HR - Expats challenges in China, pre-departure training, pre-departure training measurement, Performance Management Appraisal Issues

1. Table of Contents
1. 1a.................................................................................................................... 2
1.1 Introduction...................................................................................................................... 2
1.2 Culture & Society............................................................................................................. 2
1.3 Chinese Language ............................................................................................................ 3
1.4 Air Pollution..................................................................................................................... 3
1.5 Conclusion........................................................................................................................ 4
2. 1b) .................................................................................................................. 5
2.1 Introduction...................................................................................................................... 5
2.2 Chinese Culture................................................................................................................ 5
2.3 Language.......................................................................................................................... 6
2.4 Business Ethics and practice in China.............................................................................. 7
2.5 Socio-political .................................................................................................................. 7
2.6 General Knowledge about China ..................................................................................... 8
2.7 Conclusion........................................................................................................................ 9
3. 1c)................................................................................................................. 10
3.1 Introduction.................................................................................................................... 10
3.2 The Kirkpatrick model ................................................................................................... 10
3.2.1 Stage 1 – Reaction/Satisfaction .............................................................................. 11
3.2.2 Stage 2 – Learning, Knowledge.............................................................................. 11
3.3 Return on Investment (ROI)........................................................................................... 12
3.4 Assessment – pre and post training................................................................................ 12
3.5 Conclusion...................................................................................................................... 13
4. Part 2 ........................................................................................................... 14
Abstract.............................................................................................................. 14
4.1 Introduction.................................................................................................................... 15
4.2 Definition ....................................................................................................................... 15
4.3 Performance Management Model and Theories ............................................................ 16
4.4 Critique........................................................................................................................... 19
4.4.1 Issues with the Purpose and Goals of PA ............................................................... 19
4.4.2 Issues With Who is Involved in PA........................................................................ 20
4.4.3 Issues With What is Measured and How ................................................................ 22
4.4.4 Issues With the System and Process of PA............................................................. 22
4.5 Recommendation............................................................................................................ 23
4.5.1 New rules of Goal Setting – Clarifying the Goals .................................................. 25
4.5.2 Define culture of the organization, i.e. the behavior that lead to success............... 25
4.5.3 Conduct regular check-ins – at least monthly or quarterly to review performance 25
4.5.4 Focus on the behavior, not the person when providing feedback........................... 26
4.5.5 Discuss investment trade-off, not forced rankings ................................................. 26
4.5.6 Perform the Recommended Changes...................................................................... 26
5. Conclusion................................................................................................... 26
References.......................................................................................................... 27

BMHR5103 - Assignment Q1 a b c – Q2 Nor Helmee Bin Abd Halim
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1. 1a.
1.1 Introduction
China, (People’s Republic of China) is situated in eastern Asia, bounded by the Pacific in the east.
It is the largest country in Asia and the third largest country in the world, next to Canada and
Russia. Beijing is the capital city of China and most of this country is mountainous. China is one
of the four oldest civilizations in the world, has a written history of 4,000 years and boasts rich
cultural relics and historical sites. It is the inventor of compass, paper-making, gunpowder and
printing. Total population of 1.3 billion People represent one fifth of the world’s population.
An emerging economy like China offers new business opportunities to Multinational
Enterprises (MNEs). Expatriation has been a popular method for MNEs to implement the parent
company’s strategy and practices in their foreign subsidiaries. However, a large proportion of
expatriates fail to complete their assignments satisfactorily (Katz and Seifer, 1996, Romero, 2002)
which is consequence of the fact that many expatriates experience difficulties in adjustment or lack
of readiness in facing global challenges. Culture & Society, Language and Air Pollution are some
of the challenges to name a few.
1.2 Culture & Society
China has a very specific and different culture in their business and lifestyle. Cultural differences
have to be taken into account when on a short term or long term assignment in China. In a study
done by (Goodall et al. 2006) it is said that Chinese culture creates barriers for expatriates who
work in China. The Chinese business culture is vastly different from Malaysian for instance.
Business negotiations in China require a much more patient approach. Personal relationships and
trust play vital roles in Chinese society. Reason simply they want to want to determine if the
relationships can be develop to a stage where both parties are comfortable doing business with the
other. Personal Expats need to build a good relationship and communication to reach a good
decision. ‘Good relationships with the customs bureau, the local administration for industry and
commerce, and other regulatory organizations (…) are as good as gold in China’ (Seligman, 1999)

