The Impact of Over- and Underrating on Leadership Performance

Abstract

This study examined the notion of leadership over- and underrating: self-assessments of one’s managerial competencies relative to assessments made by others. Specifically, we examined the relationships between over- and underrating and performance on an assessment center. Our results showed that underraters were more likely to have higher performance scores than overraters. Multiple regression results indicated that as underrating increased scores on the objectively-rated competencies rose. These findings suggest that the mechanisms that underlie underrating and overrating – perhaps humility and narcissism, respectively - have important implications for personal and professional development.