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What Is a Good Rank? The Effort and Performance Effects of Adding Performance Category Labels to Relative Performance Information*
Contemporary Accounting Research ( IF 4.041 ) Pub Date : 2020-10-25 , DOI: 10.1111/1911-3846.12657
Thorsten Knauer 1 , Friedrich Sommer 2 , Arnt Wöhrmann 3
Affiliation  

Prior research demonstrates that relative performance information affects effort and performance. However, little is known about the qualitative design parameters of these information systems. This study examines, via an experiment, how adding performance category labels to ranks (e.g., “good” ranking position and “poor” ranking position) affects effort and performance. Furthermore, we investigate the effort and performance effects of two design choices observed in practice: the type of performance category labels and the proportion of positively labeled ranks. We argue that performance category labels motivate greater effort and performance through competition for status, which varies with both the type of performance category labels and the proportion of positively labeled ranks. We find partial support for our hypothesis that adding performance category labels increases effort and performance. Specifically, we find positive effects if top ranks are positively labeled and bottom ranks are negatively labeled (combined labels) but not if only top ranks are labeled (positive-only labels). We also find as predicted that the positive effects on effort resulting from using combined labels, instead of positive-only labels, are stronger when the proportion of positively labeled ranks is larger. The results for performance are weaker. Our results shed new light on the usefulness of performance category labels and emphasize how firms can render relative performance information more effective.

中文翻译:

什么是好排名?将性能类别标签添加到相关性能信息的工作量和性能效果*

先前的研究表明,相对绩效信息会影响努力和绩效。然而,人们对这些信息系统的定性设计参数知之甚少。本研究通过实验检查向排名添加绩效类别标签(例如,“好”排名位置和“差”排名位置)如何影响努力和绩效。此外,我们调查了在实践中观察到的两种设计选择的努力和性能影响:性能类别标签的类型和正标签等级的比例。我们认为,绩效类别标签通过竞争地位来激发更大的努力和绩效,这随着绩效类别标签的类型和正面标签等级的比例而变化。我们发现部分支持我们的假设,即添加性能类别标签会增加工作量和性能。具体来说,我们发现如果最高等级被标记为正面而最低等级被标记为负面(组合标签),但如果仅标记最高等级(仅正面标签)则不会。我们还发现,当正面标记等级的比例较大时,使用组合标签而不是仅正面标签对努力产生的积极影响更强。性能的结果较弱。我们的结果揭示了绩效类别标签的有用性,并强调了公司如何更有效地呈现相关绩效信息。如果最高等级被标记为正面而最低等级被标记为负面(组合标签),我们会发现积极影响,但如果仅标记最高等级(仅正面标签)则不会。我们还发现,当正面标记等级的比例较大时,使用组合标签而不是仅正面标签对努力产生的积极影响更强。性能的结果较弱。我们的结果揭示了绩效类别标签的有用性,并强调了公司如何更有效地呈现相关绩效信息。如果最高等级被标记为正面而最低等级被标记为负面(组合标签),我们会发现积极影响,但如果仅标记最高等级(仅正面标签)则不会。我们还发现,当正面标记等级的比例较大时,使用组合标签而不是仅正面标签对努力产生的积极影响更强。性能的结果较弱。我们的结果揭示了绩效类别标签的有用性,并强调了公司如何更有效地呈现相关绩效信息。当正标记等级的比例较大时,强度更强。性能的结果较弱。我们的结果揭示了绩效类别标签的有用性,并强调了公司如何更有效地呈现相关绩效信息。当正标记等级的比例较大时,强度更强。性能的结果较弱。我们的结果揭示了绩效类别标签的有用性,并强调了公司如何更有效地呈现相关绩效信息。
更新日期:2020-10-25
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