National values, performance appraisal practices, and organizational performance: A study across 21 countries

Hilla Peretz, Yitzhak Fried

Research output: Contribution to conferencePaper

1 Scopus citations

Abstract

This study focused on two complementary issues: (a) the influence of national values on performance appraisal (PA) practices adopted by organizations; and (b) the interactive effects of national values and PA practices on organizational performance indicators (absenteeism, turnover, level of productivity, innovation and service quality). In analyzing these two issues we controlled for key organizational characteristics (size, technological level, sector, service and globalization level). Data from 5,991 organizations in 21 countries were obtained for this study, using the database of CRANET (Cross-country HRM research). Data on cultural values were taken from the GLOBE (Global Leadership and Organizational Effectiveness) study and assigned to the organizations respectively. Results showed that national values explained PA strategies, confirming all related study hypotheses. Generally, values such as power distance, future orientation, uncertainty avoidance and collectivism explained the use of different PA systems. Organizational characteristics were also related to PA. In addition, we found interactions between national values and PA programs on organizational outcomes that supported the study's hypotheses. The results have strong implications for organizations operating in different cultures on how to maximize the fit between a particular culture and PA strategies in order to enhance organizational performance.

Original languageEnglish
StatePublished - 2008
Event68th Annual Meeting of the Academy of Management, AOM 2008 - Anaheim, CA, United States
Duration: Aug 8 2008Aug 13 2008

Conference

Conference68th Annual Meeting of the Academy of Management, AOM 2008
CountryUnited States
CityAnaheim, CA
Period08/8/0808/13/08

Keywords

  • National values
  • Organizational outcomes
  • Performance appraisal

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    Peretz, H., & Fried, Y. (2008). National values, performance appraisal practices, and organizational performance: A study across 21 countries. Paper presented at 68th Annual Meeting of the Academy of Management, AOM 2008, Anaheim, CA, United States.