Cultural factors impact on effectiveness of the organization performance appraisal system.

Figure 01: 360 degree performance appraisal system

Source : (Vaidyanathan,2014)

The combination of knowledge, belief, law, custom moral, Capabilities and habits of a man as a member of society is known as culture (Tyler, 1998).  Cultural factors are influenced for the psychological or emotional norms or threats and nature, timing and tasks (Carter, 1986). Cultural factors are directly affected for entrepreneurship, innovations, knowledge transfer and productivity. The productivity through determining social decision-making process, attitude towards innovation, ability to adjust to economic changes and through attitudes towards social equality are affected by Culture and cultural factors (David Throsby, 2001).

Performance Appraisal is a procedure of evaluating an employee performance of job in terms of its requirements. The system's effectiveness is defined as an external standard. According to literature how well the system is meeting the demands of the various groups and organizations that are concerned with its activities (Pfeffer, J. and Salancik, G., 1978). This approximately is an idea for doing the correct things or having validity of outcome (Hines, 2000). 

The cultural values that are operated should be clearly understood to use performance appraisal system effectively by the organization and national culture is influenced for it. The performance appraisal practice which is based on individual based performance has positive impact on organizational outcomes. The cultural factors are mostly impact on the effectiveness of 360⁰ degree performance appraisal process (Peretz, 2016). It is important to employees to understand own personality from an outsiders’ perspective. Also, it has positive effect on productivity and innovation in lower power distance societies. But 360-degree performance appraisal process is not suitable for the organizations which have cultures with high power distance. The organizations which have cultures with strong future orientation are mostly use performance appraisal process to evaluate employees. Therefore, it is provided basic idea about the way individuals engage in future oriented behaviors.

The value that is given by the society for individual opportunities and rights versus loyalty to the group is referred by individualism and collectivism. Individual outcomes, lower levels of innovation and turnover are the main factors organizations with collectivist societies are focused by adopting performance appraisal system. The cultures those are developed strict rules and norms are implemented performance appraisal systems to have lower levels of turnover and higher levels of innovation (Peretz, 2016).

References

Vaidyanathan, S., 2014. Analysis and adaptive synchronization of eight-term 3-D polynomial chaotic systems with three quadratic nonlinearities. The European Physical Journal Special Topics, 223(8), pp.1519-1529.

Carter, B. &. M. M., 1986. The Changing Family Life-Cycle:, Boston: Ally & Bacon.

David Throsby, 2001. Economics and Culture. Sydney: Cambridge University Press,.

Hines, P. a. T. D., 2000. Going Lean – A Guide for Implementation,, Cardiff: Lean EnterpriseResearch Centre, Cardiff Business School.

Peretz, H., 2016. The Link Between Performance Appraisals and Culture: An Examination Across 21 Countries, Ort Braude: Northern Colorado Human Resources Association.

Pfeffer, J. and Salancik, G., 1978. The External Control of Organizations: A Resource Dependence Perspective. New York: s.n.

Tyler, 1998. British Antroplrgist, s.l.: Auruch.