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  Another practice of HRM that is essential to evaluate is performance appraisal. This is importantly a tool used for measuring the performance or goal achieved by an individual or team collaboratively. The primary purpose behind this practice is evaluation of the employee’s efficacy and identifying it for fulfilling the obligations (Gunia et al., 2016). The performance appraisal enables any given organization to effectively find the limitations, obstacles and challenging aspects that limit the development and overall productivity of an employee. In United States, performance appraise is majorly oriented to increase the productivity and achievement of an individual. The approach of appraisal in America is further oriented to gain the results and meeting obligations of an individual (Ghauri and Rosendo-Rios, 2016).

There is an emphasis on the remuneration as well. It is considered to be the factor of motivation along with progressive performance documentation of the workforce. Comparably, the practice of performance appraisal within HRM is not considered and given much focus within most of the organizations of Chinese origin. Instead such organizations along with their management is focused on the moral attribute. This further includes personal characteristic of the employees such as loyalty, integrity and obedience (Henson, 2016). The inherent Chinese organizational structure further makes it challenging for the performance appraisal as it inhibits efficient feedback provision on the work of an employee. Moreover the notion is held by majority of organizations in China that performance appraisal makes the emphasis overtly on the penalty and rewards. The focus is not on identification of actual ability of an employee along with their contributions towards the firm in long term (Stock et al., 2016). The lessened value for performance appraisal within China is displayed through the preference of employees for the passive assessments reception.

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Nations of China and United States also vary on the general planning of human resource as well. For an example, Chinese organizations utilizes this practice for the replacement of the employees that have left the organization (Kim et al., 2016). While in America this practice is associated with the strategy of the organization.