Multinational Performance Management Case Study

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Multinational Performance Management
The continuing expansion of multinational corporations (MNCs) is forging new organizational ecosystems that are stretching the boundaries of corporate character and function, and forcing the need for cost-effective and efficient HR practices (Ryan & Tippins, 2010). In in increasingly competitive global business environment, organizations compete for new markets, products, services, and human talent at the global level (Caligiuri, 2006). Effectively navigating the challenges of a global multicultural business landscape would therefore constitute a competitive advantage. Not insignificant among these challenges are organizational development and organizational effectiveness schemes, in the area of performance
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Their findings revealed that the culture of origin of MNCs had effects on the HR practices at the global level. However, only certain HR practices were found to be positively related to performance because of differences in cultural values between the culture of origin of MNCs and local norms and values of their subsidiaries. For example, the success of HR practices of the headquarters of some MNCs in the Hong Kong area were modulated by the degree of similarity and difference between the culture of origin of MNCs and those of their local …show more content…
Their Western counterparts, on the other hand, individualized compensation regimes reminiscent of Western practices, which had little or no effect on turnover. It would suggest the possibility of subordinating the core practices of the culture of origin to a local, more relevant and recognized form could ensure their survival in a more diverse environment.
Conversely, some headquarter norms and HR practices could be easily transferred for adoption in subsidiaries, wherein the local cultures could be more open and receptive to them. Ngo et al. (1998) posited that a good medium can be attained when there is congruence between HR policies and cultural values of the host

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