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ABSTRACT In the context of balancing the dynamic tensions of duality and competing forces of convergence and divergence in global business management, this article examines various important company headquarters 'upstream' and local country unit 'downstream' processes and activities that must work in sync to build global synergies and effectively implement company strategy. Upstream processes and activities of global performance management considered here include strategic performance management integration and coordination, workforce internal alignment, knowledge management, and organizational learning. Downstream considerations include responsiveness to local conditions, sensitivity to cross cultural differences, establishment of the performance management relationship, and comprehensive training efforts.
KEY WORDS * competitive advantage * global integration * international performance appraisal
Performance management involves a set of regular, ongoing human resource activities typically carried out by managers and supervisors relative to their subordinates, and aimed at enhancing and maintaining employee performance toward the achievement of desired performance objectives. These activities, including regular performance feedback, coaching, and formal performance appraisal, are typically aimed at encouraging optimal employee productivity, motivation, and development; and can be directed toward both individual employees at all employment levels and locations, as well as teams within a given work unit (Fisher et al., 2003; Anthony et al., 2002). Performance management activities can also have a major influence on other individual human resource management decisions such as staffing and promotion, training, career development, and compensation (Shen, 2005). On a broader, more strategic level, effective performance management provides an important means for aligning individual employee and team working behaviors with the organization's goals. Especially critical for international businesses that desire to reach beyond a fragmented multi-domestic strategy, global performance management can serve as an effective human resource control mechanism for implementing MNE1 strategy and carrying out important objectives despite significant distance and cultural barriers (Lunnan et al., 2005).
An ongoing task in competitive global business is managing the dual challenge of achieving global operation integration, synergies, and economies of scale, while at the same time remaining sensitive and responsive to local business conditions (Bartlett and Ghoshal, 2002). This duality challenge appreciates the dynamic tension involved in successfully satisfying the competing demands of cultural convergence and divergence effects in global business. The convergence perspective, which can apply to both individual MNE and broad societal...