Gaining altitude on global performance management processes: a multilevel analysis

Abstract

This conceptual review of global performance management (GPM) focuses on how individual performance results are aggregated in multinational enterprises. The authors propose a four-level vertical framework of the uses, metrics, systems and processes at the (1) individual, (2) local–regional, (3) strategic business unit and (4) global (corporate) levels. Based on a review of limited extant empirical literature and interviews with selected European human resource planning practitioners, the authors present a four-stage transformation framework. Individual GPM results are envisioned to be transformed via four processes, described as (1) ‘funneling’ of selective individuals to the attention of actors at the next vertical level in the firm, (2) ‘summation’ of individual performance metrics to the next vertical level, (3) ‘conversion’ of individual metrics into a different form of metric altogether before being forwarded to the next vertical level and (4) ‘sharpening’ or recalibration of macro-level firm strategic performance metrics as a consequence of how well individual and subunit performance targets are met. The paper concludes with a discussion of what qualities an effective GPM might have, namely the creation of a balanced but essentially centralized, strategically customized, bundled system of IHRM practices that combines culture and technology.