ABSTRACT

https://orcid.org/0000-0003-0893-0432

This chapter identifies and discusses the external contingent factors that influence an organization’s operation of its three levers of performance management. The four external contingent factors discussed are industry, national culture, government regulation, and labour markets. Organizations have limited, if any, control over these external contingent factors, or at least this is the case once senior managers have chosen the industry/industries they will compete in and the countries from which they will operate. As this chapter shows, these external contingent factors determine not only how much tax an organization pays and the health and safety regimes it operates, but the external factors also help determine the organizational structures, operating systems, processes and procedures, and organizational cultures an organization will adopt.