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How to Improve the Effectiveness of Performance Appraisal in China

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How to Improve the Effectiveness of Performance Appraisal in China
How to improve the effectiveness of Performance appraisal in China
Introduction
According to ACAS(1997), Performance appraisal (PA) is a western management concept. It regularly records an assessment of an employee’s performance, potential and development needs,Functions as an opportunity to take an overall view of work content, loads and volume, to look back on what has been achieved during the reporting period, and agrees objectives for the next.

This definition clearly shows that PA offers a chance to assess or judge various aspects of an employee’s work performance by checking back how they have performed in the past and then predicting and developing their future performance. However, it is difficult to be translated into a different cultural environment, with the practice of PA in china having brought about a few problems. Easterby smith’s report (1995) shows that Chinese managers often have a different idea about what PA is than do western managers. This essay will firstly critically analyse the two problems discovered in the implementation of PA in china; one being its over-emphasis on the function of measuring reward and punishment for the employee rather than identifying his or her potential ability in the long run, the other being the lack of effective feedback in Chinese PA. Followed are two suggestions: consistency of PA in time, attitude and with organizational culture and the shift of its emphasis. Finally valuable insight into the future trend of PA in China will be examined.

Key words: Chinese performance appraisal, cultural environment, consistency, the shift of emphasis.

Problems of Performance appraisal in China
Since the Chinese economic reform, PA has been widely adopted in its organisations. According to Zhu and Dowling (1998), ‘74.8 percent of firms carry out performance appraisal annually, 14.3 percent twice a year and 11 percent monthly’. However, whether Western management concept works in China or not still remains an issue and



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