Jan K. Woike and Sebastian Hafenbrädl* say competitive behaviour among employees may be triggered by the type of feedback they have received.
Feedback is regarded as a crucial component of a successful workplace culture.
Used correctly, it can enhance performance and teamwork.
But how do different types of feedback impact interactions among employees?
In a recent study, researchers from the Max Planck Institute for Human Development and the IESE Business School in Barcelona investigated which types of feedback tend to lead to cooperative behaviours and which to competitive behaviours.
To this end, 112 students in different disciplines and 28 managers, all of whom had at least seven years of professional experience, were invited to participate in a laboratory experiment.
Groups of four participants played variants of a classic public goods game.
Each player was given a fixed number of points to invest per round.
Over 10 rounds, they were asked to decide how many points they wanted to invest in a group project and how many in their own individual project.
The rewards for cooperative behaviour differed across the two experimental scenarios, impacting participants’ scores and ultimately how much money they were paid.
In the first scenario, cooperative behaviour on average led to a better score for the group, but to a worse score on the personal level.
In the second scenario, cooperation paid off for both the group and the individual.
Uncooperative behaviour reduced the overall score but harmed the other players more than it did the participant themselves.
After each round, the participants received feedback — just on their own performance (individualistic feedback) or additional feedback on the performance of the group as a whole (joint outcome feedback) or on how they ranked relative to the other players (ranking feedback).
Joint outcome feedback fosters cooperation
The results show that the type of feedback received had a significant impact on participants’ perceptions of the scenario and on whether they behaved cooperatively or competitively.
Participants given individual feedback behaved cooperatively in the cooperative scenario and increasingly selfishly in the competitive scenario over the rounds played.
Participants who were given feedback on the performance of the group as a whole were generally interested in maintaining cooperation, regardless of the scenario.
Strikingly, participants given ranking feedback perceived even the cooperative scenario as competitive.
As a result, they turned down guaranteed financial gains to ensure themselves a higher ranking, even though that ranking was financially irrelevant.
They became increasingly competitive over the rounds played, to their own detriment.
In contrast, given ranking feedback, an above-average number of participants developed into competitive players.
This group of players was unique in reporting that they wanted to have more than the other players and that they did not trust the others.
Experience does not protect from selfish behaviour
Ranking feedback drives even experienced managers to act competitively, even in situations where cooperating would unquestionably be in their financial interest.
When the focus is on comparison with others, both students and managers are willing to take financial losses for the sole purpose of inflicting even greater losses on others.
Feedback can distort people’s perceptions of a situation and turn them into competitive situations for no objective reason.
Managers and students showed similar patterns of behaviour in the games.
This shows that extensive experience with feedback and with cooperative and competitive situations — as experienced managers can be assumed to have accumulated — does not enable them to deal more constructively with such situations.
The study’s findings can be applied to the question of how employers should provide feedback for their employees.
Publicly comparing employee performance or even, in extreme cases, making bonus payments or contract renewals dependent on employee ranking is counterproductive.
Although management practices that sort employees into performance groups along a ranking scale are controversial, they continue to be used.
This practice makes internal disputes and uncooperative behaviour inevitable.
According to the researchers, providing feedback for the whole group — even in heterogeneous teams — may well be a better approach.
* Jan Woike is a research scientist at the Max Planck Institute for Human Development. Sebastian Hafenbrädl is an Assistant Professor in the Managing People in Organisations Department of IESE Business School.
This article first appeared at www.sciencedaily.com.