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ACCA Applied Knowledge · Business and Technology · Individual and group behaviour in business organisations

A manager reviews a new analyst's first report, which contains several errors, and concludes that the analyst is 'careless and unreliable'. The manager later learns the analyst had been given incomplete data and a very short deadline. Which perceptual error best explains the manager's initial conclusion?

The best explanation is the fundamental attribution error. The manager blamed the analyst's personal traits, calling them careless, and ignored situational causes such as incomplete data and a tight deadline. The halo effect needs a favourable trait to bias judgement, and a self-fulfilling prophecy involves expectations changing performance.

  1. AFundamental attribution error, by explaining behaviour through personal traits while underestimating situational factorsCorrect
  2. BHalo effect, by letting one favourable characteristic colour the judgement of all other characteristics
  3. CSelf-fulfilling prophecy, by the analyst's performance improving because of the manager's high expectations

Explanation

The manager attributed the errors to the analyst's character and ignored external causes such as poor data and time pressure; this is the fundamental attribution error. The halo effect would involve a favourable trait influencing other judgements, and a self-fulfilling prophecy involves expectations shaping actual performance, which is not described here.

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