A Study On Performance Management Of Multinational Companies In China

The multinational companies have made great development in China since China's reform policy in recent years. As one of the sharpest and strongest strategic tools to obtain competitive advantage, the performance management - thoughts and system have been highlighted in China. Comparing with local companies, the performance management of multinational companies in China is more integrated and systematic, and gets better operation. At the same time, multinational companies in China have to face more cultural conflicts in performance management. Cultural conflicts have been the inevitable topic for all multinational companies to think.Through the study on performance management of multinational companies in China, we find that multinational companies in China must have a thorough consideration of cultural conflict in the performance management, and adapt to the request of corporate culture. Contemporarily, performance management impacts the corporate culture and cultural conflict. There is certain linkage between performance management and cultural conflict.In order to study the cultural conflict in the performance management of multinational companies in China, I build a cubic 3-dimension performance management model. The three dimensions are: performance affect factors, performance management process and time dimension of performance management.We think, there are 4 factors affect individual's performance: competency, motivation, opportunity and environment, which have been attested by factor analysis. In order to improve employees' performance level, multinational companies must focus on these factors. The cultural conflict will lead to different solutions of performance management and diversiform consideration of performance affect factors.We have set a model of performance management process of multinational companies in China, which is made up of 4 steps: Performance Planning, Performance Facilitate, Performance Appraisal, Performance Feedback. The process is linked closely to corporate 's strategy. The performance management process will present different traits in the different corporate culture, or in the background of cultural conflict. So, cultural conflict will affect the performance process.