Page 208 - DMGT548_GLOBAL_HRM

Unit 11: Multinational Performance Management

way we measure worker productivity is exactly the same, but the numbers come out differently Notes
because of that environmental difference.
6. Headquarter-subsidiary Interdependence: Subsidiary performance depends largely on how
well the multinational as a whole supports it, how much autonomy is granted in making
its own strategy and implementation.

7. Ethical and Legal Issues: Many multinationals assess performance using result-oriented
measures. It is important to assess how the subsidiary management is achieving its results.
Consideration of ethical and legal issues is significant.
8. Market Maturity: Some markets are less developed than others. Subsidiaries in these
markets where the supporting infrastructure is not available may perform much less well
in interns of sales volume than subsidiaries in more established markets. This makes any
purely bottom-line assessment of performance inappropriate.

The productivity levels of people are very different in different parts of the world. In
countries like India, infrastructural and government delays are so frustrating that a
multinational unit may not succeed in obtaining timely clearances, resulting in long
project overruns in time and cost.
So, studying the above factors it is clear that there are a number of significant constraints
that must be considered when evaluating the performance of a foreign subsidiary and
expatriates working there.

Self Assessment

State whether the following statements are true or false:

5. Non-comparable data obtained from subsidiaries poses challenge in multinational
performance management.
6. In order to manage the turbulence of the international environment requires that long-
term goals be rigid.
7. Time-zone differences ease out the congruence between the multinational and local
subsidiary activities.
8. Autonomy granted to the subsidiary in making its own strategy and implementation,
influences its performance.
9. Market maturity is an important factor to consider while assessing the performance of
subsidiaries.

11.3 Performance Management and Performance Appraisal of

International Employees

Individual performance management involves job analysis, job goals and standards, and
performance appraisal. It comprises a formal process of goal setting, performance appraisal,
and feedback.
Performance management is a process that enables the multinational to evaluate and continuously
improve individual, subsidiary unit, and corporate performance, against clearly defined, pre-
set goals and targets. Strong goal setting and appraisal are key elements of performance
management systems that may include training and development and performance related pay.
By adopting a performance management approach, multinationals are building on the

LOVELY PROFESSIONAL UNIVERSITY 203