Challenges of Subjectivity in Team Performance Evaluation

Arnold, Markus (2021). Challenges of Subjectivity in Team Performance Evaluation. Pacific accounting review, 33(1), pp. 20-35. Emerald 10.1108/PAR-09-2020-0146

Full text not available from this repository.

Purpose
This paper aims to analyze challenges of subjective performance evaluation (SPE) and their effects on team performance. It focuses on discretionary bonus allocations in teams and challenges driven by cognitive biases on the superior or the employee side. This is important as efficient teamwork is a relevant source of competitive advantages in firms, and firms often rely on teams to coordinate various, mutually supportive organizational activities.

Design/methodology/approach
The author analyzes results that have recently been discussed in the literature and link them to each other to create a more holistic picture about potential performance effects of SPE. Based on the analyses, the author develops avenues for future research and point out open questions.

Findings
Exploring employees’ fairness perceptions in team settings in which there is no clear standard for a “fair” team bonus allocation, the author finds that perceived fairness of team bonus allocation may decrease under SPE because employees interpret the “fairness” of the bonus allocation from an egocentric perspective. Such decrease in perceived fairness can eventually even lead to decreased team performance. Likewise, on the superior side, more complex, but highly relevant team can cause cognitive biases of superiors in assessing employee performance, thereby decreasing the potentially positive effects of SPE on team performance.

Originality/value
This paper contributes to the literature by analyzing recently discovered challenges of SPE in teams and linking them to each other to draw more general conclusions about the performance effects of SPE. For practice, my findings imply that firms may want to be cautious when evaluating the potential effects of SPE – as it is made by human beings with their cognitive biases. For research, the paper opens up new research possibilities and points out open questions.

Item Type:	Journal Article (Original Article)
Division/Institute:	03 Faculty of Business, Economics and Social Sciences > Department of Business Management > Institute for Accounting and Controlling > Managerial Accounting
UniBE Contributor:	Arnold, Markus Christopher
Subjects:	300 Social sciences, sociology & anthropology > 330 Economics
ISSN:	0114-0582
Publisher:	Emerald
Language:	English
Submitter:	Lynn Carole Selhofer
Date Deposited:	22 Mar 2021 15:04
Last Modified:	05 Dec 2022 15:49
Publisher DOI:	10.1108/PAR-09-2020-0146
URI:	https://boris.unibe.ch/id/eprint/153679