This report summarizes the findings of MSPB's research into employee perspectives regarding how prevalent they believe that favoritism is within the Federal merit systems, how and when favoritism occurs, and the potential impacts on individuals and organizations. Further, this report examines potential reasons underlying perceptions of favoritism and outlines steps that Federal agency leaders and supervisors can take to ensure that decisions are merit-based and untainted by personal favoritism and discusses what Federal employees can do to help them successfully compete for advancement and recognition in a merit system.