CULTURAL DIVERGENCE AND PERFORMANCE EVALUATION

ABSTRACT: Many authors have argued that human resource systems are the business practices most likely to be affected by the cultural context within which they are applied. Among other HRM practices cultural differences significantly affect performance evaluation, causing various difficulties and inefficiencies in the implementation of performance evaluation systems (PES). In order to provide for a deeper understanding of difficulties in the implementation of PES within specific cultural contexts, this paper therefore intends to explore the design and implementation of performance evaluation systems in three Serbian companies. The research findings point out the importance of building more culturally sensitive PES, calling attention to some possible directions, particularly in Serbia. KEY WORDS: performance evaluation system, national culture, cultura