Cross Culture Appraisal (Term Paper Sample)

Cross Cultural Performance Appraisal for expatriates
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Executive Summary
The report presents a critical evaluation of the rationale for cross-cultural performance appraisal for expatriate managers. Based on the argument developed by Woods (2003), the report establishes that performance appraisal best practices are reliant on the national and corporate cultures. On one hand, the report evaluates the rationale for performance appraisal and establishes that it provides an information basis for strategic organisational decisions such as expatriate training and rotation. Moreover, an evaluation of its features demonstrates that organisational and national cultures influence the appraisal system features, with best practices being uniform evaluation criteria, and mutual agreement strategies application. Finally, a challenges evaluation evidences that difference in national labour regulations such as working hours impact on the performance appraisal evaluation measures.

Table of Contents
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1.0 Introduction  PAGEREF _Toc425154514 \h
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2.0 Purpose of Performance Appraisal for Expatriates  PAGEREF _Toc425154515 \h
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3.0 Features of Cross-Cultural Performance Appraisals  PAGEREF _Toc425154516 \h
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4.0 Challenges on Cross-Culture Performance Appraisal  PAGEREF _Toc425154517 \h
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5.0 Conclusion and Recommendations  PAGEREF _Toc425154518 \h
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References  PAGEREF _Toc425154519 \h
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1.0 Introduction
Increased globalisation and internationalisation of multinational companies led to the emergence of expartriatism. This is a management process through which a domestic organisational HR workforce is transferred to new global markets with an aim of developing and managing such international business ventures (Prasad, 2012). As such, for multinational companies, performance evaluation and management of the expatriates have become one of the important HRM tasks.
Woods (2003) noted that an evaluation of Singaporean and Australian expatriates in each other’s countries demonstrated satisfaction with the applied expatriate’s performance management practices. This was unlike the general expectations that such expatriates would have been dissatisfied with the practices as has largely been the case. The study elucidated the argument on the role of performance management and appraisal practices for expatriate workers as well as the ideal best practices for instituting such measures. Moreover, it noted that the organisational and country differences between Australia and Singapore impacted on the applied performance appraisal practices. Thus, based on the Woods (2003) study, this report develops a critical analysis on the justifications/purpose of performance appraisal for expatriates and the features of such ideal performance appraisal systems, i.e the best practices for such evaluation. Moreover, it evaluates the cross–cultural challenges in international performance appraisal for expatriates. Finally, based on the analysis conclusion of this report, the report will propose some recommendations for multinational companies to conduct performance appraisals for expatriates.
2.0 Purpose of Performance Appraisal for Expatriates
Performance appraisal system is a critical tool in the development of a string efficient organisational HR workforce. In this case, performance appraisal involves the process by which the respective employee achievements are evaluated. Fugate, Prussia and Kinicki (2012) evaluated on the rationale of developing organisational performance evaluation strategies. In its analysis, the study compared organisational workforce in organisations that applied performance appraisal and those that lacked such systems. Consequently, the study established that the use of performance appraisal in organisations enhanced employee performance improvement. Therefore, it concluded with a recommendation that organisations willing to develop and acquire a performing, productive and sustainable HR workforce should incorporate performance evaluation strategies. Kuvaas (2011) developed a similar study evaluating the role of performance appraisal in facilitating employee development. In its review the study established that the use of performance appraisals encouraged employee productivity as it was the main basis for rewards, promotion and employee recognition in a majority of the organisations. Therefore, its application created a shared objective for employees in the respective ventures.
Above studies indicate that the use of performance appraisal strategies links with continuous improvement and organisational development respectively. Through the development of performance appraisal systems, organisations create a clear performance picture for the employees. As such, each of the internal stakeholders operates based on the desired outcomes and evaluation criteria. The process reduces employee confusion, where some would concentrate on variables not accounted for in the performance criteria (Cummings & Worley, 2009). Therefore, reduced employee confusion, and the creation of a shared and clear long term organisational objective facilitates overall success.
In particular, the rise of expatriate managers among the global multinational organisations has increased the need for performance evaluation. The concept of expartriatism arose as a result of the need to expand organisational cultures as well as develop new skills in new global markets. On one hand, organisations use expatriates managers as a means of developing and advancing their organisational cultures as a means of retaining brand identity and market competitiveness (Mariano et al, 2011). As such, it is imperative that such expatriate managers’ performance is evaluated to establish the culture incorporation success levels. In a study developed by Awais, Mohamed and Rageh (2013) on the role of performance appraisal on expatriates, the study established that the high number of expatriate assignment failures was as a result of poor and the lack of performance appraisals. The lack of performance appraisals for expatriates implies that such personnel are inclined to pursue their parent company directives and ideologies. However, due to dynamic market environments and cultural differences, such objectives and policy directives could be irrelevant and insufficient. As such, the development and incorporation of performance appraisal strategies allow for the realisation of such variances. Consequently, it provides the expatriates with an in depth understanding of the market conditions, a development that allows for proactive tragedies development and HR development among the expatriate managers.
Further, performance appraisal on expatriates allows for efficient decision making for the respective organisations. In this regard, through performance appraisal strategies, organisations establish competencies and challenges faced by different expatriate managers globally. Consequently, this serves as a critical component for the development of expatriate training needs and practices. For instance, a study by Kim and Tung (2013) on expatriate challenges in Korea and India illustrated that the obtained appraisal findings served as a key training needs identification tool. Thus expatriates are trained and equipped with skills based on the analysed performance levels in the global markets. Moreover, the appraisal findings form part of the organisations strategic decision making on expatriates rotation and internationalisation plans respectively.
3.0 Features of Cross-Cultural Performance Appraisals
Culture plays a crucial role in the development and application of performance appraisal strategies. In this case, culture influencing factors can be categorized into two categories, namely corporate and national cultures. An organisational culture implies the respective practices and systems applied by an organisation. As evidenced by Rodriguez and Gomez (2009) in a study on HR practice in Chile, such practices have a direct impact on the practices and systems applied in appraising the respective organisational employees and expatriate managers respectively. One of the fundamental organisational cultural aspects is decision making structures as well as the management structures applied. On one hand, organisations have the alternatives of either decentralising their decision making, or centralizing such responsibilities. This has a direct impact on the evaluation of managers’ performance.
A study developed by Wickramasinghe and Wickramasinghe (2012) on the impact on decision making on Sri Lankan managers performance evidenced that the applied organisational decision making structure influenced the applied performance measures evaluation techniques. In this case, the study evidenced that for organisations with a centralized decision making process, the performance of the middle level manger and employees was evaluated based on their ability to obey and follow set orders. On the other hand, for organisations with decentralized decision making practices, the employee performance evaluation process was based on the creativity and ability of the respective employees to develop new ideas based on the organisational needs and changing market dynamics. In addition, a study developed by Adler (2011) established that the applied organisational structure and management approach has a direct impact on the applied performance evaluation systems. In this case, the study established that for organisations with lean management systems, employee and managers’ performances was ba...