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Does exclusive employee recognition improve worker productivity? To answer this question, a group of German researchers[1] designed a randomized experiment. The researchers at a German

  1. Does exclusive employee recognition improve worker productivity? To answer this question, a group of German researchers[1] designed a randomized experiment. The researchers at a German research institute recruited college students in the area to perform a 3-hour data entry task, transcribing questionnaires, for which they would be paid 25 Euros. The volunteer workers then spent two hours competing their task (session 1), at which point the researcher interrupted them briefly before allowing them to complete their third hour (session 2). Unbeknownst to the workers, the experiment randomly divided them into one of four groups based on how they would receive recognition for their work:
    • Control: no recognition was provided to employees during the interruption
    • TC All: During the interruption, thank you cards signed by the president of the institute were given to all workers.
    • TC Best 3: During the interruption, thank you cards signed by the president of the institute were given to the top 3 workers (those who had transcribed the most data).
    • TC Best 1: During the interruption, thank you cards signed by the president of the institute were given to the top worker (the one who had transcribed the most data).

The researchers measured the error rates (percentage of incorrect data entries) and total correct entries of all the workers and compared their improvement between sessions 1 and 2. The results below are based on the improvement in correct entries, i.e., measuring the number of correct entries each person recorded in session 2 minus the number of correct entries they recorded in session 1. Results from a One-Way ANOVA are shown in the tables below.

SUMMARY
Groups Count Sum Average Variance
Control 81 -3.5932 -0.04436 3.858519
TC All 82 63.62522 0.775917 5.636598
TC Best 3 95 120.707 1.2706 3.311925
TC Best 1 82 72.19853 0.88047 3.27992

ANOVA
Source of Variation SS df MS F P-value F crit
Between Groups 78.2974 3 26.09913 6.533335 0.000263 2.631489
Within Groups 1342.24 336 3.994763
Total 1420.54 339

  1. Based on these results, what statistical conclusion can you make? That is, what is your conclusion regarding the ANOVA hypothesis test?
  2. Based on these results, what practical conclusions can you make, if any? Does employee recognition improve worker productivity? Or do we need more evidence to make that conclusion? Explain.

[1]Christiane Bradler, Robert Dur, Susanne Neckermann, Arjan Non (2016) Employee Recognition and Performance: A Field Experiment. Management Science 62(11):3085-3099.https://doi.org/10.1287/mnsc.2015.2291

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