AI-Based Performance Appraisal Systems: A Game-Changer in Asia

2. Traditional Asian Performance Assessment Practices And Limitations

Traditional performance assessment practices in Asia have long been shaped by the region's cultural and hierarchical norms. In many Asian countries, such as China, Japan, and India, performance evaluations often involve a top-down approach, where senior management plays a pivotal role in determining employee evaluations (Varma et al., 2023). As concerns over sustainability are well recognized and encouraged by the United Nations Development Programme (UNDP) (Aman et al., 2022), maintaining high calibre employees has become a difficult issue for today’s businesses (Rafiq et al., 2022), especially when the assessment process is influenced by personal biases or favoritism. Additionally, the emphasis on collective harmony over individual achievement, a common cultural trait in Asia, can result in assessments that do not accurately reflect individual contributions and competencies (Earley and Ang, 2003).

Another limitation of traditional performance assessment practices in Asia is their reliance on annual or bi-annual reviews, which can be inadequate in capturing the ongoing performance and development of employees (Baker, 2013). This infrequency can lead to outdated or irrelevant feedback, hindering timely professional development and adaptability to changing job roles or market conditions. Furthermore, these practices often lack a mechanism for incorporating employee self-assessment or peer feedback, which are crucial for a comprehensive understanding of performance dynamics. Organizational researchers focused on human resource management often grapple with securing a competitive advantage in such dynamic environments (Aman et al., 2023).

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  Impact of Hierarchical Structures on Assessment