Effective Performance Management In Mncs

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CANDIDATE NUMBER 0011520 Year: 1 Course Code MN5132 Course Tutor: Dr. Fiona Moore Assignment No.: 1 Degree Title: MBA International Management International Human Resource Management Question No. & Title: Question No. 5 - 2,500 words on What are the challenges to effective performance management in MNCs? How can consistency of performance management across international locations be achieved when local environments differ? EFFECTIVE PERFORMANCE MANAGEMENT IN MNCs ACHIEVING CONSISTANTCY IN PERFORMANCE MANAGEMENT IN DIFFERENT LOCAL ENVIRONMENTS Table of Contents Introduction 4 Challenges in performance management in MNCs 5 Differences in National Culture 5 Power Distance dimension 5 Individualism and collectivism dimension 6 Long – term and short – term orientation dimension 6 Masculinity and Femininity dimension 7 Low vs. high uncertainty avoidance dimension 7 Choice of the evaluator 8 Performance criteria 9 Conclusion 10 Customized performance management systems 10 Training 10 Experience 11 Different rating methods 11 Understanding the changes in local conditions 12 Reference list 13 Bibliography 13 Introduction Performance management is a strategic and critical organizational issue in order to set goals, evaluate, develop and reward employees according to performance. Performance management (PM) can be defined as a strategic HRM process that enables the MNC to continuously evaluate and improve individual, subsidiary unit, and corporate performance against clearly defined, preset objectives that are directly linked to company strategy, Dowling et al., 1999 (cited by Lindholm, 1999) In another definition by Williams,2002 (cited by Harris 2007, p. 126) it is a set of mechanisms creating shared vision of the purpose and aims of the organization, helping each individual employee to understand and recognize his or her part in

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