Performance Management Systems and Strategies

STRUCTURE AND STRATEGY OF INTERNATIONAL PERFORMANCE MANAGEMENT

International performance management practices are influenced by the parent organization's HR strategy and structure (Ghoshal and Bartlett 1998). Parent organizations pursue the process of internationalization following certain stages. At the initial stage the subsidiaries are considered as extensions, specialized centres, or hubs for cost-effective manufacturing. Therefore, at this first stage, the same human resource management (HRM) policies and strategies continue to be followed (Ghoshal and Bartlett 1993). They tend to be centralized and inflexible. In the second stage, subsidiaries being considered as centres with specialized capabilities (like Germany's pharmaceutical companies’ ...