Performance management universals: Think globally and act locally

Performance management systems are pervasive worldwide. Herein, we describe five performance management universals principles that lead to effective performance management regardless of cultural contexts: (1) congruence between job descriptions and organizational goals; (2) measurement of performance based on behaviors and results at the individual and collective levels; (3) training regarding performance management; (4) delivering performance feedback using a strengths-based approach; and (5) allocating rewards that are meaningful. We also describe five cultural dimensions that are particularly relevant to performance management: (1) individualism-collectivism; (2) power distance; (3) uncertainty avoidance; (4) masculinity-femininity; and (5) fatalism. Considering universals and cultural dimensions simultaneously allows us to think globally but act locally in terms of how to implement performance management systems that promote organizational effectiveness, as well as ethical behaviors and employee well-being. (C) 2012 Kelley School of Business, Indiana University. All rights reserved.