The Role of Social Bonds in Understanding the Pre- and Post-Recognition Effects of Recognition Visibility.

• In Event: Management Control System Design Effects

Abstract

I use a laboratory experiment to examine the pre- and post-recognition effects of providing high performing employees non-monetary recognition, the recognition of high performing employees via pure acknowledgment. Specifically, I investigate how recognition visibility (i.e., the extent to which recognition is publicized) interacts with the strength of the social bonds between the employees and those that observe recognition (“social bonds”) to influence employee effort to achieve recognition and both recognized and non-recognized employees’ response to recognition. I find that managers who choose less visible (e.g., private) recognition will receive similar effort levels from their employees’ regardless of the social bonds; however, if managers choose to use more visible (e.g., public) recognition, they will receive more effort from their employees if they provide recognition in a setting in which the employees have stronger (versus weaker) social bonds. Further, I find that there are post-recognition benefits and costs to using more visible recognition. Specifically, when less visible recognition is provided, both recognized and non-recognized employees’ effort levels do not differ based on the strength of social bonds. However, when more visible recognition is used, compared to those with weaker social bonds, recognized (non-recognized) employees provide more (less) effort when their social bonds are stronger. These results contribute to the debate on the effects of recognition visibility, reconciling prior literature that provides inconsistent evidence regarding the effort inducing effects (or lack thereof) associated with the use of more visible recognition. Additionally, these results inform managers using recognition programs, specifically, when managers decide how to recognize employees (i.e., using more or less visible recognition), they also need to consider where to recognize employees (i.e., in environments where the employee has stronger or weaker social bonds with the observers).

Author

• Joe Burke, University of Illinois-Urbana-Champaign