Outline the challenges faced by performance management of an international subsidiary of an organisation?
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ChatGPT
Jun 14
1. Cultural differences: Managing performance in an international subsidiary can be challenging due to cultural differences between the parent company and the subsidiary. Different cultural norms and values can impact how performance is measured and evaluated.
2. Language barriers: Communication can be a challenge when managing performance in an international subsidiary, especially if there are language barriers between the parent company and the subsidiary. This can lead to misunderstandings and misinterpretations of performance expectations.
3. Legal and regulatory differences: International subsidiaries may be subject to different legal and regulatory requirements than the parent company, which can impact how performance is managed. Ensuring compliance with local laws and regulations while maintaining alignment with the parent company's performance management system can be a challenge.
4. Distance and time zone differences: Managing performance in an international subsidiary can be challenging due to the physical distance and time zone differences between the parent company and the subsidiary. This can make it difficult to provide timely feedback and support to employees in the subsidiary.
5. Lack of local expertise: International subsidiaries may lack the necessary expertise and resources to effectively manage performance. This can result in inconsistent performance management practices and hinder the subsidiary's ability to meet performance goals.
6. Resistance to change: Employees in the international subsidiary may be resistant to changes in performance management practices introduced by the parent company. Overcoming this resistance and gaining buy-in from employees can be a challenge.
7. Technology limitations: Limited access to technology and infrastructure in the international subsidiary can hinder the implementation of performance management systems and tools. This can make it difficult to track and evaluate performance effectively.
8. Different performance expectations: The parent company and the international subsidiary may have different performance expectations, which can lead to conflicts and misunderstandings. Aligning performance goals and expectations across the organization can be a challenge.
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Google Gemini AI
Jun 14
Challenges in Performance Management of International Subsidiaries
1. Cultural Differences: - Varying cultural norms and values can impact employee motivation, communication, and expectations. - Different working styles and communication approaches may lead to misunderstandings. - Cultural biases can create challenges in evaluating and providing feedback to employees.
2. Language Barriers: - Difficulty in clear communication and understanding of performance expectations. - Limited language proficiency may hinder feedback and development opportunities. - Translations of performance materials may lose nuance or convey incorrect information.
3. Geographic Dispersion: - Monitoring and evaluating employee performance across multiple locations can be complex. - Time zone differences and travel costs add logistical challenges to performance management. - Access to resources and support may vary across locations.
4. Legal and Regulatory Differences: - Local labor laws and regulations may impact performance management practices. - Differences in compensation, benefits, and performance targets can create challenges in aligning global and local policies. - Cross-border data transfer and privacy laws may restrict access to performance information.
5. Currency Fluctuations: - Variations in exchange rates can impact the perceived value of incentives and rewards. - Performance bonuses or targets based on local currency may fluctuate significantly. - Accurate financial performance reporting can be challenging due to currency conversions.
6. Host Country Regulations: - Subsidiaries may be subject to local rules and regulations that govern performance management practices. - Cultural sensitivities and societal norms may influence employee behaviors and expectations. - Host country governments may have specific requirements for performance evaluations and employee compensation.
7. Local Management Autonomy: - Subsidiaries often operate with a degree of autonomy, which can impact the consistency of performance management practices. - Local managers may make decisions that differ from global headquarters, leading to variations in performance targets and evaluation criteria.
8. Cultural Adjustment and Expatriate Management: - Employees assigned to international subsidiaries may experience cultural adjustment challenges. - Managing expatriates effectively requires sensitivity to cultural differences and providing necessary support. - Performance evaluations of expatriates may need to consider adjustment factors.
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