Comparative Performance Appraisal Practices and Management Values Among Foreign and Domestic Rms in India

Int. J.
of Human Resource Management 11:1 February 2000 60-89
Comparative performance appraisal practices and management values among foreign and domestic rms in India
Sita C. Amba-Rao, Joseph A. Petrick, Jatinder N.D. Gupta and Thomas J. Von der Embse
Abstract Countering culture-based analyses indicating homogeneity in Indian management practices, this empirical study compares performance appraisal practices and management values in India by rm ownership. Differences in Indian private investor corporations, public sector enterprises, foreign/joint ventures and private family businesses are examined to assist managers to adapt selectively to rms in the changing Indian economy. Theoretical and managerial implications, as well as future directions for research are discussed. Keywords Comparative practices; performance appraisal; empowerment and ethical values; rm types; emerging countries; India.
Introduction As a highly populous democracy and an important emerging economy, India is seeking to modernize and transform its institutions without sacri cing its commitment to economic progress, socio-cultural heterogeneity and traditional social hierarchic values (Agarwal and Misra, 1993; Saha, 1993). A study of management practices and values adopted by rms in India will provide an enriched understanding of the following needs: the need for balancing market competition, diversity and traditional social values in India, the need for selective expatriate manager adaptations to Indian rms, and the need for retention policies to stem the exodus of indigenous talent from Indian rms (MacClure, 1995; Marquardt and Engel, 1993; Schuler et al., 1993). With the new privatization and globalization policies of the Indian government, Indias work organizations have to undergo transformations in their human resource management (HRM) systems with supporting management values. A core of empirical studies on HRM in India relevant to the new environment has been conducted using a variety of methods and theories (Amba-Rao, 1994a and 1994b; Budhwar and Sparrow, 1997; Lawler et al., 1995; Sahay and Walsham, 1997; Singh, 1990; Sinha, 1990; Sodhi, 1994;
Sita C. Amba-Rao, Division of Business and Economics, Indiana University, Kokomo, IN 46904, USA (tel: +1 765 455 9318; fax: +1 765 455 9348; e-mail: samba@iuk.edu). Joseph A Petrick, Department of Management, College of Business and Administration, Wright State University, Dayton, OH 45435, USA (tel: +1 937 775 2428; fax: +1 937 775 3545; e-mail: joseph.petrick@wright.edu). Jatinder N.D. Gupta, Department of Management, School of Business, Ball State University, Muncie, IN 47306, USA (tel: +1 317 285 5301; fax: +1 317 285 8024; e-mail: jgupta@bsu.edu). Thomas J. Von der Embse, Division of Business and Economics, Indiana University, Kokomo, IN 46904, USA (tel: +1 765 455 9446; fax: +1 765 455 9348; e-mail: tvondere@iuk.edu).
The International Journal of Human Resource Management ISSN 0958-5192 print/ISSN 1466-4399 online 2000 Taylor & Francis Ltd
Amba-Rao et al.: Performance appraisal practices in India
61
Sparrow and Budhwar, 1997; Tayeb, 1988; Virmani and Guptan, 1991). These past studies are treated in the survey of literature, but more studies are needed to focus on evolving patterns of speci c HRM practices, such as performance appraisal (PA), and their supporting management values. The current study is based on an on-site survey that compares performance appraisal (PA) practices and management values in India by rm ownership. The need to address Indian PA practices and speci c managerial values arises for four reasons. First, highperformance work systems have been shown to be crucial to sustaining global competitiveness and they rely upon objective, adequate PA processes (Marquardt and Engel, 1993; Cardy and Dobbins, 1994; Smither, 1998). However, in a recent comparative analysis of global HRM practices, Sparrow and Budhwar (1997) highlight employee PA as a relatively underemphasized factor in Indian managerial practices. Current Indian HRM practices that devalue or de-prioritize PA, therefore, jeopardize the external strategic competitiveness of Indian rms. Second, the productivity of work cultures in Indian organizations is jeopardized by employee PA practices that appear to be biased, ad hoc and unintegrated into a globally competitive HRM system (Mendonca and Kanungo, 1990; Shenkar, 1995; Virmani and Guptan, 1991). The lack of Indian PA practices formally integrated into a quality performance-based HRM system allows Indian managers to over-control and undercontrol employees (Lindsay and Petrick, 1997). This abuse of PA authority adversely impacts Indian employees who have already been described as low on ef ciency emphasis, that is, low on initiative for process improvement, low on risk-taking propensity to increase productivity and low on self-monitoring inclinations (Sparrow and Budhwar, 1997). When Indian managerial appraisals do not distinguish between employee contributions and the limiting social, technical and environmental constraints on performance over which the individual has no control employees regard PA judgements as unfair and withhold productive efforts (Mendonca and Kanungo, 1990; Virmani and Guptan, 1991; Sinha, 1990; Sparrow and Budhwar, 1997). Furthermore, when Indian managers rely exclusively on subjective biases in PA and do not objectively evaluate and develop employees in order to reward and improve performance, or remove constraints to performance, the integrated improvement of the HR quality system is threatened (Kanungo and Misra, 1985). Consequently, individual work satisfaction and aggregate productivity in organizations, especially in the public sector, declines. Third, Indian managers have been criticized for not involving employees in the PA process (Virmani and Guptan, 1991; Mendonca and Kanungo, 1990). The presence of mutual in uence between Indian managers and their employees with regard to PA leads to realistic and appropriate standards of performance, agreement about evaluation and development processes, and enhanced acceptance and commitment to performance improvements. The prevailing absence of this mutual in uence in India, especially managerial receptiveness to employee feedback, has provoked scepticism and resistance to the implementation of formal PA systems. Fourth, managerial values that are national culture-based, organizational culturebased and rm ownership-based can enhance or inhibit individual and organizational performance and satisfaction. Some speci c Indian managerial values relating to power, decision making, ethical priorities and ethical work climate pose HR challenges. Indian managerial values that centralize rather than decentralize power, reduce rather than share decision-making information, neglect the ethical infrastructure and moral climate of workplaces, and avoid improvement of extra-organizational support for principled
62
The International Journal of Human Resource Management
practices, can adversely affect the PA process and, in turn, individual and organizational performance and satisfaction (Ferrell et al., 1998; Sekhar, 1997). The above transformations in PA practices and speci c managerial values are even more signi cant because of the new liberalized business system, which compels rms to make structural adjustments involving major movements of their workforce from reduction to expansion, as well as to adopt entrepreneurial activities. This paper, therefore, is organized as follows: (1) the Indian socio-economic and cultural context; (2) literature survey; (3) hypotheses; (4) methodology; (5) ndings; (6) discussion; (7) implications; and (8) limitations and future directions. Indian socio-economic and cultural context The socio-economic and cultural forces shape PA and other HRM practices and their context of management values as much as, if not more than, global competition. To understand the diversity of rm practices in India, therefore, it is necessary to appreciate the broader socio-economic and cultural environments that shape them, while recognizing the growing diversity of subcultural in uences. The Indian socio-economic context Historically, three broad socio-economic forces shaped work organizations in India: the traditional caste system, British colonization and post-independence socialism (Sinha, 1990; Virmani and Guptan, 1991). The caste system originally was comprised of interdependent occupational groups, which later evolved into a strati ed, hierarchical socio-economic class system. The British colonization resulted in administrative bureaucratization and polarization of manager and non-manager groups. Post-independence, development goals with socialistic ideology strongly in uenced the business community. These forces, in turn, in uenced work values and behaviour. While it is dif cult to characterize a common Indian cultural pattern because of its heterogeneous demographics, some generic attributes were identi ed (Sharma, 1984; Sinha, 1990; Tayeb, 1988). Predominant among these were submissiveness, fatalism, clan orientation with ingroupout-group distinctions and power consciousness. In addition, the management cultural pro le included willingness to delegate but not accept authority, possessiveness towards subordinates, fear of independent decision making and resistance to change (Kakar, 1971; Sharma, 1984). As professional managers entered the larger companies in the late 1960s, they tended to be from elitist upper castes and classes exerting their personal power, despite their Western education and experience in many cases. Decisions were ad hoc, varying with the personalities of individuals at the top, rather than being impersonally institutionalized into policies and practices to be uniformly followed. In general, cultural norms and behaviours associated with hierarchical authority, paternalism, caste and class distinctions pervaded organizational life (Virmani and Guptan, 1991; Sinha, 1990). Traditional authority and relationships based on power, social position and personal and group orientation were in con ict with the dictates of a globally competitive economy where relationships are based on competence, impersonal task roles and organizational commitment (Parikh and Garg, 1990; Sinha, 1990; Thomas and Philip, 1994; Venkata Ratnam, 1995). Such overall collectivism, however, weakened over the years due to various in uences: urbanization, changes in the economy, government af rmative action programmes in education and employment, competitive pressures which impel organizations to rede ne their management values and HRM practices, and changes in
63
the demographics whereby the young, educated and trained employees including women emerged at all levels with new expectations, particularly among professional and managerial groups (Dunung, 1995; Financial Times, 1994; Venkata Ratnam, 1995). In compounding the debilitating elements in Indian socio-cultural dynamics, the economic system in the post-independence period also had dysfunctional consequences. From 1947 until the 1980s, in striving to achieve a socialistic society with self-reliance, the government adopted centralized planning, highly regulated and restrictive of private domestic and foreign investment. State-owned public sector rms dominated the organized or the modern sector jobs, where two-thirds of the workforce was employed (Sodhi, 1994). The dual national goals of economic growth and social justice/worker welfare were to guide business operations (Rao, 1964). However, welfare expectations began to prevail without reciprocal efforts on the part of the workers. Public (government) and private sector enterprises responded to this welfare trend in different ways. Public sector enterprises, constrained by government and union pressures, were compelled to accept this entitlement approach, resulting in workforce in exibility and lower productivity. In contrast to this soft work culture, the self-sustaining private sector enterprises created a climate of mutual dependence of employee need satisfaction and organizational goal accomplishment, resulting in a synergistic work culture (Sinha, 1990). Thus Sinha (1990) observed that centrality of work and life coexisted and the same set of social values which interfere with work now facilitate work behavior (1990: 47). Work-oriented values, such as job achievement, emerged in the private sector despite the socialistic ideology. The inef ciencies of centralized planning also created shortages in all sectors and led to abuse of power and questionable practices by various of cials (Mathias, 1994; Tayeb, 1995). This situation and a political-bureaucratic-industrial nexus led to political instability and economic stagnation in recent years. By 1991 Indias foreign exchange reserves declined to a minimal level, output was low, and in ation and government debt were high (Budhwar and Sparrow, 1997). These and related economic forces stimulated a government policy of liberalization which resulted in major deregulation and privatization efforts (Ahluwalia, 1994; Das, 1996). Accordingly, in its ve-year economic plans, the government emphasized employment, productivity, as well as human resource development (HRD) for individual achievement (Manorama, 1988: 516). Both public and private sector rms were expected to have an active role in economic development (Manorama, 1993: 5012). Joint ventures and foreign direct investment with full ownership were encouraged with few limitations. Yet, many problems remain in implementing the new economic policy. One of them is the lack of an exit policy regarding work-force reductions, in the absence of alternative income security measures. Employers are meeting the challenge using economic incentives to address the need. Also, the once radical and sceptical unions are co-operating with management and assisting employees in the transition, while state governments encourage these practices in competing for investment capital (Das, 1996; Wall Street Journal, 1997). Still, problems and anxiety concerning job security abound, particularly with the huge public sector employment, where a proposed National Renewal Fund to compensate and retrain laid-off employees is deemed inadequate (Sodhi, 1994). Further, the pace of change has not prevented the exodus of skilled professionals. For example, the government has been reducing funding to institutions of higher learning since 1993, and many graduates are disappointed with the economic and technological opportunities that a hierarchically paternalistic and collectivist-oriented India can offer.
64
A large number of graduates from reputable educational institutions have left the country for better opportunities abroad (Kripalani et al., 1998). Many experts (Ahluwalia, 1994; Das, 1996; Mathias, 1994; Sodhi, 1994; Thyagi, 1994; Krishna and Monappa, 1994) have discussed the implications of the new economic environment for organization and management structure, strategy, culture and values. They have suggested, for example, the need for quality improvement, cost ef ciency, corporate ethical practices, employee development, motivation and team functioning, strategic integration of the HRM function and greater involvement of line management in HRM. These, in turn, require a change in managerial skills, attitudes, values and ethics, assisted by HRMs pivotal role in coping with the new challenges. The Indian cultural context Two basic models of national culture with regard to Indian work organizations are relevant: the modi ed Hofstede model and the Kluckhohn and Strodtbeck model. The ve-dimensional model of Hofstede (1980) and Hofstede and Bond (1988) characterizes India in the following manner: (1) low uncertainty avoidance at work commensurate with Hindu belief in karma, which promotes a sense of fatalistic acceptance of current uncertainty rather than proactive efforts to reduce it; (2) high power distance re ective of traditional Indian social respect for paternalistic, hierarchic authority by age, caste, family status and gender; (3) medium collectivist orientation in uenced by extended family, caste, religious and linguistic af liations, with the resultant in-group and out-group relationship orientations; (4) medium masculinity re ected in moderate levels of assertiveness, interest in acquiring money and things, relative to af liation and social relationships; and (5) strong long-term time orientation as opposed to short-term horizons consistent with cultural respect for past traditions and widespread belief in supernatural forces controlling transgenerational, future outcomes of events (Hofstede, 1997; Ronen and Shenkar, 1985). Notwithstanding the limitations of this research, the cultural values described by Hofstede re ect an historical continuity and modern resilience in the Indian socio-cultural system (Gannon, 1994; Virmani and Guptan, 1991). On the basis of the Kluckhohn/Strodtbeck cultural model (1961), Trompenaars (1993) and Gopalan and Rivera (1997) interpreted Indias work culture under ve categories in the following manner: (1) in the human nature orientation, the belief that humans are evil, unchangeable and shaped by past life activities resulted in the likelihood of a sense of fatalism at work; (2) in the mannature orientation, a belief in external forces controlling life events led to an external locus of control and lower levels of ambition; (3) in the time orientation, emphasis on family heritage/caste and adherence to traditional practices were re ected at work in a lack of urgency and a preference for tried-and-true, conventional procedures; (4) in the activity orientation, enculturated to admire ascetic contemplators over practical doers, Indians are motivated by duty (dharma) to their life roles and family welfare rather than to the intrinsic value of occupational accomplishment, so an ambivalent attitude towards material success and a sense of socio-moral obligation, rather than to organizational commitment persists; and (5) in the relational orientation, consistent with collectivism, hierarchy, paternalism and ascendance of the in-group, at work there is a likely acceptance of status inequality, factionalism, supervisorysubordinate reciprocity and dependence. While the above models provide a foundational understanding of Indian culture and its manifestations in the workplace, other empirical studies in a variety of work
65
situations found that the Hofstede dimensions were either unstable or had weak or selective links (Singh, 1990; Sinha, 1990; Sparrow and Budhwar, 1997). This problem of generalizing the pattern of the heterogeneous culture of India, with a diversity of subcultures based on various demographic characteristics such as education, occupation and membership in multiple social systems, besides contingency factors such as growth stage and organizational types, was addressed in these and other recent studies (Budhwar and Sparrow, 1997; Gopinath, 1998; Sahay and Walsham, 1997). Further, the impact of the transforming economic environment of the 1990s was discussed, along with the changing focus of HRM and its decision makers (Sparrow and Budhwar, 1997; Gopinath, 1998). The practical effects, including reinterpretation of Hindu scriptures and other traditional sources, were analysed as well (Chakraborty, 1993; Gopinath, 1998). Thus, new insights into the cultural context that shapes Indian HRM practices and management values emerged. Literature survey The literature survey is divided into two parts: comparative HRM and PA practices and comparative management values. Comparative HRM and PA practices Discussion in this section is focused on the following comparative effects on HRM: (1) national culture; (2) institutional and demographic factors; and (3) rm group impacts. In turn, comparative PA practices are treated. With regard to national culture, recent studies of Indian HRM practices have emphasized indigenous national culture theories of HRM to meet the demands of the new economic environment. Notable among these studies are those by Jaeger, Kanungo and associates. Jaeger and Kanungo (1990) co-ordinated studies involving unique adaptations of Western HRM practices and thereby developed theories suitable to indigenous management in developing countries. In their introduction (p.8), the authors presented a framework of socio-cultural dimensions, and managerial beliefs about human nature and work, and showed these to be diametrically opposite in developed and developing countries. Others have identi ed national cultural elements that are favourable and unfavourable to organizational effectiveness, and demonstrated how management practices can be designed to incorporate the positive cultural elements and inhibit the negative elements (Jaeger, 1990). For example, Mendonca and Kanungo (1990) presented a suitable performance management process and Sinha (1990) developed a nurturant-task style of leadership to enhance national cultural impacts. With regard to institutional and demographic factors, Sparrow and Budhwar (1997) demonstrated that national culture factors alone could not explain Indian HRM practices, but required supplemental institutional and demographic elements. They examined several HRM factors and their relationship to Hofstedes (1980) four cultural dimensions, as part of a thirteen-country comparative study. They found almost no signi cant correlation between the two in the case of India. As a comparison, they found greater similarities between the HRM factors of Japan and India than those of Britain and India. On a closer analysis, they found low ratings on three of four important HRM factors, speci cally, empowerment, ef ciency and human resource development (HRD) and a high rating on employee welfare. They attributed these ndings not only to differences in the four cultural dimensions, but also to legislation, unions and economic factors. Asked to predict for the year 2000, responses of the HRM professionals indicated a signi cant shift in HRM focus from the current softer HRM
66
pro le to one of hard HRD resulting from decreased power distance and risk avoidance. These differences were found between modernizing and traditional groups of rms. The authors suggest that these changes may be HRMs responses to several institutional and demographic factors: (1) liberalization demands; (2) the increase in HRM professionalism; and (3) the adoption of management practices from the East and the West (Chatterjee, 1992; Krishna and Monappa, 1994; Srinivasan, 1990). The authors conclude that there is, thus, an interaction of the institutional and demographic factors, along with external national cultural in uences, on Indian HRM practices. Budhwar and Sparrow (1997) further examined the institutional impacts through the role of HR managers in corporate strategy and line managers responsibility in HRM. The authors identi ed these processes as integration and devolvement (delegation). First, they found low levels of both integration and devolvement, and that speci c HRM factors, such as human resource allocation and HRM status, rather than organizational contingency factors such as size, determine the level of integration and devolvement. However, there is greater devolvement of responsibility from HRM to line managers, but much less integration of HRM into business planning at the strategic level. More signi cantly, the practices chosen by the two levels were contradictory, for example, use of different recruitment strategies for new employees, which re ected con icting goals and created problems in meeting liberalization demands. Similarly, other researchers found discrepancies in strategic and operational levels in the increasingly recognized area of HRM in India (Rao and Abraham, 1986b; Rao et al., 1994; Silveria, 1988). Therefore, there is a need for an effective institutional strategy linkage role for Indian HRM to contribute to global competitiveness. Finally, with regard to supplemental rm group impacts, Tayeb (1988) compared management practices among private manufacturing rms in England and in India. Her sample of rms was small (seven each), although tightly matched, and all from a single state in western India. Tayebs conclusion was that both organizational contingency factors and national culture factors affected Indian HRM practices. In addition, Sparrow and Budhwar (1997) documented the differences between Indian rms and those rms from Britain and the US on dominant HRM factors, despite Indias past af liation with both countries systems. They explained that these differences were due not only to the nature of Indian rms, but also to institutional and cultural factors. These other factors included the following: institutional (unions), economic (employment conditions), business system under liberalization, HRM competencies and professional status, and external in uences (US, British and Japanese) on dominant HRM practices, such as empowerment and HRD. While the above two studies compared rms across countries, others examined indigenous and foreign rms within India, in the same culture context. Lawler et al. (1995) conducted a comparative study of HRM practices within and between India and Thailand to examine similarities and differences. On the one hand, they found statistically signi cant differences in HRM practices between the overall samples of the two countries, but only to a limited extent. On the other hand, no such differences were found, in effect, between foreign and local rms within each country, and the authors suggest MNC adaptations of local practices within each country as an explanation. In another empirical analysis of MNCs, public sector and private rms in India, Virmani and Guptan (1991) concluded that all rms used similar management practices, and differed only in degrees. Similar rm ndings were reported by Amba-Rao (1994b). A key difference that the former authors observed, however, was that the practices of the Indian rms were more personalized and ad hoc, subject to the whims of top
67
management, while the practices of the Western rms were more likely to be impersonally institutionalized and stable. In addition to the above analyses of comparative HRM activities, a few studies compared PA concerns speci cally (Mendonca and Kanungo, 1990; Parikh and Garg, 1990; Virmani and Guptan, 1991). Parikh and Garg (1990) explain the effect on managerial responsibility for PA as an example of value dilemmas in Indian managerial roles. Indian managers often confound their professional role in an objective, rational, organizational system with their social hierarchical role with expectations of conformity and paternalism, resulting in a super cial commitment to the PA process. This ambivalence, in turn, adversely affects Indian managerial attitudes towards their professional responsibility to objective PA and subordinate self-worth. Virmani and Guptan (1991) point out, further, the resulting con ict of interest in India between developmental and promotional (evaluation) goals of the PA process. By exposure to modern management philosophies and PA practices over the years, however, Indian managers have come to consider merit and equity as important dimensions of performance management policies (Mendonca and Kanungo, 1990; Amba-Rao, 1994b). Yet, social in uences in decision making, with priority ascribed to past practices, as well as practical delivery system constraints, deter initiatives on progressive PA changes (Amba-Rao, 1994b; Kiggundu, 1989; Nigam, 1984). Nevertheless, a competitive environment and changing employee expectations require responsiveness by managers. Addressing this need, Mendonca and Kanungo (1990) presented a detailed analysis of the PA process and suggested interventions to make the process culturally t, that is, acceptable to both superiors and subordinates. Speci cally, the authors review each step of the PA process (for example, identifying tasks and setting standards), and state the means to implement it by managers, within the Indian cultural framework (for example, the manager takes the initiative in establishing and clarifying the objectives to be ful lled by the employee as a personal duty rather than as a contractual obligation). Further, the authors suggest using the nurturant-task leadership style (Sinha, 1990) and conclude with the relevant training and development needed for the managers to successfully implement the appropriate PA interventions. Underscoring the Indian willingness to prepare for the PA challenge, Budhwar and Sparrow found, in their survey, that 70 per cent of Indian organizations trained line managers in PA, the most frequent of all HRM activities reported for such action (1997: 490). In conclusion, investigating how comparative Indian HRM and PA practices are in uenced by cultural factors, by institutional and demographic factors, and by rm ownership factors aids Indian managers in more effectively meeting the new global economic challenges. In this endeavour to change HRM and PA practices and to foster competitive organizational learning, the role of the HRM function in India also needs examining. Comparative management values Empirical, comparative studies of Indian management values are rare and differentially emphasize organizational management and professional association values in contrast to national cultural values (Amba-Rao, 1993; England, 1975; Narayana and Kantner, 1992; Negandhi and Prasad, 1975; Sahay and Walsham, 1997; Singh, 1990). The investigations of Singh (1990) and Sahay and Walsham (1997) are of particular relevance. Singh demonstrated, based on a survey of manufacturing rms in various regions of India, how Indian organizational managerial values could differ from
68
national Indian cultural values. He analysed Indian managerial values and attitudes in terms of Hofstedes (1980) four cultural dimensions, arriving at the following conclusions: (1) as a group, Indian managers are low on all four dimensions, that is, they tend to underplay use of power (that is, managers prefer and use a consultative style and subordinates are not hesitant to disagree with supervisors), feel comfortable in dealing with uncertainties at work and life, emphasize loyalty and belongingness, are caring and do not consider managerial assertiveness to be important; (2) there are distinct differences by rm groups: Indian public sector rms are more participative than private sector rms, while managers in international private rms are participative, consultative, accessible, consider hierarchy a mere convenience, and value initiative; and (3) Indian managers attitudes varied selectively with age, education, occupation (function) and economic sector. For example, general managers differed from functional department heads in their advocacy of centralized controls and protection of privileges. On a different level, Sahay and Walsham (1997) developed a case study of technical/ managerial experts and their working relationships at strategic (central government department) and operational (district of ce) levels in a scienti c project in India. The authors analyse the in uence of relevant national, societal and intellectual/professional systems and structures in particular, the in uence of the intellectual/professional system on the values, attitudes and behaviours of these key actors (the technical experts). In this process, these professionals actions were shown to exert a reciprocal in uence to reinforce or change the social structures and organizational practices. Thus, these experts act as a catalytic force as professional change agents, to remove barriers to achieving institutional objectives. The study of international management values is a rich eld of inquiry (De George, 1993; Donaldson, 1989). For example, egalitarian trends in US management values emphasize accountability to internal and external stakeholders by introducing democratic (non-hierarchic) processes and organizational ethics policies to the former group (Green, 1994; Petrick and Quinn, 1997; Petrick and Pullins, 1992) and proactively demonstrating socially responsible involvement to the latter group (Carroll, 1998; Petrick et al., 1993; Petrick and Scherer, 1993). Many of the errors in international business are due to the mismanagement of con icting social, cultural and economic values (Ricks, 1993). The traditional Indian hierarchic values that emphasize power distance run counter to progressive and egalitarian US management trends, and the extent of resistance to or acceptance of such Western management values is one indication of the transformational pressures that exist in Indian rms today. Some authors observe that, since India is a hierarchical and caste-based society with high power distance, with the resultant supervisorsubordinate relationship of dependence, democratically based HRM practices may not be accepted or encouraged (Gopalan and Rivera, 1997; Sparrow and Budhwar, 1997). For example, Sparrow and Budhwar (1997) found that Indian HRM practices were low on quality circles, empowerment and other elements that require individual and team involvement and development. Other researchers, however, found that managers and non-managerial employees prefer or encourage participative leadership and involvement in decision making (Kanungo and Misra, 1988; Negandhi, 1975; Singh, 1990). Even where hierarchical relationships exist, employees expect and respond to consultative leadership with low controls, and to task-oriented nurturing leadership, with better performance and satisfaction (Kakar, 1971; Sinha, 1990; Virmani and Guptan, 1991). Nevertheless, there is a need to examine the extent to which it occurs in different types of rms in India to improve future managerial performance.
69
Furthermore, HRM practices involve ethical issues, for example, justice and equity in the assessment, development and rewarding of human resources. Yet, research on ethical issues in relation to HRM practices in India is lacking (Jain et al., 1998; Rosen and Juris, 1995). Jain et al. (1998) and Rosen and Juris (1995) emphasize the imperative of ethical considerations in HRM. Endorsing this need, business leaders in India shared concerns about business ethical practices in a national conference (Mathias, 1994). In addition, Jain et al. question the adequacy of the focus on organizational effectiveness, with the exclusion or neglect of ethical practices in HRM research, in developing countries. For example, Venkata Ratnam (1998) analysed business practices of MNCs in India and made several observations. Regarding employment practices, he found that the MNCs are bene cial to the educated and trained workforce, but have adverse effects on the lower levels of the Indian economy and society. He concluded that MNCs are capital intensive and have fewer jobs, with highly competitive pay and better working conditions, than indigenous rms. On the other hand, government PS rms provide more generous services and bene ts to workers and their communities than other domestic and foreign rms. Further, some managers in India regard US management practices as too aggressively market-oriented, in exible, impersonal and lacking social and humanistic concerns, while the European system is more adaptable and responsive (Amba-Rao, 1994b). Referring to the British MNCs involved in the Amba-Rao study cited, Venkata Ratnam (1998) comments that, because of long association under colonialism, the British have more empathy for the Indian ethos. Thus, in the case of the PA process, the analysis will inherently include the ethical dimension concerning procedural and distributive justice. Hypotheses The impact of ownership on HRM system components as well as the impact of managerial values, therefore, stimulated the current empirical study. The authors decided to focus upon PA, which is a cornerstone of several other HRM activities. Employee PA in India has been a dif cult issue (Mendonca and Kanungo, 1990), yet it is fundamental to other HRM actions that involve developmental (for example, coaching and training) and evaluative (for example, pay and promotion) aspects. The current analysis includes the process (feedback to the employee and potential adjustment of the assessment) and the purpose (developmental versus evaluative) of PA. Managerial values are an important context for effective HRM practices and, therefore, to PA. This study speci cally focuses on four managerial values: (1) values relating to approaches to power; (2) values in decision making; (3) values and organizational ethics priorities; and (4) values relating to ethical work climate. These managerial values re ect an organizations orientation towards its employees and their environment (Amba-Rao, 1993), and are of signi cance in adapting to a rapidly transforming economy in the Indian cultural milieu. The unit of analysis is the rm in terms of its ownership structure: multi-national corporation/joint venture (MNC/JV); Indian private family business (PF); Indian public sector enterprise (PS); and Indian private investor corporations (PI). Since Indian managers, like all other managers, are socialized by their own national culture, that socialization impacts on their human resource practices and managerial work values (Hofstede, 1997; Saha, 1992, 1993). The authors focus their hypotheses upon the above four categories of rms in order to identify the location of differences by virtue of economic ownership, but within the
