Leveraging human capital through performance management process: the role of leadership in the USA, France and India†

Abstract

This paper examines the role of human capital and leader's knowledge in performance management in three countries from different continents. We contribute to the relevant literatures by examining crucial, hitherto unexamined processes of leveraging human capital, focusing on the conversion of tacit knowledge to explicit knowledge. The paper also contributes by demonstrating the applicability of these processes and a general strategic human resource management framework to differing cultures. Using data from employee samples in these three countries, this study shows a strong positive impact of managerial human capital on key processes of leveraging such capital such as performance enhancement strategies and critical interactive behaviors, eventually leading to strong perceptions of leadership. These processes seem to be applicable across the three countries studied. These results are discussed in the context of cultural variations, pressures for globalization and associated HRM practices in these contexts. Future directions, limitations and managerial implications are discussed.