When evaluating subordinates, what does central tendency refer to?

Central tendency refers to the practice of rating everyone as average during performance evaluations. This phenomenon can occur when evaluators, whether consciously or unconsciously, avoid extremes in their ratings. Instead of assessing each subordinate's performance based on a broader spectrum, they gravitate towards the mid-point of the rating scale. This practice can undermine the effectiveness of performance evaluations by failing to highlight differences in performance levels among employees.

The approach of rating everyone as average can stem from several factors, including a desire to maintain harmony within the team, lack of sufficient knowledge about the performance of all individuals being evaluated, or an inherent bias toward conforming to the middle of the grading scale. Consequently, it can obscure high achievers and overlook those who may need improvement, making it challenging for management to identify who requires additional support or recognition. Recognizing this tendency is essential for ensuring fair and constructive assessment processes within organizations.