In Search of Organizational Alignment Using a 360-Degree Assessment System: A Field Experiment in a Retail Chain

Carolyn Deller (), Susanna Gallani () and Tatiana Sandino ()
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Carolyn Deller: University of Pennsylvania
Susanna Gallani: Harvard Business School, Accounting and Management Unit
Tatiana Sandino: Harvard Business School, Accounting and Management Unit

No 18-069, Harvard Business School Working Papers from Harvard Business School

Abstract: We analyze the effects of a field experiment introducing a values-based 360-degree assessment system at an Indian retailer. The director intended to encourage store managers, rewarded based on high-powered incentives linked to financial results, to behave according to the organization's long term values and goals. Surprisingly, we find that the intervention drove even higher effort on performance associated with pre-existing monetary incentives, but, on average, did not affect nonfinancial performance dimensions linked to long term goals. We integrate our statistical results with qualitative information from interviews, which highlighted the importance of reinforcing the organizational goals' message and providing support for their attainment. We also show more favorable effects for stores with tenured managers and higher availability of inventory (a proxy for support). Our findings highlight important factors for successful implementations of 360-degree systems as complements to explicit incentives. Finally, we share some lessons learned with respect to performing field experiments.

Keywords: 360-degree assessments; values; implicit incentives; field experiment; performance evaluation (search for similar items in EconPapers)
Pages: 61 pages
Date: 2017-12, Revised 2018-12
New Economics Papers: this item is included in nep-hrm
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