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      Question

      In performance appraisal, which of the following best

      illustrates the halo effect error?
      A The tendency to rate every employee on the higher side regardless of actual performance. Correct Answer Incorrect Answer
      B The tendency to reward employees who frequently flatter or praise the evaluator. Correct Answer Incorrect Answer
      C The tendency to assign high scores across all dimensions because of an excellent impression in one particular trait. Correct Answer Incorrect Answer
      D The tendency to inflate ratings so that poor appraisals do not affect an employee’s morale. Correct Answer Incorrect Answer
      E The tendency to favor employees who share qualities or characteristics with the evaluator. Correct Answer Incorrect Answer

      Solution

      The halo effect is a cognitive bias in performance evaluation. It occurs when an appraiser forms a strong positive impression based on one attribute or skill, and this impression spills over into other areas, leading to uniformly high ratings. For example: • If an employee is exceptionally punctual, the manager may unconsciously give them high ratings in unrelated areas such as teamwork, creativity, or problem-solving. This distorts the objectivity of appraisals, as performance in specific competencies gets overshadowed by one standout trait.

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