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In psychology, the concept that persons with one positive quality are perceived as having multiple positive qualities. For example, an attractive person may be thought to be more intelligent than he/she really is. In business, the halo effect is seen when one popular product from a company improves sales for other products.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
‘halo effect’the regarding of an individual by others, especially his or her superiors, as especially good at his or her job. The reality may be different but, because the belief is strongly held, any shortcomings may not be perceived. Those employees who have the halo effect often achieve rapid promotion, with the result that their occupancy of particular job roles may be brief. Any aspects of their performance which are not satisfactory may not come to light for some time, hence the halo effect remains undiminished. However, those with this attribute often attract resentment from their more discerning colleagues. The opposite of the halo effect is the horns effect, where an employee is viewed badly whatever his or her actual performance. See PETER PRINCIPLE.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson