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Cultural Differences
Differences are certainly influenced by unique HR teams doing their best thinking about what constitutes a good performance management process. But survey participants said, and their attitudes supported the idea, that corporate culture significantly influences the way performance management plays out in each organization.
One aspect of cultural difference is seen in the reporting relationship of the performance management function. While a majority – 53 percent – said the person responsible for performance management reports to the HR function, a significant number – 21 percent – said the performance management leader reports to the Chairman, CEO, executive vice president or managing director of a business unit. That was the case at Pfizer, where it was the CEO that started the process discussed above.
 Pfizer isn’t the only company finding differences across country boundaries. Other companies implementing a single process across the enterprise are still working to understand the degree to which regional, societal and even governmental influences impact the execution of their performance management processes. John Deere’s performance management team is looking specifically at global cultural factors that introduce nuances into their processes.
Culture influences how performance management is implemented and executed, and it also influences the intent of the process. In addition to managing the alignment of organizational objectives, the outputs of the performance process often feed other systems and processes, such as:
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Compensating employees
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Identifying and recognizing top performers
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Filling talent pools within a succession planning process
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Identifying and removing poor performers
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