PERFORMANCE MANAGEMENT OF CROSS-CULTURAL FIRMS IN THE UNITED STATES
Rationale and Contribution
Managerial attitudes among cultures are as diverse as their specific customs and beliefs. Several researchers have examined the similarities and differences in managerial attitudes across a number of different cultures. Several studies that included managers from several different countries found both similarities and differences in managerial attitudes by country (Griffeth, Hom, DeNisi & Kirchner 1980; Redding & Casey 1976).
Many academics and practicing managers regard performance management as one of the most valuable human resource tools. It is a vital component in recruiting and hiring employees, where it is used to validate selection tests, and in staffing, where transfer, layoff, termination, or promotion decisions are made on the basis of management results. In compensation administration, performance management forms the basis for the administration of merit pay systems. Most important, performance management can be used as a motivational tool for communicating performance expectations to employees and providing them with feedback. Finally, performance management is indispensable in training and development activities to assess potential and identify training needs.
Performance management is an important process for influencing both the extrinsic and intrinsic motivations of employees, that is, increasing employees’ perceptions and understanding of job tasks and subsequently their job satisfaction. For example, elements of performance management may provide the employee with a more accurate understanding of job tasks (task identity and task significance) through objective setting, leading to a clear sense of direction. Performance management also serves to focus employee efforts and attention on critical tasks through the use of performance feedback, which therefore assists employees in reducing job errors and minimizing the risks of learning through trial and error. In addition, where employees desire jobs that allow them to make good use of their skills and talents, performance management increases job task “fit” (skill variety) through the identification of training and development needs that are consistent with individual and organizational goals.
This widespread use can be attributed to human resource specialists, academics, and consultants who proclaim that performance management is a critically needed tool for effective human resource management. (Bernardin and Beatty, 1984) This, in turn, is based on the belief that an effectively designed, implemented, and administered performance management system can provide the organization, the manager, and the employee a myriad of benefits. (Cascio, 1987) The literature on performance management generally suggests that the management process can increase employee motivation and productivity, provide a solid basis for wage and salary administration, facilitate discussions concerning employee growth and development, provide data for human resource decisions, and provide managers with a useful communication tool for employee goal setting and performance planning. (Morhman, Resnick-West, Lawler, 1989)
Clearly, performance management is a very effective tool for controlling behavior, especially if important organizational rewards (merit pay, promotion, etc.) are linked to management ratings. (Milkovich and Wigdor, 1991) The unbridled use of management as a control device frequently reduces employee trust in the management process, a key component of employee management acceptance. (Roberts, 1994) There is a tremendous amount of research on “ideal” rating formats along with strategies for reducing rating error, much of it in laboratory settings. (Bernardin and Beatty, 1984) Psychometricians argue for the measurability of work behavior and output, but critics argue that most laboratory studies are not externally valid due to the many uncontrolled variables (e.g., low rater motivation, politics, time pressures) that influence real performance management systems. (Fox, 1991)
Critics of the psychometric tradition argue that performance management systems promote a false measurement precision based upon the use of quantitative scales, when, at best, performance management systems promote ordinal (more or less) judgments. (Roberts, 1992) Critics argue that management systems can make accurate assessments at the extremes, but inaccurately measure employee performance in the middle ranges.
There are several enduring issues relative to performance management system implementation. They include the controversy over combining developmental and administrative purposes, the absence of rater training, the lack of organizational commitment and top-level support, ubiquitous rating errors, employee dissatisfaction with the amount of performance feedback received, and the absence of specific performance documentation, among others. Included are several emerging implementation issues related to the need for increasing the sources of performance information and problems raised by inadequate literacy levels.
Hypothesis
The study would like to test the following null hypothesis:
“The level of effectiveness of performance management of cross-cultural managers significantly affects the general efficiency of the organization.”
Scope and Limitations
The study intends to investigate the level of effectiveness of the performance management of cross-cultural managers. For this study, primary research and secondary research will be used. Primary research will be conducted using anonymous questionnaires that will be sent to selected managers of multinational corporations based in the Caribbean. The questionnaires will be used to collect quantitative data and the interviews will be used to provide qualitative insights into the data collected.
The data will be analyzed and compiled for the correlation of the hypothesis. The data will then be presented by means of graphical representations and illustration and the difference would be highlighted. A negative correlation between the variables would suggest that the hypothesis is null, that is, the level of effectiveness of performance management of cross-cultural managers significantly affects the general efficiency of the organization.
