Pre-Assessment: Bias on the Performance Mangement Process
For most organizations, performance reviews are used to support decisions related to
training and career development, compensation, transfers, promotions, and reductions
in-force or employment termination. Generally, the performance review process
includes setting clear and specific performance expectations for each employee and
providing periodic informal and/or formal feedback about employee performance relative
to those stated goals. This assignment explores the possible bias on the Performance
Management process.
Instructions:
- What is the impact of unconscious or even overt bias on the Performance
Management process? - Formulate a theory of how the Performance Management process is developed
and implemented. Consider the critical aspect of bias in that process.
Sample Answer
The Impact of Bias on the Performance Management Process
The presence of unconscious or even overt bias can significantly undermine the fairness, accuracy, and effectiveness of the Performance Management process. Bias, in this context, refers to any systematic error in judgment that favors or disfavors certain individuals or groups based on characteristics unrelated to their actual job performance. These biases can manifest at various stages of the performance review cycle, leading to skewed evaluations and inequitable outcomes.
One of the most significant impacts of bias is the inaccurate assessment of employee performance. For instance, affinity bias (favoring those similar to oneself) can lead managers to overrate employees who share their background, interests, or even personality traits, regardless of their actual output. Conversely, stereotype bias can result in underrating individuals based on preconceived notions about their gender, race, age, or other demographic characteristics. The halo effect (allowing a positive impression in one area to unduly influence ratings in other areas) and the horns effect (allowing a negative impression in one area to negatively color overall evaluations) further contribute to inaccurate assessments. These inaccuracies can lead to unfair decisions regarding training and development opportunities, compensation adjustments, promotions, and even termination. Employees who are unfairly rated lower may be denied opportunities for growth and advancement, leading to disengagement and decreased motivation. Conversely, those who are overrated may not receive the necessary feedback for improvement. Ultimately, biased performance management systems fail to provide a true reflection of employee contributions, hindering both individual and organizational development.
Furthermore, bias erodes employee trust and perceptions of fairness. When employees believe that the performance review process is subjective and influenced by bias rather than objective criteria, they are less likely to perceive the system as legitimate or valuable. This can lead to feelings of resentment, frustration, and a decline in morale. In Kenya, where cultural values often emphasize fairness and respect, perceived bias in performance management can be particularly damaging to workplace relationships and organizational harmony. Employees may become cynical about the process, viewing it as a tool for favoritism rather than a genuine mechanism for growth and recognition. This lack of trust can negatively impact employee engagement, increase turnover, and even lead to legal challenges if discriminatory patterns emerge