Control and Performance Management
Although it is not often described as such, performance management is a part of a multinational's control system because performance targets are a part of formal control. Through formal control mechanisms and communication through the feedback and appraisal aspects, performance management also contributes to shaping corporate culture, both formally and informally12 thereby acting as an informal control mechanism as well as part of the bureaucratic control system . Employees are rewarded for adopting appropriate work behaviors and this in turn reinforces normative control. Figure 6.2 illustrates the performance-behavior-outcomes