Final answer:
The recency effect refers to a cognitive bias where the most recently presented information has a greater impact on a person's evaluation or judgement. It is true that the recency effect can heavily influence a person's annual performance evaluation. To mitigate this bias, evaluators should consider the entire evaluation period and not solely focus on recent performance.
Step-by-step explanation:
The statement is True. The recency effect refers to a cognitive bias where the most recently presented information has a greater impact on a person's evaluation or judgement. In the context of a performance evaluation, it means that the results and achievements of the last month may have a disproportionate influence on the overall evaluation.
For example, if an employee had a particularly strong performance in the last month, their supervisor may be more inclined to rate their overall performance higher compared to the rest of the year. This bias can occur because the most recent performance is more easily accessible and memorable, overshadowing the performance throughout the year.
To mitigate the recency effect, it is important for evaluators to consider the entire evaluation period and not solely focus on recent performance. This can be achieved by maintaining documentation of accomplishments throughout the year and regularly reviewing progress towards goals.