Case Study On Overseas Subsidiary Performance Management Practices Based On The Comparison Between Overseas Subsidiaries Of Company T And Company H

With the ever-growing strength of Chinese companies and the continuous implementation of national "Going global" strategy and "The Belt and Road Initiative",as well as the influence of role model effect of many Chinese companies,such as Huawei,Lenovo,ZTE,Haier and TCL,that have achieved many business success with their overseas operations,more and more Chinese companies are preparing to or even have already been going overseas,trying their best to take the advantage of the integrated global resources,and getting access to bigger market share,some of them may even establish overseas subsidiaries in the near future.Since the business success or failure of the overseas subsidiaries are to a large extent depends on the highly effective and efficient cross-cultural Human Resources management,especially the performance management practice,it should become a hot topic to study how to carry out performance management in the overseas subsidiaries.This paper make case study on two wholly-owned overseas sales subsidiaries of two Chinese companies,Vietnam subsidiary of Company T and Russian subsidiary of Company H.As the pioneers of the internationalization of Chinese companies,these two subsidiaries have accumulated lots of experience in overseas performance management preactices over years of operation which are worth learning and referable for other Chinese companies.Therefore,this paper attempts to analyze their performance management practices and hopes to summarize some operational suggestions on the performance management practices of overseas subsidiaries of Chinese companies.Based on related researches and theories,this paper first makes analysis on Vietnam subsidiary of Company T and Russian subsidiary of Company H about their company status,challenges in their overseas enviornment and how they conduct their performance management practice separately,emphasizing on the differences between domestic and overseas practices.Then compares their perforamce management practices and summarizes their similarities and differences.Finally,based on the similarities and differences of company status,overseas environments and performance management practices of these two overseas subsidiaries,several suggestions on performance management practices are proposed for those wholly-owned overseas subsidiaries of Chinese companies in underdeveoped countries,which facing environments that are similar to which these two subsidiaries are within,such as performance management practice should focus on supporting the achievement of business strategy;be aligned with the parent company's corporation culture,management philosophy and other Human Resources management practices.And company should establish high performance oriented working climate;operate in compliance with local laws and regulationsan and establish good corporation reputation;enhance fundamental management bases and utilize information technology to improve efficiency and effectivenss of performance management practices.Also,performance management practice should be flexible to reflect the difference between the host country and homeland and be adaptable to the specfic national environments and company's actual conditions in their respective countries.