chapter  2
Employee performance management: policies and practices in multinational enterprises
Pages 25

This chapter discusses a model of employee performance management (PM) that helps provide a framework for understanding the complexity of PM in the multinational enterprises (MNE). It explains and describes the practice of PM in MNEs. The chapter describes a model of employee PM for the MNE and discusses the major issues involved in the design, development, and evaluation of a PM system for the MNE. The Workplace Employee Relations Survey in the UK finds that organizations that are recognized as "investing in people" are significantly more likely to have a performance appraisal (PA) scheme in place. In terms of the PM system, the critical issue is whether the PA process will be based on the PM systems operating in one of the parent firms or developed to suit the specific needs of the venture. Frame-of-reference training is commonly used in Western PM to reduce biases in PA for different categories of performance raters.