INTRODUCTION:

Of all the Human Resource management functions, performance management has a special place since it is strength determinant of organizational excellence. Organizations of contemporary era have realized that Human Resource needs to be continuously excited and provided with opportunities for gratification of motivational needs in order to sustain business growth. At this juncture Performance Management, as a concept and practice has the substantive potential to fulfill business demands of an organization by integrating its growth with motivational needs of human resource. Mohrman and Mohrman (1995) stated that Performance Management is managing the business. Performance Management is concerned with the encouragement of productive discretionary behavior.

(Parcell et al, 2003). Performance management (Armstrong 1998) is a means of getting better results from the organizations teams and individuals by understanding and managing performance within an agreed framework of planned goals, standards and competency requirements. Thus Performance Management is that part of an organizations, people related functions, which is carried out by those directly managing the people.

REVIEW OF LITERATURE:

Performance management being a dynamic concept has become an important aspect to enhance the efficiency, effectiveness and accountability in the organizations. Literature survey also reveals that there are many empirical research studies have been conducted on various aspects which influence Performance Management System all over the globe.

Attempts have been made by Cokins, Gary (2009) to understand how performance management acts as a process of integrating strategy Execution, methodologies, Risk, and Analytics. A study conducted by Koen Dewettinck (2008) proposed that a Performance Management system‘s purpose can be positioned on a bipolar continuum from a strong performance orientation to a strong development orientation. It is again K. Ravichandran (2007) focused on performance management as a means to improve the performance of the individual employee which results in overall improvement of the organization.

The study presented by Smith Gupta (2006) opined that Performance management is a process of setting objectives and identifying goals of the members of the organization. Kamensky, J. M. (2006), in his study found that Performance Management seeks to link individual and team job performance to the objective and strategy of the organization. It is continuous process that involves managers and employees in the identification and evaluation of key performance objectives and competencies that contribute to the attainment of the objectives and strategy of the organization. A study presented by Dr. Richard and Williams (2006) revels that managing the performance of others is a combination of experience, knowledge, technique, communication and courage. If any of these five elements are neglected, managing the performance of others is difficult at best and in effective at the least.

However, despite of the growing use of performance management systems, companies experience difficulty in implementing such systems, with consequent risk of partial benefits or total goal failure. Though the literature on performance management systems is quite vast, but only few of the models addressed the problem in its entirety, while many other works focus on specific issues related to performance management. Paolo Taticchi, Kashi R Balachandran (2008). A study by Tapomoy Deb (2006) also stated that some of the major reasons for failure are; lack of management commitment, lack of performance oriented culture, lack of proper management tools and techniques and also lack of flexibility of the system.

THE PRESENT STUDY:

One of the most difficult challenges to international operations is the management of Human Resources, (Briscoe and Schuler, 2004) out of which the subject of global performance Management was triggered by this gap of how MNCs deal with it on a daily basis. In order for companies to succeed with such global integration, supporting global integration and supporting global HR Systems such as performance management systems needs to be developed. Thus Performance management is one HRM practice that is of utmost importance for the company and closely linked to the company‘s strategy and values and a way to control the subsidiary. It reflects and evaluates the achievement of pre-determined clear goals and targets, (Dowling, Welch and Schuler, 1999). It is also an important organizational tool to clarify performance objectives, standards, critical dimensions and competencies to enhance individual performance most especially in MNC's.

But in a developing country like India which is experiencing a competition from a number of multinational corporations who started operating in various sectors like Banking, Insurance, Manufacturing, Hotels, Airlines, Mutual funds etc., has also brought major changes in the Indian industry. These Multinational corporations growth in India had brought considerable economy growth and change in the culture, tradition against principle. In addition to that Performance management process has also changed to suit to the MNC’s requirements and strategic ideas. With the globalization of the economy the market place has become highly complex turbulent and competitive on the global scenario. Hence, there is a need to understand that to what extent Indian consumers are exposed to world class products and services provided by MNCs., how the huge amount of foreign investment has flowed to local industries and how a number of mergers acquisitions have taken place and finally how the Organizations are providing organizational support required for successful performance management.

Though there are several studies conducted at various places by the researchers, there is a great need to take up more research activity in the vital area of performance management. Particularly case studies making an in depth study of performance management system in individual MNC enterprises are conspicuous by their absence. Therefore, this study has been conducted with an attempt to understand the performance management in MNC's with special reference to Aker Solutions a Multinational Corporation, a leading global oil services company that provides engineering services, Technology, product solutions and field-life solutions for the oil and gas industry. This study would examine closely how the MNCs deal with global performance Management on a daily basis, the policies and practices adopted for effective performance management in Aker and also examine the appropriate methods and strategies to develop the individual and organizational performance.

