Performance Management in MNCs

Performance Measurement in Multinational Organisation

Saad Salisu [e-mail] Tel: [phone]
NSU/ADM/MSC/ACC/340/12/13
Department of Accounting, Nasarawa State University, Keffi,
Nasarawa State, Nigeria.
February, 2014
Abstract
The purpose of this paper is to provide highlights and ways by which Multinational organizations measure the performances of its home and foreign subsidiaries. The paper makes a study of this objective in the following parts in order to research on the performance measurement in multinational organizations. Firstly, this report introduces multinational organization and performance measurement of same. Secondly, characteristics of good performance measurement as well as that of multinational organization were explored and analyzed. Thirdly, the challenges, praise and criticisms of multinational organizations were discussed. Finally, financial and non financial measures being adopted by multinational organizations to evaluate the performance of its home and foreign subsidiaries were also being talked about.

Key words: Performance Measurement, Multinational Organizations/Corporations (MNCs), Financial, Non-financial

1.0 INTRODUCTION
The growth of the global economy has increasingly pushed MNCs into all corners of the world. The impact of the growth of international economy has become a major force in business in general and in human resource management in particular. These practices are important realities faced by MNCs doing business overseas. MNCs must coordinate policies and procedures that effectively balance the needs and desires of host country nationals (HCNs), parent country nationals (PCNs) and third country nationals (TCNs).
International business has been around for centuries. However, the growing impact of MNCs is a relatively recent phenomenon. Most big MNCs operating overseas during the 1950s and 1960s were Americans. In the 1970s and particularly in the 1980s the nature of

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