70
same cultural environment. The practices of each sub-set of Indian rms are viewed with reference to those of the MNC/JVs. Hypotheses 1 and 2: performance appraisal (PA) Most rms in India recognize and conduct some form of performance review for supervisors and managers, but its process and purpose may differ among the rms (Mendonca and Kanungo, 1990; Virmani and Guptan, 1991). Use of PA for both evaluative and developmental purposes is relevant for effective allocation of resources and for employee motivation and reward. These actions are consistent with other HRM components as part of an integrated, strategic HRM system (Osterman, 1992). Further, an equitable system calls for employee feedback and adjustment of the PA procedure and outcome as warranted. These two basic elements of PA are addressed in this study. Despite common cultural effects on Indian rms, the evidence of PA practices and the nature of the rms suggest a rationale for differences among the rms approaches. With formal policies and accountability to government regarding equal opportunity requirements, the PS rms are expected to conduct and review their PA results with employees, especially at the white-collar and supervisory levels. However, the PA results are likely to be used for developmental purposes rather than evaluative purposes, the latter being based more on tenure and seniority, as in hierarchical organizations (Kerr and Slocum, 1987; Virmani and Guptan, 1991). The PF rms use informal appraisals with greater reliance for evaluative purpose (Virmani and Guptan, 1991), and are likely to discuss them, on a personal informal basis, with subordinates who are also members of the extended family or friends. As for PI rms, these large corporations increasingly use professionals in the HRM function and are driven by a domestic competitive market. Hence, they are likely to use PA as an information system for developmental and evaluative purposes (Schuler and Nair, 1996; Sodhi, 1994), although the supervisors may not necessarily share and discuss the results at length with the employees, keeping the results as con dential reports. (These postulations, however, do not necessarily preclude the social subjectivity of managers in PS or the PI rms.) Hence, hypotheses 1 and 2 follow. Hypothesis 1 (H1): Hypothesis 2 (H2): MNC/JVs are more likely to discuss performance appraisal results with their employees than PIs. MNC/JVs, PIs and PFs are more likely than PSs to use performance appraisal results for evaluative purposes.
Hypotheses 3 and 4: power and decision making Re ecting the nature of hierarchy, power distance and large size, all types of organizations may have multiple levels, except for the smaller PFs. Reasons for multiple levels include ensuring co-ordination and control and providing promotional opportunities. However, in general, Indian managers are characterized as favouring centralized decision making with tight controls (Kakar, 1971; Hickson and Pugh, 1995) with personalized leadership prevailing over institutional arrangements on power sharing (Virmani and Guptan, 1991). Yet, employees who experienced low control and had help from managers, attained more performance and satisfaction than those under authoritarian managers (Kakar, 1971). Nevertheless, it is also argued that elitist bureaucrats in the PS rms are more likely to hold onto power and authority (Sodhi,
71
1994; Virmani and Guptan, 1991), regardless of its adverse impact on the organization as a whole. While Singh (1990) found lower power distance among PS managers, it is possible that the formal organization role and the traditional social role incompatibilities cause greater value dilemmas among managers in centrally controlled government bureaucratic organizations (Parikh and Garg, 1990). Yet, as managers in public sector organizations, they are expected to share information. Therefore, the PS rms may allow a limited amount of employee input into decisions (Sinha, 1994). On the other hand, the large PI rms may have less concentration of power and incline towards downward delegation, particularly under the new competitive environment. For the PFs, while multiple levels are not an issue in view of their size, they may reinforce the social hierarchy culture and paternalism, and, based on the level of distrust of outsiders, information sharing and decision making may be very limited. Personal connections become more valued than task competence. Hence, even when they hire professional managers, decision making remains with senior family members discouraging empowered, entrepreneurial activity by the professional managers (Mendonca and Kanungo, 1990). Regarding HRMs role in integrating HRM with the corporate level and in delegating responsibility to line managers, Budhwar and Sparrow (1997) found that their respondents in India were low on both dimensions, but that delegation is increasing. They also found that, while these line managers were trained in HRM activities, including PA, they did not receive training in delegation, implying a lack of skills to participate effectively in HRM decision making. Once again, differences among type of rms by ownership requires analysis. Consequently, hypotheses 3 and 4 follow. Hypothesis 3 (H3): In PSs it is more likely than in MNC/JVs that managerial power of hierarchy is perceived to be maintained through multiple levels of bureaucracy. The organizational structure and management style in PFs do not permit sharing information and decision making to the extent that such sharing exists in MNC/JVs.
Hypothesis 4 (H4):
Hypotheses 5 and 6: ethical priorities and climate Besides considering the traditional Hindu societal norms, the ethical priorities of rms are explored using the pyramid of social responsibility model (Carroll, 1998; Petrick and Scherer, 1993; Petrick et al., 1993). Four ascending social responsibility values are included: economic, legal, ethical and philanthropic. These ethical priorities re ect business character, and contribute to the well-being of organizational membership and society, while fostering a positive environment for domestic and foreign investment. The reputational capital of an organization is an important intangible asset that contributes directly to sustainable competitive advantage and goes beyond mere legal compliance (Fombrum, 1996; Petrick et al., 1999). From the traditional Indian perspective, the normative concept of dharma, ful lling ones duty to others and to oneself by acting in conformity with an accepted set of moral guidelines, is given a high priority in social and economic transactions. Thus, it calls for business conduct that acknowledges and recognizes moral duties (Sekhar, 1997; Sethi and Steidlmeier, 1996). Some argue that, in the process, dharma dictates integration of economic and moral values in Indian business activities. The concept calls for ones obligation to the primary group as well as to societal welfare (Sinha, 1994). On the contrary, others argue that dharma applies only to the primary group
72
(kinship and caste), that is, limited to in-group loyalty (Gopalan and Rivera, 1997; Sethi and Steidlmeier, 1996). Hinduism also endorses universal dharma which entails regard for nature and all humans, transcending arbitrary boundaries of moral concern (Jain and Kussman, 1994), and empirical studies (Dhingra and Pathak, 1973; England, 1975) found Indian managers to have a more moralistic orientation than the pragmatic orientation of US managers. Recently, however, the business community in India has expressed concern about the erosion of ethical values in business over the last two decades, with personal values of managers compromised in business decisions (Mathias, 1994; Sekhar, 1997). This condition was attributed to several developments in the Indian political-legal-economic context, besides managerial role con icts (Parikh and Garg, 1990), such as a socialistic economy, political instability and a pervasive, intricate web of government regulations. In addition, studies of managers in large public sector and private rms in the last two decades found wide disparity between desired and actual practices (Cyriac, 1992; Cyriac and Dharmaraj, 1994; Monappa, 1977; Soares, 1981). At the same time, the studies found ethical awareness among all respondents, notwithstanding following inappropriate practices. Despite such awareness, for example, Indian managers engage in unjusti able biases in PA decision making (Mendonca and Kanungo, 1990; Sekhar, 1997). However, while the large PIs are bound by shareholder accountability, the PSs face more bureaucratic constraints in their daily operations and, therefore, the latter are more prone to adopting short cuts in order to complete tasks. A common problem was the lack of ethical codes and policy guidelines to provide explicit standards and organizational direction in a turbulent Indian competitive and regulatory environment (Mathias, 1994). This absence re ects the limited role of HR managers in collaborating with senior managers to institutionalize the capacity for integrity and develop a supportive ethical work climate (Petrick and Pullins, 1992; Petrick and Quinn, 1998). In turn, such neglect of the ethical capabilities of organizations jeopardizes the rms intangible asset of reputational capital. Evidence was lacking about practices in family rms, where more control over workplace moral decisions existed but fewer resources to resolve issues were available. The ethical-values and work-climate issues, therefore, warrant exploration, as Indian managers are now confronting intense global external market competition and domestic privatisation of government enterprises. Thus, hypotheses 5 and 6 follow. Hypothesis 5 (H5): Managers in MNC/JVs and PFs are more likely than managers in PSs to accord ethical standards priority beyond economic ef ciency and legal compliance in organizational decision making. Human resource managers in MNC/JVs are more likely than those in PSs and PIs to be perceived as fostering a general ethical climate in the organization.
Hypothesis 6 (H6):
Method The research method was determined by the indigenization of this study. A detailed two-part questionnaire consisting of 162 items was developed and administered in India. The rst part of the instrument consisted of statements related to managerial practice in HRM and PA. These statements were scaled using a Likert-type scale with 1 for not at all and 6 for de nitely, indicating the degree to which each element or activity occurred in the rm with regard to managers and to non-managers. The
73
questions were framed to elicit the extent to which a systematic, formal or rational approach existed in the HRM and PA practices. For example, questions on PA addressed the use of a formal system and explicit feedback to employees. The second part of the instrument consisted of questions on the rm characteristics, the HRM structure and leadership, and management values. The content of the questionnaire was based on the literature and established concepts, and designed to elicit new information on rms by ownership. The aim of the study was to make a contribution to the knowledge base by locating statistically signi cant differences in HRM/PA and management values, selectively occurring by ownership, in Indian rms (Singh, 1990). The questionnaire was reviewed by three researchers in the US, and was revised in India with the assistance of ve practitioners and academicians. The sample selection was done mainly by a random choice from the Kotharis Industrial Manual (1992) including different industries. In addition, in order to ensure suf cient returns, rms were sought from a regional list. In all, 500 rms were contacted. These were located in a half-a-dozen major metropolitan areas throughout India and represent the organized sector of Indian industry. The questionnaires were mailed with an appropriate cover letter to general managers and HRM directors, and followed up personally by several individuals, including business students and practitioners. Of the 500 mailed, 116 completed questionnaires were returned for a response rate of 23 per cent. Considering the dif culty in obtaining employer responses in India to a mail survey (Thomas and Philip, 1994), and the fact that the major business centres were covered, this is a reasonable sample size from which to draw reliable conclusions. The current analysis is focused on two critical PA practices, with regard to managerial employees, and four relevant management values (the dependent variables) adopted by working managers in India (see Table 1 for abbreviated questions). Firm ownership (the independent variable) categorizes the reported practices and values. In
Table 1 Group means of rm practices (DV) by rm ownership categories (IV) Firm practices (DV) Performance appraisal results discussed Appraisals used for evaluative purposes Power maintained through multi-levels Information/decision sharing not permitted Ethics priority HR foster ethical climate PS 2.29 (.75) 1.78 (.92) 2.31 (.79) 1.52 (.71) 2.23 (.84) 2.27 (.84) PI 2.17 (.85) 2.57 (.70) 2.07 (.75) 1.78 (.79) 2.52 (.71) 2.38 (.70) PF 2.31 (.85) 2.85 (.38) 2.08 (.90) 2.09 (.94) 2.83 (.39) 2.73 (.47) MNC/JV 2.79 (.63) 2.61 (.78) 1.61 (.92) 1.21 (.42) 2.67 (.69) 2.78 (.43) Total 2.33 (.80) 2.35 (.86) 2.07 (.83) 1.63 (.77) 2.49 (.73) 2.45 (.71)
Notes DV dependent variables. IV independent variables . PS public sector rms. PI private investor rms. PF private family rms. MNC/JV multinational corporations /joint venture rms. Scale: 13, not at all/rarely frequently /de nitely. Figures in parentheses are standard deviations.
74
order to enable comparisons and testing of hypotheses, the six response scales of individual statements are combined into three. The four types of rm ownership are identi ed from the background information. An analysis of variance (ANOVA) was done on the PA practices and managerial values to test for statistically signi cant differences among rm groups by ownership. Then the Scheffe Test was utilized to determine the exact location of differences among the four groups of rms: MNC/JV, PS, PI and PF (see Tables 24). Findings Pro les of the Firms The responding rms by ownership are as follows: public sector (PS) thirty-seven, private investor corporations (PI) forty-six, private family rms (PF) fourteen, and foreign origin rms and joint ventures (MNC/JV) nineteen. In terms of size (by number of employees) public enterprises are large (over 1,000 employees, several being over 10,000); foreign and joint ventures are large as well as small (less than 500); private investor corporations are predominantly large; and family rms are medium (5001,000) and small. Subsidiaries and units of public enterprises and foreign rms are large; while those of the joint ventures and the two private groups are smaller. However, the sample does not duplicate the same rms units. Regarding unionization, of the total, 17 per cent are non-union and the remainder are divided evenly among political party-af liated and independent unions. By groups of rms, two- fths of the private family rms are non-union, the rest leaning toward political unions. Over two-thirds of the foreign rms and joint ventures have predominantly independent unions, while a marginal majority of the public sector and private corporations have political unions.
Table 2 ANOVA rm differences by ownership: performance appraisal A Performance appraisal discusseda Source Between groups Within groups Total Sum of squares 5.21 64.90 70.11 Degrees of freedom 3 105 108 F 2.81 Probability .043
Note a Multiple comparison (Scheffe) tests yielded statistically signi cant differences (p , means for MNC/JVs versus PIs.
.05) in
B Performance appraisal used for evaluative purposesb Source Between groups Within groups Total Sum of squares 18.38 63.04 81.42 Degrees of freedom 3 108 111 F 10.50 Probability .000
Note b Multiple comparison (Scheffe) tests yielded statistically signi cant differences (p , means for MNC/JVs, PIs, and PFs versus PSs.
.05) in

