Works councils and performance appraisals / Christian Grund (RWTH Aachen University and IZA), Dirk Sliwka (University of Cologne and IZA), Krystina Titz (RWTH Aachen University) ; IZA Institute of Labor Economics
VerfasserGrund, Christian ; Sliwka, Dirk ; Titz, Krystina
KörperschaftForschungsinstitut zur Zukunft der Arbeit
ErschienenBonn, Germany : IZA Institute of Labor Economics, October 2019
Elektronische Ressource
Umfang1 Online-Ressource (33 Seiten) : Diagramme
SerieDiscussion paper ; no. 12670
 Das Dokument ist öffentlich zugänglich im Rahmen des deutschen Urheberrechts.
Works councils and performance appraisals [0.46 mb]
Verfügbarkeit In meiner Bibliothek

Drawing on two large German representative data sets, we analyze the role of works councils for the use of performance appraisals (PA). We distinguish between the incidence of performance appraisal systems as intended by the firm and their actual implementation on the level of the individual employee. We find that works councils tend to promote rather than restrict PA. Employees working in establishments with a works council are more likely to face a formal performance appraisal procedure. Works councils also act as a transmission institution for the actual use of an existing PA system - i.e. among the firms that claim to implement performance appraisals for all their employees, the likelihood of their employees actually having regular appraisals is substantially larger when works councils are in place. Moreover, the existence of works councils is positively related particularly to PA systems, which affects bonus payments.