Present and discuss some of the factors that make multinational performance management so problematic. What performance management systematic qualities can be designed to overcome these problems?
Performance management includes the processes that the managers use to assess the performance of the employees and give feedback to them. It is designed to make sure that the productivity of the employees matches the required performance standards of the organization.
Answer and Explanation:
The following factors make performance management in a multinational environment difficult:
i. In different countries, the measures of performance on the basis of currency revenue can be difficult because of differences in currency values and fluctuations in exchange rates.
ii. The economic and political situations vary across different countries. Thus, the performance measure for an individual of one country might not be justifiable for an individual from another country. For instance, in one country the market might be booming and there might be high demand, while there might be political instability and poor economic conditions in another country.
The following efforts can be made to reduce such challenges:
i. The companies can try to understand and keep space for adjustment of the revenues from different countries and not stress on similar or standard revenues from all countries but there should be a customized way of managing performance management for each country.
ii. The companies can have different performance management schedules in different countries by keeping in mind the economic and political situation in such countries. The managers can be asked to not make performance management an exercise but an important task with a clear objective of improvement in the performance of employees with appropriate feedback and mentoring.
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fromChapter 3 / Lesson 1
Learn about performance management and appraisals. Compare performance management vs. performance appraisal features to distinguish the differences between the two.