@indigomoth - Unfortunately, nepotism is still alive and well.
A lot of people wouldn't even see it as a bad thing, just the way things are.
And often performance tests are quite easy for someone who has been doing the job for a long time. Particularly if it is just a sort of check up, rather than a test of a new skill.
So, if you really wanted to fire someone over the test, you'd need to work pretty hard to do so. I'd imagine there would be easier ways.
Particularly now, when it seems like people are let go at the drop of a hat.