1.

The problem with the OLR approach is that CEOs prefer to appraise employees' performance on a
personal basis rather than utilizing factual data throughout the review process. Furthermore, prejudices
and partiality may exist in the selection process, as some employees may take advantage and try to
grow close to the supervisor in order to receive a promotion recommendation. In this case, the
employee may not work as hard, preferring to become close to the supervisor in order to obtain the
promotion recommendation.