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Search an international/global company that has implemented a performance management system. Evaluate and explain how the performance management system differs or is similar in at least two of its subsidiaries in different countries around the world. Using the Hofstede Centre , select a country where the organization does not have a subsidiary and predict how the performance management system will be accepted and implemented in that country, and how you would adapt the system based on the country you have chosen.
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Cultural diversity and the need for cultural tolerance have evolved in recent years due to globalization of the commerce and work environments. This has become the need for organization as well. If the organizations do not possess the necessary cultural tolerance, it is more likely that they may not able to meet the expectations of the workforce and their morale will get damaged destructively. These consequences are very harmful for the organization and the overall organizational effectiveness will be impacted negatively. Apart from making an appealing working atmosphere and work culture, there is need for reforming the performance management systems in the organizations for the betterment of the organizational effectiveness. When there is a right performance management systems placed in the organization, it will justify the concerns of all the employees, their trust and reliance of the systems will be safeguarded. An effective performance management is one of the prominent factors that can contribute for organizational effectiveness. A right performance management system will consider the culture and social contexts as well into consideration for making it more effective(Greene,2018).
Overview of Performance management system:
Performance management system is a system that works on to evaluate the performance of the employees in accordance with their work oriented performance and measuring the same as per the expected benchmarks. An effective PMS will not only contribute for better corporate functional improvement, but will also work for the overall employee satisfaction. PMS will enable the multi-national companies to benchmark their individual, subsidiary unit and the corporate performance characteristics. The key challenges the Multinational companies face in establishing performance management systems is contained in developing a system is to meet the issues of the cultural differences and regional factors that can need to be considered in enabling an effective performance management system in general which will meet the needs and expectations of the local people. What they need is a glocal system, a globally oriented performance system with local values.
Performance management systems for a global organization:
United States based Dell Company has several subsidiaries in so many countries across the world. However China is very unique in the sense the regional culture, norms of China are different than several other countries. The main stream working culture and values of Dell In United states are different from China and it happened for Dell to take these differences into consideration while formulating the performance management models in China. However still the values in China are changing and the PMS is also embracing these changes.
China Vs United states and comparison of their unique performance characteristics:
Though most of the western and United States (Mone et al., 2018) based companies succumbed to the standardized performance management systems, they faced complications in the later time. The key challenges in the standardization are contained in the differences in the culture and priorities in China. United States culture emphasizes and normally employs individual based goal setting and manager - subordinate relationship based appraisal systems in general. However still such system is not very much fit for China. China traditionally give consideration to different set of priorities. Chinese system does not prefer confrontal type of performance appraisal models, They prefer more for the face saving measures. The set of values that are of more significance in Chinese culture are moralities, political attitude and orientation, team spirit in the work, diligent work for the mother land. People in China give more value to the self evaluation with democratic sounding in the options. Hence Dell China also included these aspects in the performance management systems in China. The democratically written self-appraisal reports of the managers will be reviewed by superior managers and they will be later remarked and transferred to the personal files of the employees.
Typical managerial determinants and the managerial practices observed in China are different from what they are seen in other parts of the world.
Dell China performance appraisal and performance management system given priorities to the following areas and the comparative features of the same in relation with United States are as follows,
- Evaluation criteria in china are broad and it is related to the task but also to the moral and ideological behaviour in general. However in United states the performance management criteria are specifically related to the few specific objectives of the task.
- There are no any appraisal discussions in China companies in general, there will be very little interpersonal feedbacks. Similar trends are included in the Dell China performance appraisal systems. However in Dell United states and other locations, there is sufficient performance appraisal and the companies will given direct feedback on the performance to the employees.
- The key sources of appraisals for Dell china PMS contained in self-evaluation, democratic sounding of the opinions by peers and the subordinates as well. In Dell United states, the system is more dependent on the feedback provided by immediate manager. Hofstede cultural values between China and United States of America are different as per the following graphical representation:
- In Chinese culture the power distance is high when compared with the United States. There is very much chances for the local managers or the local subordinates to engage in candid discussion to give 3600 feedback. Hence the systems of self evaluation are more feasible. Centralized decision making and acceptance of hierarchy makes up the key feature of these nations in general (Huang et al,2019).
- Also the individualistic trends in China are very less when compared with US. People value more of team work. Hence face saving relationship is some of the key factors that the people give more weightage too.
- Face saving makes it very restricted to apply the United states type of direct feedback in China. Managers cannot give direct feedback to the subordinates in groups as this will let them lose the face and at the same time the manager also will lose the face. Direct feedback is not being employed by Dell in China preferably when compared with United States. It is being employed restrictedly for the host personnel.
- Guanxi or the relationship significance(Davies,2017) is a major aspect in China, but in United States it is not the case, and there is much to do with the other aspects and objectives of the task, the relations makes up the second preference to the major objectives of the task in United states.
- However In line with the Chinese culture and in accordance with the preference of these people, Dell china introduced the system of open clarity to the objectives and the aims of the people. Chinese prefer very clear clarity over the expected objectives, job descriptions etc. Dell China implemented the same as part of their functionality. Also 3600 performance appraisal, the feedback of the subordinates over their superiors is not very reliable in china. People in China are reluctant in general to give negative feedback over their superiors (Holley et al.,2019). Concern for hierarchy and consideration for authority is high in the country. Also Chinese prefer long term orientation and any objectives or priorities set as per PMS need to be more long term oriented and should not be less time oriented like in United states.
Dell for Middle East:
- Dell do have business in Middle east and as of now several of its products are being marked and being offered with the service support in these countries. However still there is much to do with the actual Dell manufacturing plants, R&D centres, mergers etc in this region. Incase if Dell wanted to have full stream operations in any of the country in middle east like in Oman or KSA or etc, it need to have very detailed focus on the cultural aspects to get integrated more effectively(Rees & Smith,2017).
Some of the considerations that need to be integrated in PMS of Middle Eastern countries include the following,
- Preference to the religious sentiments and the religious considerations in the workplace are inevitable. There need to have provisions for salah five times in the day and also the absences of work shift during the Ramzan holy month cannot be considered as negative aspect. Dell cannot expect the presence of employees like in china or United States in these holy months (Harbi et al.,2017).
- Kingdom of Saudi Arabia does have cultural norms distinct from China and United states. However in power distance aspects the Saudi score higher than even China. People are not comfortable in giving negative feedback over the superiors and the normally authority is unquestioned and hierarchy is tolerated. People also prefer uncertainty avoidance in their actions. If there is any uncertainty element in the actions and communication, Saudi-Arabians does not prefer that to exist and will not take responsibilities of those factors. Hence any PMS to be floated by Dell in Saudi need to consider these factors in formulating the performance appraisals. However there is considerable individualism in Saudi Arabians when compared with Chinese and they do demand for the same. Indulgence also is higher for Saudis when compared with Chinese. So performance appraisals and subsequent PMS need to consider these elements.
Performance appraisal need to depend more on the cultural norms and sentiments of the people to be successful. Dell like several companies which are based in US are tuning their PMS to get integrated with the norms and the principles of the host countries. In the host countries like China, the PMS systems are getting tuned to integrate with the cultural norms and the values of the region. At the same time the slow change in the work culture and implications of the globalizations and the changed work natures are letting people to embrace values that are more of business relevance. US based values of individualistic goals, value to the company objectives, more career orientation etc are taking ground and US PMS values are getting infused into the system. These changes are inevitable in the contemporary Global business and Dell knew that very well. The later part of the report has emphasized the possible priority areas where Dell need to emphasize while working in the middle eastern countries to include their cultural norms in the main stream PMS.
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