Possible Contents of the Dissertation
The dissertation shall be divided into five chapters in order to provide clarity and coherence on the discussion of the level of performance management of cross-cultural firms. The first part of the dissertation will be discussing the problem uncovered by the researcher and provide ample background on the topic. The chapter shall constitute an introduction to the whole dissertation, the hypothesis, and the statement of the problem in order to present the basis of the study. Moreover, the chapter shall also have a discussion on the scope of its study as well as the significance of the study to society in general and specific effects on the management of firms.
The second chapter shall be discussing the relevance of the study in the existing literature. It shall provide studies on cross-cultural management, human resource management and performance management. After the presentation of the existing related literature, the researcher shall provide a synthesis of the whole chapter in relation to the study.
The third part of the study shall be discussing the methods and procedures used in the study. The chapter shall comprise of the presentation of the utilized techniques for data collection and research methodology. Similarly, it shall also contain a discussion on the used techniques in data analysis as well as the tools used to acquire the said data.
The fourth chapter shall be an analysis on the tabulated data. After the said tabulation, the data are statistically treated in order to uncover the relationship of the variable involved in the study. With the said data, the chapter seeks to address the statement of the problem noted in the first chapter.
The last chapter shall comprise of three sections, the summary of the findings, the conclusions of the study, and the recommendations. With the three portions, the chapter shall be able to address the verification of the hypothesis stated in the initial chapters of the study.
Research methodology and techniques for data collection
Research requires an organized data gathering in order to pinpoint the research philosophies and theories that will be included in the research, the methodology of the research and the instruments of data interpretation. In this study, the Research Process “Onion” will be utilized so that the findings of the study can be thoroughly established. The inner part of the onion describes the methodology portion whereas the outer part discusses the strategies that can be utilized in interpreting the results of the findings.
The descriptive research method uses observation and surveys. In this method, it is possible that the study would be cheap and quick. It could also suggest unanticipated hypotheses. Nonetheless, it would be very hard to rule out alternative explanations and especially infer causations. Thus, this study will use the descriptive approach. This descriptive type of research will utilize observations in the study. To illustrate the descriptive type of research, Creswell (1994) will guide the researcher when he stated: Descriptive method of research is to gather information about the present existing condition. The purpose of employing this method is to describe the nature of a situation, as it exists at the time of the study and to explore the cause/s of particular phenomena. The researcher opted to use this kind of research considering the desire of the researcher to obtain first hand data from the respondents so as to formulate rational and sound conclusions and recommendations for the study.
The research described in this document is partly based on quantitative research methods. This permits a flexible and iterative approach. During data gathering the choice and design of methods are constantly modified, based on ongoing analysis. This allows investigation of important new issues and questions as they arise, and allows the investigators to drop unproductive areas of research from the original research plan.
This study also employs qualitative research method, since this research intends to find and build theories that would explain the relationship of one variable with another variable through qualitative elements in research. These qualitative elements does not have standard measures, rather they are behavior, attitudes, opinions, and beliefs.
Furthermore, as we define the qualitative research it is multimethod in focus, involving an interpretative, naturalistic approach to its subject matter. This means that qualitative researchers study things in their natural settings, attempting to make sense of, or interpret phenomena in terms of the meanings people bring to them. Accordingly, qualitative researchers deploy a wide range of interconnected methods, hoping always to get a better fix on the subject matter at hand.
The primary source of data will come from interviews and anonymous questionnaires from multinational managers in the Caribbean. The primary data frequently gives the detailed definitions of terms and statistical units used in the study. These are usually broken down into finer classifications.
The secondary sources of data will come from published articles from social science journals, theses and related studies on personnel management. Acquiring secondary data are more convenient to use because they are already condensed and organized. Moreover, analysis and interpretation are done more easily.
Project time plan
TASK Weeks
1st
2nd
3rd
4th
5th
6th
7th
Select topic
Undertake preliminary literature search
Define research questions
Write-up aims and objectives
Select appropriate methodology and locate sources of information. Confirm access.
Write-up thesis plan
Undertake and write-up draft critical literature review.
