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CMA Intermediate · Operations Management and Strategic Management · Job Evaluation, Job Allocation - Assignment

A common limitation of merit rating, which can distort the ratings given by supervisors, is the tendency of a rater to let one favourable impression about an employee influence the rating on all traits. This error is known as:

This error is the halo effect. A single favourable impression of an employee spills over into the ratings of all other traits, distorting the merit rating. Central tendency, leniency and recency bias are different rater errors.

  1. AHalo effectCorrect
  2. BCentral tendency
  3. CLeniency error
  4. DRecency bias

Explanation

The halo effect occurs when one strong trait colours the rating of all other traits. Central tendency means rating everyone near the average, leniency means rating generously overall, and recency bias overweights recent events.

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