The Effect of Anonymity in Upward Performance Evaluations: How Participation Basis Affects Manager Response
Abstract
We examine the effects of anonymous upward feedback (i.e., anonymous feedback from subordinates to managers) on managers’ responses to and acceptance of that feedback, both in negative and positive feedback conditions. Further, we explore how mandatory versus voluntary feedback systems moderate these effects. Consistent with our predictions, we find that when employees voluntarily provide negative upward feedback, changes in management behavior are weaker when employees are anonymous versus non-anonymous. We also find that mandating employee feedback alleviates this effect for negative feedback. In contrast, when employees voluntarily provide positive upward feedback, changes in management behavior are stronger when employees are anonymous versus non-anonymous, and voluntariness does not moderate this effect. This research helps managers and management accountants understand how to elicit anonymous upward feedback to maximize managers’ productive responses to such feedback.