Performance appraisal in Western and local banks in China: the influence of firm ownership on the perceived importance ofguanxi

Abstract

The Chinese cultural factor guanxi has an important influence on the implementation and effectiveness of HRM practices in China (Chen and Chen 2013;Nolan 2011;Rowley and Benson, 2002;Warner 2014). However few studies have investigated how guanxi influences performance appraisal in organizations with different ownership structures. We investigated this issue by studying three banks operating in mainland China: a state-owned commercial bank, a foreign owned bank and a city commercial bank. Both quantitative data (survey of 308 employees) and qualitative data (22 in-depth interviews) was used. Macro-level convergence and micro-level divergence was found among the banks. The reform of the performance appraisal system in the state-owned commercial bank indicated a degree of convergence in the appraisal system towards a form commonly found in western banks, at least on the surface. However there were differences in implementation level in the three banks. The perceived influence of guanxi on performance appraisal was strongest in the state-owned bank and weakest in the western-owned bank. The reasons for this included generational differences in cultural values, the international experience of employees and managers, and the degree of alignment between senior managers and others over the purpose of appraisal.

The State-Owned Enterprise as an Identity: The Influence of Institutional Logics onGuanxiBehavior

“…In addition, the development of the labor market has given workers bargaining power that may potentially alleviate the burden of engaging in guanxi behavior (Guthrie, 2002). Despite these changes in formal institutions, there is still inertia in people's conception of SOEs, and employees still perceive guanxi as an important behavior (Gu & Nolan, 2017;Wu, Chen, & Leung, 2011). When individuals identify as SOE employees, they will behave according to what they believe a typical SOE employee doesi.e., build guanxi with supervisors.…”

Why Employees Contribute to Pro-Environmental Behaviour: The Role of Pluralistic Ignorance in Chinese Society

“…In this setting, colleagues' opinions of an individual are considered to be far more important than the individual's own view of him/herself. In addition, if an employee has a strong and tight guanxi with someone in an organisation, the supervisor may give him/her a good evaluation to meet and develop the guanxi with that significant person for other purposes in any future job [54]. For another example, in a qualitative interview, one interviewee stated vividly that when an employee enjoyed a better guanxi with the supervisors, his or her performance evaluation would be given a higher rating by the supervisors in exchange [54].…”

Towards a hybrid model? A systematic review of human resource management research on Chinese state-owned enterprises (1993–2017)

“…Guanxi not only symbolizes interpersonal relationships but also represents semi-family ethics (i.e., responsibility for coworkers and supervisors as well as community identity) rooted in the workplace Chen, Friedman, Yu, and Sun, (2011); Gu and Nolan (2017) Social network A mix of instrumental and expressive networks in the workplaces have an impact upon employee behaviour and task performance. Moreover, the business-to-government and business-to-business networks may also shape the evolution of HR practices in SOEs Han and Han, (2009); Ma (2012) Social capital Companies' HR decisions are somewhat based on social capital criteria.…”

“…Along with the development of cultural theories, one of the most widely known and useful concepts in Chinese societies-guanxi-has gained increasing attention (Gu & Nolan, 2017). The meaning of Chinese guanxi is more complex than the English equivalents of 'relationship' and 'network' (Vickers & Fox, 2010), in the sense that guanxi symbolizes not only interpersonal relations but also semi-family ethics (e.g.…”

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