages 534-543.
    11. Patrick Kampkötter & Dirk Sliwka, 2016. "The Complementary Use of Experiments and Field Data to Evaluate Management Practices: The Case of Subjective Performance Evaluations," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 172(2), pages 364-389, June.
    12. Funda Gazi & Tarık Atan & Mahmut Kılıç, 2022. "The Assessment of Internal Indicators on The Balanced Scorecard Measures of Sustainability," Sustainability, MDPI, vol. 14(14), pages 1-19, July.

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