Cognitive biases in how managers and politicians use performance information: differences between actors and moderation by the hard or soft nature of performance management

Worldwide, governments have devoted resources to the introduction of performance management systems. At the core of those systems is performance information. Whereas a lot of studies have examined "why" managers and politicians use available performance information, knowledge gaps remain with regard to "how" they exactly use it. In other words, we do not yet know enough about how they concretely process and respond to that information. Such knowledge is, however, important since the many ways in which performance information could be used are not all equally functional and rational.

This research will approach that topic from a behavioural perspective by examining the role of cognitive biases in how managers and politicians use performance information. While doing so, it will pay special attention to differences between managers, majority legislators, opposition legislators and executive politicians. Furthermore, it will study to what extent those biases are moderated by the hard or soft nature of performance management, which refers to the distinction between a focus on accountability (hard) and a focus on learning (soft).

The research will take place in Flemish municipalities. Survey vignette experiments will be conducted with municipal top managers, councillors, mayors and aldermen. The study will gain insight into focus points for potential debiasing efforts and into how to design effective performance management systems.