Table 3 ANOVA rm differences by ownership: power and decision making A Power maintained through multiple levelsa Source Between groups Within groups Total Sum of squares 5.79 67.61 73.40 Degrees of freedom 3 103 106 F 2.94
75
Probability .037
Note a Multiple comparison (Scheffe) tests yielded statistically signi cant differences (p , means for MNC/JVs versus PSs.
.05) in
B Lack of information and decision sharingb Source Between groups Within groups Total Sum of squares 7.10 56.09 63.19 Degrees of freedom 3 104 107 F 4.39 Probability .006
Note b Multiple comparison (Scheffe) tests yielded statistically signi cant differences (p , means for MNC/JVs versus PFs.
.05) in
Table 4 ANOVA rm differences by ownership: ethical values and climate A Priority to ethical responsibilitya Source Between groups Within groups Total Sum of squares 4.42 52.31 56.73 Degrees of freedom 3 103 106 F 2.90 Probability .039
Note a Multiple comparison (Scheffe) tests yielded statistically signi cant differences (p , means for MNC/JVs, and PFs versus PSs.
.05) in
B Human resource department fosters ethical climateb Source Between groups Within groups Total Sum of squares 4.02 47.74 51.76 Degrees of freedom 3 100 103 F 1.34 Probability .044
Note b Multiple comparison (Scheffe) tests yielded statistically signi cant differences (p , means for MNC/JVs versus PSs and PIs.
.05) in
The HRM function and organization The HRM function is formalized among PS and MNC/JV rms, while PF rms have informal single-person departments and PI rms have a mixture of formal and informal structures. HRMs role in policy formulation is reported to be signi cant among all the
76
rms, and to a greater extent among the foreign rms. The public sector and joint ventures have formal policies, while the other groups have a mix of formal and informal policies. In all cases where formal policies exist, a limited amount of exibility is allowed. In summary, foreign rms have a formal HRM organization and mixed policies, with exibility and integration of the HRM function. The public sector and joint ventures have formal organization and policies, allowing for exibility, but their HRM function is relatively less involved in policy formulation. The two private groups with partially formal HRM organizations have a highly involved HRM function. This could be because the managers/owners of the PF rms are responsible for the HRM function, and are likely to be personally involved in its development, while many of the larger PI rms evolved out of family businesses with professionals in key HRM positions (Lawler et al., 1995). PA practices and management values by rm ownership The group mean values for the four types of rms and the ANOVA results are presented in Tables 14. All six hypotheses were con rmed. The group means indicate the following comparative practices: (a) discussion of PA results occurs more frequently in MNC/JVs than in any other groups, and PFs use PA for evaluative purpose more often than others; (b) MNC/JVs use hierarchical levels for power maintenance the least, and are the least inhibited about information/decision sharing, and (c) MNC/JVs and PFs accord higher priority to ethics and their HRM functions more frequently foster an organizational ethical climate, relative to the PS and PI rms. Statistically signi cant differences in practice among rms by ownership emerged as indicated below. Hypothesis 1: (con rmed) We proposed that, while all the rms would utilize PA systems and provide feedback to their employees, the MNC/JVs would more likely discuss PA results with their employees than PIs. The greater formalization of the HRM and PA processes for MNC/JVs, their vulnerable exposure to global competition and their consequent need rapidly to identify substandard performance required intense focus and feedback on performance outputs over and above any social/familial relations or domestic competitiveness concerns. Thus the pace for using PA as a tool to enhance globally competitive quality performance is being set by the MNC/JVs. Hypothesis 2: (con rmed) MNC/JVs, PFs and PIs all are more likely than PSs to use PA results for evaluative purposes, for example, pay and discipline decisions. Even though PFs are less likely than MNC/JVs to discuss PA results openly with their employees, private sector competition at all levels pressures rms to reward meritorious performance and sanction substandard performance, to retain the best workers and to improve or dismiss poor performers. The economic imperative to maximize market value and avoid bankruptcy puts bottom-line pressure on MNC/JVs, PIs and PFs that PSs do not experience. Public sector managers try to maximize public value, emphasizing procedural fairness more than ef ciency, and respect seniority, bureaucratic guidelines and contractual obligations that sustain public trust and welfare (Petrick and Quinn, 1997). Hypothesis 3: (con rmed) In PSs the managerial power of hierarchy was perceived as being maintained only through multiple levels in a way that was not the case in MNC/JVs. The bureaucratic strati cation of positions that a public sector organization
77
allows and even encourages is not possible with the delayering required of globally competitive MNC/JVs, except to the extent needed for administrative and control purposes (Singh, 1990). In this approach, statistically signi cant differences between MN/JVs and the large PIs were not anticipated. Hypothesis 4: (con rmed) The organizational structure and management style in PFs do not permit sharing information and decision making to the extent that such sharing exists in MNC/JVs. The management values of Indian family rms are likely to reinforce the social hierarchy of the culture, where respect for paternalism and nonegalitarian sharing of information and decision making are the norm, and guard against the loss of key proprietary information essential to a small rms survival. On the other hand, MNC/JVs need multiple competencies to handle globally complex issues rapidly, so the diffusion of information and sharing of decision making develop the collective learning capacities and response time of the rm. Hypothesis 5: (con rmed) Managers in MNC/JVs and PFs are more likely than managers in the PSs to accord ethical standards greater priority beyond economic ef ciency and legal compliance in organizational decision making. Public sector managers are often evaluated on their degree of external compliance with legal and regulatory guidelines to sustain public trust and procedural fairness. However, if the regulatory environment becomes too severe and creates widespread inef ciencies, the PSs will be driven to bypass legal constraints to accomplish organizational goals. The MNC/JVs and PFs have to do more to earn public trust and ensure a good reputation for civic responsibility. In addition, MNCs may already have operated in a more demanding ethical climate due to public policy pressures or more stringent legal enforcement in their home country or other host countries (Ferrell et al., 1998). Hypothesis 6: (con rmed) The HR departments in MNC/JVs are more likely than those in PSs and PIs to be perceived as fostering an ethical climate in the rm. MNC/ JVs are exposed to cross-cultural organizational ethics standards and usually have a more diverse workforce requiring explicit moral norms of conduct to ensure responsible work behaviour that sustains global competitive advantage, regardless of the host country environment. The HR department has often taken a lead in this area globally and provides a model for other Indian organizations. Discussion Performance appraisal With regard to the two hypotheses on PA practices, two major points are in order. First, hypothesis 1 that MNC/JVs will more likely have performance feedback than PIs was supported. While both MNC/JVs and PIs as private sector rms are expected to use resources ef ciently as compared to PS rms (Sinha, 1990), MNC/JVs are exposed to more globally competitive pressures to adjust to market forces rapidly than are Indian rms. Hence, open discussions of PA are necessary for timely corrective actions. In effect, PA practice differences between MNC/JVs and PIs are accounted for by the greater economic risk exposure that the former have from ineffective employees. Until recently, Indian rms were under domestic competition, and, consistent with ndings in some studies (Virmani and Guptan, 1991) they did not accord high priority to performance feedback. It may be noted, however, that the mean responses of all three
78
groups of Indian rms ranged narrowly from 2.17 to 2.31, and two of the three means were not signi cantly different from MNC/JVs, whose mean was 2.79. To the extent that there are differences, however, these group differences in appraisal feedback practice can be attributed to a combination of cultural, economic and structural reasons. These patterns are consistent with Sinhas (1990) soft (non-work) versus synergetic work-oriented cultures explained earlier. Yet, lack of strong evidence of feedback among the Indian rms does not mean neglect of PA, particularly from both the private groups as indicated by the next component of PA. The difference was in the extent of attention devoted to PA and the process of how it was handled. Second, regarding hypothesis 2, the evaluative use of PA by private sector rms is greater than by public sector organizations. This is due in large part to the formers economic orientation of increasing market value versus the latters welfare orientation. Private sector rms face the risk of bankruptcy when market demands are not ef ciently met, whereas public sector organizations face no comparable risk, and, given the national employment policies, are prone to keep employees who respect seniority and are loyal to the paternalistic hierarchy regardless of performance (Kerr and Slocum, 1987). This practice might well change, as the new government mandate to the PSs to be self-reliant and to enhance organizational performance takes effect fully and in anticipation of its privatization of PSs (Sparrow and Budhwar, 1997). Meanwhile, the government is adopting a laissez faire approach towards unions regarding retrenchment, downsizing or other rationalization actions by employers to meet competitive demands (Ahluwalia, 1994; Sodhi, 1994; Wall Street Journal, 1997). Two arguments have been used to explain the relative lack of relevance of PA in India: the traditional karma argument and the contemporary PA system-de ciency argument. The rst cultural argument against effective use of PA in India is the Hindu belief that an individuals fate (karma), based on past deeds in former lives, naturally limits achievement and controls outcomes, so proactive actions to improve performance are futile (Gopalan and Rivera, 1997). A counter-argument is that, while fate may be limiting the current state of affairs, individuals can and should prepare for the future (Sinha, 1994). Taking a similar view, Dunung (1995) adds that the concept of karma is used as an excuse to accept any adverse situation. Applying this approach to the case of PA in India, karma has been used as a rationalization for accepting substandard performance even when it becomes individually and collectively dysfunctional. For example, the absence of professional PA systems that evaluate and reward superior work performances at global standards provokes the braindrain of talented Indians (Kripalani et al., 1998). The second, structural argument is that subjectivity and arbitrariness embedded in the current PA system provoke lack of reliance on it. Empirically, Virmani and Guptan (1991) found that the disdain for PA is due to lack of trust in the current PA system, particularly in PS rms where it was used subjectively, for controlling and for maintaining the loyalty of subordinates, without direct links to actual performance. Schuler and Nair (1996) argued that PA becomes contentious and Amba-Rao (1994a) found, further, that PA used for merit purposes in some rms had to be discontinued for structural reasons, for example, lack of control of job tasks by the individual, role ambiguity and/or widespread perceptions of inequity. Speci cally, dependency and loyalty to superiors, rather than competent task performance, were rewarded (Gopalan and Rivera, 1997; Virmani and Guptan, 1991). Consequently, efforts, attitudes and political alignments rather than productive results were structurally reinforced in the traditional PA system. It is this system de ciency, along with the commonly argued cultural considerations, that constrained the widespread use of formal PA systems. The
79
