What does it indicate when raters group their ratings near the center of the rating scale?

When raters group their ratings near the center of the rating scale, it indicates the error of central tendency. This phenomenon occurs when evaluators avoid using the extremes of a rating scale and instead tend to rate most subjects or items as average or close to the midpoint.

Raters may do this for several reasons, such as a desire to be fair, uncertainty about how to evaluate a particular performance, or an inclination to avoid making difficult distinctions between performance levels. The result is a skewed rating distribution that does not accurately reflect the actual performance levels, leading to a lack of variability in the ratings. This can hinder effective assessments and the identification of exceptional or poor performance. Recognizing this error is important for supervisors, as it can affect performance appraisals and subsequent decision-making in personnel management.