Rater Rating-Level Bias and Accuracy in Performance Appraisals: The Impact OF Rater Personality, Performance Management Competence, and Rater Accountability

Abstract

We studied the problem of rating-level bias and rating accuracy among retail managers of a Fortune 500 retailer. Hypotheses were tested regarding the relationship among managers’ Five-Factor Model (FFM) personality characteristics, their competence in performance management, and their levels of bias and accuracy in appraisals made in situations differing on levels of rater accountability. Associate store managers (N = 125) rated subordinates, peers and managers under conditions of high and low rater accountability. We found support for the stability of rating-level bias across rating situations. Raters’ levels of agreeableness and assertiveness were related to mean rating levels across situations, and U-shaped relationships were found in predicting one measure of rating accuracy such that high and low levels of these two traits were related to greater rating inaccuracy. Conscientiousness scores were significantly (and negatively) correlated with highly accountable mean ratings of subordinates. Performance management competence was related to rating-level bias in both high- and low-accountability conditions and contributed incremental validity in the prediction of rating level and rating accuracy. Our results indicate that the most lenient raters are more agreeable, less assertive, and less competent in performance management. These raters may also be less accurate. © 2015 Wiley Periodicals, Inc.

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