Performance of Multinational Company

Ing. Glorybeth Castillo

Master's thesis

Abstract:

As companies enter the international market, it has to plan strategies that could maintain and improve its performance. Performance measurement is required for effective management of the relationship between headquarter and its subsidiaries. With regards to subsidiary performance, it is influenced by various factors greatly affect the overall performance of the multinational company. According to Ramsey and Bahia (2013), financial dimensions, operational dimensions, and overall effectiveness were the commonly used measures for evaluating subsidiary performance. On one hand, it is evident that the management of companies solely depends on its people and therefore, human resources should be highly regarded. On the other hand, the literature suggests that one of the proximal effects of designing a good performance management system for employees is “employee engagement” which could translate to an enhanced job performance. Similarly, employee satisfaction and productivity are components of the operational dimensions in evaluating subsidiary performance. Performance management system is one of the strategies needed to continue motivating the employees. Knowing that Company X has revamped its performance management system, the general question that underpins this thesis is: How does the current performance management system of Company X affect its subsidiary performance? To answer the research questions, a mixed method of data collection was employed to gather all necessary information for the thesis. The result of the analysis shows that employees were satisfied to new performance management but in terms of implementation, there were some perceived issues. In spite of this, managers see that there was a changed in the employees’ performance. Employees were now confident in meeting their goals and the removal of competition promotes a spirit of collaboration among employees that results in a better output. From the findings of this thesis, it can be inferred that through the new performance management system, subsidiary performance will subsequently improved.

Keywords

Multinational Company, Subsidiary Performance, Company X, New Performance Management System, One-Sample T-test

Language used: English

Date on which the thesis was submitted / produced: 17. 5. 2017

Thesis defence

• Date of defence: 23. 6. 2017
• Supervisor: Ing. Bc. Sylva Žáková Talpová, Ph.D.
• Reader: Ing. Bc. Alena Šafrová Drášilová, Ph.D.

Masaryk University

Faculty of Economics and Administration

Master programme / field:
Economy and Management / Business Management (Eng.)