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HUMAN PERFORMANCE
Kelley School of Business, Indiana University, 1309 E. Tenth Street, Bloomington, IN 47405-1701, U.S.A.
0007-6813/$ — see front matter # 2012 Kelley School of Business, Indiana University. All rights reserved.
doi:10.1016/j.bushor.2012.03.004
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implemented taking into account local cultural Our discussion regarding how performance man-
norms. agement is affected by cultural norms may lead to
Given the important role of cultural differences, the conclusion that knowledge of performance
it may be tempting to conclude that we do not know management can only be local, narrow, and limit-
much about how performance management systems ed. The goal of this article is to challenge that
should be implemented around the world. In other notion. In fact, we provide an analysis and discus-
words, if cultural norms change, it seems that sion of performance management universals:
the way performance management systems are performance management principles that are cul-
designed and implemented should also change, ture-free. We emphasize that a discussion of per-
turning performance management systems into formance management universals does not mean
moving targets. More concretely, consider the dis- that culture does not matter. Rather, our approach
cussion provided by Aguinis (2013, Chapter 1) re- follows Aguinis and Henle (2003), who discussed
garding culture-related issues about performance universals in the field of organizational behavior
management systems in India, China, Turkey, and and concluded that there are underlying universal
South Korea. functions that are enacted by a variety of behav-
India’s economy has been in overdrive since the ioral manifestations across cultures. For example,
early 1990s, and there is intense international busi- the universal principle of charismatic leadership
ness activity, including a significant increase in for- was enacted in a highly aggressive manner in the
eign direct investment. However, traditional cases of John F. Kennedy, Martin Luther King, Jr.,
paternalistic values do not seem to be changing, and Theodore Roosevelt in the United States, and
and this poses a challenge in implementing perfor- Winston Churchill in the United Kingdom. The same
mance management systems which stress supervi- universal charismatic leadership principle was
sors serving as coaches rather than ‘bosses.’ enacted in a more quiet and nonaggressive manner
In China, from the founding of the socialist state in the cases of Mahatma Gandhi and Mother Teresa
in 1949 until the 1980s, performance management in India, and Nelson Mandela in South Africa. All
systems emphasized attendance and skills. Since of these individuals were highly charismatic and
then, however, the view of performance manage- effective leaders in their respective cultural con-
ment has expanded to consider broader sets of texts. Similarly, as we discuss herein, performance
behaviors, as well as the relationship between per- management universals play out differently and
formance management and other organizational have different manifestations across different cul-
systems (e.g., compensation). Nevertheless, impor- tural environments.
tant issues to consider for successful implementa- The remainder of our article is organized as
tion of performance management systems in China follows. First, we describe five performance man-
include respect for age and seniority and an empha- agement universals. Then, we discuss five selected
sis on social harmony. cultural dimensions (individualism-collectivism,
Performance management in Turkey is evolving power distance, uncertainty avoidance, masculinity-
rapidly given its official candidacy for European femininity, and fatalism) that are particularly rele-
Union membership. Turkey’s unique cultural context vant to performance management. Finally, we offer
involves being a democratic and secular state, yet research-based best-practice recommendations on
one ruled by a single-party government. Perfor- how to think globally (i.e., consider universals) and
mance management is a fairly novel organizational act locally (i.e., consider how universals are man-
issue in Turkey, but almost 80% of firms are currently ifested across cultures) regarding performance
using some type of system. Because personal rela- management.
tionships play an important role in Turkish culture, it
is vital that systems implemented here ensure valid,
reliable, and fair performance measurement. 2. Five performance management
Finally, work relationships in South Korea are universals
hierarchical in nature and emphasize the impor-
tance of groups over individuals. However, the Although we could have chosen more, the five uni-
Asian financial crisis of 1997 affected organization- versals highlighted next allow us to describe how
al practices substantially and led many organiza- commonalities permeate the entire performance
tions to adopt what in South Korea is called management cycle beginning with the system pre-
Yunbongje (i.e., merit-based systems). Thus, ef- implementation phase (i.e., creation of job descrip-
fective performance management systems should tions), followed by the system implementation
reconcile a merit-based approach with more tradi- phase (i.e., training regarding performance manage-
tional cultural values. ment, performance measurement, and performance
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feedback), and ending with the system outcomes 2.3. Performance management universal
phase (i.e., reward allocation). The five universals #3: Measurement of performance based
apply to all organizations, regardless of a particular on behaviors and results at the individual
cultural context. and collective levels
2.1. Performance management universal The third universal is relevant to actual implemen-
#1: Congruence between job descriptions tation and refers to a key component of all systems:
and organizational goals the measurement of performance. Regardless of a
particular cultural context, a good system includes
The first universal refers to the system pre-imple- measures of behaviors and results at the individual
mentation phase. Specifically, it consists of creat- and collective (e.g., team, department, unit) levels
ing job descriptions that summarize the job duties of analysis. First, regarding the measurement of
and needed knowledge, skills, and abilities (KSAs) behaviors and results, when an employee mostly
such that they are congruent with organizational has control over the results of her work, it is more
goals. For example, if customer service is an appropriate to measure results. Alternatively, when
important strategic priority in the organization, an employee is mostly not in control over the re-
then job descriptions should include behaviors sults, it is more appropriate to measure behaviors.
