Are “standardized performance appraisal practices” really preferred? A case study in China

Purpose – In spite of the increasing awareness that standardized performance appraisal practices must fit in varied local contexts, limited research and mixed findings still cloud our understanding about how those appraisal practices are perceived and implemented in the subsidiaries of multinational corporations (MNCs). The purpose of this paper is to examine this issue, aiming to clarify the contextual and cultural boundary of standardized appraisal practices in China. Design/methodology/approach – A case study was conducted in an MNC subsidiary located in Southern China. Organizational performance appraisal documents were collected, and in‐depth interviews were conducted. Findings – It has been found that the implementation of a Western standardized appraisal system was far from attaining an optimistic effect in a Chinese business setting: employees were nowhere near being able to be involved in setting objectives and developmental plans; the appraisal system was not perceived be fair enough due to the influence of a seniority‐based rewards system; and managers hesitated to take ownership of performance reviews. Practical implications – When designing and delivering standardized appraisal system to subsidiaries, foreign investors and global human resource practitioners are expected to be more context focused. Distinct cultural values and norms in local contexts should be carefully taken into consideration. Originality/value – The paper fills in the literature gap by providing an in‐depth study of employees' perceptions towards the actual implementation of a standardized performance appraisal system in an MNC subsidiary in China.