International HRM Case Study Analysis: Performance Review of Li Wei

This case study analyzes an international HRM scenario focused on a performance review meeting between Thomas and Li Wei in Shanghai, China. The assignment explores how Thomas should prepare feedback for Li Wei, who is being groomed for a leadership position, and argues for a rating of 3 (meets expectations). It emphasizes the importance of leveraging Li Wei's strengths, such as his long tenure and understanding of organizational culture, while addressing areas for improvement related to intercultural communication and leadership competencies. The analysis considers the cultural context, particularly the significance of guanxi in Chinese culture, and potential feelings of dissatisfaction from Li Wei's perspective. The solution provides argumentation points, outlines potential obstacles from an intercultural perspective, and suggests a development plan to foster Li Wei's growth. The case study stresses the importance of constructive feedback that focuses on development and future leadership potential.

International HRM Case Study Analysis
Q3 How can Thomas prepare the feedback for the performance review meeting with Li Wei?
Prepare a red thread of conversation for Thomas as well as argumentation points for his rating 3.
What obstacles do you see from an intercultural perspective?
Thomas has to ensure that Li Wei sees his rating of 3 to meet the expected standards, and is to be
viewed as an opportunity for growth, and not failure. Li Wei is being groomed for a leadership
position and that brings with it, a different set of expectations and responsibility. Thomas needs
to stress on the point that Li Wei is a definite contender for the leadership position and would be
handed over the responsibility once the organization is certain he is ready for it. He can cite
specific examples of situations where Li Wei proved to be an asset to the organization because of
his long-term association with the organization, the trust and acceptance of his leadership by his
peers and juniors, and his strong understanding of the organizational culture. These
competencies are important in any leader, but are not sufficient in their own right. Thomas can
use the importance of the idea of guanxi (interpersonal relationships) in the Chinese culture
(Chen, Chen & Huang, 2013; Gu & Nolan, 2017) to convince Li Wei of the importance of
working harder to form a strong network within and outside the organization before assuming the
leadership role. However, the multinational cultural requirements of the organization mandate a
more professional assessment of his competencies. Thomas can use this discussion as a platform
to assure Li Wei that the organization intends to invest fully in his talents as a future leader
through a focused personal development plan that they can form jointly.
Q4 From the perspective of Li Wei, how might he feel as a Chinese person getting a rating of 3?
For a collectivist and masculine society (Chen, 2008) like China, long term association and
interpersonal relationships are very significant. The employees are willing to adapt to changing
traditions to achieve significant results. It is possible that Li Wei may feel dissatisfied with the
rating of 3 since he has been associated with the organization for 9 years and it may seem that
the organization does not value his loyalty and commitment. Mianzi, in Chinese culture stresses
on maintaining ‘face’ by achieving recognition within the group (Bozeionelos & Wang, 2007).
The entire organization is aware of Li Wei being Thomas’s successor and if he is denied this
position, he may feel ‘shame’ in admitting that to his colleagues and juniors. Li Wei may feel
he has let down his organization by just meeting the expected standards rather than exceeding

them. The performance feedback by Thomas may hurt his morale, and hurt his self-image. For
him, informal measures such as achieving the targets, successful negotiations, and respect of
peers are enough to assess his worth. He has been with the organization long enough to
understand the importance of a unified culture, while staying true to the local needs. With a
detailed discussion and support from Thomas, he may be able to accept the feedback on its merit
and understand the organization’s decision to not promote him to be for the greater good and
take the opportunity to improve upon his weaknesses to be better prepared to take up the mantle
after Thomas.

References
Bozionelos, N. and Wang, L., 2007. An investigation on the attitudes of Chinese workers
towards individually based performance-related reward systems. The International
Journal of Human Resource Management, 18(2), pp.284-302.
Chen, C.C., Chen, X.P. and Huang, S., 2013. Chinese guanxi: An integrative review and new
directions for future research. Management and Organization Review, 9(1), pp.167-207.
Chen, N., 2008. Internal/Employee Communication and Organizational Effectiveness: a study of
Chinese corporations in transition. Journal of Contemporary China, 17(54), pp.167-189.
Gu, F., & Nolan, J. (2017). Performance appraisal in Western and local banks in China: the
influence of firm ownership on the perceived importance of guanxi. The International
Journal of Human Resource Management, 28(10), 1433-1453.