International Performance Appraisal Policies and Practices

  • Haiying Kang
  • Jie Shen
Chapter

Abstract

This research provides important insights into how South Korean MNEs manage and what approaches they adopt to managing performance appraisals in their Chinese subsidiaries. It reveals that South Korean MNEs tended to adopt the ethnocentric approach to managing performance appraisal practices for expatriates and an integrative approach for HCNs in their Chinese subsidiaries due to the relative strength effect and contextual differences between China and South Korea. Based on the findings, it can be argued that MNEs originating from advanced economies and operating in less-developed countries tend to adopt an ethnocentric approach to international performance appraisals. Conversely, MNEs from less-developed economies operating in developed countries are more likely to adopt a multi-domestic (localized) approach to international performance appraisals.

Bibliography

  1. Appelbaum, S. H., Roy, M., & Gilliland, T. (2011). Globalization of performance appraisals: Theory and applications. Management Decision, 49, 570–585.CrossRefGoogle Scholar
  2. Bernthal, P., Rogers, R., & Smith, A. (2003). Managing performance: Building accountability for organizational success. Pittsburgh: Development Dimensions International, Inc..Google Scholar
  3. Bian, Y., Shu, X., & Logan, J. R. (2001). Communist Party membership and regime dynamics in China. Social Forces, 79(3), 805–841.CrossRefGoogle Scholar
  4. Björkman, I., & Lu, Y. (2000). Local or global? Human resource management in international joint ventures in China. In M. Warner (Ed.), Changing workplace relations in the Chinese economy (pp. 117–138). London: Palgrave Macmillan.CrossRefGoogle Scholar
  5. Blau, G. (1999). Testing the longitudinal impact of work variables and performance appraisal satisfaction on subsequent overall job satisfaction. Human Relations, 52, 1099–1113.Google Scholar
  6. Brewster, C. (1988). The management of expatriates (Human Resource Research Centre monograph, No. 2). Bedford: Cranfield School of Management.Google Scholar
  7. Briscoe, D. R., & Claus, L. (2008). Employee performance management: Policies and practices in multinational enterprises. In A. Varma, P. S. Budhwar, & A. DeNisi (Eds.), Performance management systems: A global perspective (pp. 15–39). New York: Routledge.Google Scholar
  8. Cardy, R. L., & Dobbins, G. H. (1994). Performance appraisal: Alternative perspectives. Cincinnati: South-Western Publishing.Google Scholar
  9. Carver, C. S., & Scheier, M. F. (1982). Control theory: A useful conceptual framework for personality–social, clinical, and health psychology. Psychological Bulletin, 92, 111–135.CrossRefGoogle Scholar
  10. Cascio, W. F. (1998). Managing human resources. Boston: McGraw-Hill.Google Scholar
  11. Cascio, W. F. (2006). Global performance management systems. In G. K. Stahl & I. Bjorkman (Eds.), Handbook of research in international human resource management (pp. 187–188). Cheltenham: Edward Elgar.Google Scholar
  12. Chen, D. (2011). Research on performance management of Chinese SME. International Journal of Business and Management, 6(4), 263–265.CrossRefGoogle Scholar
  13. Chen, J., & Eldridge, D. (2010). Are “standardized performance appraisal practices” really preferred? A case study in China. Chinese Management Studies, 4(3), 244–257.CrossRefGoogle Scholar
  14. Chiang, F. F. T., & Birtch, T. A. (2010). Appraising performance across borders: An empirical examination of the purposes and practices of performance appraisal in a multi-country context. Journal of Management Studies, 47, 1365–1393.Google Scholar
  15. Chow, H. S. (1995). An opinion survey of performance appraisal practices in Hong Kong and the People’s Republic of China. Asia Pacific Journal of Human Resources, 32(3), 67–79.CrossRefGoogle Scholar
