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Question

  A tendency for managers to evaluate most of their employees as "average", is called?  

A Average error Correct Answer Incorrect Answer
B Normalcy effect Correct Answer Incorrect Answer
C Group bias Correct Answer Incorrect Answer
D Central tendency bias Correct Answer Incorrect Answer
E Mediocre bias Correct Answer Incorrect Answer

Solution

Central tendency bias refers to a tendency for managers to evaluate most of their employees as "average" when they apply a rating scale. So, for example, given a scale that runs with points on it that run from one (poor) to seven (excellent), with four being the average, many managers will refuse to use the points at either of the ends. It is also referred to as the Veblen effect.                             

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