Previous research projects

Objective metrics or subjective performance evaluation? Trading off controllability for congruence

Researchers:

Kachelmeier, Steven J.; Mohnen, Alwine; Ostermaier, Andreas

Outline:

Incentive contracts are preferably based on objective metrics. However, performance often cannot be measured objectively. Should the principal then contract on objective metrics, which measure performance imperfectly, or resort to subjective performance evaluation? The choice of objective over subjective metrics trades off congruence for controllability. The project explores this trade-off. The results potentially explain the parallel use of objective metrics and subjective performance evaluation in firms.

Performance evaluation and creativity: Balancing novelty and usefulness

Researchers:	Ostermaier, Andreas; Uhl, Matthias
Outline:	The project examines the effect of performance evaluation on the tension between novelty and usefulness, which arises in creative tasks. Usefulness is important for ideas to be implemented and turn into innovation. The findings of the project will hopefully help firms design incentives to motivate the creation of ideas that are both novel and useful.