The Effects of Performance Rating Discrepancies on Supervisors and Subordinates

Abstract

This study, employing 96 undergraduate business majors in a dyadic design, examined the effects of performance rating discrepancies, causal attributions, and subordinate willingness to contest, on subsequent responses of subordinates and supervisors. Subordinates who received relatively higher supervisory ratings were more satisfied with the appraisal and the supervisor. The supervisor′s attributed locus of cause did not interact with the favorability of the rating to affect subordinate responses. Supervisors who were made aware of relatively higher subordinate self-ratings positively modified their initial ratings, gave larger raises, and were less desirous of discussing the appraisals with subordinates. The subordinate′s willingness to contest did not interact with the direction of the discrepancy to affect the supervisor′s responses. Implications for management and for future research are discussed.