Impact of personal bias on performance of employees in public sector banks

Abstract

PurposeThis 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/approachData were collected by interviewing 50 people working in five leading public sector banks in Pakistan to draw the outcomes of the present research.FindingsProblems 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 implicationsWhile 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/valueThe paper is an early attempt to investigate impact of supervisors' personal bias on employees' performance management, growth, and progression in public sector banks.