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Global performance management systems: The role of trust as perceived by country managers

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  • Maley, Jane F.
  • Moeller, Miriam

Abstract

This study focuses on a critical mechanism of the international human resource management process: performance management. The study specifically explores how the process of global performance management is perceived by the country managers of multinational corporations' subsidiaries in Australia. The study reveals that a multinational corporation's systemic demand for short-term profit has the potential for inhibiting employee–supervisor relationships and perceived effectiveness of performance management appears to be dependent on the relationship and level of trust between the country manager and her/his supervisor. On the basis of the research findings, relational communication and psychosocial factors such as trust play an important role in the functioning of a country manager vis-à-vis their perceptions of the performance management process. The study suggests that, with the current approach to global performance management for country managers, despite the expense involved in the process, many of the potential benefits may not be realized. Social exchange theory is proposed as the foundation for developing more effective and fluent global relationships based on trust.

Suggested Citation

  • Maley, Jane F. & Moeller, Miriam, 2014. "Global performance management systems: The role of trust as perceived by country managers," Journal of Business Research, Elsevier, vol. 67(1), pages 2803-2810.
    • Handle: RePEc:eee:jbrese:v:67:y:2014:i:1:p:2803-2810
    DOI: 10.1016/j.jbusres.2012.08.003
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    References listed on IDEAS

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    1. Rosalie L Tung & Alain Verbeke, 2010. "Beyond Hofstede and GLOBE: Improving the quality of cross-cultural research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(8), pages 1259-1274, October.
    2. Jeff Dyer & Wujin Chu, 2011. "The determinants of trust in supplier–automaker relations in the US, Japan, and Korea: A retrospective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(1), pages 28-34, January.
    3. Michael Gibbs, 2008. "Discussion of Nonfinancial Performance Measures and Promotion‐Based Incentives," Journal of Accounting Research, Wiley Blackwell, vol. 46(2), pages 333-340, May.
    4. Nakiye Boyacigiller, 1990. "The Role of Expatriates in the Management of Interdependence Complexity and Risk in Multinational Corporations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 21(3), pages 357-381, September.
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    Cited by:

    1. Kiessling, Timothy & Maley, Jane Frances & Moeller, Miriam & Dabić, Marina, 2023. "Managing global knowledge transfer: Inpatriate manager embeddedness and firm innovation," International Business Review, Elsevier, vol. 32(2).
    2. Urbano, David & Felix, Claudia & Aparicio, Sebastian, 2021. "Informal institutions and leadership behavior in a developing country: A comparison between rural and urban areas," Journal of Business Research, Elsevier, vol. 132(C), pages 544-556.
    3. Maley, Jane F. & Moeller, Miriam & Ting, Alina F., 2020. "Sustainable expatriate compensation in an uncertain environment," Journal of International Management, Elsevier, vol. 26(3).

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