What type of error occurs when supervisors consistently rate all employees with moderate scores regardless of actual performance?

The type of error described in the question is known as the Error of Central Tendency. This occurs when supervisors avoid giving high or low ratings and instead choose to evaluate most employees with average or moderate scores. This bias can stem from a desire to maintain fairness or from a lack of clear standards for evaluation.

When this error is present, it can mask the true performance levels of employees—those who deserve higher ratings may not receive the recognition they deserve, while those who are underperforming may not be identified for improvement. The Error of Central Tendency ultimately leads to a misrepresentation of a team’s overall performance and can impact morale and motivation, as employees may feel their unique contributions are being overlooked.

Understanding this bias is crucial for implementing more accurate performance appraisal systems, ensuring that all employees are evaluated based on their actual performance, rather than being grouped into the average category.