The paper 'Performance Management in International Business Environments' is a wonderful example of a Management Assignment. In the contemporary world of business, globalization of the world economy has become an essential requirement for companies to create sustainable businesses and operate effectively in a competitive environment. Accordingly, the global expansion of businesses has become a major strategic development for companies. As for big companies such as Woodside, a series of market development strategies including spreading into new geographical regions and entering new markets are made to capture potential markets. This way, the company is able to pursue a leading role in market competition.
With the rapid development of communications technologies, the process of economic globalization will further be accelerated. More multinational companies will continue to emerge as international competition becomes increasingly fierce (Sanderson, 2001). In the new era of globalization, competition for talent is gradually replacing the tradition of competitive products and technologies. How to source, train, and develop talented employees and to enhance their performance has become the most daunting challenge that companies face (John & Carr, 2000). Undeniably, increased internationalization of business has created major challenges for companies to recruit culturally sensitive and technically competent managers and employees for managing overseas operations.
Employees working in foreign countries find that culture shock can impair their abilities to perform well (Thomas, 2004). A failure in foreign missions will not only affect the employee’ s performance record but will also cost the company’ s resources. Hence, performance management has been identified as contributing to improved overseas ventures. The following paper highlights major issues of performance management that Woodside, an Australian firm should consider when managing foreign operations in either Brazil or Spain. Definition of Performance Management and its Importance in International Business Performance management refers to the systematic process by which organizations involve their employees, as individuals and groups, in improving organizational effectiveness through the accomplishment of goals and mission.
In the contemporary world of business, performance management is a core aspect of human resource management and involves planning for all work activities and setting expectations. It also involves continual monitoring of performance as well as the development of the capacity to perform. In the international business environment, performance management helps set standards for product quality and service delivery.
It encompasses important activities such as joint goal setting, frequent communication, continuous review of progress, coaching, rewarding achievements, and implementation of employee development programs (Sanderson, 2001). According to the institutional theory of neoliberalism, countries should be concerned more with absolute gains from other nations. This theory implies that multinational organizations should be concerned more with the benefits that they give to the host countries and not merely what they gain (Robert & Lisa, 2005). For transnational organizations, performance management can be regarded as a vital process of not only managing employee performance but also for driving an entire organization towards attaining desired performance results.
It is about striking a harmonious balance between organizational objectives at the headquarters and the subsidiary. The process utilizes such important tools as leadership development, job design, training, and reward system to align performance expectations at the subsidiary and headquarters. From an international perspective, performance management is undertaken as an ongoing communication process between supervisors and employees.
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