Culture and performance appraisal
I disagree with the statement that regional culture does not have an impact on performance appraisal. Regional culture has a strong impact on performance appraisal of an organization. By definition, performance appraisal comprises of all the processes involved in the examination and evaluation of the work behavior of an employee and comparing it to preset standards in order to give feedback to the employee. The performance appraisal practice is important in determining which employee needs what training, who needs to be demoted, promoted, retained or fired on the basis of the evaluation reports.
Research demonstrates that regional cultures strongly oriented towards future growth and expansion such as those in the West and now China are more likely to use performance appraisals in order to evaluate the employees. This is because, the cultures are future oriented and may be in the process of rapid expansion and the performance appraisals are a way of determining the best performing, best innovative, best productive and least absentee employees for promotion to newly emerging branches in the region (Stone & Romero, 2012). This would be a stark contrast to cultures in regions that have reached their expansion goals and are seeking stability and cohesion such as those in Japan. [“Write my essay for me?” Get help here.]
Cultural practices in regions geared towards stability are more likely to pursue maintenance of the existing staff, so as to reduce turnover of employees and to increase cohesion instead of evaluations for promotions or demotions as has been witnessed in Japanese companies and business organizations. In these regions in a collectivist culture, companies and business organizations are more likely to use 360-degree systems of performance appraisal. [Need an essay writing service? Find help here.]
In-sourcing vs. Outsourcing
This course reversal may be justified. Outsourcing emerged as a major route for companies to gain competitive advantage over their domestic rivals by cutting production costs through cheap labor and tax incentives in China and India. However, as Belohlavek (2007) reports, since almost all the companies jumped on this ship, it stopped being competitive to outsource (Belohlavek, 2007).
Therefore, the course reversal is justified because those pioneers in the outsourcing strategy reaped their supernormal profits and it’s time to go back since China and India are about to be saturated.
The cost of production will soon go up because the tax havens that the companies have been enjoying is about to end. Usually, companies are invited to invest in Indian and China enjoying some tax havens for a specific time, usually 10 years. Most of these companies are nearing the end of their terms and their continued stay will see them start paying large sums of money in terms of taxes.
Some may argue that by reversing this course, the companies are coming back to a saturated market in the US where they will be required to pay taxes just like they would have done in China or India. What this argument fails to understand is that by operating back in America, the companies bring more than just taxes for the US government: they will bring back jobs that were lost from America due to outsourcing as well as saving foreign exchange at this time when the country is facing an unfavorable balance of payment. [Click Essay Writer to order your essay]
Belohlavek, P. (2007). The Natural Organization of Outsourcing and Insourcing. Houston: Blue Eagle Group.
Stone, D., & Romero, E. (2012). The Influence of Culture on Human Resource Management Processes and Practices. New York: Psychology Press.