Subjective evaluation of performance through individual evaluation interview : theory and empirical evidence from France

URL des Cahiers : http://mse.univ-paris1.fr/MSEFramCahier2006.htmCahiers de la Maison des Sciences Economiques 2006.61 - ISSN 1624-0340Individual evaluation interviews have become a widespread practice. 52 % of employees in French manufacturing firms over 50 employees declared an annual individual evaluation interview in 1997. However whereas the problem of constructing an optimal contract with subjective evaluation (which is defined simply as a signal in most papers) receives a large attention, firm-level evaluation interviews are strikingly left aside from economic analysis. This paper aims at identifying the underlying logics of individual evaluation interviews in the case of individual production and of team production. Especially, it aims at analyzing the relationships between effort, wage distribution within the firms and individual evaluation interviews. From a theoretical standpoint, three papers by Alchian and Demsetz (1972), by Che and Yoo (2001) and by MacLeod (2003) are closely related to our paper and from an empirical point of view, a recent paper by Engellandt and Riphahn (2004). We test in our paper four predictions. First, evaluation interviews have a positive impact on effort. Second, evaluation interviews increase the effort through twoeffects : the classical incentive effect and also a high selection effect. Third, evaluation interviews are associated with positive beliefs regarding wage and work recognition. Finally, evaluation interviews are associated with monetary gains for employees. These predictions are tested using a matched employer/employee survey on Computerization and Organizational Change (survey «Changements Organisationnels et Informatisation», C.O.I.), conducted in 1997 over a sample of about 4 000 firms and 9 000 employees.Les entretiens individuels d'évaluation sont aujourd'hui une pratique souvent utilisée par les entreprises. Cet article cherche à identifier la logique sous-jacente des entretiens individuels d'évaluation dans le cas de la production individuelle et dans celui de la production collective. Plus particulièrement, l'article cherche à analyser les relations entre l'effort, les salaires dans les firmes et les entretiens individuels d'évaluation. D'un point de vue théorique, trois articles d'Alchian et Demsetz (1972), de Che et Yoo (2001) et de McLeod (2003), sont très proches du notre, et d'un point de vue empirique un article récent d'Engellant et Riphahn (2004). Nous testons dans notre article quatre prédictions en mobilisant une enquête sur les Changements Organisationnels et l'Informatisation en 1997 (enquête COI 1997)