Performance feedback: cognitive and motivational effects

International audienceThe design of employee performance feedback policies is complex for organizations because their purpose is both to signal competence and possible needs for remediation, and to motivate employees. The most important decisions are whether to conceal information or provide feedback on the employees' performance, and whether this feedback should be in terms of absolute performance or relative to co-workers' output, depending on the incentive schemes in use. The literature has identified a number of biases from the perspective of both the evaluators and those being evaluated. After highlighting the issues and questions raised by performance feedback policies, the discussion focuses on current theoretical and empirical evidence about their beneficial and detrimental effects. Directions for future research are then discussed