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When comes to dining culture, our home culture especially Malays use fingers of the
right hand or commonly using fork and spoon by others to eat, while the Chinese use chopsticks
in general. We must respect the chopsticks as it is the most important tool in China’s table. As
expatriates, we must learn how to use chopstick in a proper way.
Another example of cultural difference is food is shared with others. Plates are placed
in the middle of the table and shared by all. It means we should feel free to help ourselves not only
at the beginning but the whole meals as well. It also, take it as a sign of honor and offer thanks
when host China to take a food from the center of the table and put it on our plate. Unlike here in
Malaysia, we usually order and eat food on our own.
1.3 Chinese Language
For expatriates going to China, the language barrier is the most obvious negative factor
encountered (Goodall et al., 2006). The Chinese language is an essential part of Chinese culture,
and Chinese are very proud of it. It’s not only a way to communicate but also as mean to transfer
their cultural values.
The official language in China is Mandarin and it is quite hard to learn for people
who are used to having an alphabet. Although most of the world uses English as main
communication, the Chinese are not fluent in English communication. This definitely cause
communication challenge when expatriate indulges in community as well as in the work place.
Learn and understand couple of basic words and sentences in Chinese would be an advantage to
the expat.
1.4 Air Pollution
The recent Bloomberg Businessweek article (Liza Lin and Natasha Khan, 2014) indicates that poor
air quality in China’s major cities contributed as one of the global challenges for expatriates. Few
alarming stats in the articles offers: “Smog in Beijing exceeded government pollution standards
most days last year, and environment ministry statistics show that 71 of 74 China cities failed to

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meet air quality standards”. In the other note says: “Forty percent of the 7 million annual deaths
attributed to air pollution worldwide occur in the Asia-Pacific region.”
Air pollution situation is quite concerning to most of the expatriates in China
especially those on long term assignment. They will usually bring their family to live together with
them. Living and raising a family under such unhealthy condition definitely give an impact to the
health of entire family. The worse possible is the effect on child’s growth and some may lead to
death.
1.5 Conclusion
Global challenges for expatriates in China have a mix of good and bad experiences. MNEs are still
able to attract expats, because knowledge of the China market is becoming crucial to career
advancement in many industries. On the other positive note, it is a great opportunity for expatriates
to overcome the global challenges, to learn, explore as well as to position them well in the society.

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2. 1b)
2.1 Introduction
There are many different components of pre-departure training. There can be cultural awareness
training, preliminary visits, language training, host country historical background, diversity
training, practical assistance, preliminary visits and many more. Pre-departure cultural training
(CCT) helps the employees understand and anticipate cultural challenges that may encounter in
China. China specific training includes components about Chinese culture, language, business
ethics and practices, socio-political and general knowledge about China.
2.2 Chinese Culture
Chinese culture is one of the world’s oldest and most complex cultures in the world. The culture
of China has been influenced by China’s long history and by its diverse ethnic groups which
customs and traditions could vary greatly between towns, cities and provinces. It is a complex
system of moral, social behavior, political, philosophical and religion which has influence on the
culture and history of China.
In China, much of the business is arranged and negotiated at the dining table. Since
the Chinese prefer to do business with who they know well, dining and drinking are the best media
for building relationships and connections or known as “guanxi”. In Mandarin, “guan” means
“gate” and “xi” means “link”. The concept represents a gateway connection between two people
created by a link of mutual obligations and benefits. (Daniel W. Lund, Ronald Jean Degen. 2010).
Besides “guanxi”, food is an important part of life in China. Rice and noodles are the
two staples in the Chinese cuisine. In Chinese tradition, five grains of rice are seen as more
important than pearls or jade, and noodles are soon as a symbol of longevity. Mandarin is the
official language of China and has been recognized as one of the seven United Nations languages.
In term of religion, there are two main religions in Chinese culture i.e. Taoism and Buddhism.

