The Influence of a Manager's Own Performance Appraisal on the Evaluation of Others

*Joseph L. Rotman School of Management, University of Toronto, Toronto, ON, Canada M5S 3E6.latham@rotman.utoronto.ca**School of Administrative Studies, York University, Toronto, ON, Canada M3J 1P3This study examined the possibility that the performance appraisal process is affected bya pervasive and inherent effect that has heretofore been unidentified. This effect derivesfrom the results of the performance appraisal most recently performed on the managerwho subsequently conducts appraisals of others. The nature of this effect was examinedin four studies. In a case study, the ratings received by two area coordinators in auniversity academic department affected their subsequent ratings of faculty. In asimulation, 30 managers received hypothetical feedback regarding their own job perfor-mance. The managers subsequently evaluated an employee on videotape. Managers whoreceived positive feedback about their performance subsequently rated the employeesignificantly higher than managers who received negative feedback regarding their ownperformance. This occurred despite the fact that the managers knew the evaluation ofthem was bogus. The results of two follow-up field studies involving 74 manager–employee dyads in a manufacturing company in Canada and 39 manager–subordinatedyads in a retail organization in Turkey are consistent with the view that one’s ownperformance appraisal is related to the subsequent appraisal of one’s subordinates. Bothanchoring with insufficient adjustment and a mood induction may explain this effect, butthe results are more consistent with the former explanation than the latter.