Which error occurs when employees are incorrectly rated near the average or middle of a scale?

• A. Central Tendency
• B. Halo Effect
• C. Horn Effect
• D. Appraiser Discomfort

Answer: (A)

Central tendency bias is the tendency to rate most employees near the middle of the scale, avoiding the extremes of high or low ratings. This happens when a rater is unsure how to differentiate performance levels, wants to avoid conflict, or uses vague criteria. The result is a clustering of ratings around the midpoint, which makes performance look average across the board and hides true differences among employees. This undermines the purpose of the appraisal by providing less useful feedback and hindering development, since outstanding and underperforming performers aren’t clearly identified. By contrast, the halo effect inflates ratings based on one favorable trait, and the horn effect deflates ratings due to one negative trait, so they aren’t about averaging across the scale. Appraiser discomfort isn’t a standard bias driving this pattern, though it can contribute to conservative scoring. To reduce this bias, use clearly defined rating criteria, behaviorally anchored scales, rater training, and calibration discussions, and consider methods that force differentiation when appropriate.