Detailed Answer
Correct answer: (B)
Spillover effect
The spillover effect occurs when past performance appraisal ratings, whether good or bad, are allowed to unjustly influence correct ratings. It happens most often when new managers are being briefed on current employees by departing managers and the biased information is then passed on. One solution is to avoid examining past appraisal information. Another solution is to use past records in conjunction with current appraisals for the purpose of detecting trends and giving feedback to the incumbent.
