BUSN601 discussion

Different cultural perspectives of a region can impact several aspects of a company’s global business operations. In considering Human Resources Management, culture does not have any impact on performance appraisal.

Student one:

I would have to disagree with this week’s forum statement. Simply because, effectively managing cultural differences in a corporate environment is vitally important to not only the employees who work for that company, but also for the sustainability and efficiency of the company overall. Some important factors to take into consideration when working towards being culturally competent include focusing on communication, team-building and time to name a few. More specifically, communication is important to the everyday work within a company, by promptly and accurately relaying information especially in regard to projects, etc. Something to take into consideration though is the different ways that different cultures may perceive communication. For example, a lot of Asian cultures would find themselves wary to inform their supervisors of bad news, while someone from other cultures may actually exaggerate the bad news (Alpert, n.d.).

Another aspect, team-building, can be a difficult task to accomplish when presented with varying cultures. For example, the American culture is seen as more individualistic, while other cultures may value the concept of working within a team more. When presented with a culturally diverse team, effectively managing team-building can present some issues.  Similarly, Time is another aspect that can be affected by varying cultures. For example, different cultures can have vastly different understandings of time, from work life time balance, to the meaning of a deadline, to even the balance of work behavior and social behavior in the workplace. These differing perceptions of time can have a major impact in the workplace and is something that should be taken into account when addressing cultural differences (Alpert, n.d.).

With that, these factors all effect the way in which an employee may perform in their position. It is important to be cognizant of these differences and accommodate them when working on a performance appraisal. For example, while someone from an Asian cultural background may see competing with their peers as unappealing, versus an American employee who views the competition as an integral part of performance, this does not mean that the American employee should receive higher marks for their aggressiveness. Conversely, the differences in the way that these two employees view the same performance appraisal task should be taken into consideration.

References

Alpert, R. (n.d.). Managing Cultural Diversity in the Workpalce. Retrieved from https://www.diversityresources.com/cultural-diversity-workplace/.

Student two:

Position

I wholeheartedly disagree with the claim that culture does not have an effect on performance appraisal. If anything, culture has a significant impact on the way a company operates. Culture influences how blue and white collar workers respond to incentives whether they involve money or not. Culture also affects how International companies are set up as far as their organizational structure, and even how top management design and implement their business strategies.

HR Department

Human Resources impacts the organizational culture of a company more than you know. Culture isn’t some fixed design that works for all companies around the globe. It varies from country to country. The Society for Human Resource Management or (SHRM) for short states that “It’s possible to measure your organization’s culture and use that information as a baseline for future improvements.” The culture of your company affects important aspects such as productivity, methods of improving morale, rules of engagement with employees and the reputation that comes with your brand. There are different work styles a company will use depending on the culture of their respective country. It can be anything from super focused, conservative, team oriented, or many more. Several things should be considered by HR leaders including the following: organizational culture can be measured which proves helpful in measuring workplace effectiveness, they have a direct impact on the culture of the company, and changes in culture are dictated by numerous factors. They include Demographics, Industry Trends, New Technology, Employee Engagement, and The Big Picture.

Other Factors

Hiring Decisions: The  culture of the area in which you are operating affects what type of employees you will take. For example, if your environment is rich in technology and has an abundance of engineering graduates, you would be inclined to hire them by either lowering or raising the standards in order to satisfy cultural requirements.

Discrimination: The diversity or lack thereof can cause potentially cause Human Resources to carefully add additional policies, as to avoid appearing as a discriminatory business. Take male dominated cultures for example. If one’s company is set up in such a way, it could possibly discourage females from applying for the job which could lead to lawsuits and uncomfortable or even hostile work environments. With that being said, if a business happens to be located in an area where racism and misogynistic views are the cultural norm, then HR will most likely have to conduct through anti-discrimination training.

References

Alton, Liz. 5 ways HR Impacts Company Culture. People Management and Growth.

https://www.adp.com/spark/articles/2017/06/5-ways-hr-impacts-company-culture.aspx#

https://yourbusiness.azcentral.com/culture-impact-hr-policies-15934.html

Student three:

Organizational culture, sometimes known as corporate culture, is the atmosphere of common beliefs and practices in a company. Basically, it is the overall attitude and characteristics desired by the company. Most people will always perform better when they feel good about themselves and their work environment. Corporate leaders are finally realizing the notion of creating an organizational culture that embraces inclusion, fulfillment, and satisfaction, which can really enhance their employees’ performance and productivity (Leonard, 2019).

