HRM Week 9

Performance Management

On an international scope, performance management is defined as the process of assessing current or previous outcomes of performance of individual employees and the entire organization. It entails quantifying the effectiveness and efficiency of actions so as to motivate and improve decision-making. In essence, it serves as the basis for many business-related practices that are directly linked to HRM such as recruitment and staff training. 


            Culture denotes the patterns of shared values and beliefs within a community, which stimulate desirable behavioral norms that employees adopt during problem-solving. Accordingly, performance management is typically viewed as a multi-dimensional and culture-bound construct (Rao 2005, p.34; Aycan 2005, p.1084). Thus, it is to be expected that both employees and managers perceive performance differently depending on the culture. Hence, intra-cultural and inter-culture diversities tend to dominate and determine the interpretation of performance in an organization. For instance, Harris and Moran (1996, p. 36) assert that in an individualistic culture, there is a likelihood of performance being based on individual results and efforts, making this a biased approach that calls for review and evaluation. In contrast, collectivist cultures tend to emphasize the acknowledgment of group loyalty, conformity, and achievement. Owing to this method, there is a need to employ mechanisms that evaluate the performance of employees to take into account the local aspects of culture since they will always influence how workplace activities are perceived.

Therefore, lack of a culture-sensitive performance management system cause employees to suffer from unfair and prejudiced evaluations because the behavior portrayed by particular employees may be seen as highly inappropriate from the evaluators’ perspective. This argument points to the fact that there is a strong positive correlation between culture and performance management (Kandula 2006, p.67). That is to say that culture has a direct and proactive role in enhancing performance management, and since the two are intertwined, the absence of one could result in counterproductive results.

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