and expected results related to customer service. For example, if a salesperson is assigned a particu-
Such congruence better ensures that the behaviors larly difficult region (e.g., low income, sparse pop-
and results directly produced by employees ulation), then it would be more appropriate to
contribute toward achieving the goals of their emphasize behaviors over results (although both
organization, facilitate organizational change, would be measured). Second, regarding individual
and help the organization gain a competitive ad- and collective performance, it is necessary to con-
vantage. Thus, creating job descriptions that sider the amount of time employees spend working
are congruent with an organization’s goals is an in teams/units. If an employee spends a lot of time
important prerequisite for all performance man- working by himself, it is more appropriate to mea-
agement systems. sure the employee’s performance at the individual
level of analysis. Alternatively, if an employee
2.2. Performance management universal spends much time working in teams, it is more
#2: Training regarding performance appropriate to measure the employee’s perfor-
management mance based also on team performance (Scott &
Tiessen, 1999). However, given today’s networked
The second universal, also addressing the system job environments, measures of both individual and
implementation phase, refers to providing adequate team performance are needed. In short, good per-
training to all participants in the performance man- formance management systems include measures of
agement system–—both raters and ratees. Training, behaviors and results–—both regarding individual
in general, produces a variety of benefits including and team performance.
increased levels of employee knowledge and skills
which result in enhanced human capital and 2.4. Performance management universal
improved firm performance (Aguinis & Kraiger, #4: Delivering performance feedback
2009). In the particular case of performance man- using a strengths-based approach
agement, goals of training programs include
enhancing employee buy-in, as well as reducing Providing feedback about performance is an impor-
distortions and biases in the process of measuring tant universal because it allows employees to im-
performance (Aguinis, 2013). Some training prove performance in the future. In particular, as
programs take place before the performance discussed in detail by Aguinis, Gottfredson, and Joo
management system is launched (e.g., training of (2012), it is better to use a strengths-based ap-
raters regarding how to minimize biases and inac- proach to delivering feedback. The strengths-based
curacies in filling out performance appraisal forms) approach involves identifying employees’ strengths,
whereas other programs take place once the delivering positive feedback on how employees are
performance system is underway (e.g., training using their strengths to achieve successful perfor-
of employees based on needs identified after a mance, and asking them to maintain or further
performance feedback session has taken place). improve their performance by focusing on their
Due to their benefits, training programs are recom- strengths. Managers who adhere to a strengths-
mended for all performance management systems–— based approach, as opposed to a weaknesses-based
regardless of particular cultural contexts. approach, are more likely to benefit from greater
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employee engagement, productivity, and retention, of high power distance nations are Malaysia,
among many benefits–—regardless of the cultural Guatemala, Mexico, China, and Iraq. In these coun-
context in question. tries, differences in the distribution of power, as
well as large gaps between the wealthy and poor,
2.5. Performance management universal are more widely accepted–—and even expected.
#5: Allocating rewards that are meaningful Alternatively, examples of low power distance na-
tions are Austria, Israel, and Denmark. In these
The fifth performance management universal refers countries, people are generally uncomfortable with
to the allocation of rewards, which is usually seen as an uneven distribution of power, such as large gaps
the last phase–—or outcome–—of the performance between the wealthy and poor.
management process. Regardless of the specific Uncertainty avoidance refers to the extent to
cultural context in question, rewards should be which people feel uncomfortable in unstructured
meaningful for those receiving them. Note that situations (Hofstede, 2001; Newman & Nollen,
rewards can be tangible (e.g., end-of-the-year bo- 1996). Examples of countries that score high on
nus) or intangible (e.g., employee of the month uncertainty avoidance are Japan, Germany, France,
award). Regardless of the nature of the rewards, Mexico, and South Korea. People in these countries
they need to be significant in the eyes of the have a tendency to minimize the possibility of un-
employees–—receiving or not receiving such rewards certainty through laws, rules, and security meas-
must matter to them. ures. Examples of low uncertainty avoidance
countries are the United States, Singapore, China,
and the United Kingdom. Here, people are more
3. Five cultural dimensions relevant to open to and comfortable with lack of structure, and
performance management are more capable of tolerating ambiguity.
