Performance appraisal practices in Bangladesh: the role of culture

Abstract

Although existing human resource management literature has investigated the link between performance appraisal and culture, research based on smaller economies in Asia is limited. With a multiple case study approach, this paper analysed the performance appraisal process of five organisations in the private sectors of Bangladesh. It also examined how cultural dimensions, namely, assertiveness, in-group collectivism, power distance, uncertainty avoidance and future orientation, influence the appraisal practices. The findings show that pioneer domestic firms are in the initial stage of transition to performance management from performance appraisal, while weaknesses, such as single-source rating, a lack of performance feedback, and an absence of documentation for performance monitoring, exist in general. In addition, recent changes in employee assessment systems reflect shifts in the national culture. This study contributes to the literature that combines performance appraisal and culture, especially in the context of an emerging economy. It also offers managerial and policy implications.