Employee performance management in MNCs: reconciling the need for global integration and local responsiveness

Abstract

I explore how the global integration versus local responsiveness dilemma can be reconciled in employee performance management (PM) systems of multinational companies (MNCs). Firstly, I define the concept of employee PM. Then I review the international PM literature and its predominant focus on cultural fit and discuss the various elements in the design, implementation, and evaluation of PM, in terms of standardisation and localisation. Finally, I propose ways for MNCs to reconcile the seemingly opposing needs of a global PM and offer process recommendations for practitioners and further research. A global employee PM system requires knowledge of how the various components of a PM system are influenced by the global context of the MNC, as well as change management competencies, to successfully realign the existing PM system. Academic research on the international perspective of PM is still in its infancy and empirical research is needed on PM in a MNC.