What type of appraisal error occurs when employees are inaccurately rated near the middle of a scale?

Central tendency error occurs when an evaluator tends to rate employees around the midpoint of a rating scale, rather than using the full range of available ratings. This can happen for various reasons, such as the evaluator's reluctance to make definitive judgments or an attempt to avoid giving extreme ratings that could spark conflict or controversy. By consistently rating employees near the center of the scale, the appraiser may fail to recognize and account for significant differences in performance among individuals. This can lead to a lack of meaningful feedback, making it challenging for employees to understand their performance levels and areas for improvement.

The other appraisal errors mentioned serve different functions. Strictness error involves being overly critical and rating employees lower than their actual performance, while recency error occurs when the rater focuses too heavily on recent events rather than considering the entire performance period. The halo effect allows one positive characteristic of an employee to overshadow other areas, leading to inflated performance ratings, which is distinctly different from the central tendency error. Understanding central tendency is crucial for effective performance management, as it directly impacts how feedback and career development are approached within an organization.