Between-individual comparisons in performance evaluation: a perspective from prospect theory.
This article examines how between-individual comparisons influence performance evaluations in rating tasks. The authors demonstrated a systematic change in the perceived difference across ratees as a result of changing the way performance information is expressed. Study 1 found that perceived performance difference between 2 individuals was greater when their objective performance levels were presented with small numbers (e.g., absence rates of 2% vs. 5%) than when they were presented with large numbers (e.g., attendance rates of 98% vs. 95%). Extending this finding to situations involving trade-offs between multiple performance attributes across ratees, Study 2 showed that the relative preference for 1 ratee over another actually reversed when the presentation format of the performance information changed. The authors draw upon prospect theory to offer a theoretical framework describing the between-individual comparison aspect of performance evaluation.
Wong
Kin Fai Ellick
KF
Department of Management of Organizations, Hong Kong University of Science and Technology, Kowloon, Hong Kong. mnewong@ust.hk
Kwong
Jessica Y Y
JY
D000328:Adult; D000704:Analysis of Variance; D004650:Employee Performance Appraisal; D006801:Humans; D007600:Judgment; D011582:Psychological Theory