Unlike American firms that we researched, the European firms and their
subsidiaries do not have performance appraisal systems that are applied for all
employees worldwide. At the ES2 subsidiary, two Japanese general managers are
evaluated by a Japanese president, and then by the top management and the
headquarters human resources department of the E2 firm. Top management and
headquarters human resources/finance departments of the E1 firm evaluate three
top managers (a Japanese president, a Japanese director, and a European director)
and a European finance general manager at the ES1 subsidiary, partially using
evaluation by the subsidiary president. The ES1 and ES2 subsidiaries manage the
local Japanese employees. The headquarters human resources departments are
not involved with the management for them. Largely changing performance
appraisal systems of the parent firm, the ES1 subsidiary introduced its own performance appraisal system. The ES2 subsidiary made its performance
evaluation system for local employees, not referring to performance appraisal
systems of the E2 firm.