What is a likely outcome of central tendency error during employee evaluations?

The central tendency error occurs when evaluators tend to rate employees close to the middle of a rating scale rather than providing a more nuanced assessment that reflects actual performance. This leads to a misrepresentation of employee capabilities, as it obscures the true range of performance levels. Employees who truly excel may be rated as average, while those who underperform may also receive similar scores. As a result, individuals may not receive the recognition, feedback, or development opportunities they need to improve or excel in their roles.

In contrast, the other choices suggest outcomes that wouldn't typically follow from central tendency error. More accurate performance assessments are unlikely, as the error undermines the specificity and nuances needed for a true evaluation. Increased rating variability would not occur, as the tendency is actually to reduce variability by clustering ratings around the mean. Effective motivation for all employees is also not a viable outcome of this error, as inaccurate evaluations can demotivate top performers or fail to encourage those who may need improvement. Therefore, the outcome of central tendency error directly aligns with misrepresenting employees' true capabilities.