Strategic performance measurement and management in multinational corporations

Abstract

AbstractFor multinational firms, operating as global businesses with global workforces, the challenge of managing diverse operations in diverse environments has never been greater. The need to maintain appropriate consistency and coordinate vastly separated operations presents unique challenges. These simultaneous loose–tight requirements of managing business operations significantly increase the difficulty level.In the area of international human resource management it means the identification and development of strategic international human resource actions that will provide a global consistency of purpose. Strategic international human resource management takes on particular importance in the areas of performance measurement and management in multinational corporations (MNCs). This article focuses around the three components of strategic international human resource management: interunit linkages, internal operations, and competitive requirements. Previous literature is reviewed within this framework, and the work of Pepsi‐Cola International is used as an example of how MNCs manage some performance measurement and management issues.