illustrates the performance-behavior-outcomes linkage. It is through formal and informal control mechanisms that the MNE achieves the consistency, coordination and compliance of desired behavior and outcomes to implement its global strategy. These behaviors and outcomes are expected at all levels and areas – at headquarters as well as in subsidiary operations.
In a sense, by adopting a performance management approach, MNEs are drawing on a number of human resource management activities to realize performance goals set during the performance appraisal process. Its proponents argue, somewhat convincingly, that effective performance management is beneficial to both the individual and the firm. Strong goal setting and appraisal are key elements of an individual performance management system that also may include training and development, and performance-related pay.