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Impact of personal bias on performance of employees in public sector banks
Author(s) -
Wei Zhang,
Siyal Abdul Waheed,
Bhand Shaharbano
Publication year - 2019
Publication title -
journal of public affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.221
H-Index - 20
eISSN - 1479-1854
pISSN - 1472-3891
DOI - 10.1002/pa.1924
Subject(s) - distrust , performance appraisal , hostility , interview , public sector , psychology , public relations , marketing , social psychology , business , economics , management , sociology , political science , anthropology , psychotherapist , economy
Purpose This study discusses the multitude of challenges that employees in public sector banks face regarding their annual performance appraisal due to personal bias exercised by their supervisors. Design/methodology/approach Data were collected by interviewing 50 people working in five leading public sector banks in Pakistan to draw the outcomes of the present research. Findings Problems lie in the implementation and justification of evaluation policies that affect employees' career growth, progression, and monetary rewards and fringes, which ultimately hit employees' annual performance appraisal. This study evidences the record deterioration in progression of employees due to personal bias as the appraisers give partial evaluations to those with whom they have any differences and favor their nears and dears or those who are more visible to them or remained in their good books due to personal reasons. This leads employees to feel unfairly treated because the evaluation criterion for performance appraisal seems unjust and illogical. This develops despair, distress, hostility, and distrust among employees when the appraisals are being conducted. The appraisal system does not differentiate between performers or nonperformers due to biased evaluations; therefore, decisions on promotions or career progression cannot be based on such appraisals. The problem of demotivation among employees is also a result of an ineffective performance appraisal mechanism, as no differentiation exists between star performers and nonperformers. Practical implications While considering the prevalent biased evaluation patterns in public sector banks, requisite changes in appraisal design need to be contemplated to rectify the process of performance appraisal and cope with employees' despair, hostility, and distrust. Originality/value The paper is an early attempt to investigate impact of supervisors' personal bias on employees' performance management, growth, and progression in public sector banks.