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

A rater scores a junior accountant highly on every dimension of a rating scale because the accountant impressed them on one major project. Which appraisal error does this illustrate?

This is the halo effect: a single impressive achievement leads the rater to score the person highly on every dimension. It differs from central tendency, which clusters ratings around the middle, and recency, which overweights recent events.

  1. ACentral tendency
  2. BHalo effectCorrect
  3. CRecency effect
  4. DLeniency bias

Explanation

The halo effect occurs when one strong characteristic or achievement colours the rating on all other dimensions. Central tendency is rating everyone as average, and recency is overweighting recent events. Leniency would be generally rating too generously across staff, not driven by one impressive project.

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