What is the purpose of calibration in performance appraisals?

• A. To increase ratings uniformly across all employees
• B. To collect additional performance data
• C. To adjust ratings to reduce biases and improve consistency
• D. To shorten the appraisal cycle

Answer: (C)

Calibration in performance appraisals is the process of aligning ratings across managers to ensure fairness and consistency. It involves reviewing and moderating ratings so that similar levels of performance receive similar scores, regardless of who wrote the review. This helps reduce individual biases, such as leniency, severity, or halo effects, and ensures the rating framework is applied uniformly across the organization. Through calibration discussions, managers refer to documented evidence of performance, compare like cases, and adjust ratings when needed to reflect actual performance and the organization's standards. This leads to more credible evaluations, fairer compensation decisions, and clearer development guidance for employees. It’s not about collecting extra data, shortening the appraisal cycle, or automatically boosting everyone’s rating; it’s about making sure ratings are accurate, consistent, and defensible.