Abstract The potential effects of outcome knowledge on performance appraisal are examined using a bankruptcy prediction task. Independent variables are outcome knowledge, observability of evaluatee's decision processes, and evaluator-evaluatee-outcome agreement. Study of evaluatee's decision process was motivated by results in agency and control theories, whereas evaluator-evaluatee-outcome agreement has not yet been addressed by researchers studying performance evaluation. Results show that (1) evaluator-evaluatee-outcome agreement interacts with outcome knowledge in affecting performance evaluation, and (2) observability of decision process mitigates the outcome effect.
Fisher et al. (Mon,) studied this question.
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