Halo effect: Appraising based on single characteristic. Horn Effect : The raters bias is in the other direction, where one negative quality of the employee is being rated harshly. Leniency effect : Depending on rater’s own mental make-up at the time of appraisal , raters may be rated very leniently. Stringency effect : Depending on rater’s own mental make-up at the time of appraisal, raters may be rated very strictly Recencyeffect : The rater gives greater weightage to recent occurrences than earlier performance.
Primacy effect ( First Impressions ) : The appraiser’s first impression of a candidate may colour his evaluation of all subdequent behavior.Central tendency effect : An Alternative to the leniency effect. Which occurs when appraisers rate all employees as average performers.Stereotyping : It is a mental picture that an individual holds about a person because of that person’s sex, age, religion, caste etc.,
USES OF PERFORMANCE APPRAISAL Training and development needs Improving organizational effectiveness Compensation management Transfer and promotions Identifying competency and skills