Game on: under-promise and over-deliver - A qualitative case study of cultural significance of performance appraisals at “Company X”

Abstract: Title: Game on: under-promise and over-deliver - A qualitative case study of cultural significance of performance appraisals at “Company X” Seminar date: June 2nd, 2023. Course: FEKH49 - Bachelor’s degree thesis in Management and Organization, 15 credits. Authors: Marcus Hedebark, Emilia Makra and Freja Sahlin Supervisor: Emilie Hesselbo Purpose: The purpose of this study is to gain a greater understanding of the relationship between culture and the use of performance appraisals. Moreover, this study seeks to extend our knowledge of employees’ responses to and experiences of performance appraisals. Research questions: What is the cultural significance of Company X’s use of performance appraisals? (and) How is the cultural significance of performance appraisals experienced by the employees? Theoretical perspectives: This study positions itself within the theoretical framework of performance management systems in relation to cultural significance, with a specific focus on performance appraisals. Methodology: To achieve the purpose of the study and answer the research questions, a qualitative interview study has been conducted. The empirical material has been gathered through semi-structured interviews, with a total of nine employees from Company X participating. The study has thus adopted a social constructionist perspective and an abductive approach. Result: The findings of the empirical analysis reveal two strong cultural norms at Company X: change and ambition. These norms are then aligned, assured and amplified by the performance appraisal (PA) system used at Company X. The PA system aligns the employees to the culture by making them prepare and be ambitious in planning their future goals for each PA. The PA system also assures the culture by providing a source for termination if the employee does not manage to meet the goals set on the PA, as well as motivating the culture-aligned to remain. Finally the PA system amplifies the culture by making the employees learn new things. Finally, the result shows that the employees respond to this in both unintended and intended ways. Conclusions: Based on the analysis of empirical material, this study concludes that performance appraisals hold cultural significance in various ways, including serving as an organizational tool to manage culture and align with a desired culture. Additionally, the PA system elicits responses from the employees that are both intended consequences, such as annual growth and cultural alignment, and unintended consequences through employees' strategic gaming behavior, which contradicts the cultural alignment.