  16. Chung, K. H., Lee, H. C., & Jung, K. H. (1997). Korea management: Global strategy and cultural transformation. Berlin/New York: Walter de Gruyter.CrossRefGoogle Scholar
  17. Cleveland, J. N., Murphy, K. R., & Williams, R. (1989). Multiple uses of performance appraisal: Prevalence and correlates. Journal of Applied Psychology, 74, 130–135.CrossRefGoogle Scholar
  18. Cleveland, J. N., Lim, A. S., & Murphy, K. R. (2007). Feedback phobia? Why employees do not want to give or receive performance feedback. In J. Langan-Fox, C. L. Cooper, & R. J. Klimoski (Eds.), Research companion to the dysfunctional workplace: Management challenges and symptoms (pp. 172–176). Cheltenham: Edward Elgar.Google Scholar
  19. Cooke, F. L. (2008). The changing dynamics of employment relations in China: An evaluation of theorising level of labour disputes. Journal of Industrial Relations, 50, 111–138.CrossRefGoogle Scholar
  20. Cooke, F. L. (2012). Human resource management in China: New trends and practices. New York: Routledge.Google Scholar
  21. De Luque, M. F. S., & Sommer, S. M. (2000). The impact of culture on feedback- seeking behavior: An integrated model and propositions. Academy of Management Review, 25(4), 829–849.CrossRefGoogle Scholar
  22. Dowling, P. J., Welch, D. E., & Schuler, R. S. (1999). International human resource management. Cincinnati: South-Western.Google Scholar
  23. Dowling, P. J., Festing, M., & Engle, A. D. (2013). International human resource management. London: Cengage Learning.Google Scholar
  24. Farh, J., Dobbins, G. H., & Cheng, B. (1991). Cultural relativity in action: A comparison of self-ratings made by Chinese and US workers. Personnel psychology, 44(1), 129–147.CrossRefGoogle Scholar
  25. Fenwick, M. (2004). International compensation and performance management. In A. W. K. Harzing & J. Van Ruysseveldt (Eds.), International HRM: Managing people across borders (pp. 307–332). Newbury Park: Sage.Google Scholar
  26. Festing, M., Knappert, L., Dowling, P. J., & Engle, A. D. (2012). Global performance management in MNEs: Conceptualization and profiles of country-specific characteristics in China, Germany, and the United States. Thunderbird International Business Review, 54, 825–843.CrossRefGoogle Scholar
  27. Fletcher, C., & Perry, P. (2002). Performance appraisal and feedback: A consideration of national culture and a review of contemporary and future trends. In N. Anderson, D. Ones, H. Sinangil, & C. Viswesvaran (Eds.), International handbook of industrial, work and organizational psychology (pp. 127–144). Beverly Hills: Sage.Google Scholar
  28. Furnham, A., & Stringfield, P. (1998). Congruence in job-performance ratings: A study of 360 feedback examining self, manager, peers, and consultant ratings. Human Relations, 51(4), 517–530.Google Scholar
  29. Gabris, G. T., & Ihrke, D. M. (2001). Does performance appraisal contribute to heightened levels of employee burnout? The results of one study. Public Personnel Management, 30, 157–172.CrossRefGoogle Scholar
  30. Garavan, T. N., Morley, M., & Flynn, M. (1997). 360 degree feedback: Its role in employee development. Journal of Management Development, 16(2), 134–147.CrossRefGoogle Scholar
  31. Gregersen, H. B., Hite, J. M., & Black, J. S. (1996). Expatriate performance appraisal in US multinational firms. Journal of International Business Studies, 27, 711–738.CrossRefGoogle Scholar
  32. Hana Financial Group. (2013). 2013 Hana Financial Group sustainability report. Retrieved April 11, 2016, from, http://www.hanafn.com/eng/csr/sustainability/sustainabilityFileDown.do?fileName=report_2013_english.pdf
  33. Harris, M. M., & Schaubroeck, J. (1988). A meta-analysis of self-supervisor, self-peer, and peer-supervisor ratings. Personnel Psychology, 41, 43–62.CrossRefGoogle Scholar
  34. Huo, Y. P., & Von Glinow, M. A. (1995). On transplanting human resource practices to China: A culture-driven approach. International Journal of Manpower, 16(9), 3–15.CrossRefGoogle Scholar
