Internation Performance Appraisal
As more organizations find themselves expanding into global markets and operations, they must take a look at how to evaluate the performance of workers in other countries and the expatriate managers or workers sent to work in other countries. Evaluating employee performance in international environments is more complicated than applying the performance management practices of the organization in the host country. Organizations are increasingly applying the Western practices that tie performance management to organizational strategy and strategic HRM, but cultural differences between the parent country and the host country must be considered. Cultural differences between the United States and England are not great, and practices may not need much adaption, but cultural differences between the United States and China, for example, are wider by comparison and changes must be made in the evaluation process.
Cultural values such as the degree to which the culture emphasizes collectivism over individualism, harmony over conflict, saving “face,” and how the power distance between manager and worker is viewed, must be considered when developing a performance appraisal process. Employees in countries with “collectivist” cultures (Japan, China, Vietnam) that value the group more strongly than the individual will probably not react well to performance appraisal systems that evaluate the individual, raising suspicion and mistrust within the group. Evaluation of the work group or division may be a better choice. For example, if an individual in a collectivist culture makes a decision that benefits the group goals over personal goals, he may expect to be recognized for the decision rather than having his lack of personal achievement mentioned in an appraisal. Employees in countries with “individualist” cultures (Australia, France, Italy) will react much better to individual evaluations, but may not see much direct connection to a group performance appraisal.
When developing a system for appraisal of employees in international units, HRM has three basic choices: export the performance management system of the home country, develop unique performance management systems so each foreign unit has a unique cultural fit, or integrate the home country system with local culture to create a “hybrid” system. When deciding how to adapt the performance management system, HEM needs to balance integrating the organizational strategic mission and coordination of workforce alignment, organizational development, and employee development with sensitivity to building relationships in the local cultural context.