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China has a hierarchical and formal social structure for example, in the family,
children are expected to respect their eldest with the eldest family member commanding the
greatest respect. Finally, in term of morals and values, humility and respect are very important in
Chinese culture.
Why expatriates need to know and learn about Chinese cultures?
According to Treven (2003), the most essential piece of expatriate training is a cross-
cultural training. This aspect helps to prepare expatriate to live and work in a different cultural
environment. It is so important, since dealing with new surroundings appears to be even more
difficult than the assignment itself. Cultural training helps individuals to adjust quicker to the new
culture and to be more effective in the jobs (Shen, J. 2004).
Cross-cultural training helps to remove obstacles in business and personal life. It is
also about communicating with people clearly and avoiding misunderstandings. This allows for
teams to cooperative more effectively, managers to direct their colleagues more efficiently, sales
personnel to be more attentive to their client’s concern and staff generally to get a job done.
2.3 Language
Communication barrier is the most common difficulties which expatriates have to suffer when on
assignment to China. (Goodall et al. 2006) found that all expatriates who live and work in China
usually experience some degree of culture shock. Communication barrier contributed to the
challenge as expatriates find it is difficult to communicate with the citizens. Most Chinese do not
know how to speak English or speak it very poorly.
Under such situation, it is imperative to conduct intensive language training for
expatriates relocating to China. The training should be conducted by professional to cover various
soft-skills from daily conversation, business conversation to writing and reading. Proficiency in
Mandarin language will benefits both expatriates and local people. It’s not only improving their
direct communication but will also enhance relationships among them.

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Language training may be one of the hardest and longest courses for expatriates
relocating to China but the outcome of mastering host country language will lead to variety results
to the expatriates in work and general adjustments, to the organization – less attrition rate (Shaffer
& Harrison, 1998), increased satisfaction as well as better performance (Kraimer et al., 2001;
Parker & McEvoy. 1993).
2.4 Business Ethics and practice in China
Personal relationships and trust play vital roles in Chinese society and this also include business.
The business culture is very different from the Western business culture. Work and life are two
different things in the West but in China, relationships are much more important than business
transactions, and work and social life are inter-connected. In other words, business relationships
come first and the actual business later. The Chinese rather fall back on friendship and trust than
on formal contracts (Buttery and Leung, 1998). Therefore, expatriates should understand how they
can build up and maintain business relationship with local firms.
Business negotiations in China require a much more patient approach and it is all
about trust and again relationship. A unique approach is required with the Chinese to reach a good
decision. As explained earlier, doing business in China is based on the principle of “guanxi”.
Therefore, strong understanding of business culture is very important living and working in China.
Furthermore, Abramson and Ai (1999) highlight the importance of having a good relationship
network (guanxiwang) for business success in China. Those who do not understand the Chinese
business ethics will find it hard to adjust and survive in China as quoted by Zamet and Bovanick
(1986), “Expatriate failure occurs more frequently in China than is the case elsewhere”.
2.5 Socio-political
Another hurdle is the socio-political environment that needs to be understood to do business. The
ruling political party in China, the Communist Party of China, has great influence on the Chinese

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economy. Although the Chinese market is increasingly liberalizing, the power of the Communist
Party is still significant. Weiss and Bloom (1990) found that not being prepared for understanding
the ‘interaction between China’s political and work situations’ initially left expatriate managers
disadvantaged in their jobs.
In China, many organizations are part of the governmental system leading to an overlap of
private and public interests in the workplace. Hence, knowledge about how Chinese institutions
work will give the expatriate an advantage when working in China and will also help the
adjustment, as the expatriate will not feel too lost.
2.6 General Knowledge about China
General knowledge about China which is covered under general orientation that expatriates (and
their families) receive before departure has a major impact on the success of the overseas
assignment. Individuals selected to go abroad need to answer to many specific questions about
their host country such as geographic, climatic conditions, working culture, society, environmental
conditions like air pollution level and general living condition like housing, neighborhood, schools,
traffic law etc. are topics frequently covered in the orientation.
As soon as they arrive in the host country, they need to “settle in” as quickly as
possible. Activities like obtaining housing, bank accounts, driving license, school admission as
well as medical assistance procedure have to take place soon after arrival. Without having the basic
understanding of the host country may complicate the process of said activities.
In this general orientation session is also appropriate for expatriates to ask question
or concerns about host country. One of the biggest concerns expatriates may have in mind before
relocating to China is bad air pollution in the major cities. Expatriate may ask questions about
safety & health awareness, medical insurance coverage or perhaps negotiate a better hardship
allowance for under such condition. The sooner the expatriates (and their families) can establish
a “normal” life, the better the adjustment will be and less likely expatriate failure will occur.

