In many economies, performance management systems (PMSs) are rapidly and increasingly being implemented in several public sector organizations as effective strategic tools in human resource management but with different degrees of success. There are many factors ranging from cultural, historical to legislative issues which are important drivers affecting implementation of these systems. The core philosophy of performance management is based on effective management processes which can enable organizations to achieve measurable and specific outcomes. In Australia many organizations and businesses focus on knowledge as the general parameter for evaluating employee performance management. Although traditionally regarded as a closed society, globalization has seen China emerging as an open society strongly focused on market economy. The focus of this essay is an examination of how technology (practicality), cultural factors, legislation and workplace diversity impacts on performance management.
Power Distance
In both Australia and China, just like everywhere else in the world, there are various societal forces affecting the values, beliefs and actions of particular groups of people. There are cultural differences between nations, but more significantly there is existence of cultural differences even within countries. Sometimes issues of religious differences can cause conflicts whose consequences might be far reaching. Culture shocks of these dimensions have important performance ramifications on international organizations and businesses. Individuals from different ethnic or religious backgrounds might find it hard to work together because they might have feelings of inequality of either being superior or inferior. This inequality between people either in a nation or organization is known as power distance. Both China and Australia have a workforce that is largely homogeneous in many companies or organizations. This means the two countries have smaller power distance or less inequality. This translates into better performance management.
Equity match expectations and people expect to receive equal treatment both within the organization they work for, and to be treated as others in similar companies. They will anticipate some level of reward for their effort; for instance, workers will eagerly look forward to being promoted after getting more training. In terms of human resource management/performance management, these factors are interrelated and can have positive or negative consequences on the amount of effort people deliver. The Chinese do exceptionally well in this area.
In places with wider power distance a situation is created where there exist more status or authority differences between superiors and their subordinates culminating to poor performance management.
But from a human resource management (HMR) perspective workers response or reaction to management authority are greatly different amongst different cultures. When Australia and China are considered from a historical perspective, the two become vastly different. Australia has enjoyed a longer period of democracy, openness and a free market economy far much longer than China which for decades was a closed society under an authoritarian communist regime. With these two diverse backgrounds in mind, it would not be wrong to conclude that in China there is a more autocratic approach to management unlike in Australia where the basis of management is more consultative and participatory.
Individualism and Self-Centeredness
There can arise a situation where many workers demonstrate a marked preference for working alone. This predilection to acting as an individual instead of being a member of a group can cause negative impact on performance management. Due to this fact, performance management systems in China are yielding better results than in Australia because the Chinese are less individualistic. As compared to Australians, they are more group oriented. This has enormously improved human resource management in China because more collective action results into less individual competition.
Long-term Orientation
Some companies or organizations invest greatly on inculcating a sense of thrift, perseverance and persistence in their workers. They place great values on factors that emphasize the future. However, some organizations have short-term views that merely focus on the present and the past. This foster’s a culture of respecting traditions or fulfilling social obligations. Again, here the Chinese score higher than Australians on long-term orientation. It should be noted, however, that the human resource activities in one country or culture may have to be altered, depending on the existing legislation, to fit appropriately into another culture or country.
Uncertainty and Avoidance
Organizations have different orientations in relation to rules and guidelines on behavior. There are those who prefer structured rather then unstructured situations. Those who insist on specific codes or behavior are likely to be rigid and resistant to change. Sometimes unstructured situations stimulate more business energy and flexibility. In performance management, this factor determines how people react to organizational changes. In more flexible cultures, uncertainties present welcome challenges which translate into greater risk taking and entrepreneurship than in rigid cultures. Generally speaking, satisfactory use or implementation of performance management remains problematic in Australia. That is why there are many emerging human resource management practices there.
Technological Platforms/and Changes.
At a practical level, both Australia and China have zeroed in on using technological platforms and managing changes as innovative ways to establish better performance management systems. Adaptation of new technologies, product and service improvement, and organizational changes are factors influencing better performance. Factors that contribute to successful implementation of business innovations depend a lot on particular and specific characteristics on how a company manages its change process. Issues such as implementation and use of technological platforms; institutionalization of strategic leadership, and competitive intelligence (CI) helps a company to enhance its competitive edge. On a practical level, an improvement on performance management and strategic leadership is crucial to the development of an organizational culture conducive to innovations.
Effective change management entails the following: Being in touch with industry trends in terms of knowing the market demands, knowing what the competitors are doing and introduction of new products. Effective technological management and appropriate performance management should be used to support all essential changes.
Conclusion
From the foregoing, it is obvious that in both China and Australia there are several factors that affect proper implementation of performance management systems. Since market trends and human resource management are so volatile and dynamic, organization and business managers should now recognize the imperative nature of competitive intelligence for business survival. Success and survival of business depend on a faster rate of acquiring new learning. This should exceed external factors so that an organization can become better positioned for long-term success. Also, focus should be on revealing or exposing business opportunities and problems that can debilitate or facilitate proactive strategies as foundation for sustained improvement of performance management.