counter-argument, therefore, is that Indian rms can identify and rectify the de ciencies, and use the improved PA systems to achieve both individual needs and organizational goals (Mendonca and Kanungo, 1990). Direct and indirect support for more effective use of PA was found from a variety of studies in India (Rao and Abraham, 1986a, 1986b; Sinha, 1990; Sodhi, 1994). A survey of over 1,600 managers in forty-one rms in India indicated that over 60 per cent of these rms reported having a fairly objective PA system (Rao and Abraham, 1986a). In another survey of fty-three rms in ve major cities in India (Rao and Abraham, 1986b), the authors noted positive trends in the use of PA where, recognizing the scope of PA for various purposes, rms began changing their PA systems from ritualistic con dential reports to systems enabling employee development. Speci c characteristics or uses of PA reported by 6092 per cent of the rms are: (a) agreement between the employee and his/her supervisor formed the basis for appraisal; (b) an open discussion to identify strengths and de ciencies, and opportunities for counselling; and (c) a means of identi cation of training and developmental needs, assessment of promotion potential and source of con dential ratings. All of these uses were reported by more rms in the 1984 survey compared to a similar survey conducted in 1981. Some organizations involved employees in developing the PA system and initially introducing it on an experimental basis. Despite the progress, the authors noted a lack of systematic means of assessment and development of management potential. In addition, Singh (1990) found, in a study of managers in PS and private rms, that they expected intrinsic job needs such as ability utilization and achievement, to be ful lled at their job and to be objectively rewarded. Further, Sodhi (1994) noted that, in view of the increasing globalization and privatization trends, rms are adopting objective HRM practices to meet individual and organizational goals. For example, in a survey of eighty-three rms by Sodhi (1994), half of the rms reported basing compensation on individual performance and 25 per cent on group performance. These ndings bode well for a new readiness in Indian rms to support systematic PA to ful l objective evaluative as well as developmental needs, incorporating employee input. However, since there is no widespread use of total quality, statistically based PA systems or centralized managerial assessment centres, the MNC/JV and the PF pacesetters in this study are valuable catalysts for improving the PA methods of all Indian rms. Management values Management values are included in this study as fundamental contextual factors that in uence PA practices and business performance. Both factors in uence a rms ability to obtain and retain an energized, productive work-force. The power factor and its role in managerial actions is relevant in the socio-cultural milieu of hierarchical relations, and the ethical environment factor is relevant in attracting domestic and foreign investment, leveraging reputational capital in the new economic environment (Pfeffer, 1994; Petrick et al., 1999). Hypotheses 3 and 4 relate to power and hypotheses 6 and 7 relate to ethics as follows. Power, information sharing and decision making In a culture of relatively high power distance and hierarchical relationships (caste, class and family), which percolates into work relationships, we expected to nd an organizational structure that would perpetuate this pattern in bureaucratic PS rms in contrast to MNC/JVs. While it is not unusual to have several levels in large organizations, their purpose may be merely for
80
convenience (Singh, 1990) or for practical reasons such as span of control and promotions. Hence, with regard to Hypothesis 3, the management values re ected in the practice of PSs reliance on multiple levels of bureaucracy to maintain the managerial power of hierarchy is typical of this group of least competitive Indian organizations. With regard to hypothesis 4, it is understandable that PFs do not share information or decision making to the extent of other groups. Some of these rms have fewer than 500 employees and will have few outside supervisors. However, others that are medium sized (5001,000) will have to depend on lower-level managers for organizational ef ciency and effectiveness under the new competitive environment, particularly if they consider growth strategies. Such concentrations of power, information and decision making among certain Indian rms are not conducive for implementing growth strategies. In their study of Australian-Indian joint ventures, As-Saber et al. (1998) found that signi cant freedom of decision making by the joint venture management was a critical HRM-related factor in the ventures success. The non-hierarchic, egalitarian sharing practices of more competitive Indian and foreign rms are having their impact (Sinha, 1990; Sparrow and Budhwar, 1997; Venkata Ratnam, 1992). The growing lack of support for hierarchic work values and the endorsement of more democratic work practices may well indicate that, while authoritative bearing may be socially desirable in India in some traditional work contexts, modern workplace expectations are being transformed to encourage competent input, trust and initiative from lower-level managers and other employees (Hickson and Pugh, 1995; Rao and Abraham, 1986a, 1986b; Rao et al., 1994), even those in some PSs (Amba-Rao, 1994a, 1994b; Singh, 1990; Venkata Ratnam, 1992). These egalitarian managerial values, that is, employee involvement and total quality participation, entail a normative shift from the paternalistic, authoritarian managerial style to the supportive, facilitative managerial style. This paradigm shift to total quality management values is paralleled by expectations that HR managers will take a more proactive role to strengthen the PA system in assessing and developing the work culture that will support commitment to excellent work performance (Petrick and Manning, 1993; Petrick and Pullins, 1992; Sparrow and Budhwar, 1997). This argument is consistent with Sinhas (1990) synergetic work culture and Yeung and Wongs (1990) economic orientation. A positive shift in this direction is indicated by HR managers in the recent study by Sparrow and Budhwar (1997). As an intermediate stage of progression, Sinhas (1990) nurturant task leadership (NTL) style, involving employee concern and growth based on employee productivity, would be appropriate. As the employee gains con dence and skill, the leader progresses to a participatory style. Support for this approach in practice was found in other empirical studies in India (Rao and Abraham, 1986a, 1986b; Rao et al., 1994). Managerial moral values and HRM role in work ethics With respect to hypothesis 5 on ethics priority, the existence of public sector institutions already presupposes minimal public trust that only needs to be sustained by ensuring compliance with laws and regulatory guidelines, as well as internal procedural fairness. Yet, the laws can be self-defeating if they sti e rm operations to the point of threatening survival, without infusion of more public resources (Mathias, 1994). Foreign rms and family businesses, however, need to earn that public trust and credibility, and, therefore, are more likely to accord ethical standards more priority than economic ef ciency and legal compliance in organizational decision making. Large private investor corporations already have a certain cultural legitimacy by virtue of their size, longevity and shareholder accountability processes. Thus, it is possible that relative to PSs, MNC/JVs and family
81
businesses do more than what is legally required to build reputational capital as models of ethical responsibility (Fombrun, 1996; Chakraborty, 1991, 1993; Sekhar, 1997). With respect to hypothesis 6, the difference in the role of HRM departments in MNC/ JVs, as opposed to PSs and PIs, in enabling and encouraging an ethical work climate may re ect the different degree of in uence that HRM has on the MNC/JV strategic policies and operational level tactics (Budhwar and Sparrow, 1997). In addition, the difference can be attributed to three factors in the MNC/JV group: more employee heterogeneity, greater exposure to the risks of diverse moral standards through borderless competition, and more resources to devote to internal creation or external contracting of services to develop an explicit set of ethics policies (Petrick and Quinn, 1997; Green, 1994; LeClair et al., 1998). As work-force diversity and mobility increase and external pressures for total quality performance escalate to MNC/JV levels, public sector and private investor rms will need to match other rms in proactively fostering an ethical climate through their HRM involvement. While not all MNCs in India have acted responsibly (Jain et al., 1998; Venkata Ratnam, 1998), initiating explicit ethics policies in order to attract and retain quality, principled managers who expect a supportive climate for responsible ethical decision making is a promising MNC practice. In the United States, for example, there are compelling incentives for explicit organizational ethics development systems in the form of the 1991 Federal Sentencing Guidelines, which signi cantly reduce monetary nes for rms convicted of wrongdoing if they have such explicit ethicssystems in place (Ferrell et al., 1998; Petrick and Quinn, 1997; Paine, 1994). Whether in the current Indian political environment such enabling regulation will be feasible is uncertain. Hence, Indian business groups, public interest groups, professional associations and MNCs with their global experiences and through their Indian subsidiaries, should provide pacesetting leadership in the implementation of organizational ethics development systems to improve workplace justice and productivity, to retain talented Indian workers, attract domestic and foreign investment and build reputational capital to sustain global competitiveness advantages (Petrick and Quinn, 1997; Amba-Rao, 1993). Consequently, there is a need for collaborative efforts on the part of foreign and Indian rms in adopting best organizational ethics practices in the Indian environment. Implications This empirical study tested six hypotheses related to PA practices and management values in foreign-joint venture and domestic organizations in India. All six were signi cant and the results are summarized as follows. In comparison with MNC/JVs, PIs provide signi cantly less feedback of PA results; PSs are less likely to use PA for evaluation purposes; PSs perceive the need for multiple organizational hierarchical levels to maintain power; PFs share information and decision making to a lesser degree; PSs value ethics to a lesser degree than MNC/JVs and PFs as well, and the role of HRM in PIs and PSs in fostering an ethical climate is of a lesser degree than in MNC/JVs. Theoretical and managerial implications are now presented. Theoretical implications Four theoretical contributions of this study are indicated. First, the study results extended earlier comparative management research, delineating PA practices and managerial values of speci c groups of rms by ownership, with respect to MNC/JVs. This nding also shows that Indian organizations are not as homogeneous as some studies implied. Second, one HRM activity, PA, was examined in combination with
82
