The Effect of Relative Performance Information on Effort Allocation and Performance in a Multi-Task Environment
Speaker
Abstract
| This study investigates experimentally how relative performance information (RPI) affects the allocation of effort across tasks and performance in a multi-task environment. We develop theory to predict that the social comparison process inherent in RPI induces both a motivation effect that results in increased effort as well as an effort distortion effect that results in distorted effort allocations across tasks. We argue that although the motivation effect will generally benefit performance, the effort distortion effect may be detrimental to performance. We design an experiment that isolates these two effects. Consistent with our predictions, we find evidence that RPI induces both motivation and effort distortion effects and that both effects are magnified when the RPI is public rather than private. Further, we demonstrate that although the motivation effect increases performance, the effort distortion effect can have a negative effect on performance. Overall, our study provides insights into the costs and benefits of providing RPI in a multi-task environment by isolating the impact that the motivation and effort distortion effects have on performance. Implications for the design of information systems are discussed. |
| Contact information: |
|
Paolo Perego |
