What goes up must . . . Keep going up? Cultural differences in cognitive styles influence evaluations of dynamic performance.

Past research on dynamic workplace performance evaluation has taken as axiomatic that temporal performance trends produce naïve extrapolation effects on performance ratings. That is, we naïvely assume that an individual whose performance has trended upward over time will continue to improve, and rate that individual more positively than an individual whose performance has trended downward over time-even if, on average, the 2 individuals have performed at an equivalent level. However, we argue that such naïve extrapolation effects are more pronounced in Western countries than Eastern countries, owing to Eastern countries having a more holistic cognitive style. To test our hypotheses, we examined the effect of performance trend on expectations of future performance and ratings of past performance across 2 studies: Study 1 compares the magnitude of naïve extrapolation effects among Singaporeans primed with either a more or less holistic cognitive style, and Study 2 examines holistic cognitive style as a mediating mechanism accounting for differences in the magnitude of naïve extrapolation effects between American and Chinese raters. Across both studies, we found support for our predictions that dynamic performance trends have less impact on the ratings of more holistic thinkers. Implications for the dynamic performance and naïve extrapolation literatures are discussed. (PsycINFO Database Record

More than just the mean: moving to a dynamic view of performance-based compensation.

Compensation decisions have important consequences for employees and organizations and affect factors such as retention, motivation, and recruitment. Past research has primarily focused on mean performance as a predictor of compensation, promoting the implicit assumption that alternative aspects of dynamic performance are not relevant. To address this gap in the literature, we examined the influence of dynamic performance characteristics on compensation decisions in the National Basketball Association (NBA). We predicted that, in addition to performance mean, performance trend and variability would also affect compensation decisions. Results revealed that performance mean and trend, but not variability, were significantly and positively related to changes in compensation levels of NBA players. Moreover, trend (but not mean or variability) predicted compensation when controlling for future performance, suggesting that organizations overweighted trend in their compensation decisions. Theoretical and practical implications are discussed.