Management Accounting Section Midyear Meeting

Motivating Low Performers with Input-Based Relative Performance Feedback: Evidence from a Field Experiment

• In Event: Employee Motivation

Abstract

Although it is well-established that relative performance feedback can produce motivational and performance-enhancing effects, empirical support has been mixed. One reason could be that low-performing employees do not attribute relative performance feedback to their effort but rather self-servingly to external circumstances outside their control. We conducted a field experiment testing the performance-enhancing effects of relative performance feedback based on inputs, which is relative performance feedback featuring a strong link with effort. Our findings reveal input-based relative performance feedback increases performance, particularly among low performers. These results support our theoretical predictions based on social comparison theory and social loss aversion, and they have practical implications for firms seeking to motivate low performers among their workforce.

Authors

• Rainer M. Rilke, WHU - Otto Beisheim School of Management

• Victor van Pelt, WHU-Otto Beisheim School of Management

• Sebastian Lehnen, WHU - Otto Beisheim School of Management

• Christina Guenther, WHU - Otto Beisheim School of Management