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    Question

    Read the following passage and answer the next 4 question (Q11-Q14) From the beginning and through the career, you need to know how good you are in terms of particular fields of activity. It is difficult to give yourself an objective evaluation. Performance appraisal system is a useful management tool which helps to gain feedback, review and estimate whether the performance is effective and discuss what needs to be done for it to become so. Performance Appraisal is the systematic evaluation of the performance of employees and to understand the abilities of a person for further growth and development. Managers perform evaluations to benefit both employees and the employer. The most significant benefit of the appraisal system for the manager or the head of department is that it provides a document of employee performance over a specific period. It can help in decisions related to promotion, compensation, employees development and motivation. In order to be effective, however, managers should be careful that biases and judgment errors of various kinds do not spoil the performance appraisal process. Bias here refers to inaccurate distortion of a measurement.

    One of the biases that tend to distort appraisals is

    Halo effect. Halo effect refers to which of the following? 
    A The tendency to mark everyone high Correct Answer Incorrect Answer
    B The tendency to give excellent ranking to those appraisee who very often wishes halo to the appraiser Correct Answer Incorrect Answer
    C The tendency to rate people higher than they deserve in order to see that poor ratings do not harm the individual Correct Answer Incorrect Answer
    D The tendency to mark high on all factors due to a high impression on some specific factor Correct Answer Incorrect Answer
    E The tendency of the evaluator to rate high those employees who exhibit qualities which they themselves possess Correct Answer Incorrect Answer

    Solution

    The halo effect describes a cognitive bias when judging others whereby judgements about that person’s character are influenced by an overall positive impression about that person. However, this effect does not affect our perceptions of people based on their attractiveness. It can also encompass other traits as well. People who are sociable or kind, for example, may also be seen as more likable and intelligent. The halo effect makes it so that perceptions of one quality lead to biased judgments of other qualities.

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