Chapter 4 Performance Appraisal

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Employee performance appraisals can be subject to various biases that may

affect the accuracy and fairness of the evaluation. Here are four common biases
found in performance appraisal processes:

1. Recency Bias
- Description: This bias occurs when an evaluator's assessment is
disproportionately influenced by recent events or performance, rather than
considering the entire appraisal period.
- Impact: Employees may be judged based on their most recent achievements or
mistakes, leading to an inaccurate representation of their overall performance.
2. Halo Effect
- Description: The halo effect happens when a single positive or negative trait of an
employee influences the overall evaluation, overshadowing other relevant
aspects of performance.
- Impact: If an employee excels in one area, the evaluator may unconsciously
assume competence in other areas, even if there is limited evidence to support
such conclusions. Conversely, a negative trait can overshadow positive
contributions.
3. Leniency or Strictness Bias
- Description: Leniency bias occurs when an evaluator consistently rates
employees higher than their actual performance, while strictness bias involves
consistently giving lower ratings.
- Impact: Leniency can lead to inflated performance ratings that do not reflect the
true level of achievement, while strictness can result in lower ratings, potentially
discouraging employees.
4. Confirmation Bias
- Description: This bias occurs when evaluators seek and emphasize information
that confirms their pre-existing beliefs or expectations about an employee, while
ignoring or downplaying information that contradicts those beliefs.
- Impact: Confirmation bias can lead to an unfair assessment, as evaluators may
unconsciously focus on aspects that align with their preconceptions, overlooking
valuable contributions or areas for improvement.

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