certain managerial values that are relevant to HRM, with the following two suggestive theoretical issues: (a) while all types of rms practised PA, its process varied, and the use of PA for evaluative purposes may be constrained in traditional rms by structural impediments, but the MNC/JVs and the modernizing private rms (Sparrow and Budhwar, 1997) may provide better pacesetting PA models; and (b) the managerial value orientations of power, information sharing/decision making and ethics may well determine whether a rm will fully implement objective PA systems that result in fair evaluations and appropriate individual and company developmental strategies. In other words, effective PA processes for useful individual and organizational purposes are theoretically more likely if the managers engage in open communication with their subordinates, encourage input into the evaluation process, utilize the information to ensure procedural and substantive justice, model an appropriate leadership style and build an organizational ethics development system that enhances reputational capital. Third, the area of organizational ethics in Indian workplaces is little researched and this study provides a theoretical impetus for more research activity. Fourth, the results of this study also lend support to the idea of cultural and structural (management and organization) contingencies in uencing HRM, but that traditional social values can be adapted, without destroying them, to the exigencies of a new economic environment. Managerial implications The following six managerial implications are offered for PA, power, information sharing, decision making, and ethical work climate improvement. Performance appraisal First, in high-performance work systems, objective and equitable PA practices are used for both evaluative and developmental purposes. They need to play a more important role in all Indian rm HRM practices, with open discussion of performance for timely actions to address structured empowerment opportunities (Sparrow and Budhwar, 1997). A caveat is that actual practices may not follow espoused policies (Rao and Abraham, 1986b; Amba-Rao, 1994b). The new demographics, managerial need expectancies regarding achievement, development and utilization of their abilities, and improved work culture, will all force managers to take heed of these factors and implement an objective, performance-based and equitable PA system, identifying and clarifying key factors in job responsibilities, and providing coaching and mentoring of employees (Mendonca and Kanungo, 1990; Sinha, 1990). This approach, in turn, can more closely link merit and seniority (Virmani and Guptan, 1991), thereby strengthening job security and long-term performance expectations (Sparrow and Budhwar, 1997). Emphasis in India will eventually be on employee development and productivity rather than on over-control for punitive, hierarchic purposes. Employee involvement and successful experiences in this process will help reduce employee anxiety and scepticism towards PA and promote structured empowerment in all Indian rms. Second, to avoid ad hoc over-control and under-control of individuals by Indian managers, to preserve Indian relational orientations, and to incorporate PA formally into a competitive integrated HRM system, changes based on total quality principles would be bene cial (Lindsay and Petrick, 1997; Petrick and Furr, 1995). Total quality PA systems specify and quantify upper and lower control limits for acceptable performance variation in work settings independent of individual managerial preferences. In this approach, managers in India can avoid over-control of employees whose performances
83
are not statistically different and under-control of substandard performance by loyal favourites, thereby preventing ad hoc biases. Employees are likely to perceive the resulting PA practices, assuming their input and feedback into the process, as equitable and acceptable. This total quality PA system will preserve the traditional, relational socio-cultural group values of India, while preparing individual managers and their rms for sustainable competitive advantage by statistically identifying superior productivity ranges and accelerating organizational performance by objective evaluation and development rather than ad hoc biases. These total quality PA practices, in turn, need to be formally integrated into a supportive HRM system, so that recruitment, training, rewards and career development reinforce overall quality performance expectations (Virmani and Guptan, 1991; Lindsay and Petrick, 1997). Power, information sharing and decision making Third, a careful selection of MNC/JVs that promote mutual bene ts of empowering people, information sharing and participative decision making can provide useful organizational role models for improving organizational effectiveness of all types of rms in India. The authors study indicates that indigenous Indian private and public rms have structural and procedural impediments to work-force empowerment, information sharing and participative decision making, manifest in PA practices, that are less prevalent in MNC/JVs. Successful JVs in India, for example the Japanese-Indian hybrid, Maruthi Automobile Company of India (Chatterjee, 1992; Srinivasan, 1990), can provide organizational learning opportunities for all Indian rms regarding progressive PA practices. Indian national quality award processes, like the Baldrige Quality Award in the US, the Deming Prize in Japan or the European Quality Award in Europe can provide guidance and incentives for improving Indian organizational performance. Fourth, the growing cadre of talented expatriates of Indian origin who have been educated and exposed to Western social and work cultures can provide useful personal role models for appropriate Indian nurturing leadership styles. Many technically trained and educated graduates from India have been spotlighted as world-class technical leaders capable of entrepreneurial leadership in the US (Kripalani et al., 1998). As more of these leaders can be induced to return periodically or permanently to India, they can serve as change agents to promote new standards and practices (Sahay and Walsham, 1997). Management ethics and HRM role in work ethics Fifth, while Indian managers and employees are personally aware of moral duties (dharma) towards others, the absence of intra-organizational and extra-organizational standards for workplace ethics has led to a perceived erosion of moral direction in the current turbulent economic and regulatory environment (Mathias, 1994). To address these concerns, the authors recommend the design and implementation of organizational ethics development systems that explicitly address work norms. These organizational ethics development systems can and should be an operational priority for Indian managers; successful models already exist and have been proven to be effective (LeClair et al., 1998; Petrick and Quinn, 1997; Petrick et al., 1991). Indian managers can use the HRM function to implement these systems in order to assess and improve the ethical climate of their own work organizations and provide evidence for ongoing moral progress in organizational work ethics (Petrick and Pullins, 1992; Petrick et al., 1991). Sixth, Indian managers need to take extra-organizational steps to improve the politico-legal infrastructure within which their rms operate. In the absence of enabling regulation, the pluralistic support groups, mentioned earlier, that counter the adverse
84
impacts of globalization, privatization and government bureaucracy, can aid managers in India to collectively bring about political and professional consensus about the value of a level playing eld for all rms in India and their stakeholders (Amba-Rao, 1993). The level playing eld is the best way to promote genuine productivity for rms in India rather than resorting to unethical practices that favour dysfunctional rms. This broader involvement in extra-organizational moral development is a way to preserve Indian moral character and resist its corrosion from internal and external forces (Sennett, 1998). Limitations and future directions The rst limitation of this study is its narrow scope. As an exploratory study and in order to maintain focus, the authors concentrated on a single HRM activity, the PA system, while including the contextual factor of management values. Other HRM factors should be similarly analysed. A related research issue is to examine the interactional effects of HRM and managerial values, in addition to the independent analysis that was done in this study, to determine more directly whether the kind of value systems considered (empowerment and ethical integrity capacity) would, in fact, encourage broad-based effective HRM practices (Petrick and Quinn, 1998). A second limitation is the relatively small sample of rms. However, most of the public sector and private corporations employ a large proportion of the organized sector which impacts on the economy. Further, their corporate of ce or divisions are located in all the areas from which the sample was drawn, although no responses were received from Calcutta in the East. Further, the statistical tests utilized are suf ciently rigorous, adding validity to the ndings. In addition, due to the small number and overlap of ownership, foreign and joint venture rms were combined in the current analysis. With the possibility of a greater number of joint ventures emerging in the new setting, the two groups should be separated in future studies. Other factors such as type of industry, business life-cycle, size and MNCs country of origin should be considered. For future research directions, the following two points are made. First, in order to enhance the operational ef ciency of eld studies in India, partnering with a professional association is methodologically helpful. From the experience of the current eld study, many of the impediments to data collection could have been avoided if a professional association of HR managers in India had sponsored such a survey, so that indigenous institutional credibility would enhance the likelihood of completed surveys from all parts of the country. Second, monitoring and evaluating the organizational effectiveness of rms in India that adopt the authors recommendations are necessary. Firms can adopt internal longitudinal benchmarking to assess the effectiveness of the new initiatives. In addition, comparative external benchmarking could provide incentives for rapid diffusion of improvements across rms by ownership and industry. Acknowledgements The authors wish to thank many who helped us conduct this research. We are grateful to Mr Y. Bharadwaja, Capintels Consultants, Hyderabad, India, for his assistance with the logistics of our research and for his comments on an earlier draft of this paper, and to Professor C. S. Venkata Ratnam, International Management Institute, New Delhi, for his insights and resources. Our special appreciation to all the experts who helped us with the questionnaire and to clarify many points through discussions. The suggestions
85
of the anonymous reviewers for the IJHRM and the US Academy of Management gave us the impetus to revise and rewrite our manuscript. This research was partially funded by the Of ce of International Programs, Indiana University at Bloomington, a Summer Faculty Fellowship and a Grants-in-Aid of Research of Indiana University Kokomo, and the University Grants Commission at the College of Business Administration, Osmania University, Hyderabad, India. References
Agarwal, M. and Misra, G. (1993) Socio-cultural Values and Relative Deprivation in Work Organisations , Indian Journal of Industrial Relations, 28: 32740. Agrawal, N.M. (1984) Determinants of Inter-generational Con ict in Organisations , Vikalpa, 9(2): 12134. Ahluwalia, M.S. (1994). Indias Quiet Economic Revolution , The Columbia Journal of World Business, 29(1): 612. Amba-Rao, S.C. (1993) Multinational Corporate Social Responsibility, Ethics, Interactions and Third World Governments: An Agenda for the 1990s, Journal of Business Ethics, 12: 55372. Amba-Rao, S.C. (1994a) US HRM Principles: Cross-country Comparisons and Two Case Applications in India, International Journal of Human Resource Management, 5(3): 75578. Amba-Rao, S.C. (1994b) Human Resource Management Practices in India: An Exploratory Study, Indian Journal of Industrial Relations, 30(2): 190202. As-Saber, S., Dowling, P.J. and Liesch, P.W. (1998) The Role of Human Resource Management in International Joint Ventures: A Study of AustralianIndian Joint Ventures, International Journal of Human Resource Management, 9(5): 75166. Budhwar, P.S. and Sparrow, P.R. (1997) Evaluating Levels of strategic Integration and Devolvement of Human Resource Management in India, International Journal of Human Resource Management, 8(4): 47694. Cardy, R. and Dobbins, G. (1994) Performance Appraisal: Alternative Perspective s, Cincinnati, OH: South-Western Publishing. Carroll, A.B. (1998) The Four Faces of Corporate Citizenship , Business and Society Review, 100: 18. Chakraborty, S.K. (1991) Management By Values: Towards Cultural Congruence. Calcutta: Oxford University Press. Chakraborty, S.K. (1993) Managerial Transformation by Values: A Corporate Pilgrimage. New Delhi: Sage. Chatterjee, B. (1992) Japanese Management and the Indian Experience. New Delhi: Sterling. Cyriac, K. (1992) The Ethics Wave in Management Education, Management and Labor Studies, 7(2): 512. Cyriac, K. and Dharmaraj, R. (1994) Machiavellianism in Indian Management, Journal of Business Ethics, 13: 2816. Das, R. (1996) Deregulation and Liberalisation in India: The Managerial Response, Journal of General Management, 21(3): 4858. De George, R.T. (1993) Competing with Integrity in International Business. New York: Oxford University Press. Dhingra, O.P. and Pathak, V.K. (1973) Organisational Culture and Managers, Indian Journal of Industrial Relations, 8(3): 387405. Donaldson, T. (1989) The Ethics of International Business. New York: Oxford University Press. Dunung, S. (1995) Doing Business in Asia. New York: Lexington. England, G.W. (1975) The Manager and His Values: An International Perspective from the USA, Japan, Korea, India and Australia. Cambridge, MA: Ballinger.
