Culture and efficacy of performance management: a qualitative study in Thailand

Abstract

Globalisation has led an increasing adoption of Western modelled Performance Management (PM) systems in non-Western countries, particularly Asia. The aim of the research is to explore the effects of Thai culture on the efficacy of Western modelled performance management (PM) in a cross-cultural setting. Thailand is becoming increasingly important to Australian businesses, particularly in view of the ASEAN Economic Community Plan, which is now in its final stages implementation. The primary data for this study was sourced from 43 semi-structured and in-depth interviews with 30 participants. The participants occupied managerial positions ranging from CEO executives to middle management, with organisations operating in Thailand. The interviews were conducted with both expatriate and local Thai employees. Social constructivism, qualitative methodology, and inductive reasoning were applied to the collection, analysis and interpretation of the data. The findings show only a tenuous link between Western values, upon which PM systems are predicated, and motivational values of the host society. As a consequence, Western PM practice can fail to adequately compensate for differing cultural concepts of the means-action-ends relationship that constitutes efficacy, which, in turn, affects the efficacy of PM outcomes. This research has implications for future cross-cultural management studies by expanding the perspectives of inquiry through cultural constructs of efficacy. It also has implications for PM design, and employee cultural awareness training and development. This will assist expatriate and host country management, to compromise cultural values differences. In doing so, closer alignment of expectations may be achieved, within the organisation-manager-subordinate relationships, to deliver efficacious PM outcomes