Skip to main content icon/video/no-internet

Performance rating errors are systematic or consistent misevaluations of an individual's or several individuals' performance. Employers who rely on assessment systems requiring individuals to make subjective judgments about the performance of others should be concerned with rating errors because they can reduce the accuracy of the performance appraisal system. Biases in ratings may be due to either intentional or unintentional processes. Intentional errors are commonly attributed to political issues. For instance, a head nurse may want his or her unit to look good, so he or she rates all of his or her employees favorably. Supervisors may also inflate ratings to avoid giving negative feedback to their subordinates. Finally, raters may distort ratings as a way of discrimination.

Unintentional errors typically stem from inaccuracies in the way humans process information. In general, raters can only store and recall a limited amount of performance information for each employee. Consequently, people commonly organize and store information according to cognitive categories (that is, schemas) such as “good worker” and “poor worker.” Therefore, when a rater is asked to recall information about the performance of a coworker who he or she has processed as a “good worker,” he or she will typically rate the individual according to his or her prototype of a good worker and not on the ratee's actual behaviors. Furthermore, unintentional errors may be attributed to ambiguous dimensions on the performance appraisal form or the rater's failure to observe behavior.

Types of Rating Errors

Common rating errors include leniency errors, severity errors, central tendency errors, restriction of range, halo errors, and recency errors. Leniency errors occur when a rater gives employees higher ratings than their actual performance warrants. For example, supervisors who rate all their average performing subordinates as “above average” on all the performance dimensions could be accused of a leniency bias. For most organizations, leniency is a very common type of rating bias; according to performance appraisal researchers Murphy and Cleveland, it is not unusual to discover that approximately 80% to 90% of all employees are rated as “above average.”

In contrast to leniency errors, severity errors transpire when a rater evaluates employees more unfavorably than their true performance justifies. Using the preceding example, a supervisor with a severity bias would rate his or her average performing coworkers as “below average.” Both severe and lenient ratings are thought to be present when the mean of all ratings given by a particular rater differs substantially from the true mean level of performance. Thus, a rater with a low mean rating is believed to be overly severe and a rater with a high mean rating is believed to be overly lenient.

Similarly, if ratings cluster around the midpoint of a performance scale, central tendency errors are assumed present. That is, a rater with a central tendency bias gives few if any employees very high or very low ratings. Central tendency, severity, and leniency errors are constant misjudgments across individuals. Thus, a rater does not have a severity bias if he or she rates only one person lower than his or her performance warrants.

...

  • Loading...
locked icon

Sign in to access this content

Get a 30 day FREE TRIAL

  • Watch videos from a variety of sources bringing classroom topics to life
  • Read modern, diverse business cases
  • Explore hundreds of books and reference titles

Sage Recommends

We found other relevant content for you on other Sage platforms.

Loading