EFFECT OF CULTURE
International performance management practices also vary with respect to the culture (Milliman, et al. 1998). For example when the subsidiary of an MNC is located in a country that pursues individualistic culture (Hofstede, 1980), the performance evaluation process pays adequate attention to employees’ feelings. With cultural distance, subsidiaries therefore enjoy higher autonomy and benefit from the differentiated culture congruent performance management practices.
Again the performance management practices vary with respect to the MNC's country of origin. The reason is attributed to the specific HRM practices prevalent in the parent country (Hofstede, 1980; Ghoshal and Bartlett, 1993; Schuler et al., 1993; Harvey et al., 2000; ...
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