Society For Human Resource Management (SHRM) Certified Professional Practice Exam

What is a halo error in performance appraisals?

1. The employee is rated low in all errors

2. The employee is rated high in all errors

3. A bias influencing many results

4. The most recent reports being favored above all else

The correct answer is: The employee is rated high in all errors

A halo error in performance appraisals occurs when an employee is rated highly across all performance dimensions based on a positive impression or trait, rather than specific merits or performance in those areas. This bias can lead to an inflated assessment because one strong characteristic, such as a positive attitude or a notable achievement, overshadows other aspects of performance that may not be as strong. In this context, the correct choice reflects that the employee is generally rated high across the board, as the halo effect causes evaluators to allow one favorable trait or performance area to positively influence their overall judgment. This phenomenon emphasizes the importance of objective and balanced assessment criteria in performance appraisals to avoid such biases and ensure that evaluations accurately reflect an employee's performance in specific areas.