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. K E Y W O R D Shost country, human resource management in multinational enterprises, institutional theory, Middle East and North Africa, national culture, performance appraisal | INTRODUCTIONPerformance appraisal involves interactions between managers and employees, which include multiple touchpoints through the setting of performance criteria, the use of different sources to evaluate performance, and the giving and receiving of feedback (Peretz & Fried, 2012). As such, the relationship between the two parties involved can influence the process' outcomes (Pichler, 2012;Ratkovi c & Orli c, 2015). As performance appraisal is known to be highly sensitive to institutional and cultural differences (Myloni, Harzing, & Mirza, 2004), the manager-employee relationship is further complicated when the fundamental cultural values of the individuals vary (Varma, Budhwar, & Singh, 2015). Multinational enterprises (MNEs) largely operate with performance appraisal practices designed initially by members of one societal culture (e.g., at corporate headquarters) to manage employees in that same culture (Schneider, 1988), but these practices are then rolled out across other cultures. A better understanding of how socio-cultural values affect the implementation of performance appraisal practices in MNEs when operating across diverse contexts can thus contribute both to improved human resource management (HRM) practice in MNEs and a theoretical extension of the HRM practice internalization literature. Performance appraisal is arguably the most national culturebound HRM practice (Namazie & Venegas, 2016), acting as a tool to ensure consistency in information between MNE headquarters and subsidiaries (Schlegel & Britzelmaier, 2011), to sustain control (Claus,
PurposeThis study investigates whether the increased attention given to coaching as a training technique is affecting performance, while taking into consideration the mediating effect of organisational citizenship behaviour (OCB).Design/methodology/approachData is collected from Lebanese employees in the field, using a quantitative method and a confirmatory survey.FindingsThe study suggests that the creation of a supportive organisational behaviour in the organisation does provide a higher benefit from coaching.Research limitations/implicationsThe outcome of the study could have significant implications on the HR departments' managerial decision-making on the process of implementing novel tools and training techniques in services facilities.Practical implicationsThis study helps HR managers to assess the desirability of investing in coaching and orient the planning of their firms' HR strategy.Originality/valueThis research is based on a large sample collection from different business sectors in Lebanon. The quantitative survey results highlight a number of correlations that affect employees' performance. It further moves the responsibility from coaching as a tool to being part of a complete program of behavioural management and change.
Purpose The transfer of organizational practices or management instruments in the multinational firm often requires adaptations to the local context of subsidiaries and is, as such, revealing cultural and institutional particularities. Among the multinational firm’s management instruments, the codes of conduct are closely linked to the values and standards of conduct of the parent company. Being instruments of North American origin, codes of conduct were, in the last 20 years, gradually institutionalized first in North American multinational companies and then more frequently in European multinational companies. Several studies showed the difficulties of implementing these instruments in countries as diverse as France, Germany, Israel and China and stressed the importance of coherence between values, local organizational practices and acceptability of codes by employees of the subsidiaries. The purpose of this paper is to study the specificity of the Lebanese context from a new perspective by showing whether codes of conduct were adapted and by explaining the reasons of these adaptations. This research also highlights the differences between American and European multinational companies regarding the transfer of their codes of conduct. Design/methodology/approach The study used a multiple case study approach. Interviews were conducted in ten Lebanese subsidiaries of multinational companies, four of North American origin and six of European origin. Findings The study showed adaptations done to transferred codes of conduct in Lebanese subsidiaries. The study also reveals differences between American and European MNCs. Originality/value The study sheds light on host-country factors explaining the adaptation of codes of conducts transferred to Lebanese subsidiaries.
PurposeGiven the complexity of a post-conflict environment, the restaurant sector needs to be analyzed not just from the economic perspective. This paper aims to identify the diverse macroenvironmental and managerial factors underlying restaurant failures in Lebanon. The authors hope that this effort may help increasing restaurant success rates in other post-conflict settings.Design/methodology/approachThe aim of this paper is to explain how macroenvironmental pressures influence the restaurant business and which managerial factors are most critical in a post-conflict context. The authors adopted a qualitative method by conducting face-to-face, semi-structured interviews.FindingsThe findings show that restaurant failures in a competitive and uncertain post-conflict environment were caused mainly by a snowball of internal organizational factors related to bad management, poor human resource management policies, inefficiency and fraud. Internal organizational factors can all be associated with human mistakes and bad decisions, including excessive initial investment, expensive decoration, inability to manage monthly expenses, bad communication and market research.Originality/valueThis study contributes to the literature regarding restaurant failures in post-conflict regions and presents results that are expected to help managers in family- and non-family-owned businesses to enhance their decision-making process.
Organizations implement high-commitment human resource management (HRM) systems to increase work engagement as they provide employees with a sense of being looked after in the workplace. This relationship is rarely considered alongside the responsibility of management to look after employees beyond the workplace too in return for hard work and loyalty, as represented by paternalistic values. This study, therefore, investigates the effect of high-commitment HRM systems on work engagement, mediated by employees perceiving the HRM system to be distinctive, consistent, and consensual (i.e., a strong system), and moderated by employee belief in paternalistic values. Based on an empirical study of 384 employees, high-commitment HRM is found to increase work engagement as hypothesized. However, HRM system strength does not mediate this relationship as expected and instead is associated with lower levels of work engagement. When testing for the moderating effect of employee belief in paternalistic values, when this is low, high HRM system strength leads to lower levels of work engagement. These findings imply that strong HRM systems may be perceived as intrusive, as paternalism may be, for employees with low belief in paternalistic values.
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