Performance Management in Multi-National Companies in Africa: Implications for Transferability of Human Resource Management Innovation to Developing Countries
Aminu Mamman and Bolanle Adeoye
Abstract
Although some experts have argued that the globalization of management education, and the standardisation of management practices across the globe has contributed to the growing convergence of managerial mindset (Warner 2002), the need for MNCs to contextualise their HRM practices have been increasingly advocated by experts (Adler, 1991; (David, 1989, Hofstede, 1991; 1993; Budhwar, 2001; Budhwar et al. 2006; Starkey 1998). The purpose of this paper is to rekindle debate on the ethnocentricism/convergence versus polycentricism/divergence theses. With the aid of review of literature, the paper will argue that, there is the need for further debate on the relevance of adapting human resource management innovations (HRMI) given that, in line with the culture fit model, local managers would adapt HRM practices anyway. The paper presents data on performance management (PM) systems from two MNCs operating in Nigeria. The aim of the data is to further demonstrate that local managers are perceived by host-country nationals (HCNs) to be adapting the PM system in contradiction to the companies' policies. The study is guided by the following research questions: (1) Given that MNC transfer HRMI to developing countries, which policy should guide the transfer (Polycentric or ethnocentric?); (2) Given that HCNs are not passive recipients of HRMI, what is the implications of the policy (Polycentric or ethnocentric) for MNCs? This finding is interpreted within the context of ethnocentric versus polycentric approach to HRM policy.
View and download
You will need a PDF reader such as Adobe Acrobat (downloadable from Adobe) to view PDF file(s). PDF files open in a new window.