Halo Effect, A Cog in the wheel of Organizational Success

This is a psychological phenomenon where decision is biased based on a captivating attribute/factors by perception amongst other vital factors. Many organizations have maintained a cumulative performance as a result of halo effect which has contributed to wrong decisions that kept the hand of the clock stationery without outstanding impact.

Organizations have witnessed disappointment and inefficiency as a result of wrong decisions in hiring process where one of the applicant's/employee's attributes or performance has caused bias in favouring the individual without considering his other attributes where his major weaknesses would have reflected. It reflects in hiring process, team work, performance management process, marketing presentations etc.

This occurs in daily activities in every organization leading to low performance, lack of zeal, lukewarmness in company's interests seriously affecting organizational goals and objectives.

A manager failed because he was promoted for higher responsibilities entirely different from the dimension where he was previously performing, while a team failed from exceeding their target because the team lead tilted his mind on contributions from a preferred member who always thinks alongside with him.

Also companies have witnessed disappointment based on recruitment error where an applicant's physical attraction or outstanding credentials beclouded their sense of reasoning without considering factors in selection process.

For instance, once an alumnus of FAG business school or graduated from ADC university or a first class graduate he's already got the job. A colleague was fired within probation period because his performance was parallel to his credentials especially the resume and performance in interview sessions.

A research has established that most on hiring or elevation to top positions based on affiliations in terms of club, former colleague, team member, relations became a failure or disappointment  because the successor performed below expectations.

A big fraud was committed by a backup in a financial institution because due diligence was not carried on him because of his interpersonal skills, very polite and lip service to his bosses. These have resulted to:

• great loss
• additional cost in terms of repeated recruitment, loss of time in terms of man-hours and productivity, lack of team spirit and commitment,  wrong reward and reinforcement of nonperforming behavior/attitude
• bad attitude to work
• hiring the wrong person, theft/fraud committed by the employee,

Factors that may likely cause halo effect -physical attraction, oratory prowess, outstanding result, charming personality, fellow alumnus, former colleague, relationship, first class graduate, professional qualification etc.

How do you eliminate bias from the effect?

• Always have more than one  panel in every decision making process
• Administer a questionnaire where necessary for diverse opinions
• Ensure that more than more than two people are in a panel of decision making