  35. Jackson, S., & Schuler, R. S. (2003). Managing human resources through strategic partnerships. Cincinnati: South-Western.Google Scholar
  36. Janssens, M. (1994). Evaluating international managers’ performance: Parent company standards as control mechanism. The International Journal of Human Resource Management, 5, 853–873.CrossRefGoogle Scholar
  37. Jawahar, I. M. (2006). An investigation of potential consequences of satisfaction with appraisal feedback. Journal of Leadership & Organizational Studies, 13, 14–28.CrossRefGoogle Scholar
  38. Jhun, S., Bae, Z. T., & Rhee, S. Y. (2012). Performance change of managers in two different uses of upward feedback: A longitudinal study in Korea. The International Journal of Human Resource Management, 23, 4246–4264.CrossRefGoogle Scholar
  39. Kim, P. S. (2001). Utilising 360-degree feedback in the public sector: A case study of the Korean central government. Asian Journal of Political Science, 9, 95–108.CrossRefGoogle Scholar
  40. Kim, J. W., & Rowley, C. (2001). Managerial problems in Korea-Evidence from the nationalized industries. International Journal of Public Sector Management, 14(2), 129–149.CrossRefGoogle Scholar
  41. Kong, D., Kim, S., & Yang, S. B. (2013). Individual performance appraisal in the government of Korea, Knowledge Sharing Program: KSP Modularization. Seoul: KDI School of Public Policy and Management.Google Scholar
  42. Lansbury, D. R., Kwon, S. H., & Suh, C. S. (2006). Globalization and employment relations in the Korean auto industry: The case of the Hyundai Motor Company in Korea, Canada and India. Asia Pacific Business Review, 12(2), 131–147.CrossRefGoogle Scholar
  43. LG. (2016). Fair evaluation. Retrieved March 15, 2016, from http://www.lg.com/global/sustainability/employee/fair-evaluation
  44. Lindholm, N. (1999). Performance management in MNC subsidiaries in China: A study of host country managers and professionals. Asia Pacific Journal of Human Resources, 37, 18–35.CrossRefGoogle Scholar
  45. Locke, E. A., & Latham, G. P. (1990). A theory of goal setting & task performance. Eaglewood Cliffs: Prentice- Hall.Google Scholar
  46. Logger, E., & Vinke, R. (1995). Compensation and appraisal of international staff. In A. Harzing & J. Ruysseveldt (Eds.), International human resource management (pp. 252–269). London: Sage.Google Scholar
  47. Maley, J. F. (2009). The influence of performance appraisal on the psychological contract of the inpatriate manager. SA Journal of Human Resource Management, 7(1), 100–109.CrossRefGoogle Scholar
  48. Maley, J. F., & Kramar, R. (2007). International performance appraisal: Policies, practices and processes in Australian subsidiaries of healthcare MNCs. Research and Practice in Human Resource Management, 15, 21–40.Google Scholar
  49. Martin, D. C., & Bartol, K. M. (2003). Factors influencing expatriate performance appraisal system success: An organizational perspective. Journal of International Management, 9, 115–132.CrossRefGoogle Scholar
  50. McGovern, P. (1999). HRM policies and management practices. In L. Govern, V. Hope Hailey, P. Stiles, & C. Truss (Eds.), Strategic human resource management. Oxford: Oxford University Press.Google Scholar
  51. Mendenhall, M., & Oddou, G. (1991). Expatriate performance appraisal: Problems and solutions. In M. Mendenhall & G. Oddou (Eds.), Readings and cases in international human resource management. Boston: PWS-Kent.Google Scholar
  52. Milliman, J., Taylor, S., & Czaplewski, A. (2000). Performance feedback in MNC: Opportunities for organizational learning. Human Resource Planning, 25, 29–44.Google Scholar
  53. Muchinsky, P. M. (2002). Psychology applied to work (6th ed.). Wadsworth: Belmont.Google Scholar
  54. Murphy, K. R., & Cleveland, J. N. (1991). Performance appraisal: An organizational perspective. Needham Heights: Allyn & Bacon.Google Scholar
