National Values, Performance Appraisal Practices, and Organizational Performance: a Study Across 21 Countries Hilla Peretz

NATIONAL VALUES, PERFORMANCE APPRAISAL PRACTICES, AND ORGANIZATIONAL PERFORMANCE: A STUDY ACROSS 21 COUNTRIES HILLA PERETZ
Department of Industrial Engineering and Management Ort Braude College, Israel Snunit 5 St., P.O.Box 78, Karmiel 21982, Israel

YITZHAK FRIED
Whitman School of Management, Syracuse University

This study was funded by a grant from the SHRM Foundation. However, the interpretations, conclusions and recommendations are those of the authors and do not necessarily represent the view of the SHRM Foundation. Best Paper Proceedings, Academy of Management, August 2008 ABSTRACT Using two independent databases, this study explored: (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. Data from 5,991 organizations in 21 countries were obtained for this study. Results showed that national values explained PA strategies, confirming the study hypotheses. In addition, our hypothesized interaction effects between national values and PA programs on organizational outcomes were supported. The results have strong implications for organizations operating in different societies concerning how to maximize the fit between particular cultures and PA practices in order to enhance organizational performance. INTRODUCTION Performance appraisal (PA) has long been a key human resource practice in the US and as such has been extensively analyzed and investigated (e.g., Fried, Levi, Ben-David, Tiegs, & Avital, 2000; Mero, Guidice, & Anna, 2006; Murphy & Cleveland, 1995). However, relatively little research has been conducted on the role of PA in the global economy (e.g., Aycan, 2005). The purpose of the present study is twofold: to investigate (a) the influence of national values on PA practices; and (b) the interactive effects of national values and PA practices on organizational performance indicators (i.e.,

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