86
Ferrell, O., LeClair, D. and Ferrell, L. (1998) The Federal Sentencing Guidelines for Organisations: A Framework for Ethical Compliance, Journal of Business Ethics, 17(4): 35363. Financial Times (1994) Financial Times Survey, 8 November: 220. Fombrun, C. (1996) Reputation: Realizing Value from the Corporate Image. Boston MA: Harvard Business School Press. Gannon, M.J. (1994) Understanding Global Cultures. London: Sage. Gopalan, S. and Rivera, J. (1997) Gaining Perspective on Indian Value Orientations: Implication s for Expatriate Managers, International Journal of Organisational Analysis, 5(2): 15679. Gopinath, C. (1998) Alternative Approaches to Indigenous Management in India, Management International Review, 38(3): 25775. Green, R.M. (1994) The Ethical Manager: A New Method for Business Ethics. New York: Macmillan College. Hickson, D.J. and Pugh, D.S. (1995) Developing Countries (Africa, below the Sahara and India). In Hickson, D.J. and Pugh, D.S. Managing Worldwide: The Impact of Societal Culture on Organisations Around the Globe. Hammondsworth: Penguin, pp. 22148. Hofstede, G. (1980) Cultures Consequences: International Differences in Work-Related Values, Beverly Hills, CA: Sage. Hofstede, G. (1997) Cultures and Organisations: Software of the Mind, 2nd edn. New York: McGraw-Hill. Hofstede, G. and Bond, M.H. (1988) The Confucian Connection: From Cultural Roots to Economic Growth, Organisational Dynamics, 16(4): 421. Jaeger, A.M. (1990) The Applicability of Western Management Techniques in Developing Countries: A Cultural Perspective . In Jaeger, A.M. and Kanungo, R.N. (eds), Management in Developing Countries, London: Routledge, pp. 13145. Jaeger, A.M. and Kanungo, R.N. (1990) Management in Developing Countries, London: Routledge. Jain, N.C. and Kussman, E.D. (1994) Dominant Cultural Patterns of Hindus in India. In Samovar, L.A. and Porter, R.E. (eds) Intercultural Communication: A Reader, 7th edn. Belmont, CA: Wadsworth. Jain, H.C., Lawler, J.J. and Morishima, M. (1998) Multinational Corporations, Human Resource Management and Host-Country Nationals, International Journal of Human Resource Management, 9(4). Kakar, S. (1971) Authority Patterns and Subordinate Behavior in Indian Organisations , Administrative Science Quarterly, 16: 298307. Kanungo, R.N. and Misra, S. (1988). The Bases of Involvement in Work and Family Contexts, International Journal of Psychology, 23(3): 26782. Kerr, J. and Slocum, J.W. (1987). Managing Corporate Culture Through Reward Systems, Academy of Management Executive, 1(2). Kiggundu, M.N. (1989) Managing Organisations in Developing Countries: An Operational and Strategic Approach, W. Hartford, CT: Kumarian Press. Kluckhohn, F. and Strodtbeck, F. (1961) Variations in Value Orientation s. Evanston, IL: Row & Peterson. Kripalani, M., Engardio, P. and Nathans, L. (1998) Whiz Kids: Inside the Indian Institutes of Technologys Star Factory, Business Week, 7 December: 11621. Krishna, A. and Monappa, A. (1994) Economic Restructuring and Human Resource Management, Indian Journal of Industrial Relations, 29: 490501. Lawler, J.J., Jain, H.C., Venkata Ratnam, C.S. and Atmiyananda, V. (1995) Human Resource Management in Developing Economies: A Comparison of India and Thailand, International Journal of Human Resource Management, 6: 31946. Lindsay, W. and Petrick, J.A. (1997) Total Quality and Organisational Development. Delray Beach, FL: St. Lucie Press. LeClair, D., Ferrell, O. and Fraedrich, J. (1998) Integrity Management. Tampa, FL: University of Tampa Press.
87
MacClure, J. (1995) India: Strong Tradition, New Frontiers, Canadian Business Review, 22(3): 403. Manorama (1988) Year Book. Kochi, India: Malayala Manorama. Manorama (1993) Year Book. Kochi, India: Malayala Manorama. Marquardt, M.J. and Engel, D.W. (1993) Global Human Resource Development. Englewood Cliffs, NJ: Prentice Hall. Mathias, T.A. (ed.) (1994) Corporate Ethics. New Delhi: Allied Publishers. Mendonca, M. and Kanungo, R.N. (1990) Performance Management in Developing Countries. In Jaeger, A.M. and Kanungo, R.N. (eds) Management in Developing Countries. London: Routledge, pp. 22351. Monappa, A. (1977) Ethical Attitudes of Indian Managers. New Delhi: AMA. Narayana, G. and Kantner, J. (1992) Doing the Needful. Boulder, CO: Westview. Negandhi, A. and Prasad, S. (1975) The Frightening Angels: A Study of U.S. Multinationals in Developing Nations. Kent, OH: Kent State University Press. Negandhi, A.R. (1975) Organizational Theory in an Open System: A Study of Transferrin g Advanced Management Practices to Developing Nations, New York: Dunellan. Nigam, R.K. (ed.) (1984) The Management Philosophy of Prakash Tandon: Re ections on General Management Issues and Problems of the Public Sector, New Delhi: Documentatio n Centre for Corporate and Business Policy Research. Osterman, P. (1992) Internal Labor Markets in a Changing Environment: Models and Evidence. In Lewin, D., Mitchell, O.S. and Sherer, P.D. (eds) Research Frontiers in Industrial Relations and Human Resources, Madison, WI: Industrial Relations Research Association . Paine, L.S. (1994) Managing for Organisational Integrity , Harvard Business Review, March April: 10612. Parikh, I.J. and Garg, P.K. (1990) Indian Organisations: Value Dilemmas in Managerial Roles. In Jaeger, A.M. and Kanungo, R.N. (eds), Management in Developing Countries. London: Routledge, pp. 17590. Petrick, J.A. and Furr, D.S. (1995) Total Quality in Managing Human Resources. Delray Beach, FL: St. Lucie Press. Petrick, J.A. and Manning, G.E. (1993) Paradigm Shifts in Quality Management and Organisational Ethics Development , Business Forum, 18: 1518. Petrick, J.A. and Pullins, E.B. (1992) Organisational Ethics Development and the Expanding Role of the Human Resource Professional , The Healthcare Superviso r, 11: 5261. Petrick, J.A. and Quinn, J.F. (1997) Management Ethies: Integrity at Work, Thousand Oaks, CA: Sage. Petrick, J.A. and Quinn, J.F. (2000) The Integrity Capacity Construct and Moral Progress in Business Ethics, Journal of Business Ethics, forthcoming . Petrick, J.A. and Scherer, R.F. (1993) Competing Social Responsibility Values and the Functional Roles of Managers: Implications for Career and Employment Professionals , Journal of Managerial Psychology, 8: 1420. Petrick, J.A., Wagley, R.A. and von der Embse, T.J. (1991) Structured Ethical Decision Making: Improving the Prospects of Managerial Success in Business, SAM Advanced Management Journal, 56(1): 2834. Petrick, J.A., Scherer, R.F., Wendt, A.C. and Cox, M.K. (1993) Competing Social Responsibilit y Values and Managerial Level: Implications for Career and Employment Professionals , Review of Business, 15: 226. Petrick, J.A., Scherer, R.F., Brodzinski, J., Quinn, J. and Ainina, F. (1999) Global Leadership Skills and Reputational Capital: Intangible Resources for Sustainable Competitive Advantage in the 21st Century, Academy of Management Executive, 42(1): 7491. Pfeffer, J. (1994) Competitive Advantage through People: Unleashing the Power of the Workforce, Boston, MA: Harvard Business School Press. Rao, T.V. and E. Abraham, S.J. (1986a) Human Resource Development Practices in Indian Industries: A Trend Report. In Rao, T.V. and Pereira, D.F. (eds) Recent Experiences in Human Resource Development. New Delhi: Oxford and IBH, pp. 2041.
88
Rao, T.V. and E. Abraham, S.J. (1986b) Human Resource Development Climate in Indian Organisations . In Rao, T.V. and Pereira, D.F. (eds) Recent Experiences in Human Resource Development. New Delhi: Oxford and IBH, pp. 707. Rao, T.V., Silveria, D.M., Shrivastava, C.M. and Vidyasagar, R. (eds) (1994) HRD in the New Economic Environment. New Delhi: Tata McGraw-Hill. Rao, V.K.R.V. (1964) The Role of the Public Enterprise in the Indian Economy, Indian Journal of Public Administratio n, 10: 4201. Ricks, D.A. (1993) Blunders in International Business. Cambridge, MA: Blackwell. Ronen, S. and Shenkar, O. (1985) Clustering Countries on Attitudinal Dimensions: A Review and Synthesis, Academy of Management Review, 10: 43554. Rosen, S. and Juris, H. (1995) Ethical Issues in Human Resource Management. In Ferris, G., Rosen, S. and Barnum, D. (eds) Handbook of Human Resource Management. Cambridge, MA: Blackwell. Saha, A. (1992) Basic Human Nature in Indian Tradition and Its Economic Consequences , International Journal of Sociology and Social Policy, 12(12): 150. Saha, A. (1993) The Caste System in India and Its Consequences , International Journal of Sociology and Social Policy, 13(34): 176. Sahay, S. and Walsham, G. (1997) Social Structure and Managerial Agency in India, Organisation Studies, 18(3): 41544. Schuler, R.S. and Nair, A. (1996) Management of Human Resources in India: A Societal Model, Working Paper, Stern School of Business, New York University, New York. Schuler, R.S., Dowling, P.J. and De Cieri, H. (1993) An Integrative Framework of Strategic International Human Resource Management, International Journal of Human Resource Management, 4: 71164. Sekhar, R.C. (1997) Ethical Choices in Business. New Delhi: Sage. Sennett, R. (1998) The Corrosion of Character. New York: Norton. Sethi, S.P. and Steidlmeier, P. (1996) Business Ethics and Hinduism. In Werhane, P. and Freeman, E. (eds) Business Ethics. London: Blackwell. Sharma, I.J. (1984) The Culture Context of Indian Managers, Management and Labor Studies, 9(2): 7280. Shenkar, O. (1995) Global Perspectives of Human Resource Management. Englewood Cliffs, NJ: Prentice Hall. Silveria, D.M. (1988) Human Resource Development: The Indian Experience. New Delhi: New India Publications . Singh, J.P. (1990) Managerial Culture and Work-related Values in India, Organisation Studies, 11(1): 75101. Sinha, D.P. (1994) Indian Management: Context, Concerns and Trends. In Patti, J.M. (ed.) Management: Asian Context. New York: McGraw-Hill. Sinha, J.B.P. (1990) Work Culture in the Indian Context. New Delhi: Sage. Smither, J. (1998) Performance Appraisal: The State of the Art and Practice. San Francisco: Jossey Bass. Soares, F. (1981) Values of Indian Managers: The Basis of Progress, Indian Management, 10: 328. Sodhi, J.S. (1994) Emerging Trends in Industrial Relations and Human Resource Management in Indian Industry , Indian Journal of Industrial Relations, 30: 1937. Sparrow, P.R. and Budhwar, P.S. (1997) Competition and Change: Mapping the India HRM Recipe Against World-Wide Patterns, Journal of World Business, 32(3): 22443. Srinivasan, A.V. (1990) Japanese Management: The Indian Context. New Delhi: Tata McGrawHill. Tayeb, M.H. (1988) Organisations and National Culture. London: Sage. Tayeb, M.H. (1995) The Comparative Advantage of Nations: The Role of Human Resource Management and its Socio-cultural Context, International Journal of Human Resource Management, 6: 588606.
89
Thomas, E. and Philip, A. (1994) Management in an Ancient and Modern Civilization. In Punnett, B.J. and Shenkar, O. (eds) International Studies of Management and Organisation, 24(12): 91115. Thyagi, S. (1994) The Giant Awakens: An Interview with Professor Jagdish Bhagwati on Economic Reforms in India, The Columbia Journal of World Business, 29(1): 14-22. Trompenaars, F. (1993) Riding the Waves of Culture: Understanding Cultural Diversity in Business. London: Nicholas. Venkata Ratnam, C.S. (1992) Managing People: Strategies for Success. New Delhi: Global Business Press. Venkata Ratnam, C.S. (1995) Economic Liberalisation and the Transformation of Industria l Relations Policies in India. In Verma, A., Kochan, T.A. and Lansbury, R.D. (eds) Employment Relations in the Growing Asian Economies. London: Routledge. Venkata Ratnam, C.S. (1998) Multinational Companies in India, International Journal of Human Resource Management, 9(4): 56789. Virmani, B. and Guptan, S. (1991) Indian Management. New Delhi: Vision Books. Wall Street Journal (1997) Firms Find Loosening of Indias Business Practices. 13 October A16, 18. Yeung, A.K.O. and Wong, Y.Y. (1990) A Comparative Analysis of the Practices and Performance of Human Resource Management Systems in Japan and the PRC. In Nedd, A. Ferris, G.R. and Rowland, K.M. (eds), Research in Personnel and Human Resources Management, Supplement 2. Greenwich, CT: JAI Press, pp. 14770.

