When individuals perceive everyone to be worse than they actually are, it is referred to as what?

The concept you're looking for is known as projective distortion. When individuals assess others and perceive everyone to be worse than they actually are, they are projecting their own feelings, biases, or insecurities onto others. This distortion can stem from a variety of cognitive biases and can occur in situations where one may feel inadequate or is struggling with self-esteem, leading them to evaluate others more harshly than warranted.

In contrast, severity refers to a tendency to rate others too harshly or to find fault more readily, while leniency reflects the opposite bias, where individuals rate others more favorably than is deserved. Centrism refers to a tendency to avoid extremes in evaluations and rate individuals toward the middle on a scale. Projective distortion specifically highlights the cognitive error in perceiving extrinsic cues negatively based on internal projections.

Understanding projective distortion is important in organizational settings, as it can affect team dynamics, performance evaluations, and interpersonal relationships among team members. Recognizing this bias can help mitigate its effects, leading to more accurate perceptions and better workplace interactions.