Secondary and Primary Data Detailed
Sources
Consulted
Research Findings:
Analyzed
Evaluated
Written-up
Discussion:
Research findings evaluated and discussed in relation to the literature review
Methodology written-up
(including limitations and constraints)
Main body of the report written-up and checked for logical structure
Conclusions drawn
Recommendations made
Introduction and Executive Summary written-up
Final format and indexing
Possible Literature to be Accessed
Bannister, Brendan, D. (1986), “Performance Outcome Feedback and Attributional Feedback: Interactive Effects on Recipient Responses,” Journal of Applied Psychology, 71 (2):203-21 O.
Bass, Benard M. & Phillip C. Burger. 1979. Assessment of managers: An international comparison. New York: Free Press. Black, J. Stewart. 1988. Work role transitions: A study of American expatriate managers in Japan. Journal of International Business Studies, Summer, 19(2): 274-91
Bernardin, H.J., and Richard W. Beatty (1984), “Diary Keeping,” Performance Appraisal: Assessing Human Behavior at Work, Kent, Boston.
Burnside, Billy L. (1982), “Subjective Appraisal as a Feedback Tool,” U.S. Army Research Institute for the Behavioral & Social Sciences Report, Technical Report 604.
California, Williams & George England. 1977. Managerial values as a reflection of culture and the process of industrialization. Academy of Management Journal, 20: 439-53.
Cascio, W. F. (1987) Applied Psychology in Personnel Management, Englewood Cliffs, NJ: Prentice-Hall.
Deshpande SP, Schoderbek PP. (1993). Pay-allocations by managers: A policy-capturing approach. Human Relations, 46, 465-479.
Diboye, R. L. and R. dePontbriand (1981). “Correlates of employee reactions to performance appraisals and appraisal systems,” Journal of Applied Psychology, 66(2), pp. 248-251.
Dipboye, Robert L. (1985), “Some Neglected Variables in Research on Discrimination in Appraisals,” Academy of Management Review, 10(1):116-127.
Dorfman, Peter W., Walter G. Stephan, and John Loveland (1986), “Performance Appraisal Behaviors: Supervisor Perceptions and Subordinate Reactions,” Personnel Psychology, 39:579596.
Elliott GC, Meeker BF. (1986). Achieving fairness in the face of competing concerns: The different effects of individual and group characteristics. Journal of Personality and Social Psychology, 50, 754-760.
England, George W. & R. Lee. 1974. The relationship between managerial values and managerial success in the United States, Japan, India, and Australia. Journal of Applied Psychology, 59: 411-19.
Farh JL, Earley PC, Lin SC. (1997). Impetus for action: A cultural analysis of justice and organizational citizenship behavior in Chinese society. Administrative Science Quarterly, 42, 421-444.
Finn, R.H., and P.A. Fontaine (1984), “Performance Appraisal: Some Dynamics and Dilemmas,” Public Personnel Management Journal, 13(3):335-343.
Fossum JA, Fitch MK. (1985). The effects of individual and contextual attributes on the sizes of recommended salary increases. Personnel Psychology, 38, 587-602.
Fossum JA, Fitch MK. (1985). The effects of individual and contextual attributes on the sizes of recommended salary increases. Personnel Psychology, 38, 587-602.
Fox, C.J. (1991) “Employee Performance Appraisal: The Keystone Made of Clay,” in Public Personnel Management: Current Concerns-Future Challenges, eds. C. Ban and N.M. Riccucci. New York: Longman, 1991, 58-72.
Fulk, Janet, Arthur O. Brief, and Steven H. Bart (1985), “Trust-in-Supervisor and Perceived Fairness and Accuracy of Performance Evaluations,” Journal of Business Research, 13(4):301-313.
Gibb, Peter (1985), “Appraisal Goals and Controls,” Personnel Journal, 64(8):89-93.
Gomez-Mejia LR, Welbourne T (1991). Compensation strategies in a global context. Human Resource Planning 14, 29-41.
Greenberg, (1987) “Using Diaries to Promote Procedural Justice in Performance Appraisals,” Social Justice Research 1: 219-234.
Griffeth, Rodger, Peter Hom, A. DeNisi & W. A. Kirchner. 1980. A multivariate multinational comparison of managerial attitudes. Academy of Management Proceedings: 63:67.
Hawes, Frank & Daniel Kealey. 1981. An empirical study of Canadian technical assistance. International Journal of Intercultural Relations, 5: 239-58.
Heneman RL (1992). Merit pay: Linking pay increases to performance. Reading, MA: Addison-Wesley.
