Bias in performance appraisals

Like many others, you probably suspect that your performance appraisal is just a measure of your popularity with the boss. However, did you also know that the outcome of your appraisal depends on the outcome of your boss’s appraisal.

Recent research has revealed that a manager who receives a favourable performance appraisal will subsequently evaluate another person more positively than a manager who receives an unfavourable appraisal.

Four separate studies were conducted to test the hypothesis – a case study, a lab experiment and two field studies. In the lab setting, managers received hypothetical feedback then were asked to rate an individual’s videotaped performance.

Managers who received positive feedback about their performance subsequently rated the employee significantly higher than managers who received negative feedback regarding their own performance. This occurred despite the fact that the managers knew the evaluation of them was bogus.

The field studies were conducted with managers in a manufacturing plant in Canada and in a retail organization in Turkey to determine whether the lab study results would generalize to these settings.

Findings from the field supported the results of the case study, the lab study, and the hypothesis that performance evaluations received by managers predicted their performance evaluations of their employees.

These findings support the anchoring and adjustment hypothesis, which states that people look for a guidepost or anchor when making estimates of value under uncertainty, and these anchors can often be based on irrelevant information.

This research supports the importance of rater training and the use of highly structured behavioural appraisal instruments as potential strategies for reducing bias in performance ratings.

Reference

Latham, G. P., Budworth, M., Yanar, B. & Whyte, G. (2008). The Influence of a Manager’s Own Performance Appraisal on the Evaluation of Others. International Journal of Selection and Assessment, 16, 220-228.

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