The paper 'Global Performance Management Practices' is a great example of a Management Essay. Global Performance Management entails the establishment of a broad global performance management system that can be employed in organizations that have branches or offices in various regions or countries. Charles (2009, p. 36-44) argues that global performance management practices help organizations to realize better performance. However, organizations have implemented different performance management systems that have varying degrees of success. This disparity has questioned whether or not a vigorous performance management practice has an efficient reward to merit a necessary degree of management focus.
Nevertheless, multinational organizations need to differently plan to contain for the differences in the various regions which may make a universal performance management practice difficult to realize (Arup 2008, pp. 145-158; Charles, 2009 pp. 48-52). Issues connected to the formulation of a concrete global performance system entail developing standard compensation regulation rates across nations, position titles, and bonus amounts among others. Implementing global performance management systems have been faced with various challenges. This essay will focus on the challenges that face global PM practices and the positives and negatives of global performance management practices in an organization. To understand the complexity and nature of global performance management and the challenges that underlie this practice, it is important to briefly explore the major performance management practices.
They include Budgeting planning and forecasting, strategy management, financial/legal consolidation financial reporting, compliance, and risk assessment, as well as other reporting. Budgeting and planning are inseparable tools for organizational management and therefore form a concrete basis for influencing organization performance. Companies can successfully monitor the development and effects of intended measures and change their objectives accordingly by modifying their budgets to actual (Krishna and Akhilesh 2002 p. 102-109). Financial/legal consolidation and financial reporting is also a significant aspect of global performance management practice.
The formation of a group perspective by the consolidation of legal units is not only compulsory for external financial and legal reporting but also acts as a guide for group-oriented decisions as well as controlling and planning of the business as a whole (Carsen, Benard, and Axel, 2009 p. 13). Other reporting, on the other hand, is key to performance management and includes all reporting undertakings to external and internal stakeholders.
It entails management reporting, operational reporting, and external reporting requested by auditors and/or authorities. Compliance and risk management in global performance management practice is critical. In an attempt to learn from previous blunders of banks and government bodies where risk management unsuccessfully mitigated the lead up to the crisis, several companies may now perceive such processes to be more critical for performance management. Controlling the expected increase in regulatory requisites and various aspects of risk will most probably become a more critical aspect of performance management in the future (Carsen, Benard, and Axel, 2009 p. 13). Strategy management entails the definition and implementation of practices using varying methodologies and approaches such as six sigma, initiative management, balanced scorecard, strategic planning, and simulation. Global performance management practices are engulfed by several challenges.
Their realization of global management performance practices is affected by various factors. The most critical factors have been explained.
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