Performance management is a process of continuous improvement. It is a key challenge for Human Resources on “how to manage a performance process for a wide variety of culturally diverse audiences divided by time zones and geographies and varying values and ethos” Ramanan, 2019).  Furthermore, it is apparent that employers consider the implications of performance appraisals especial dealing with the realm of organizational culture, cross-cultural relations, and career development. If an individual’s ability to fit into a business’s culture does not always play a tremendous role in employee evaluations, but it does play a much more extensive part in hiring people who can fit into that business’s organizational culture.

It is important for managers to be able to recognize an individual’s background when dealing with performance appraisals. Some cultures tend to value personal accomplishment and assertiveness, while others may put a greater focus on interpersonal connection along with the sense of community within the company. As an employer, it is extremely vital to understand what works and motivates your workers and making sure that the performance appraisal is comprehendible to the employee receiving it (Universal Class).

In addition, organizational culture is not the only kind of culture that can affect an individual’s performance appraisals, nor is it the only type of culture that is impacted by the performance appraisal itself. Overall, since advanced technology allows businesses to have employees internationally and when conducting performance reviews, it is imperative to appreciate another individual’s cultural, beliefs, norms, and values regardless if they work in a different country.

Ultimately, it appears that the statement concerning culture does not have any impact on performance appraisal is false. Every cultural perspective has an impact on performance appraisal. An effective performance management system that works in one country will not necessarily work in the next country due to cultural differences. Human Resources departments need to understand the values, beliefs, and norms in each country it operates in. All of this can assist the department in determining the right way to motivate employees and have prosperous relationships. Ultimately, a company’s performance appraisal system needs to be in line with the culture and society where it operates. Every business should want to make sure its employees are taken care of appropriately to keep the company running efficiently.

References

Leonard, K. (2019, February 4). Organizational Culture & Employee Performance. Retrieved from https://smallbusiness.chron.com/organizational-culture-employee-performance-25216.html.

Ramanan, R. (2019, March 6). Cultural differences in managing performance. Retrieved from https://www.peoplematters.in/article/performance-management/cultural-differences-managing-performance-11102.

Universal Class. (n.d.). Performance Appraisals: Implications of Legal, Career, and Cultural Factors. Retrieved from https://www.universalclass.com/articles/business/performance-appraisals-implications-of-legal-career-and-cultural-factors.htm.

Student four:

Silver (2019) defines performance appraisal as the following, “A performance appraisal is a regular review of an employee’s job performance and overall contribution to a company.” Culture does have an impact on performance appraisal, and culture can add unnecessary pressure to employees, which can cause them to make bad decisions and not do what is right for their customers.

Wells Fargo is an example of what can happen when the company culture is flawed, and employees are wrongfully trying to exceed the companies goals. Corkery (2016) explained, “Wells Fargo employees secretly issued credit cards without a customer’s consent. Federal banking regulators said the practices, which date back to 2011, reflected serious flaws in the internal culture and oversight at Wells Fargo.”

Not only does this hurt the company as fines usually follow and firing of many employees, but it can also ruin the companies reputation worldwide. A company like Wells Fargo operates in multiple countries and has employees in different nations who will all be affected by their poor culture. Since many companies have been publically outed as having shark-like sales cultures, many corporations are changing their performance appraisals to focus on customer satisfaction instead of sales. Archer (2016) states, “Redfin agents are paid a salary and receive benefits, with customer satisfaction ratings — not transactions — determining each agent’s bonuses.”

Typically a company will reward a top performer with bonuses such as additional pay or prizes. In the case of Wells Fargo, that turned into employees doing whatever they can to make a sale, which leads to a poor culture worldwide. In the Redfin example, the company focused on customer feedback and not transactions, which grew a healthier culture. Wells Fargo employees no longer receive bonuses based on sales after the company paid hefty fines. The culture of the company is one of the most critical factors that drive success, no matter where the company is located.