Page 370 - Cultures and Organizations

Pyramids, Machines, Markets, and Families: Organizing Across Nations 335

upward. Often there is a formal performance appraisal program requir-
ing periodic written and/or oral evaluations by the superior. Exporting
such programs across national borders once more calls for adaptation. In
collectivist countries social harmony is an important ingredient for orga-
nizational functioning, even more crucial than formal performance, and a
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program that harms the former eventually damages the latter. Personal
criticism may have to be given in an indirect way or through a trusted
intermediary, such as an older relative. Geert remembers a case in Pakistan
in which the personnel department of a multinational produced all the
paperwork of an internationally prescribed appraisal system to the satis-

faction of its international head office—but the local managers carefully
avoided conducting the expected appraisal interviews.
In the United States, management guru Peter Drucker (1909–2005)
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developed performance appraisal into management by objectives. MBO was
probably the most popular management technique of the twentieth century.
Based on a cybernetic control-by-feedback philosophy, it is supposed to
spread a results orientation throughout the organization. MBO has been
considerably more successful where results are objectively measurable than

where they are a matter of subjective interpretation. It reflects an American
value position in that it presupposes the following:

■ That the subordinate is sufficiently independent to have a meaningful

dialogue with the boss (not too high PDI)
■ That both superior and subordinate are prepared to accept some
ambiguity (low UAI)
■ That high performance is seen as an important goal by both (high
MAS)

Let us now take the case of Germany. This is also a below-average

PDI country, so the dialogue element in MBO should present no problem.
However, Germany scored considerably higher on UAI; consequently, the
acceptance of ambiguity is weaker. MBO in Germany has been strongly
formalized and converted into “management by joint goal setting.” 60
In France the concept of MBO was first introduced in the early 1960s;

it became extremely popular for a time after the student revolts that shook
up the Western world in 1968. People expected that this new technique
would lead to the long-overdue democratizing of organizations. DPO
(direction par objectifs), the French name for MBO, became DPPO (direction
participative par objectifs). After a few years, however, a French management