The halo effect has the potential to affect workplace

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  • BUS 600
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The halo effect has the potential to affect workplace dynamics. In an article written byKozlowski, Kirsch, and Chao (1986), research suggests that the halo effect actually occurs moreby raters who are less familiar with the job duties, and the individual being rated.According to study results reported by Viswesvaran, Schmidt, and Ones (2005), peerratings also fell prey to the halo effect. This article implies that peers are much more uninformedabout their colleagues than supervisors’ knowledge of their employees. Nevertheless, studyfindings present the continued occurrence of rating improprieties regardless of whether the rateris the supervisor or not.In order to reduce the effect, research suggests to rate individual traitssuch as attendance rather than overall performance (Balzer & Sulsky, 1992).Performance Related CompensationsIn performance-related compensations, the halo effect is depicted in three distinctsituations: when an employee is promoted as a result of halo effect, when an employee receivesincreased compensation as a result of inaccurate performance approval, and lastly, when the lastperformance of an organization affects future compensation as stated in the article findingspublished by Viswesvaran, Schmidt, and Ones (2005).
Halo Effect10PromotionsManagement executives and CEOs are major preys of halo effects as they value otheremployee’s attributes, and undervalue others. For example, seeing an improvement or failure inthe overall performance of the company resulting from a certain employee or employees exertingextra effort to increase outcomes puts increased value on the employee(s).The halo effect can beapplied based on the success of one person being the success of the entire team resulting in theteam member’s suitability for promotion.Unfortunately, due to the appearance of a one-sided review of additional attributes, apromotion may be perceived as being reasonable based on other skill sets such as leadershipqualities, organization and other technical skills (privatization, budgeting skills, teammanagement skills, and logical reasoning) which were not taken into consideration Willis-Bowers, 2012).The author, Willis-Browers (2012), addresses in her writings the inadequate orpremature promotions to company executive positions based on a single performance factor. Asan example, a sales professional is deemed proficient when adding new accounts to his salesquota, and generating revenue.Afterwards, he is promoted to the position of vice president ofsales, but lack the necessary leadership skills of an executive.Departmental MisconceptionIncompetent employees in a company department can, by use of the halo effect, dragdown the reputation for the entire team or group.In an article written by Landy and Sigall(1974), the impact of such shortcomings is addressed as classic example of this error.Forinstance, if the payroll group in the accounting department consistently makes mistakes on

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Term
Fall
Professor
DONTKNOW
Tags
Business, Educational Psychology, Edward Thorndike

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