Performance Management in MNC Subsidiaries in China: A Study of Host-country Managers and Professionals

Niklas Lindholm

19 citations0/0 files storedAsia Pacific Journal of Human Resources

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Global and Cross-Cultural Management Employee Performance and Management Human Resource and Talent Management

Abstract

Employees' attitudes towards the organization's performance management (PM) system are crucial for its effectiveness. However, little research has been conducted on (western) PM in multinational companies' (MNCs) subsidiaries operating in foreign cultures. This study examines host-country employees' attitudes towards several elements of PM in a European MNC's subsidiaries in China. A survey approach yielded 604 host-country employee responses from geographically dispersed subsidiaries in China. The results demonstrate that Chinese managerial and professional employees are satisfied with (western) PM. Moreover, the results reveal that Chinese employees are especially satisfied with PM oriented towards their short- and long-term development. In addition, Chinese employees prefer to participate in setting their performance objectives and to receive formal performance feedback. This article proposes that current characteristics of the labour market available to MNCs in China and a general converging trend towards more career-oriented individualistic values may explain Chinese employees' attitudes towards PM.

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1974An Index of Factorial Simplicity 2010Cultures and Organizations, Software of the mind. Intercultural Cooperation and Its Importance for survival 1986International dimensions of organizational behavior 1994Influences on Human Resource Management Practices in Multinational Corporations 1983The Cultural Diversity of Western Conceptions of Management 1996Management in China during the Age of Reform 1986From the Atlantic to the Pacific Century: Cross-Cultural Management Reviewed 1988Culture and the Problems of Chinese Management

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