What does leniency bias refer to in performance evaluations?

Leniency bias in performance evaluations refers to the tendency of evaluators to consistently rate individuals higher than their actual performance merits. This bias can arise from various factors, including a desire to maintain harmony, avoid conflict, or simply a personal inclination towards being generous in evaluations. As a result, individuals may receive inflated performance ratings that do not accurately reflect their capabilities or contributions.

In the context of performance evaluations, this can lead to discrepancies between an employee's perceived and actual performance levels, potentially impacting compensation decisions, promotions, and team dynamics. The correct answer encapsulates this phenomenon as it highlights the overrating of performance, which is central to understanding leniency bias.

The other options reflect different concerns that may arise in performance evaluations but do not pertain specifically to the concept of leniency bias. For instance, underestimating performance would define a different form of bias. Focusing only on recent events points to recency bias, while grading on a curve suggests a method of comparison among peers rather than an individual assessmen.