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Recognizing the Best: The Productive and Counterproductive Effects of Relative Performance Recognition

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  • Laura W. Wang

Abstract

I use a laboratory experiment to examine the productive and counterproductive effects of providing employees nonpecuniary recognition based on measures of relative performance. I find that, on average, recognition programs increase both productive efforts (those intended to increase one's own performance) and counterproductive efforts (those intended to decrease peer performance) in a setting where it is salient to employees that they can exert both productive and counterproductive efforts. Interestingly, I also find that these effects are moderated by the Dark Triad of personalities, a group of three personality traits. My study reveals that recognition programs mainly lead individuals who score lower on the Dark Triad to increase counterproductive efforts and those who score higher on the Dark Triad to increase productive efforts. These results contribute to the literature on relative performance information by demonstrating that recognition programs can have both productive and counterproductive effects. However, whether these programs produce mainly a productive or counterproductive effect depends on important personality characteristics of the employees.L'auteure a recours à une expérience de laboratoire pour étudier les effets productifs et contre†productifs des gestes de reconnaissance non pécuniaire à l'endroit des employés, basés sur des mesures de la performance relative. Elle constate qu'en moyenne, les programmes de reconnaissance entraînent à la hausse tant les efforts productifs (ceux qui ont pour but d'augmenter sa propre performance) que les efforts contre†productifs (ceux qui ont pour but de réduire la performance des pairs), dans un contexte où la possibilité pour les employés de déployer à la fois des efforts productifs et contre†productifs est évidente. Fait intéressant, il appert également que ces effets sont atténués par les traits de personnalité de la triade noire (machiavélisme, narcissisme et psychopathie). L’étude révèle que les programmes de reconnaissance ont principalement pour conséquence d'amener les personnes dont la note est moins élevée à l’évaluation des traits de la triade noire à accroître leurs efforts contre†productifs et les personnes dont la note est plus élevée à cette même évaluation à accroître leurs efforts productifs. Ces résultats enrichissent les écrits sur l'information touchant la performance relative en démontrant que les programmes de reconnaissance peuvent avoir à la fois des effets productifs et contre†productifs. La nature productive ou contre†productive des efforts qu'engendrent principalement ces programmes dépend toutefois des caractéristiques importantes de la personnalité des employés.

Suggested Citation

  • Laura W. Wang, 2017. "Recognizing the Best: The Productive and Counterproductive Effects of Relative Performance Recognition," Contemporary Accounting Research, John Wiley & Sons, vol. 34(2), pages 966-990, June.
  • Handle: RePEc:wly:coacre:v:34:y:2017:i:2:p:966-990
    DOI: 10.1111/1911-3846.12292
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    Cited by:

    1. Wang, Laura W. & Yin, Huaxiang, 2023. "The effects of emotion-understanding ability and tournament incentives on supervisors’ propensity to acquire subordinate-type information to use in control decisions," Accounting, Organizations and Society, Elsevier, vol. 107(C).
    2. Jessen L. Hobson & Matthew T. Stern & Aaron F. Zimbelman, 2020. "The Benefit of Mean Auditors: The Influence of Social Interaction and the Dark Triad on Unjustified Auditor Trust," Contemporary Accounting Research, John Wiley & Sons, vol. 37(2), pages 1217-1247, June.
    3. Martin Holzhacker & Stephan Kramer & Michal Matějka & Nick Hoffmeister, 2019. "Relative Target Setting and Cooperation," Journal of Accounting Research, Wiley Blackwell, vol. 57(1), pages 211-239, March.
    4. Lisa-Marie Wibbeke & Maik Lachmann, 2020. "Psychology in management accounting and control research: an overview of the recent literature," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 31(3), pages 275-328, September.
    5. Black, Paul W., 2023. "The effect of peer-to-peer recognition systems on helping behavior: The influence of rewards and group affiliation," Accounting, Organizations and Society, Elsevier, vol. 109(C).
    6. Schedlinsky, Ivo & Schmidt, Maximilian & Wöhrmann, Arnt, 2020. "Interaction of information and control systems: How the perception of behavior control affects the motivational effect of relative performance information," Accounting, Organizations and Society, Elsevier, vol. 86(C).
    7. Robert M. Gillenkirch & Louis Velthuis, 2023. "Delegated risk-taking, accountability, and outcome bias," Journal of Risk and Uncertainty, Springer, vol. 67(2), pages 137-161, October.
    8. Libby, Theresa & Olczak, Wioleta, 2023. "Narcissism in the workforce: How employees respond to contract frame," Accounting, Organizations and Society, Elsevier, vol. 106(C).

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