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2.7 Conclusion
To ensure success of the relocation task, employees must attend and complete the list of China
specific pre-departure training components as mentioned and explained above. It helps preparing
the employee to be mentally and physically prepared prior leaving to China.

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3. 1c)
3.1 Introduction
Training program has to be measured to gauge effectiveness and to ensure cost and time spent
provides a good return to the organization. It has been discussed in many forums which recognize
training effectiveness as a crucial issue for organizations. Expatriate performance and productivity
can be measurably improved if training is effective.
There is number of ways, model or approach in order to measure success as well as
lesson-learnt for a better training program in the future. Using Kirkpatrick’s (1976) Four-Level
training evaluation model is one of the most extensively used methods for evaluating effectiveness
(Alliger & Janak, 1989). The last two level of Kirkpatrick which is behavior and results will not
be discussed since the last two levels are meant for post-training evaluation. Other methods of
measuring effectiveness of training include ROI – Return on Investment and pre and post-training
assessment.
3.2 The Kirkpatrick model
In the 1960’s Donald Kirkpatrick wrote a series of articles on evaluation where he identified four
stages (or levels of evaluation). Despite its age, Kirkpatrick’s model continues to be used in
contemporary research (Schmidt et al, 2009 and Elliott et al, 2009). One of the strengths of this
model is in its simplicity which was design to allow it to be understood and used easily by HR
practitioners. Kirkpatrick divided the evaluation process into four segments or stages as shown
below in Figure 3.1.

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Figure 3.1 – Kickpatrick’s model
3.2.1 Stage 1 – Reaction/Satisfaction
This level measures how the learners reacted to the training. Ultimate goal for this measurement
is to gauge trainee’s level of satisfaction towards the training component like instructor, topic
covered, training material, presentation as well as venue.
This stage determines how well the training was received by the audience and the
outcome helps the organizer to improve the program in the future. Reaction can be measured by
using post-training surveys, questionnaires or addressing questions like (1) Overall ratings of the
program (2) The biggest strengths and the biggest weaknesses (3) The ratings for selection of
venue and presentation style.
3.2.2 Stage 2 – Learning, Knowledge
Stage 2 focuses on what learners learned (competencies) during the program. A learning test is
helpful to ensure the learners have absorbed the content and know how to use it properly. It is often
helpful to measure this stage both before and after training. Test the learners to determine the
knowledge, skill levels and attitude. Once training is finished, test the learners a second time to
measure what they have learned or conducting verbal assessment.

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The outcome will then determine what learners have learned and acquired from the
training. Other missing elements will be used as an improvement in future training. As mentioned
earlier, stage 3 and 4 are not relevant to pre-departure training and will not be elaborated further.
3.3 Return on Investment (ROI)
Return on investment (ROI) is a measure of the monetary benefits obtained by an organization
over a specified time period in return for a given investment in a training program. This can simply
put as ROI is the extent to which the benefits (outputs) of training exceed the costs (inputs). ROI
can be considered as an extension to the existing Kirkpatrick’s four stages.
In this context, the quicker learners or expatriates adapt the cross-cultural change in
the host country, the greater benefits to the organizations and the expatriates. Organizations should
view such investment as something vital to safeguard the success of the international assignment.
It should be kept in mind that failed assignment would cost the company even more (Mendenhall
and Oddou, 1985; Romero, 2002)
3.4 Assessment – pre and post training
The other important measurement to be considered is assessment before and after training. The pre
training assessment is to understand the background of the learners as well as to understand the
current level of knowledge. This method is appropriate for trainer to set the right mode of training
prior starting a class. At the same time, assessment provides learners the opportunity to evaluate
their pre training knowledge and use the result as to which areas that they need to focus and
participate more in the class.
Post training assessment is used to identify how much knowledge is transferred
successfully and to identify how well learners absorb the topics covered in the training. It is crucial
to the learner’s confidence to face the international relocation assignment soon.

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3.5 Conclusion
Measuring pre-departure training effectiveness is important as it covers at least four or more
aspects. They include:
i. How well the pre-departure training program met the learners needs and objectives
ii. What knowledge and skills it has imparted to learners
iii. What desirable change, in this case motivational change in preparation for the
relocation assignment
iv. What benefits to the trainer, organization, policy-maker and the most important
audience is the learners who soon to be abroad for a period of time to carry out
international duties.

