4.4 Article

Forced distribution rating systems and team collaboration

Journal

JOURNAL OF ECONOMIC BEHAVIOR & ORGANIZATION
Volume 188, Issue -, Pages 18-35

Publisher

ELSEVIER
DOI: 10.1016/j.jebo.2021.04.035

Keywords

Performance appraisal; Forced distribution; Collaboration; Knowledge sharing; Team performance

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The study shows that a forced distribution rating system (FDRS) can increase individuals' task completion speed, but decrease team task completion speed, as well as significantly reduce knowledge sharing within teams.
This study provides three real-effort experiments on how a forced distribution rating system (FDRS) influences team collaboration. In the first and the second experiment, we examine the performance implications of an FDRS in a card sequencing task (1) when working alone and (2) when working in a team. In the third experiment, we test how an FDRS affects knowledge sharing within teams. Our findings show that an FDRS increases the speed of completing the card sequencing task when working alone and decreases the speed of completing the card sequencing task when working in a team. Beyond that, we find that an FDRS also significantly decreases knowledge sharing within teams. As the FDRS was perceived as unfair in collaborative settings but not when working alone, we provide evidence on the role of perceived justice concerning the effects of an FDRS and shed light on the psychological and economic consequences of introducing an FDRS in environments where team collaboration is essential for success. (c) 2021 The Author(s). Published by Elsevier B.V. This is an open access article under the CC BY license ( http://creativecommons.org/licenses/by/4.0/ )

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