Which of the following terms means the tendency of a supervisor to rate a subordinate lower than his performance? 1. Horns Effect 2. Halo Effect 3. Central Tendency 4. Pointing Tendency

Which of the following terms means the tendency of a supervisor to rate a subordinate lower than his performance? 1. Horns Effect 2. Halo Effect 3. Central Tendency 4. Pointing Tendency Correct Answer 1

Performance Appraisal Systems:

1. Performance appraisals are one of the most important and often one of the most mishandled aspects of management.
2. Typically, we think of performance appraisals as involving a boss evaluating a subordinate.
3. However, performance appraisals increasingly involve subordinates appraising bosses through a feedback process known as 360 feedback, customers appraising providers, and peers evaluating coworkers.

Problems with Performance Appraisals:

1. Horns Effect: 

• The horn effect occurs when "individuals believe that negative traits are connected to each other."
• It is a phenomenon in which an observer's judgment of a person is adversely affected by the presence of (for the observer) an unfavorable aspect of this person.
• In this effect, there is a tendency of a supervisor to rate a subordinate lower than his performance.

2.Halo Effect: 

• The halo effect is a type of cognitive bias in which our overall impression of a person influences how we feel and think about their character.
• Essentially, your overall impression of a person ("He is nice!") impacts your evaluations of that person's specific traits ("He is also smart!").

3. Central Tendency: 

• Central tendency is the inclination of managers to rate all their subordinates with an “average” score during performance appraisal.
• For instance, if the rating scale was from 1-7, the managers would leave out the extremes i.e. 1,2,6,7, and rate all the employees with a score between 3-5.

In Performance Appraisal, there is no error termed as Pointing Tendency.