In performance appraisal, what is the halo error?

The halo error occurs when an evaluator allows one positive aspect of an employee’s performance to influence their overall assessment of that employee. Essentially, if an employee excels in one area, the evaluator may generalize that positive evaluation to other unrelated areas of performance. This can lead to an inflated appraisal, failing to accurately reflect the employee’s true performance across all competencies.

This type of bias often undermines a fair and objective evaluation process, as it does not consider the range of skills and areas where the employee could be underperforming. The halo effect can distort overall performance management, as individuals may receive higher ratings than warranted due to the influence of a single positive trait.

In contrast, the other options describe different issues related to performance appraisal but do not accurately define the halo error. Thus, recognizing the implications of the halo error is crucial for effective performance management practices.