  55. Myloni, B. (2002). The transfer of human resource management practices within multinational companies in Greece—A comparative analysis of human resource management practices in subsidiaries of European and US multinationals and Greek companies. Unpublished doctoral dissertation, University of Bradford, Bradford.Google Scholar
  56. Nathan, B. R., Mohrman Jr., A. M., & Milliman, J. (1991). Interpersonal relations as a context for the effects of appraisal interviews on performance and satisfaction: A longitudinal study. Academy of Management Journal, 34, 352–369.CrossRefGoogle Scholar
  57. Park, W. S., & Yu, G. C. (2000). Transformation and new patterns of HRM in Korea. Michigan: Citeseer.Google Scholar
  58. Pfeffer, J. (2005). Changing mental models: HR’s most important task. Human Resource Management, 44(2), 123–128.CrossRefGoogle Scholar
  59. Poon, H. F., Wei, Q., & Rowley, C. (2010). The changing face of performance management in China. In C. Rowley & F. L. Cooke (Eds.), The changing face of management in China (pp. 149–169). Oxon: Routledge.Google Scholar
  60. Pudelko, M., & Harzing, A. (2007). Country of origin, localization, or dominance effects? An empirical investigation of HRM practices in foreign subsidiaries. Human Resource Management, 46(4), 535–559.CrossRefGoogle Scholar
  61. Qiao, K., Khilji, S., & Wang, X. Y. (2009). High-performance work systems, organizational commitment, and the role of demographic features in the People’s Republic of China. The International Journal of Human Resource Management, 20(11), 2311–2330.CrossRefGoogle Scholar
  62. Rowley, C., & Bae, J. S. (2004). Human resource management in South Korea after the Asian financial crisis: Emerging patterns from the labyrinth. International Studies of Management & Organization, 34(1), 52–82.Google Scholar
  63. Rowley, C., & Yang, H. S. (2009). The development of Asian performance management systems: The example of South Korea. Performance management in South Korea. In A. Varma et al. (Eds.), Performance management systems: A global perspective. Abingdon: Routledge.Google Scholar
  64. Schuler, R. S., Dowling, P. J., & De Cieri, H. (1993). An integrative framework of strategic international human resource management. Journal of Management, 19(2), 419–459.CrossRefGoogle Scholar
  65. Shay, J. P., & Baack, S. (2006). An empirical investigation of the relationships between modes and degree of expatriate adjustment and multiple measures of performance. International Journal of Cross Cultural Management, 6(3), 275–294.CrossRefGoogle Scholar
  66. Shen, J. (2004). International performance appraisals. International Journal of Manpower, 25, 547–563.CrossRefGoogle Scholar
  67. Shen, J. (2005a). Effective international performance appraisals: Easily said, hard to do. Compensation & Benefits Review, 37, 70–79.CrossRefGoogle Scholar
  68. Shen, J. (2005b). Towards a generic IHRM model. Journal of Organisational Transformation & Social Change, 2(2), 83–102.CrossRefGoogle Scholar
  69. Shen, J. (2007). Labour disputes and their resolution in China. Oxford: Chandos Publishing.Google Scholar
  70. Shen, J. (2008). HRM in Chinese privatised enterprises. Thunderbird International Business Review, 50(2), 91–104.CrossRefGoogle Scholar
  71. Shen, J. (2011). Developing the concept of socially responsible international human resource management. The International Journal of Human Resource Management, 22(6), 1351–1363.CrossRefGoogle Scholar
  72. Siders, M. A., George, G., & Dharwadkar, R. (2001). The relationship of internal and external commitment foci to objective job performance measures. Academy of Management Journal, 44, 570–579.CrossRefGoogle Scholar
  73. SK. (2013). SK Telecom annual report. Retrieved April 15, 2016, from http://www.sktelecom.com/img/kor/persist_report/20140806/SUSTAIN_REPORT_2013_ENG.pdf
