A Thesis On The Performance Management Of Multinational Overseas Subsidiaries Under The Cross-Cultural Environment

Since the reform and opening up,with the rapid and healthy development of science,technology and economy in contemporary China,Chinese enterprises are also growing.Against the background of the continuous and in-depth implementation and improvement of the two strategies of “going out” and “introducing”,and the vigorous promotion of the internationalization of the “Belt and Road”,a large number of enterprises are preparing for new attempts or have begun to go abroad to carry out international expansion.On the other hand,with the continuous development of China’s economy,a large number of foreign enterprises have begun to enter the Chinese market directly by establishing subsidiaries in China.For multinational overseas subsidiaries,in the face of cultural differences between the home country and the host country,whether they can carry out efficient performance management directly determines the long-term sustainable development of overseas subsidiaries to a large extent.In this thesis,Huawei and Sony,the two wholly-owned overseas subsidiaries that have accumulated rich experience in the long-term practice of overseas operation and management,are taken as the research objects to analyze the practice of performance management of overseas subsidiaries under the cultural differences,in order to provide some specific countermeasures for the performance management of other overseas subsidiaries.First of all,the relationship between cultural differences and corporate performance,cross-cultural management and corporate performance management related literature are systematically combed.Secondly,it introduces the current situation of performance management of overseas subsidiaries under cross-cultural environment.Thirdly,this paper analyzes the performance management practices of Huawei(Russia)and Sony(China),highlights the differences between their performance management operations and their domestic enterprises,and summarizes the common points in performance management practices when they face challenges in development.Finally,when other enterprises expand internationally and manage performance in cross-cultural context,we can learn from the performance management strategies of Huawei(Russia)and Sony(China).The conclusions of this thesis are as follows: First,multinational overseas subsidiaries should establish a performance management system with the strategic development goal as the core.Second,the construction of overseas subsidiaries and the formulation of performance management should be adapted to local conditions and the specific national conditions of the country where the subsidiaries are located.Third,overseas subsidiaries should respect employees’ cultural background,alleviate cultural conflicts and promote cultural integration.Fourth,transnational overseas subsidiaries should strictly abide by the local laws of the host country,not touch the bottom line of local laws while operating and developing,and actively participate in local public welfare activities.Fifth,multinational overseas subsidiaries should improve the effectiveness and efficiency of performance management through science and technology.Sixth,multinational overseas subsidiaries need to vigorously promote the localization construction,including the localization of employees and corporate culture.Based on the cultural differences,this thesis studies the performance management of overseas subsidiaries,which not only enriches the theory of cross-cultural management,but also expands the performance management theory in line with the overseas development of Chinese multinational companies.On this basis,this paper analyzes and summarizes the specific strategies in the process of performance management practice of two overseas subsidiaries,which can help relevant companies to absorb experience and methods from practice.