šŸ“¢ Too many exams? Donā€™t know which one suits you best? Book Your Free Expert šŸ‘‰ call Now!

    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 employeeā€™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: ā€¢ 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.

    Practice Next
    More Financial Management Questions