The Relationship between Political Appraisal, Subjective, and the Leniency Effect in Appraiser's Performance Appraisal in Refah Bank

Performance management is an ongoing process of recognizing, measuring, and individual and team performance development and aligning them with the organizational strategic goals (objectives). Therefore the employee performance appraisal plays an important part in recognizing the strengths and weaknesses of the employees. On the other hand this task is done by individuals who are likely to make cognitive error including the leniency effect. With this error the appraiser evaluates all the employees with high scores regardless of their real performance. Therefore in this paper the relation between political appraisal, subjective, and the leniency effect in appraisers’ in Refah Bank is studied. To do so, 136 individuals among 278 appraisers (the principals and the vice principals) in Refah Bank in Tehran have been selected randomly to participate in this study. The results show that the political appraisal with a partial correlation of 0.613 and the subjective indicator with a partial correlation of 0.668 have a direct relation with leniency effect in performance appraisal in Refah bank.