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4. Part 2
Abstract
The selected topic for this report is issues within Performance Management Appraisal. The report
tells about the difference and relation between performance management and performance
appraisal. The report also discuss about performance management models, some motivation
theories, critical analysis, the current performance appraisal process and propositions on how to
improve the current process. The report is based on the following journals:
1. Fred C. Lunenburg. Performance Appraisal: Methods and Ratings Errors. International
Journal of Scholarly Academic Intellectual Diversity Vol. 14, Number 1, 2012.
2. Kondrasuk, J. N. (2011). So What Would An Ideal Performance Appraisal Look Like?.
Journal Of Applied Business & Economics, 12(1), 57.
3. Kondrasuk, J. N. (2012). THE IDEAL PERFORMANCE APPRAISAL IS A FORMAT,
NOT A FORM. Academy Of Strategic Management Journal, 11(1), 115-130.
4. KUMARI, N., & MALHOTRA, R. (2012). Effective Performance Management System
For Enhancing Growth. Global Management Journal, 4(1/2), 77-85.
5. Siaguru, F. (2011). Performance Appraisal Systems: Procedural and Implementation Issues
in Papua New Guinea. Journal Of Management Policy & Practice, 12(5), 116-127.
6. Wendt, L. (2014). FROM MEASUREMENT TO OWNERSHIP: THE EVOLUTION
AND ORGANIZATIONAL IMPLICATIONS OF MODERN PERFORMANCE
MANAGEMENT. Cornell HR Review, 1.
7. Hantula, D. A. (2011). What Performance Management Needs Is a Good Theory: A
Behavioral Perspective. Industrial & Organizational Psychology, 4(2), 194-197.
doi:10.1111/j.1754-9434.2011.01325.x

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4.1 Introduction
Performance management is a concept in the field of human resource management which is many
mistaken as performance appraisal. Performance appraisal is part of the bigger picture of
performance management. More details about the two concepts will be further discussed in the
succeeding sections.
4.2 Definition
Performance management is critical to any organization’s success, yet it’s something many fail to
do well. “Performance management is a continuous process of identifying, measuring and
developing the performance of individuals and aligning performance with the strategic goals of
the organization” (Aguinis, 2009). Basically, the concept is to figure out how well employees
perform and then to ultimately improve that performance level. Performance management is a
systematic analysis and measurement of worker performance that used to improve performance
further. On the other hand, “performance appraisal is the ongoing process of evaluating employee
performance. Performance appraisals are reviews of employee performance over period of time,
therefore appraisal is a subset or part of performance management.
Figure 4.1 is a process diagram that provides a graphical view of the major difference between the
two processes.

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Figure 4.1 – Graphical view of the different between Performance Management and Performance
Appraisal
4.3 Performance Management Model and Theories
According to Neeraj Kumari and Ruchi Malhotra (2012), there is no fix model in performance
management system. Whatever system or model is adopted needs to be congruent with the culture
and principles that pervade the organization. As Lloyd and Payne (2004) observe, “not only is
there no clear definition of the model, but there is also a fundamental lack of agreement about the
specific practices it should and should not incorporate, as well as the meanings that are ascribed to
those practices’.
Figure 4.2 illustrates the typical components of performance management model.

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Figure 4.2 – The Performance Management Model
An effective performance management model establishes the groundwork for excellence
by:
 Linking individual employee goals with the organization’s mission and strategic plans. The
employee has a clear concept of how they contribute to the achievement the overall
business goals
 Focusing on setting clear performance objectives and expectations through the use of
results, actions and behaviors
 Defining clear development plans as part of the process, and
 Conducting regular discussions throughout the performance cycle which include activity
like coaching, mentoring, feedback and assessment.

