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

Priya's appraisal is carried out in December. Her manager bases the rating almost entirely on a project failure in November and overlooks her strong results from the earlier months of the year. Which appraisal limitation is this?

This is the recency effect. The appraiser places too much weight on recent events, here the November failure, instead of assessing performance over the whole appraisal period. Keeping regular performance records throughout the year is the usual way to reduce this problem.

  1. ARecency effectCorrect
  2. BLeniency
  3. CHalo effect
  4. DStereotyping

Explanation

The manager is giving excessive weight to the most recent event rather than performance across the whole period. This is the recency effect. Leniency would involve generally overrating, and the halo effect involves one trait influencing all ratings.

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