Learning Outcomes
- Discuss common performance management errors
As alluded to in our discussion of appraisal methods, there are a number of factors that can distort appraisal results. In this section, we’ll discuss perception errors and how to avoid them.
Indiana University’s Human Resources identifies the following eleven perceptual errors:[1]
- The Leniency Error. Giving everyone high ratings regardless of actual performance, in an attempt to avoid conflict or to make yourself look good.
- The Central Tendency Error. Clumping or clustering all employees in the middle performance categories in an attempt to avoid extremes.
- The Recency Error. Failing to take into account the entire evaluation period and focusing on a recent performance episode, positively or negatively.
- The Halo Effect Error. Letting one favored trait or work factor influence all other areas of performance, resulting in an unduly high overall performance rating.
- The Horns Effect Error. Allowing one disfavored trait or work factor to overwhelm other, more positive performance elements, resulting in an unfairly low overall performance rating.
- Contrast Error. Evaluating an employee in relation to another employee rather than relative to his/her duties, goals and stated performance standards.
- Past Performance Error. Rating on past performance rather than present performance.
- Biased Rating Error. Allowing personal feelings toward employee to influence rating.
- High Potential Error. Confusing potential with performance.
- Similar to Me Error. Similar to me and therefore feeling of comfort and compatibility
- Guilt by Association Error. Evaluation influenced by employee’s associations rather than performance.
Practice Question
Avoiding Errors
Three tips to avoid these errors:
- Cultivate awareness or potential errors
- Rely on the data and documentation you’ve compiled, rather than your perceptions. That is, focus on the performance, rather than the person.
Note that there is a tendency to avoid accurate ratings—particularly on the downside—when there’s a significant amount at stake—for example, a promotion/demotion, raise or PIP. Let the person’s performance make the decision.
![Two people in discussion during a performance review.](https://s3-us-west-2.amazonaws.com/courses-images/wp-content/uploads/sites/4056/2019/08/01163823/people-2561336_960_720-300x200.jpg)
Developing and practicing techniques—for example, participating in appraisal and feedback simulations—for having difficult conversations will help you develop skills that will pay off in a variety of work and life situations. On her website, author, speaker, and trainer Judy Ringer provides a step-by-step checklist for having difficult conversations, including how to prepare yourself, 4 steps for a successful outcome and practice tips. For perspective, the four steps are highlighted below:[2]
- Step #1: Inquiry. Cultivate an attitude of discovery and curiosity.
- Step #2: Acknowledgment. Show that you’ve heard and understood what the person is saying.
- Step #3: Advocacy. Clarify your position without minimizing the other person’s position.
- Step #4: Problem-Solving. Begin building solutions.
Learn More
Check out Dana Caspersen’s “Conflict is a place of possibility” TED Talk to learn more about this subject.
- "Evaluate Job Performance." Indiana University Human Resources. August 2018. Accessed August 20, 2019. ↵
- Ringer, Judy. "We Have to Talk: A Step-by-Step Checklist for Difficult Conversations." Accessed August 20, 2019. ↵