Abstract
This study examines the extent of divergence versus convergence effect on the design characteristics of performance appraisal systems across four Southeast Asian countries: Indonesia, Malaysia, the Philippines, and Thailand. The results indicate that there exist significant differences in prevailing managerial practices and behaviours pertinent to the design and conduct of performance appraisal. Contrary to an assertion of homogeneity in previous cross-cultural cluster research and regio-centric perspectives, managers of MNCs should not necessarily generalize the appropriateness of performance appraisal design and practice across countries in the same traditional cluster.