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

An appraiser rates Tomas highly on accuracy, punctuality, teamwork and initiative because Tomas is exceptionally good at client presentations, although the evidence for the other areas is thin. Which statement best describes the problem?

This is the halo effect: one outstanding attribute, client presentation skill, leads the appraiser to rate unrelated areas highly without evidence. The horns effect is the reverse, where one weakness drags down all ratings. Separate, evidence-based criteria and multiple raters help reduce the halo effect.

  1. AThe halo effect, where one strong characteristic influences judgement of other characteristicsCorrect
  2. BThe horns effect, where a single weakness leads to a low rating overall
  3. CCentral tendency, where ratings are bunched around the average
  4. DAppraisal interview bias caused by the appraisee's self-assessment

Explanation

A single strong trait, presentation skill, is lifting the ratings on unrelated criteria. That is the halo effect. The horns effect is the opposite, where a weakness lowers all ratings. Ratings here are high, not clustered in the middle.

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