Topic: Feedback, Decision Making
Publication: Organizational Behavior and Human Decision Processes
Article:
Use of
absolute and comparative performance feedback in absolute and comparative
judgments and decisions.
Blogger: James Grand
Few people missed Michael Phelps’
performance during this past Summer Olympics—8 gold medals in 8 races, setting
7 world records in the process (the one race he didn’t get the world record? He
only set the new Olympic record…slacker).
But when Phelps went into these
competitions, his self-proclaimed goal was to win gold medals, not set new
records. Examining these standards
of performance more closely, we see a great example of what psychologists refer
to as comparative versus absolute performance. Winning a gold medal (or being told where your performance
ranks among your co-workers) is comparative in nature, as the outcome is
measured relative to how one ranks among the field of others regardless of
“actual” performance. Setting a
record (or obtaining a specific score on a performance evaluation), on the
other hand, places the outcome on an absolute scale; as it provides feedback in
relation to how one performs relative to an objective standard regardless of
how one ranks among others.
However, an important question arises
from the example above: which accomplishments do individuals see as the better
indicator of performance?
These are all questions answered by
renowned psychologist Leon Festinger’s (1954) social comparison theory and
empirically tested in a recent article published in Organizational Behavior and Human Decision Processes (Moore &
Klein, 2008, Vol. 107). In short,
Festinger stated that although individuals compare themselves to others to make
sense of their abilities and performance, if
given information about both they prefer and will most readily use absolute
standards. The experimental study
by Moore and Klein largely supported this claim, finding that the effect of
feedback in relation to absolute performance had greater influence on people’s
future performance-related behaviors, confidence in future performance, and the
positive experience of their performance outcomes than comparative feedback.
For businesses, this suggests that
although workers may be interested in knowing their standing among their peers,
providing them with information regarding their performance compared to
objective metrics may be more beneficial from an individual and organizational
perspective.
For Phelps, he should be thinking 2012
will be a breeze.
Moore,
D. A., & Klein, W. M. P. (2008). Use of absolute and comparative
performance feedback in absolute and comparative judgments and decisions.
Organizational Behavior and Human Decision Processes, 107, 60-74.
Festinger,
L. (1954). A theory of social comparison processes. Human Relations, 7,
117-140.