  74. Smith, C., & Meiksins, P. (1995). System, society and dominance effects in cross-national organisational analysis. Work, Employment & Society, 9(2), 241–267.CrossRefGoogle Scholar
  75. Solutions Consultant. (2014). Tips for performance appraisal. Retried March 12, 2016, from http://china.smetoolkit.org/china/zh/content/en/376/Tips-for-Performance-Appraisal
  76. Sparrow, P. R., Schuler, R. S., & Jackson, S. E. (1994). Convergence of divergence: Human resource practices and policies for competitive advantage world-wide. The International Journal of Human Resource Management, 5(2), 267–300.CrossRefGoogle Scholar
  77. Stone, J. R. (2008). Managing human resource. Milton: Wiley.Google Scholar
  78. Suutari, V., & Tahvanainen, M. (2002). The antecedents of performance management among Finnish expatriates. The International Journal of Human Resource Management, 13, 55–75.CrossRefGoogle Scholar
  79. Tan, C. H., & Torrington, D. (1998). Human resource management for Southeast Asia and Hong Kong. Singapore: Prentice Hall.Google Scholar
  80. Taylor, R., Cho, D. Y., & Hyun, J. H. (2001). Korean companies in China: Strategies in the localisation of management. In C. Rowley, T. W. Sohn, & J. Bae (Eds.), Managing Korean business: Organisation, culture, human resources and change (pp. 161–181). London: Frank Cass.Google Scholar
  81. Tziner, A., Murphy, K. R., Cleveland, J. N., & Roberts-Thompson, G. P. (2001). Relationships between attitudes toward organizations and performance appraisal systems and rating behavior. International Journal of Selection and Assessment, 9, 226–239.CrossRefGoogle Scholar
  82. Vo, A., & Stanton, P. (2011). The transfer of HRM policies and practices to a transnational system: The case of performance management practices of the US and Japanese MNEs operating in Vietnam. International Journal of Human Resource Management, 22(17), 3513–3527.CrossRefGoogle Scholar
  83. Warner, M. (1995). The management of human resources in Chinese industry. New York: St. Martin’s Press.CrossRefGoogle Scholar
  84. Whitford, C. M., & Coetsee, W. J. (2007). A model of the underlying philosophy and criteria for effective implementation of performance management. SA Journal of Human Resource Management, 4(1), 63–73.Google Scholar
  85. Williams, R. S. (2002). Managing employee performance: Design and implementation in organizations. London: Thompson Learning.Google Scholar
  86. Woods, P. (2003). Performance management of Australian and Singaporean expatriates. International Journal of Manpower, 24(5), 517–534.CrossRefGoogle Scholar
  87. Yang, H. S., & Rowley, C. (2008). Performance management in South Korea. In A. Varma, P. S. Budhwar, & A. DeNisi (Eds.), Performance management systems: A global perspective (pp. 211–270). New York: Routledge.Google Scholar
  88. Ye, L., & Ni, X. (2013). Performance management in China: In pursuit of accountability and legitimacy. Retrieved April 10, 2016, from http://www.umdcipe.org/conferences/GovernmentCollaborationShanghai/Submitted%20Papers/Ye_Ni_Paper.pdf
  89. Zhu, C. J., & Dowling, P. J. (1998). Performance appraisal in China. In J. Selmer (Ed.), International management in China: Cross-cultural issues (p. 115). London: Routledge.Google Scholar
  90. Zhu, C. J., & Dowling, P. J. (2000). Managing people during economic transition: The development of HR practices in China. Asia Pacific Journal of Human Resources, 38(2), 84–106.CrossRefGoogle Scholar
  91. Zou, M., & Lansbury, R. D. (2009). Multinational corporations and employment relations in the People’s Republic of China: The case of Beijing Hyundai Motor Company. International Journal of Human Resource Management, 20(11), 2349–2369.CrossRefGoogle Scholar

Copyright information

© The Author(s) 2017

Authors and Affiliations

  • Haiying Kang
    • 1
  • Jie Shen
    • 2
  1. 1.School of Management, RMIT UniversityMelbourneAustralia
  2. 2.Shenzhen Audencia Business School (SABS)Shenzhen UniversityShenzhenChina

Personalised recommendations