OBJECTIVES OF THE STUDY:

Ø To know the company policy on performance management system in Aker Solutions.

Ø To study the performance appraisal criteria in Aker Solutions.

Ø To evaluate the employee alignment with company values

Ø To examine the performance and development goals of the organization

Ø To study the perception of the employees with line management duties.

Ø To assess the employee feedback on the work environment

Ø To review the overall performance of the Performance system and analyze its contribution for the growth of Aker Solutions.

HYPOTHESES OF THE STUDY:

Ø If performance management system has a relationship with organizations success then high efficiency leads to high effectiveness of the organization.

Ø Performance management enhances competitive advantage. It increases financial performance and productivity and fosters positive out comes with the customers and suppliers.

Ø There is a positive relationship between the outcomes of performance system and the personal and organizational variables.

METHODOLOGY:

Method of Study:

The present study uses a combination of case study and survey method. Case study method is adopted to make an in-depth analysis of performance management practices. Survey method found to be highly suitable to elicit pertinent and reliable information including the responses of the sample in managerial personnel.

Universe and Sample:

The universe for the present study is a multinational Corporation located at Kakinada of Andhra Pradesh namely, Aker Solutions India Sdn Bnd Limited having total population of 75 employees which includes both managerial and non-managerial employees. In which the managerial cadre further divided into Manager, Deputy Manager and Asst. Manager, Sr. Executives, Non-Managerial grouped into Engineers, Supervisors, Technician, and Clerks/Office Assistants. Out of the total population of 75, 60 employees were selected as sample size for the purpose of the study giving representation to the various strata following the principle of stratified random sample method.

Data Collection:

Data has been collected both from primary and Secondary sources. Primary data was collected by personally visiting Aker Solutions Ltd. collecting the first hand information through personal contacts and extensive interviews for which principle tools of questionnaire, interviews and observation for gathering the opinion of sample respondents, (managerial and non- managerial employees, further classifying into Expatriates and Host country nationals) were used. A standard questionnaire was prepared which consist of seven dimensions namely – company policy and performance Appraisal system, Performance Appraisal Criteria, Employees with line management duties, evaluation of employee alignment with company values, performance and developmental goals, performance review and employees feedback on working environment. These seven dimensions of Performance Management depicts the efficiency of management, strengthen superior-subordinate relationship and team spirit among the employees towards performance management. The above seven dimensions are taken as guiding principles to determine performance management in Aker. Secondary source of data on the other hand were collected from annual reports, office records, files, brouchers and other published and unpublished materials of the organizations as well as books and government reports.

Data Analysis:

The attempt has been made, to analyze and understand the perceptions of sample respondents about the performance Management Systems in Aker Solutions. The information collected from the respondents pertaining to the seven dimensions has been processed, tabulated and analyzed quantitatively by using percentage method. Below is the description of the seven dimensions of the present study.

Table 1: Awareness of Company Policy and Performance Appraisal System in Aker

Bases	No. of Respondents	Managerial (17)	Non- Managerial(43)	% of Managerial	% of Non Managerial
Strongly Agree	25	06	19	35.29	44.18
Agree	29	08	21	47.06	48.84
Neutral	05	02	03	11.77	6.98
Disagree	00	00	00	00.00	00.00
Strongly Disagree	01	01	00	5.88	00.00

Interpretation:

The first dimension pertaining to the Company Policy and Performance Appraisal System in Aker includes the following sub themes namely Awareness and communication regarding the Company’s policy, Company’s Policy Reflecting Equity and Justice, time span of Employee Performance Appraisal system in a year and Initiative of HR Department in Developing Appraisal Forms. The above table indicates that a majority of the respondents from Managerial cadre that is around 82 percent and 93 percent of the Non-Managerial cadre are aware and are satisfied with the implementation of all the aspects of Company Policy and Performance Appraisal System in Aker. Only six percent of the respondents from Managerial and Non-Managerial cadre disagreed, the reason could be less involvement of the employees. Thus from the above table it can be inferred that the company maintains transparency in communication, treats its employees with dignity and respect and believes equitability in practices.

Table2: Performance Appraisal Criteria in Aker

Bases	No. of Respondents	Managerial (17)	Non-Managerial (43)	% of Managerial	% of Non-Managerial
Strongly Agree	22	06	16	35.29	37.21
Agree	33	09	24	52.94	55.82
Neutral	04	02	02	11.77	4.65
Disagree	01	00	01	0.00	2.32
Strongly Disagree	00	00	00	0.00	0.00

Interpretation:

Aspects such as decision making, consistence in maintaining quality of work, adaptability, communication, team building skills, creativity, loyalty, dependability, punctuality and delivering accuracy in reports comprehensively are the criteria considered in the second dimension to evaluate Employee's Performance in Aker. The above table reveals that majority of the respondents i.e., 88 percent of the managerial cadre and 93 percent of the non managerial cadre are of the opinion that the performance appraisal criteria to measure the performance is good however 15 percent of the respondents from Managerial and Non-Managerial cadre were neutral towards the statement. Thus it can be inferred that the respondents are encouraged at all levels and the decision making at Aker Solutions is more of participative in nature. In addition the creativity helps the employees to sharpen their skill set and analytical thinking.

