Key Terms
Validity
Does the instrument measure what it's supposed to measure?
Reliability
Does the instrument produce consistent results across time and raters?
Central tendency error
Rating everyone in the middle; missing the extremes Strictness error: rating nearly everyone too low Leniency error: rat
Strictness error
Rater rates nearly everyone low. Like a professor who fails half the class.
Leniency error
Opposite of strictness; rater rates nearly everyone high. The "easy A" supervisor.
Halo effect
Rater assigns similar ratings across all dimensions based on an overall impression. Employee rated high on output gets r
Recency error
Rater overweights the most recent performance; ignores the full evaluation period. Encourages employees to "float" early
Personal biases
Racial, gender, and interpersonal biases. Illegal in many situations; always a threat to fairness and accuracy.
Advantages
Best method for identifying promotion potential; strong track record in practice.
Disadvantages
High-stress environment may suppress performance; a poor result can create a lasting negative label; validity and reliab
Focus
Long-range potential, not recent job performance. Evaluates interpersonal skills, communication, creativity, problem-sol
Feedback sources
The task itself, supervisors, coworkers, and the employee's own self-assessment.
Power
Rewards go to those with market power, connections, or leverage. Explains extreme executive compensation gaps.
Equality
Everyone in a job class gets the same. Common in unionized environments; seniority drives pay, not performance.
Need
Greater need = greater support. Seen in layoff decisions; rarely the primary basis in private firms.