During a performance appraisal, what is the effect when a manager rates everyone high regardless of actual performance?

The situation described relates to leniency bias, which occurs when a manager consistently gives overly favorable ratings to employees, regardless of their actual performance levels. This can happen for various reasons, such as a desire to maintain favorable relationships, avoid conflict, or a belief that positive reinforcement is more motivating.

When a manager exhibits leniency bias, it diminishes the effectiveness and reliability of performance appraisals. Employees may not receive the constructive feedback they need to improve, and it becomes difficult to differentiate between high performers and those who are underperforming. This practice can lead to issues within the organization, such as decreased morale among top performers who may feel unrecognized or undervalued, as well as lack of accountability among those who need to improve.

In contrast, the other options refer to different types of biases or errors:

• The contrast effect involves evaluating a person's performance by comparing it to the performance of others, rather than against an objective standard.

• Central tendency error refers to the tendency of managers to rate most employees as average, avoiding extreme scores.

• The halo effect occurs when a manager's overall impression of an employee (positive or negative) influences their ratings in various performance areas, regardless of actual performance levels in those specific areas.

Thus, the