Customization Decisions Regarding Performance Management Systems of Multinational Companies

Abstract

Performance management (PM) is an important human resource (HR) process for the global organization. There is yet no theoretical framework for identifying the factors that affect customization decisions to standardize or localize PM systems of multinational companies (MNCs). Our purpose is to ascertain the extent of customization of PM systems in MNCs and identify factors that influence customization decisions. We hypothesized that customization of a PM system is a function of global integration, cultural distance and the upstream/downstream nature of PM activities moderated by contextual enterprise variables. A survey was conducted among senior HR practitioners working for the 100 largest companies (by number of employees) in Bulgaria and Romania. Results from a response sample of 97 Bulgarian and Romanian companies indicate that MNCs are already aware of the need for cultural localization of their PM systems and that global integration strategy and specific cultural dimensions — power distance and masculinity — matter more in customization decisions than does overall cultural distance.

Les décisions de customisation eu égard aux systèmes de gestion de la performance des sociétés multinationales : une vue empirique d'entreprises d'Europe de l'Est (Lisbeth Claus et Michael L. Hand)

La gestion de la performance (GP) est un processus important de RH dans l'organisation mondiale. Il n'y a à ce jour pas encore de cadre théorique permettant d'identifier les facteurs qui affectent les décisions de customisation visant à standardiser ou à localiser les systèmes de GP des entreprises multinationales. Notre objectif est de vérifier l'étendue de la customisation des systèmes de GP au sein des entreprises multinationales et d'identifier les facteurs qui influencent les décisions de customisation. Nous sommes partis de l'hypothèse que la customisation des systèmes de GP est une fonction de l'intégration mondiale, de la distance culturelle et de la nature — en amont et en aval — des activités de GP modérées par des variables d'entreprise contextuelles. Une enquête a été menée auprès de cadres supérieurs de RH des 100 plus grosses sociétés (par nombre d'employés) de Bulgarie et de Roumanie. Les résultats d'un échantillon de réponses obtenues auprès de 97 entreprises bulgares et roumaines suggèrent que les multinationales sont déjà sensibles au besoin de localisation culturelle de leurs systèmes de GP et que les stratégies d'intégration mondiale et les dimensions culturelles spécifiques — distance de pouvoir et masculinité — ont plus d'importance dans le cas des décisions de customisation que la distance culturelle totale.

Keywords

performance management multinational companies global performance management systems standardization and localization international HRM

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