Errors of Rating is the limitation of Performance Appraisal.
Performance Appraisal may not be a valid indicator of performance and potential of employees due to the following types of errors-
- Halo Effect
- Central Tendency
- Constant Error
- Personal Bias
- Spill Over Effect
Halo Effect- It is the tendency to rate an employee consistently high or low on the basis of the overall impression. One trait of an employee influences the rater’s appraisal of all other traits.
Stereotyping- That is forming a mental picture of a person on the basis of his age, sex, caste, or religion.
Central Tendency- It means assigning the average ratings to all the employees in order to avoid commitment or involvement. The ratings are clustered around the midpoint.
Constant Error- Some evaluators tend to be lenient, where performance is overrated ie. leniency error while others are strict in assessing performance, where performance is underrated ie. strictness error.
Personal Bias- Bias or prejudice may arise on the basis of regional or religious beliefs and habits or interpersonal conflicts. Recent experience or first impression of the rater may affect the evaluation.
Spill Over Effect- This arises when past performance affects the assessment of present performance. For example- recent behavior or performance of an employee may be used to judge him/her is called recency.
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