ACCA Applied Knowledge · Business and Technology · Review and appraisal of individual performance
An appraiser rates an employee highly on every criterion because the employee is excellent at client presentations, even though her report accuracy is poor. Which problem is this?
This is the halo effect. One strong trait, presentation skill, has influenced the appraiser's ratings on unrelated criteria such as report accuracy. The result is an inflated, unbalanced assessment, rather than general generosity to all staff (leniency) or judgement based on group characteristics (stereotyping).
- ALeniency error
- BHalo effectCorrect
- CStereotyping
Explanation
The halo effect occurs when one outstanding characteristic influences the rating of all other characteristics. Leniency would mean generally rating everyone too generously, not letting one trait spill over. Stereotyping judges by group membership, which is not described here.
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