Performance targets miss target


Would performance targets, otherwise known as "work quotas," prevent your team from slacking off? Probably not, according to a recent paper by economists at the University of Bonn.

In a study of 144 Swiss students asked to a play a game that mimics the manager- employee relationship, the researchers found that the "employees" acted more selfishly when given a quota by their "bosses" than when given free rein to work as they please. When the employees were asked about their behavior afterward, many said they resented the feeling of distrust that the quota suggested, and rebelled accordingly, suggesting that managers who try to exert control by enforcing performance targets may, in fact, end up being punished with poorer performance levels.

Further Reading: Distrust -- The Hidden Cost of Control, by Armin Falk Michael Kosfeld

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