TY - JOUR

T1 - Culture and performance appraisal in multinational enterprises

T2 - Implementing French headquarters' practices in Middle East and North Africa subsidiaries

AU - Yahiaoui, Dorra

AU - Nakhle, Samer F.

AU - Farndale, Elaine

PY - 2021/9/1

Y1 - 2021/9/1

N2 - Performance appraisal requires interactions between managers and employees and as such can be highly sensitive to differences in cultural values. This can be challenging when multinational enterprises (MNEs) are active across different institutional contexts, particularly when operating in the culturally complex Middle East and North Africa (MENA) region. In this qualitative study, we apply institutional theory to explore how performance appraisal practices are implemented and internalized in MNE subsidiaries in the MENA region through manager–employee interactions. A total of 117 interviews were conducted with different headquarter and subsidiary stakeholders (managers and employees) of four French MNEs operating in Lebanon and Tunisia. The findings indicate that, during implementation, performance appraisal criteria, evaluation, and feedback were adapted based on socio-cultural values to achieve internalization. Such values include the emotional relationship between managers and employees, the fear of losing face, high power distance, the desire to avoid confrontation, and high-context communication. Insights for future research are presented regarding the viability of MNEs operating in the MENA region implementing corporate performance appraisal practices.

AB - Performance appraisal requires interactions between managers and employees and as such can be highly sensitive to differences in cultural values. This can be challenging when multinational enterprises (MNEs) are active across different institutional contexts, particularly when operating in the culturally complex Middle East and North Africa (MENA) region. In this qualitative study, we apply institutional theory to explore how performance appraisal practices are implemented and internalized in MNE subsidiaries in the MENA region through manager–employee interactions. A total of 117 interviews were conducted with different headquarter and subsidiary stakeholders (managers and employees) of four French MNEs operating in Lebanon and Tunisia. The findings indicate that, during implementation, performance appraisal criteria, evaluation, and feedback were adapted based on socio-cultural values to achieve internalization. Such values include the emotional relationship between managers and employees, the fear of losing face, high power distance, the desire to avoid confrontation, and high-context communication. Insights for future research are presented regarding the viability of MNEs operating in the MENA region implementing corporate performance appraisal practices.

KW - host country

KW - human resource management in multinational enterprises

KW - institutional theory

KW - Middle East and North Africa

KW - national culture

KW - performance appraisal

KW - Management studies

UR - http://www.scopus.com/inward/record.url?scp=85104308926&partnerID=8YFLogxK

U2 - 10.1002/hrm.22063

DO - 10.1002/hrm.22063

M3 - Journal articles

AN - SCOPUS:85104308926

VL - 60

SP - 771

EP - 785

JO - Human Resource Management

JF - Human Resource Management

SN - 0090-4848

IS - 5

ER -