Global performance management systems

The role of trust as perceived by country managers

Jane F. Maley*, Miriam Moeller

*Corresponding author for this work

Research output: Contribution to journalArticle

14 Citations (Scopus)

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.

Original languageEnglish
Pages (from-to)2803-2810
Number of pages8
JournalJournal of Business Research
Volume67
Issue number1
DOIs
Publication statusPublished - Jan 2014

Keywords

  • Country manager
  • Global performance management
  • Multinational corporation
  • Trust

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