The Effect of Relative Performance Evaluations on Employee Judgments of and Behavioral Responses to Managerial Monitoring

ABSTRACT We examine whether and how a widely established finding—employees respond negatively to managerial monitoring—generalizes to different performance-evaluation systems. We predict that relative performance evaluations (RPEs), a common evaluation feature in multiagent settings, attenuate employees’ negative responses to managerial monitoring. The results of our experiment support our theory. Consistent with prior literature, we find that without RPE, employees respond significantly more negatively to managerial monitoring compared to no monitoring. However, we find that the effect of managerial monitoring on employee responses is moderated in the presence of RPE—employees respond similarly regardless of whether their manager implements a monitoring control. We provide robust analyses to support our theory-derived mechanisms, demonstrating that our results are driven by employees’ fairness perceptions of managers’ monitoring decisions. Collectively, this study aids in the understanding of how and under what circumstances managerial monitoring may be more or less beneficial. Data Availability: Available upon request. JEL Classifications: C90; D91; J31; M40.

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Publication Details

Journal
The Accounting Review
Published
2025-10-09
DOI
https://doi.org/10.2308/tar-2023-0680
Primary Topic
Job Satisfaction and Organizational Behavior
Type
article
Field-Weighted Citation Impact
0.00

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article

The Effect of Relative Performance Evaluations on Employee Judgments of and Behavioral Responses to Managerial Monitoring

Jordan Samet, Joseph Burke
The Accounting Review
Job Satisfaction and Organizational Behavior
article

The Effect of Relative Performance Evaluations on Employee Judgments of and Behavioral Responses to Managerial Monitoring

Jordan Samet, Joseph Burke
article en

Abstract

ABSTRACT We examine whether and how a widely established finding—employees respond negatively to managerial monitoring—generalizes to different performance-evaluation systems. We predict that relative performance evaluations (RPEs), a common evaluation feature in multiagent settings, attenuate employees’ negative responses to managerial monitoring. The results of our experiment support our theory. Consistent with prior literature, we find that without RPE, employees respond significantly more negatively to managerial monitoring compared to no monitoring. However, we find that the effect of managerial monitoring on employee responses is moderated in the presence of RPE—employees respond similarly regardless of whether their manager implements a monitoring control. We provide robust analyses to support our theory-derived mechanisms, demonstrating that our results are driven by employees’ fairness perceptions of managers’ monitoring decisions. Collectively, this study aids in the understanding of how and under what circumstances managerial monitoring may be more or less beneficial. Data Availability: Available upon request. JEL Classifications: C90; D91; J31; M40.

The Accounting ReviewVol. 101(1)
Indiana University Bloomington (US), Colorado State University (US)
Georgia Institute of Technology, Emory University, University of Washington, Tulane University, University of Pittsburgh, University of Alberta, Universiteit van Amsterdam, University of Illinois at Urbana-Champaign
Openalex Percentile: Top 67%
Job Satisfaction and Organizational Behavior
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The Effect of Relative Performance Evaluations on Employee Judgments of and Behavioral Responses to Managerial Monitoring — Jordan Samet, Joseph Burke · The Accounting Review (2025) | TGRS Research Map | TGRS