Which of the following best describes central tendency in performance ratings?

Central tendency in performance ratings refers to the tendency of some raters to assign scores to employees that cluster around the middle of the rating scale, often resulting in a disproportionate number of average ratings. This approach does not adequately differentiate between the varying levels of performance among employees, as it tends to overlook those who perform above or below expectations.

Rating all employees as average reflects this phenomenon accurately. It suggests a reluctance to assign extreme ratings, either too high or too low, which is a common bias in performance evaluations. This can stem from a number of factors, including a desire to avoid conflict or the belief that it is more fair to rate everyone equally, ultimately diluting the effectiveness of the performance appraisal process and potentially impacting employee motivation and development.

In contrast, other choices do not accurately represent this concept of central tendency. For instance, rating all employees as exceptional or favoring high ratings indicates a different bias entirely, while focusing only on recent accomplishments relates more to recency bias, which is not about the central clustering around average ratings but rather about giving undue weight to recent performance rather than overall performance.