Masculinity-femininity is the extent to which gen-
International business and cross-cultural psychology der roles are clearly distinguished (Hofstede, 2001;
researchers have identified several cultural dimen- Shao et al., in press). Although Hofstede (2001) and
sions (e.g., Hofstede, 2001; Javidan, House, many others have used the label masculinity-
Dorfman, Hanges, & Sully de Luque, 2006; Schwartz femininity, other terms–—including ‘assertive-
& Sagie, 2000). We focus on five that are particu- nurturant,’ ‘quantity of life-quality of life,’ and
larly relevant to performance management: individ- ‘toughness-tenderness’–—have also been used to
ualism-collectivism, power distance, uncertainty refer to the same cultural dimension given poten-
avoidance, masculinity-femininity, and fatalism. tial negative connotations of the ‘masculinity-fem-
Individualism-collectivism refers to the relative ininity’ term in some countries, such as the United
importance given to individual achievements (i.e., States (Hofstede et al., 1998). In highly masculine
success of individuals) compared to group identifi- countries such as Japan, Austria, Venezuela, and
cation (i.e., belongingness in a group) (Hofstede, Italy, gender-based roles are clearly differentiated:
2001; Shao, Rupp, Skarlicki, & Jones, in press). In Men are expected to be assertive, tough, and ma-
general, people in individualistic countries–—such as terially ambitious, whereas women are expected to
the United States, Australia, the United Kingdom, be more modest, tender, and concerned with quali-
and the Netherlands–—tend to place great importance ty of life and relationships with others (Aguinis &
on individual achievements. Conversely, people Adams, 1998). In highly feminine societies such as
from collectivistic countries–—such as Guatemala, Sweden, Norway, the Netherlands, Costa Rica, and
South Korea, Singapore, and China–—generally put Thailand, both men and women are expected to be
greater emphasis on group identification. Given modest, tender, and concerned with quality of life
these differences, individualists value self-autonomy and relationships with others. As a result, on aver-
highly and put their own individual interests above age, individuals from masculine countries tend to
the interests of groups to which they belong (e.g., score higher on assertiveness, toughness, and ma-
extended family). In contrast, collectivists value terial ambition, while individuals from more femi-
interdependence and place the interests of the nine countries tend to score higher on modesty,
groups they are affiliated with above their own. In tenderness, and concern with quality of life and
short, people from individualistic cultures are more relationships with others.
focused on ‘I,’ whereas people in collectivistic cul- Fatalism is the belief that one is not in much
tures are more focused on ‘we.’ control of the outcomes of his actions (Aycan et al.,
Power distance refers to the degree to which 2000). Because of the feeling of not being in control,
individuals accept unequal distribution of power individuals in fatalistic cultures are less likely to try
(Hofstede, 2001; Peretz & Fried, 2012). Examples very hard to achieve something, make long-term
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plans, and take preventative actions. The opposite do–—even if they believe their supervisors are
of fatalism is ‘self-determinism,’ or the belief that wrong. On the other hand, in low power distance
one is in control of her outcomes. Members of self- cultures, employees desire equality in power (e.g.,
deterministic cultures have a tendency to exhibit a expecting that supervisors will seek the opinions of
harder work ethic, plan ahead, discipline them- subordinates before making important decisions)
selves to a daily routine, and forego pleasurable and tend to demand explicit justifications for any
experiences in the present to work toward a future perceived inequalities. Thus, organizations in low
goal. Examples of countries with high levels of power distance cultures should encourage employ-
fatalism are India, Russia, and Mexico, whereas some ees to participate in the process of creating job
countries that score highly on self-determinism descriptions (Newman & Nollen, 1996).
are the United States, Israel, Germany, China, and
Pakistan. 4.2. Providing adequate training
this extensive scholarly literature, we now know management practices: A ten country comparison. Applied
that there are clear research-based recommenda- Psychology: An International Review, 49(1), 192—221.
Claus, L., & Hand, M. L. (2009). Customization decisions regarding
tions regarding universal principles that should performance management systems of multinational compa-
guide performance management practices. At the nies: An empirical view of Eastern European firms. Interna-
same time, we also know that cultural values matter tional Journal of Cross Cultural Management, 9(2), 237—258.
and affect attitudes, beliefs, and behaviors. Thus, Hofstede, G. (2001). Culture’s consequences: Comparing values,
this article identified five performance management behaviors, institutions, and organizations across nations
(2nd ed.). Thousand Oaks, CA: Sage.
universals that allow us to think globally about per- Hofstede, G., Arrindell, W. A., Best, D. L., de Mooij, M., Hoppe,
formance management. It also discussed five cultural M. H., van de Vliert, E., et al. (1998). Masculinity and femininity:
dimensions that are particularly relevant to perfor- The taboo dimension of national cultures. Thousand Oaks, CA:
mance management. Combining our knowledge of Sage.
Hwang, A., Francesco, A. M., & Kessler, E. (2003). The relationship
universals with cultural dimensions allows us to think
between individualism-collectivism, face, and feedback and
globally and act locally in terms of how to implement learning processes in Hong Kong, Singapore, and the United
each of the five performance management universals States. Journal of Cross-Cultural Psychology, 34(1), 72—91.
with the goals of creating systems that will enhance Javidan, M., House, R. J., Dorfman, P., Hanges, P., & Sully de
organizational effectiveness, as well as promote eth- Luque, M. (2006). Conceptualizing and measuring cultures and
ical behaviors and employee well-being. their consequences: A comparative review of GLOBE’s and
Hofstede’s approaches. Journal of International Business
Studies, 37(6), 897—914.
Johnson, N. B., & Droege, S. (2004). Reflections on the generali-
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