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ACCA Applied Knowledge · Business and Technology · Review and appraisal of individual performance

A manager gives most of her team an overall rating of 'satisfactory' because she wants to avoid awkward conversations about weaker performance. Which appraisal problem does this illustrate?

This is central tendency. The appraiser places nearly everyone in the middle of the rating scale to avoid conflict, so real differences in performance are hidden. It is different from the halo effect, which is one trait colouring all ratings, and from recency, which overweights recent events.

  1. ACentral tendencyCorrect
  2. BHalo effect
  3. CRecency effect

Explanation

Central tendency is the habit of rating everyone around the middle of the scale to avoid extreme or difficult judgements. The halo effect is where one strong trait influences all ratings. The recency effect is where only recent events are remembered.

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