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Sloppy Work, Lies and Theft: A Novel Experimental Design to Study Counterproductive Behaviour

Author

Listed:
  • Michèle Belot

    (School of Management, University of Edinburgh)

  • Marina Schröder

    (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg)

Abstract
We propose a novel experimental design to study counterproductive behaviour in a principal agent setting. The design allows us to study and derive clean measures of different forms of counterproductive behaviour in a controlled but non obtrusive manner. We ask participants to complete a specific task (identify euro coins) and report their output. Participants can engage in various forms of counterproductive behaviour, none of them being offered to them explicitly. They can make mistakes in the identification task, lie in their report or even steal coins. We present an application of the design to study the effects of different pay schemes (competition, fixed pay and piece rate) on counterproductive behaviour. On average counterproductive behaviour amounts to 10 percent of the average productivity, almost all arising through mistakes and overreporting of output. We find essentially no evidence of theft. Moreover, we find that both productive and counterproductive behaviour are significantly higher under competition than under the two other pay schemes.

Suggested Citation

  • Michèle Belot & Marina Schröder, 2012. "Sloppy Work, Lies and Theft: A Novel Experimental Design to Study Counterproductive Behaviour," FEMM Working Papers 120018, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    • Handle: RePEc:mag:wpaper:120018
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    counterproductive behaviour; compensation; experiment; competition; piece rate; ?fixed pay;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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