Henley JS, Nyaw MK. (1986). Introducing market forces into managerial decision making in Chinese industrial enterprises. Journal of Management Studies, 23, 635-656.
Ho DYF. (1976). On the concept of face. American Journal of Sociology, 81, 867-884.
Hofstede G. (1993). Cultural constraints in management theories. Academy of Management Executive, 7, 81-94.
Hofstede, Gert. 1980. Culture’s consequences. Beverly Hills: Sage Publications.
Ilgen, D.R. and Feldman, J.M. (1983) “Performance Appraisal: A Process Focus,” in Research in Organizational Behavior, vol. 5, eds. L. Cummings and B.M. Staw, Greenwich, CT: JAI Press: 141-197
Ilgen, Daniel, R., Terence R. Mitchell, and James W. Fredrickson (1981), “Poor Performers: Supervisors’ and Subordinates’ Responses,” Organizational Behavior and Human Performance, 27′.386410.
Kim KI, Park H, Suzuki N. (1990). Reward allocations in the United States, Japan, and Korea: A comparison of individualistic and collectivistic cultures. Academy of Management Journal, 33, 188-198.
Latham, G.P., and Wexley K.N. (1994) Increasing Productivity Through Performance Appraisal. London: Addison Wesley.
Lee, Yosup & Laurie Larwood. 1983. The socialization of expatriate managers in multinational firms. Academy of Management Journal, 26: 657-65.
Leung K, Bond MH. (1984). The impact of cultural collectivism on reward allocation. Journal of Personality and Social Psychology, 47, 793-804.
Draft Questionnaire
Performance Management Questionnaire
You were chosen as a respondent to answer this survey – questionnaire on the Performance Management Of Cross-Cultural Firms In The United States. Your answers will provide the data needed in this study. Rest assured that your answers would be treated with utmost confidentiality. Thank you very much.
Researcher
Part 1. Profile of Respondent
Direction: Please fill up in all the necessary information about yourself. Don’t leave any item unanswered.
a. Age
Less than 18 ( )
18 – 20 ( )
21 – 25 ( )
26 – 30 ( )
31 – 35 ( )
36 – 40 ( )
41 – 45 ( )
45 – 50 ( )
50 above ( )
b. Gender
Male ( )
Female ( )
c. Civil Status
Single ( )
Married ( )
Separated ( )
Widow/Widower ( )
d. Educational Attainment
Elementary ( )
High School ( )
College ( )
Graduate Studies ( )
e. Occupation __________________
f. Monthly Income
0 – 10,000 ( )
10,001 – 20,000 ( )
20,001 – 30,000 ( )
30,001 – 40,000 ( )
40,001 – 50,000 ( )
50,001 and above ( )
i. How long have you been acquainted with the multinational company? ________________________________________________
Part 2. Satisfaction of Respondents
Direction: Encircle the number corresponding to your level of satisfaction
5 - Highly Satisfied
4 - Satisfied
3 - Uncertain
2 - Dissatisfied
1 - Strongly Unsatisfied
2.A. Leadership
1. The management utilizes 1 2 3 4 5
manpower effectively
2. The managing department devised
easy methods of reporting. 1 2 3 4 5
3. The management has installed
inventory controls 1 2 3 4 5
4. The management motivates all
types of labor 1 2 3 4 5
5. The managing department accepts the
challenges that the top management
proposes 1 2 3 4 5
6. The department involves the employees in
planning 1 2 3 4 5
7. The department increases the educational
level of the staff 1 2 3 4 5
8. The top management cooperates
and coordinates with other managers 1 2 3 4 5
9. The management knows
how to motivate its subordinates 1 2 3 4 5
2.B. Personnel Management
1. The managing department practices
recruitment, training, and development
of its people 1 2 3 4 5
2. They provide strict control of costs like
toiletries and linen 1 2 3 4 5
3. The managing department manages
suppliers to ensure product specification
and delivery schedules are adhered to 1 2 3 4 5
4. They set up recruitment programs to find
and develop management trainees 1 2 3 4 5
5. The personnel are aware of the
benefits provided by the top
management 1 2 3 4 5
6. The department uses incentivization as an
effective management tool to improve
productivity and hence the profitability
of the department whilst giving something
back to the employee in return. 1 2 3 4 5
Credit:ivythesis.typepad.com
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