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

A manager rates an employee highly on all appraisal criteria mainly because the employee excelled in one recent, high-profile project. Which appraisal error is this?

This is the halo effect: one strong trait or achievement, here a high-profile project, colours the rating of every other criterion. It is not central tendency or leniency, which are general rating habits rather than being triggered by a single standout feature.

  1. AHalo effectCorrect
  2. BCentral tendency
  3. CLeniency bias
  4. DHorns effect

Explanation

The halo effect occurs when one strong characteristic or event influences the rating of all other criteria. Central tendency would involve rating everyone near the middle. Horns effect is the negative equivalent, and leniency is a general tendency to rate too generously, not driven by one standout feature.

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