What is the danger of the leniency error in supervisor evaluations?

The leniency error in supervisor evaluations refers to a tendency to rate employees more favorably than they deserve, which can lead to inflated performance ratings. When supervisors consistently give higher ratings than warranted, it undermines the evaluation process's integrity and accuracy.

Inflated performance ratings create a false sense of achievement among employees, leading to complacency and reducing their motivation to improve. Furthermore, this can skew the understanding of team performance, making it difficult for management to identify areas that require attention or improvement. In the long run, inflated ratings can damage the effectiveness of performance management systems, affect promotions and rewards, and alter overall organizational culture by not accurately reflecting an employee's true contributions or areas needing development.

This means that while some effects like team morale or employee engagement could be factors tied to evaluation practices, the direct danger of the leniency error is primarily in the distortion of performance ratings, which can have significant ramifications on both individual and organizational performance.