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Traditionally, performance management is viewed to be the responsibility of immediate
supervisor (Barnes-Farrel, 2001), but due to different challenges such lack of experience, scattered
workforces, size spans of control and different view and expectations of employees caused
supervisors to be ineffective on employee’s performance. Nowadays, employees are now expected
to be more involved in development and progress of performance management process which has
impact on them. (Mohrman et al. 1989).
From academic perspective, motivation theories play a role on how organization manages
performance. There are number of modern motivational theories like Goal Setting Theory,
Expectancy Theory, Justice Theory, and Self-determination Theory. Some motivation theories
which have received most attention recently are Goal Setting Theory, Expectancy Theory,
Cognitive Evaluation Theory, Equity Theory, and Cognitive Evaluation Theory. (Donovan, 2001).
Brief description some of the theories are;
Goal Setting Theory – One popular results-oriented approach. Found to be exceptionally reliable,
valid, and useful across diverse work situations (Locke et al., 1981). Difficult and specific goals
led to higher performance when compared to vague do-your-best goals (Locke and Latham, 2002).
Control Theory – Also referred to as feedback control or cybernetics. It is described in self-
regulation terms as an ongoing comparative process aimed at reducing the discrepancy standards
for behavior and the observed effects of actual behavior (Carver and Scheier, 1981, 1998).
Social Cognitive Theory – Motivation is influenced by interaction of three elements: work
environment itself, what the performer thinks, and what the performer does (Bandura, 1986).
Strong performance requires positive self-beliefs of efficacy in addition to appropriate skills and
abilities.

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4.4 Critique
From the journals and articles referred in completing this report, there are number of common
issues or problems found in the current performance management appraisal system. The
succeeding sections of this report will discuss some of the common issues. According to
Kondrasuk (2011), there are about 76 common issues in present performance appraisal systems.
Conflict between administrative & developmental goals, lack of mutual goal setting between
evaluator and performer, lack of training to perform PA are some of the common issues.
Kondrasuk (2011) further reduced and categorized it into four categories. The categories are
problem with:
1. The purpose of Performance Appraisal (PA)
2. Those involved with PA
3. What is measured and how
4. The system and process of PA
4.4.1 Issues with the Purpose and Goals of PA
There are two main purposes of a PA system (Kondrasuk. 2012);
Developmental – One state goal of PA is to learn what the employee is or is not doing well as
possible and help the employee to improve his job performance. This is basically a counselling or
guidance role that the evaluator plays in this role.
Administrative – The second goal of PA is to use the PA results to help make administrative
decisions such as how much salary increments to give, what training is necessary or helpful to
improve employee performance, and other uses such as a test validation criteria. This second goal
places the evaluator in the role of judge.
Supervisor needs to achieve both goals. However, it is very difficult for the supervisor to
concurrently be a counselor while trying to be a judge at the same time. Employee is likely to be

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very open and admit shortcomings to a counselor but cannot be too candid to a judge who may cut
his pay raise or reduce his promotional opportunities.
Another issue is inconsistent evaluator perceptions. Inconsistent perceptions may cause the
entire system performance appraisal system off. It means if evaluators have different view on the
purposes of their specific performance appraisal, the process will be conflicting as well as unsure
what to do with the results. The way appraisal is conducted will be different depending on the
purpose of it, for instance there will be two different scenarios of conducting appraisal for
employee who need more training to achieve organizational goal and scenario of conducting
appraisal to determine how much pay raise for the employees. The scenario gets more problematic
when more participants are added in the discussion.
4.4.2 Issues With Who is Involved in PA
There are three categories of people involved in PA; 1) appraisers, 2) evaluatees, and other users.
The evaluator can be a variety of individuals or groups of people. Traditionally, line manager will
evaluate his subordinates. However, there is other approach which “the evaluator” could be
employee’s peer, subordinate, customers or any person the appraisee interacts with. Regardless of
who does the evaluation, they need the support of the total organization.
According to Kondrasuk (2012), major issue is caused by lack of integration of PA between
the organization’s daily functions and overarching ideology. PA system often fails without getting
the full support of integrating the PA process from the top all the way down. Lack of commitment
from the organization leads to evaluators do not take the process seriously enough.
If those who are involved do not have sufficient skills to conduct PA, the results will be
less than ideal. Evaluators are frequently not given the necessary training to perform the PA
effectively and consistently. Evaluatees are seldom trained in the PA process or their requirements
in it. Also, upper management seldom is trained properly in how to use this data for organizational
improvement (Roberts, 1998).

