Article Details

Effectiveness of Performance Appraisal in Multinational Companies | Original Article

P. Swarupa*, Sowmya Singh, Chakali Sai Charan, S. Sandeep Sai, Godala Sathwik Reddy, in International Journal of Information Technology and Management | IT & Management

ABSTRACT:

A strategic HRM method called international performance appraisal (IPA) helps multinational corporations (MNCs) to regularly assess and enhance corporate, subsidiary, and individual performance in relation to well-defined, predetermined goals. An incentive structure established by an effective IPA can guarantee that foreign workers and foreign subsidiaries are operating in the best interests of the parent firm. Information asymmetry and goal incongruence between the parent firm and its subsidiaries are the primary causes of IPA's complexity. MNCs can select from a variety of IPA approaches, and these approaches are influenced by a host of firm-specific and host-contextual factors. Even though IPAs are widely acknowledged to be important, most MNCs have not handled IPAs well.