What does the error of central tendency refer to?

The error of central tendency refers to the tendency of evaluators to avoid assigning extreme scores or ratings when assessing performance. This often results in a clustering of ratings around the midpoint of a scale, reflecting a reluctance to give high or low marks. This bias can occur in various evaluation contexts, such as performance reviews, where a rater may feel compelled to rate most individuals as average rather than accurately reflecting their varying levels of performance.

This phenomenon is significant because it can distort assessments, masking true performance levels and potentially leading to inadequate feedback, development opportunities, or rewards. It emphasizes the importance of providing clear guidelines and training to evaluators to mitigate this bias and promote more accurate assessments.