Muhammad Faisol Chowdhury - Wbiaus.org

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Chowdhuryorganizations. For example, the survey indicated that most of the MNCs useddifferent kinds of effective performance evaluation tools to measure employeeperformance and performance ratings were being communicated properly to theemployees before and after the evaluation. Significantly, the research also suggeststhat the way performance was measured, managed, and linked with other HRMdecisions in different MNCs, varied as per the culture of the organization and itsdiverse members and the nature of the industry. As mentioned earlier in thisresearch, what is good for one organization may not be equally effective for another.According to the pioneer study of Hofstede (1980) on cultural dimensions, and themulti-phased, multi-method „GLOBE - Global Leadership and OrganisationalBehaviour Effectiveness‟ project examining the interrelationships between societalculture, organizational culture, leadership and societal achievement on 62 societiesconducted by Javidan and Dastmalchian (2009, p.45) identified that culturalparameters of a country significantly impact relationships between organizationalmembers, openness to evaluation and feedback, and other aspects which couldinfluence the choice of tools and processes for performance management. As thehistorical and cultural background of Bangladesh has hierarchical differences, whichaccording to the Hofstede‟s model known as „power distance‟, it had been customaryto consider the appraiser as more suitable to review performance. Thus, most of theparticipating MNCs of this research had maintained an efficient and effective processto use PMS and linking it with other HRM activities. In addition, the survey alsoidentified that, most MNCs had been able to successfully link a part of employeecompensation with employee‟s performance. The idea was to ensure that thesuperior performers get recognized and rewarded. Also it helped to link salarypayouts with organization‟s performance.7. ConclusionBangladesh is standing at the threshold of socio-economic growth; with increasingcompetition between local organizations with MNCs the performance pressure isincreasing. With the increasing presence of foreign funds and MNCs, the market hasbecome more competitive and the business environment more volatile. The countryis in a state of flux as far as the usage of standardized tools and processes related toPMS is concerned. Improving the process efficiency and building a performanceculture in the organization require support and drive from the top management inwork and in principle.This article, as its starting point, clearly articulated the meaning and measure of PMSwhich could hold different meanings for different organizations. Despite thisdifference, PMS alignment with business strategy must be the underlying philosophyof organizational growth. The article revealed the existence of a complex and blurredinteraction between PMS and local private organizations‟ corporate governance. Alow level of linkage of performance measurement outcome with other HR planningand activities had also been observed. This existing bureaucratic PMS practiced bymost surveyed organizations has to be transformed into a more sophisticated, targetoriented PMS to ensure profitability through sustainable growth. Furthermore, thisstudy also showed that most of the surveyed MNCs had successfully been able toestablish a meaningful relationship between PMS and corporate strategy, thusgetting competitive advantage to sustain in the market for longer period of time.164
ChowdhuryPerformance ratings were used for salary determinations, increments andpromotions in almost all the surveyed MNCs.It is evident from the study that a high level of awareness in adopting a standardizedPMS had been observed among the surveyed MNCs, whereas, most of the localorganizations did find it critical in implementation. The survey also showed that rapidintegration with global market place had significantly changed management styles insome of the local organizations of Bangladesh in recent decade, which is a positivething. MNCs, with their exposure to „best-in-class‟ systems and processes hadbrought in changes in the PMS practices. Similarly, some local businessconglomerates that had grown rapidly through the last few decades have beenfeeling the need for standardized systems and processes to measure and rewardperformance.„...PMS need to be geared up to unlock human potential….‟ (HR Practices SurveyBD 2006) considering this fact, this article suggested that the key to a great PMS isits ability to convert strategy into action in a measurable way. The local privateorganizations at this stage require a leap in the right direction. Organizations mustfocus on designing robust PMS that facilitates setting of clear performanceexpectations on the job together with elimination of all roadblocks that preventemployees from achieving them. In facilitating the PMS approach with proper linkagewith other HR deliverables, it must be emphasized that adoption of a „best practice„pioneered by the MNCs is a necessary tool for increasing sustainability, meetingcustomer needs and maximizing competitive advantage.ReferencesAbdullah, AB, Boyle, S & Joham, C 2010, „Role of cultural factors in shapingHRM practices in the MNCs operating in the emerging markets of South Asia‟,Proceedings of the International Business Research Conference, Dhaka,viewed 10 April 2011,Armstrong, M & Baron, A 2004, Managing performance: performance managementin action, CIPD, London.Baxter, LF & MacLeod, AM 2008, Managing performance improvement, Routledge,New York.Bernardin, HJ & Beatty, RW 1984, Performance appraisal: Assessing humanbehavior at work, Kent Publication, New York.Bjorkman, I & Xiucheng, F 2002, „Human resource management and theperformance of western firms in China‟, International Journal of Human ResourceManagement, vol. 13, no. 6, pp. 183 - 203.Bouckaert, G & Halligan, J 2008, Managing performance: International comparisons,Routledge, New York.Boxall, P & Purcell, J 2003, Strategy and human resource management, PalgraveMacmillan, New York.CIPD Chartered Institute of Personnel and Development 2011, Performancemanagement: an overview, viewed 17 January 2011,165
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Muhammad Faisol Chowdhury - Wbiaus.org

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