Does Relative Performance Information Improve Performance in Remote Work Arrangements?

Abstract

Firms use Relative Performance Information (RPI) to improve employee performance; however, differences in employees’ remote work environments call into question whether RPI improves performance in remote work arrangements. By manipulating RPI provision across sections, the authors examine whether RPI improves performance in remote work arrangements using a field experiment in introductory accounting courses taught during the COVID-19 pandemic. The authors found that RPI improves performance in a remote work setting, as students receiving RPI achieved higher exam scores and increased their exam scores to a greater extent than students who did not receive RPI. The authors also found that lower performers improved performance more than higher performers in response to RPI, and the effect of RPI was more pronounced in those closest to meaningful thresholds. These results inform practice on the expected benefits of implementing RPI in a remote work setting.

Citation

Daly, A.L. and Yatsenko, D. (2023), "Does Relative Performance Information Improve Performance in Remote Work Arrangements?", Akroyd, C. (Ed.) Advances in Management Accounting (Advances in Management Accounting, Vol. 35), Emerald Publishing Limited, Leeds, pp. 181-201. https://doi.org/10.1108/S1474-787120230000035008