Limitations of Performance Appraisal Techniques

1. Halo Effect
The rater may base the full appraisal on the basis or one positive quality which was found out earlier. For e.g. If a person is evaluated on one quality i.e. emotional stability and if he scores very high in the case of emotional stability, then the rater may also give him high scores (marks or grades) for other qualities such as intelligence, creativity etc., even without judging