Comparative Performance Appraisal Practices and Management Values Among Foreign and Domestic Rms in India

Caricato da

Informazioni sul documento

Descrizione originale:

Titolo originale

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

Comparative Performance Appraisal Practices and Management Values Among Foreign and Domestic Rms in India

Caricato da

Copyright:

Formati disponibili

Int. J.

of Human Resource Management 11:1 February 2000 60-89

Amba-Rao et al.: Performance appraisal practices in India

The International Journal of Human Resource Management

Amba-Rao et al.: Performance appraisal practices in India

The International Journal of Human Resource Management

Amba-Rao et al.: Performance appraisal practices in India

The International Journal of Human Resource Management

Amba-Rao et al.: Performance appraisal practices in India

The International Journal of Human Resource Management

Amba-Rao et al.: Performance appraisal practices in India

The International Journal of Human Resource Management

Amba-Rao et al.: Performance appraisal practices in India

The International Journal of Human Resource Management

Amba-Rao et al.: Performance appraisal practices in India

The International Journal of Human Resource Management

Amba-Rao et al.: Performance appraisal practices in India

The International Journal of Human Resource Management

Amba-Rao et al.: Performance appraisal practices in India

The International Journal of Human Resource Management

Amba-Rao et al.: Performance appraisal practices in India

The International Journal of Human Resource Management

Amba-Rao et al.: Performance appraisal practices in India

The International Journal of Human Resource Management

Amba-Rao et al.: Performance appraisal practices in India

The International Journal of Human Resource Management

Amba-Rao et al.: Performance appraisal practices in India

The International Journal of Human Resource Management

Amba-Rao et al.: Performance appraisal practices in India

The International Journal of Human Resource Management

Amba-Rao et al.: Performance appraisal practices in India

Potrebbero piacerti anche