What does organizational behavior’s “halo effect” mean?
In organizational behavior, the propensity to evaluate an employee based on a single positive behavior is known as the “halo effect.” The reverse of this phenomena is the horn effect, which occurs when someone is judged solely on just one negative characteristic.
Therefore, when an employee receives an unjust rating based on a specific attribute, it is known as a halo error in performance appraisal. An employee may receive a higher rating from his manager in the remaining aspects of the assessment process, for instance, if he has minimal absences.
Employees frequently obtain high ratings because of their rapport with their appraisers, who are usually managers. It’s among the most frequent mistakes made throughout the performance review procedure. But the halo effect can also apply to actions that take place outside of organizations. Here are a few instances:
Companies can take advantage of this tendency. The halo effect affects how consumers view a brand generally, which affects their purchasing decisions.
Assume that Brand X has a high NPS and is well-liked and respected by customers everywhere. When Brand X chooses to introduce a new product to the market, its devoted clientele will be persuaded to buy it as well.
Thus, from marketing tactics to employee performance evaluations, the halo effect affects every facet of our everyday lives. Although it might result in bias, organizations can lessen its consequences by being aware of its effects.