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4.4.2.1 Biases
Personal bias is the most common defect in the evaluator’s role of effective performance
appraisals. Common biases include; Central tendency, leniency, severity, recency effect,
favoritism, halo effect. Figure 4.3 depicts examples of strictness, leniency and central tendency
biases. The distribution of ratings on the left of the figure indicates a strictness error; those in the
middle indicate a central tendency error; and the cluster of the right indicates a leniency error.
Figure 4.3 – Strictness, central tendency, and leniency performance ratings
Personal bias is apparent in different ways. Evaluators may simply give satisfactory or
unsatisfactory appraisals to individuals who do not deserve them. (Roberts. 1998). Favoritism,
leniency, leadership styles, personality, mood characteristics and personal disposition can cause
fluctuations in the effectiveness of the performance appraisals
4.4.2.2 Evaluatee’s Perception
The perceptions and expectations evaluatees have of the PA process may be a significant inhibitor
of PA success. Evaluatees often refuse to agree to PA approaches and conclusions because they
do not meet their expectations of the process. (Roberts. 1998). Furthermore, evaluatees may argue
with the evaluation if it does not match the results of past satisfactory performance appraisals. It
appears that some evaluatees are often reluctant to take the evaluation process seriously.
(Kondrasuk. 2011). In many instances, PA systems do not provide for effective communication.

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4.4.3 Issues With What is Measured and How
For PA to be effective, employee’s individual goals must work to achieve the bigger goal of the
organization. Many firms use inappropriate assessments because correct tools for designing the
system is not used. Two basic considerations in designing the actual appraisal tool are what to
measure and how to measure it. (Dessler, 2011). What to measure refers to the way in which to
measure the employee’s performance, such as quantity, quality and timeliness of work. In terms
of how to measure it, there are various methodologies that are available for implementation
(Dessler, 2011).
Some measurement techniques include graphic rating scales, forced distributions, and
ranking to measure traits. MBO can be used to assess results. However, how to choose the
instrument for a particular situation and how to score a combination of instruments is problematic.
4.4.4 Issues With the System and Process of PA
As Russell and Russell (2011) recently pointed out about performance management and applies to
PA as a system, it is a process and not a single event – a format and not a form. Some critics
maintain that there is a lack of resources provided by the organization to adequately institute the
process (Roberts, 1998). Roberts (1998) also commented that an organization’s goal are not always
considered when a PA system is designed and another apparent challenge for PA to be effective is
that they are not given enough time to be completed. Another problem with typical PA systems is
that they only seem to accurately and reliably measure extreme performances and do not reliably
differentiate middle-range performances. In sum, many PA systems have low reliability (rating
errors), which must be take into consideration when analyzing them for their efficacy (Roberts,
1998).

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4.4.4.1 Time and Timing of PA
Timing (Yearly? Mid-year?) which is when to conduct the PA has caused much trouble and
become a big issue in the PA process. Performance appraisals is time consuming and there is not
always enough time to allow for a full appraisal of an employee even for mid-year review.
Another problem with the PA deals with the decision of when to bring in new objectives.
And evaluator may believe that the evaluate should be given new objectives to further advance
their progress of working success, but when and where to introduce the objectives is unclear.
4.4.4.2 Use of Results
Another big problem with the PA is deciding what to do with the information gathered from the
appraisal. The appraisal is meaningless when the results is not properly implemented. A major
issue with results is that managers may go through the entire process and ignore the results
altogether. Some questions are what will happen to the employee based on the results of the
evaluation, should the evaluatee receive a pay increase? If the evaluate receives a bad appraisal,
should the evaluatee be fired or demoted? Because there is lack of standardization most managers
don’t know how to about implementing the results.
4.5 Recommendation
Academic scholars and industrial practitioners have suggested many aspects to change, add or
tweak. Grote (2010) recently state that the ideal PA should consists of 5-steps process:
1. Establishing expectations for employees’ performance - Employee performance planning
where the manager meets with each employee for an hour at the beginning of the year to
discuss goals for the year.
2. Allowing the employee to perform the job - Employee performance execution where the
employee performs his job and seeks to achieve his established goals. At the middle of the
year, the manager and subordinate meet to discuss progress toward achieving those goals.

