Managerial Bias Essay

Firstly, performance ratings fail to deliver results independently and are rigid. According to Deming (1986), an influential pioneer in criticizing performance ratings, in his book "Out of Crisis": performance ratings were deemed irrelevant for their rigidity. The meta-analysis proved that the most common cause of errors that affected productivity was found in organizational systems like units and departments and not in individuals. However, performance ratings were rigid as they only targeted the people-aspect and failed to incorporate metrics that displayed faults in other aspects of the organization such as lack of collaboration and lack of autonomy which highly impacted employee motivation. Deming's principle suggested that with a normal

Rating bias (Ilgen, Barnes-Farrell, & McKellin, 1993) that can be further categorized into ratee-centric bias (when one person evaluates the other person); rater-centric bias (when the person being evaluated deliberately influences the rater’s judgment); system-centric bias (when "erratic judgment" occurs because of flawed rating scales) and gender-based bias (Varma & Stroh, 2001) are the most common ways of bias to occur (Pesta et al , 2005). Additionally, managerial bias (Latham et al, 2008) where employees face issues like grade inflation, bell curve grading, benchmarking along with no clear indication of what the employee actually lacks causes distress between employees and sometimes worsens relationships by promoting unhealthy competition (Beck et al, 2014). Moreover, not only are these ranking irrelevant to objectives of conduction by reflecting biases but they even impact material morale and satisfaction. Not so surprisingly, 95 percent of managers reflected on ratings being inflexible and 90 percent of HR professionals agreed that such ratings did not provide accurate insights on employee performance either in the pst or in the near future (Sutton, Baldwin, Wood & Hoffman,