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Halo Effect

The halo effect occurs when an overall positive impression of a person influences our evaluations of (thoughts and feelings about) that person’s individual traits. The basic point is that past, positive evaluations can affect future evaluations of a person. The halo effect is a form of cognitive bias that has been researched in a wide array of settings. For instance, positive corporate reputations create a halo that benefits the corporation. This entry explores how the concept of the halo effect originated in the performance appraisal literature and how it has been adapted for application to corporate reputations.

Early Applications: Performance Appraisal

One of the early examinations of the halo effect was in performance appraisals. If managers hold an overall favorable impression of an employee, they will rate ...

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