CeDEx workshop - Thomas Lauer (University of Cologne)

Self-Reports as a Means of Performance Evaluation in Teams:
(How) Do they work?

Abstract: What is the value of self-assessments in teamwork situations for an efficient performance evaluation? We inquire the effects of self-reported effort information on supervisor’s rewarding behavior and team performance in a voluntary contribution experiment. We find the supervisor’s success to allocate incentive compatible rewards does not depend whether he or she observes true efforts or receives self-reports. When asked to give a report on their own effort, teammates frequently overstate their actual contribution. They do so less if the supervisor endogenously decides about individual rewards than when rewards are allocated exogenously. Overstated self-reports tend to have a detrimental effect on overall team performance even if the supervisors is empowered to sanction suspected exaggerations.