workers are similar to those for Japanese workers of the J2 firm in Japan. Yet,
the performance appraisals at the subsidiary include specific and basic items; such
as items on attendance, safety, 5S (five disciplines in the workplace), QCC (quality
control circles), and TPM (total productive maintenance). Local managers at the
JS2 subsidiary had complained in the past, because Japanese expatriates had not
evaluated them carefully. In 2001, based on the guide by a Japanese human
resources general manager at the subsidiary, local human resources managers and
outside human resources consultants created a new performance appraisal system
for local white-collar employees. The appraisal system consisted of
management-by-objectives and competency-based appraisals. The
competency-based appraisals at the subsidiary included more specific appraisal
items (such as problem solving and planning/organizing ability) than the
competency-based appraisals at the parent firm. At the JS4 subsidiary in Hong
Kong,