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Multinational companies (MNCs

Please reply on this essay:

The advent of technology has increased appetite for globalization. There are increasing economic,
political & social interactions between countries. Organizations are also tapping into these opportunities
by expanding their business reach and consumer base especially to developing continents such as Africa
& Asia. Such organizations are referred to as multinational companies (MNCs); they are single entities

with multiple nationalities (Dowling et al., 2008 cited in Armstrong, 2014).

It is imperative to manage performance both at individual and organizational level. However, this has
implication for organizations that operate across borders due to cultural and environmental differences.

The impact of cultural, political or national differences on performance management (PM)

As discussed in previous weeks, despite the benefits of implementing a PM system, it is associated with
certain challenges such as line manager bias, inadequate skills (Aguinis, 2012), etc. These challenges
are magnified in MNCs (Cascio, 2011) because of the complexity that cultural and environmental

differences introduce to the process.


As determined in this case, the inclusion of technology has increased globalization, a
factor that has seen the increase in economic, political and social interactions between different
nations. Additionally, it is of essence to determine the fact that different organizations also tap
into these opportunities by expanding their business scope and consumer base (Aguinis, 2012).
The multinational companies therefore manage performance both within the individual and at the
organizational level even while operating in different regions with different cultures and
environmental conditions. Performance management therefore remains an essential element
within the functions of an organization especially when this impacted by cultural, political and
national differences (Armstrong, 2014). From the knowledge and experiences have acquired
within different work environments, there are certain challenges that may hamper and inhibit the
implementation of a performance management system that include biases and inadequate skills
among the line managers.
The poor performances of management systems are also another challenge that has been
considered as detrimental in the implementation of the performance management systems. In
managing these challenges, it is of essence to determine the fact that organizing training
programs for the line managers within different organizations develops and facilitates the
increase in their knowledge in the manner in which these systems may be implemented (Cascio,
2011). It is also crucial to determine that the development of interactions between different
organizations may also be helpful in enhancing the learning capacities of managers. In
conclusion, it is essential to determine the fact that despite the environmental and cultural
differences that an organizations encounter, it is essential to develop and contextualize a
significant performance management approach that suits the needs of an organization. It is

therefore essential to standardize processes within organizations that include the identification of
different elements within a region.



Aguinis, H. (2012) Performance management, 3rd ed. Upper Saddle River, NJ: Pearson Prentice
Armstrong, A. (2014) Armstrong’s handbook of performance management: an evidence-based
guide to delivering high performance, 5th ed. London: Kogan Page.
Cascio, W. F. (2011) ‘The puzzle of performance management in the multinational enterprise’,
Industrial and Organizational Psychology, 4 (2), pp.190-193.

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