In Performance Appraisal, the Halo Effect refers to:

The Halo Effect occurs when an evaluator's favourable impression in one area (e.g., punctuality) leads to inflated ratings across unrelated performance dimensions (e.g., leadership or communication). It is a common appraisal bias and reduces the objectivity of performance evaluations. Why the other options are incorrect: • A. This is Central Tendency Error. • C. This is Recency Error. • D. This is Severity (Strictness) Error. • E. This is Contrast Error, where employees are evaluated relative to each other instead of against objective standards. 💡 Memory Trick: Halo = One good trait creates a "halo" over the entire evaluation.