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Performance Measurement, Compensation, and Multinational Considerations: A briefing

Performance Measurement management refers to a method that is used in any company for measuring the performance of an individual candidate. Management student learns it for improving the state of an organization. Companies need to measure performance to reward managers and motivate them to achieve the goals according to the strategies of the business.

Multinational companies, as compared to national companies, face more difficulties in Performance Measurement. This is because:

  • Cultural, social, political, legal and economic environments significantly vary across countries
  • In some nations, Governments might impose restrictions and controls on the selling prices of its products or services
  • There can be differences in the availability of skilled labor, materials, infrastructure, costs of materials,etc. across nations
  • The divisions of the company operating in various nations explain their performance in varied currencies.

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Why do students need to know it in detail?

Performance measure management is useful in many ways, as it can improve the condition of any organization in the following manners:

  • Performance-based conversation

Managers lack the time for interaction with company employees and cannot individually inform them about their satisfaction level with their performance. Performance measure offers them a way to interact with the employees and discuss their activities with them. It helps them to improve productivity, quality of work and behavior of workers.

  • Targeted staff development –

The use of this process helps companies to improve employees’ working conditions and assist them in improving their performance.

  • Staff encouragement

The process also helps managers to evaluate the progress of employees and appreciate them for the same, thus motivating the latter to work better.

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