24
3. Appraising employee’s job performance - Employee performance assessment where the
manager fills out the PA form and discusses it with his line manager before discussing it
with the subordinate. Manager also decides administrative decisions like compensation at
this time.
4. Reviewing the appraisal process - Employee PA interview where the manager meets with
the appraisee for an hour to discuss the manager’s appraisals, the subordinate’s self-
appraisal, and how to improve. They set a date to reconvene to set next year’s goals or start
the process over. Grote (2010) and others have also stated that individual
development/improvement plans should also be employed. Some have stated that the goals
of performance appraisal should include retaining employees and aligning organizational
goals.
Regarding what is measured and how, managers and subordinates both be more involved
in the development of the general PA system/process as well as the PA forms used. The
suggestion is supported by Thomas and Bretz (1994). They also suggested that there should
be more rewards for appropriately using the PA system. Strive for clear, specific,
measureable expectations.
Training on conducting PA should be provided to all managers and also to those involved
in the PA system. Present employees should go through refresher training annually to brush
up or learn new and improved elements of the PA process.
5. Continuing the cycle steps 1-4
The current 5-steps process should be retained in general. On top of that, there are few more aspects
to be considered to improve the PA system.

25
4.5.1 New rules of Goal Setting – Clarifying the Goals
Ordonez et al. (2009) conclude by saying “Rather than dispensing goal setting as a benign, over-
the-counter treatment for students of management, experts need to conceptualize goal setting as a
prescription-strength medication that requires careful dosing, consideration of harmful side effects,
and close supervision”. Better goals: keep them somewhat vague. This gives people control and
choice over how they do their jobs. When people are given vaguer goals they can take into account
more factors: in short it makes them think for themselves. It’s no wonder that having control is
strongly linked with job satisfaction. It is also imperative to clearly separate the two goals
mentioned earlier – administrative and developmental, so that both the employees and the
managers know when each purpose is occurring. It should be clear when the manager is evaluating
the employee on administrative standards (tied to organization only) or on developmental goals
(tied to what the employee personally wants to achieve in that work setting).
4.5.2 Define culture of the organization, i.e. the behavior that lead to success
Recruit people who demonstrate those behaviors. Hire only people who fit the organization’s
culture. Most employee performance problems are hiring problems. (Doug Blizzard. 2014, July
1). Managers hire people who don’t fit organization’s culture and then waste valuable time trying
to “fix” them. On the other hand, the employee must behave differently to achieve different and
better results. Doing the same thing should get the same results so improve job performance, the
behaviors and the motivation, attitude should change as well.
4.5.3 Conduct regular check-ins – at least monthly or quarterly to review performance
One good technique is called “five by five”. Manager prepares a sheet with the employee’s four to
six performance goals for the year as well as the employee’s development goal. Below those goals,
the employee lists five activities he or she plans to work on over the next month to accomplish the
annual goals.
At the next monthly meeting, the employee reports his or her progress on those activities.
Then, the employee set five activities for the next month. The manager provides feedback and

26
input. This process is repeated monthly. For this system to work, the manager must make it clear
that the employees own their performance, which is another tenet of effective performance
management.
4.5.4 Focus on the behavior, not the person when providing feedback.
The ultimate objective here is more good behavior and less bad behavior. Managers can learn how
to provide appropriate performance feedback. Success in this area leads directly to improved
employee performance, and that translates into improved financial performance.
4.5.5 Discuss investment trade-off, not forced rankings
Many organization maybe struggling with a shortage of incentives for example salary increases,
stock grants, promotions, new assignments and development opportunity remain scarce. Managers
need a way to allocate these resources fairly and provide the best outcomes for the business. Rather
than ranking, rating and automatically applying the results to a pay matrix, organizations would
be wide to return focus on the qualitative performance conversation and talent reviews (Amy
Wilson. 2014).
4.5.6 Perform the Recommended Changes
Last but not least, perform the recommended changes above for a better and solid performance
management appraisal system.
5. Conclusion
Performance management appraisal is a process that involves setting expectations of the supervisor
and subordinate, having the subordinate perform to achieve the expectations, of appraising and
feeding back the results, and applying the results of the assessment in ways that benefits the
organization, the supervisor, and the subordinate that involved in the process.

27
Supervisors must make an enduring commitment to their subordinate’s development by
shaping and supporting performance appraisal system design and administration that truly benefits
the employee. Supervisors have to be smart, flexible, communicate prolifically, knowledgeable,
demonstrate fairness and transparent when conducting performance management appraisal with
the subordinates.
Employees must actively prepare to ensure success of their performance management
appraisal. By properly preparing for an appraisal meeting with supervisor, rest assured supervisor
has a broader picture of employee’s performance and career goal. Employee must also actively
participate in the discussion and take charge of own career progression.
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