What does the term "bias" refer to in the context of performance appraisal?

In the context of performance appraisal, the term "bias" refers to the tendency to allow individual differences to affect appraisal ratings. This can manifest through the influence of a rater's personal perceptions, experiences, and stereotypes about the employee being evaluated. For example, if a rater has a preconceived notion about an employee's abilities based on their background, gender, or other characteristics, this can skew the evaluation process, leading to ratings that do not accurately reflect the employee's actual performance.

Understanding this aspect of bias is crucial for ensuring fair and objective appraisals, as it highlights the importance of striving for consistency and objectivity in evaluations. It is essential for organizations to train evaluators to recognize and mitigate their biases to promote fairness in the appraisal process, ultimately leading to better performance management outcomes.