Table 3: Effectiveness of Employees with Line Management Duties in Aker

Bases	No. of Respoents	Mana gerial (17)	Non-Mana gerial (43)	% of Managerial	% of Non Managerial
Strongly Agree	24	09	15	52.94	34.88
Agree	30	05	25	29.41	58.15
Neutral	06	03	03	17.65	6.97
Disagree	00	00	00	0.00	0.00
Strongly Disagree	00	00	00	0.00	0.00

Interpretation:

The effectiveness of performance management depends largely on the Effectiveness of the line managers wherein aspects such as prioritizing the tasks, implementation of the short term and long term plans, developing trust and respect among their teams, entrusting challenging tasks to subordinates may be considered. Nearly 83 percent from the managerial cadre and 92 percent of the respondents from the non managerial cadre have opined that they are performing their duties in accordance with the set criteria specified for line managers. Whereas, 24 percent of them from both the cadre were neutral towards the statement. Thus we may infer that in Aker Solutions, an opportunity to their employees is given to involve and perform line managerial functions as per the specifications set.

Table 4: Evaluation of employee alignment with company values in Aker

Bases	No. of Respodents	Managerial (17)	Non- Manaerial (43)	% of Managerial	% of Non- Managerial
Strongly Agree	24	10	14	58.82	32.55
Agree	31	05	26	29.42	60.46
Neutral	03	02	01	11.76	2.33
Disagree	02	00	02	0.00	4.66
Strongly Disagree	00	00	00	0.00	0.00

Interpretation:

The value system of Aker solutions includes focus on customer satisfaction, delivering results with special emphasis on building morale, team work and group behavior. Aker expects that its employees goals should be aligned with the company’s ‘value system. From table four, it may be depicted that nearly 88 percent of the respondents from managerial cadre and 92 percent of the respondents from non managerial cadre of Aker Solutions stated that there exists a client – owner relationship in Aker solutions. Whereas, 13 percent of both the sample respondents where neutral towards the statement. It may be depicted that the managers in Aker solutions do play a significant role in improving the capabilities of the employees and they also lay emphasis on team work and group behavior at the workplace.

Table 5: Effectiveness in setting KRA's and KPA’s in Aker.

Bases	No. of Respondents	Managerial (17)	Non-Managerial(43)	% of Managerial	% of Non-Managerial
Strongly Agree	19	10	09	58.82	20.93
Agree	29	05	24	29.41	55.81
Neutral	10	02	08	11.76	18.60
Disagree	01	00	01	0.00	2.33
Strongly Disagree	01	00	01	0.00	2.33

Interpretation:

The Aker Solutions takes into consideration, the employees career goals and defining their Key Performance Goals and Key Performance Indexes for setting the developmental goals and actions according to individual objectives, departmental objectives and organizational objectives to assess the Effectiveness in setting KRA's and KPA's. From the above table it may be inferred that more than 88percent of the managerial cadre and 76 percent of the non managerial cadre are satisfied stating the development goals are defined in Aker solutions through employee manager dialogue and the same are reviewed for the previous year. However, 12 percent of managerial and 18 percent of non managerial cadre respondents were neutral towards the statement. Thus it may be inferred that the performance of the individuals can be developed and encouraged through the fulfillment of their common goals and aspirations which is possible only by developing the individual skills, in areas of their concerned specialization.

Table 6: Performance Review in Aker.

Bases	No. of Respondents	Managerial (17)	Non-Managerial(43)	% of Managerial	% of Non-Managerial
Strongly Agree	28	07	21	41.18	48.83
Agree	24	06	18	35.29	41.86
Neutral	07	03	04	17.65	9.31
Disagree	00	00	00	0.00	0.00
Strongly Disagree	01	01	00	5.88	0.00

Interpretation:

The dimension pertaining to the Performance Review at Aker Solutions focuses on assessing the individual, team and the overall performance of the organization to the set standards and achieving the end results in the most optimal way. From table six it may be revealed that around 76 percent and 90 percent of the managerial and non managerial cadre respectively expressed that while performance review meetings are held, both the managers and the employees will have discussions of the expected results before the next round of review meeting realizing the fact that the performance review will recognize success and identify things that have not gone according to the plan and the lessons that are to be learnt for the future. In addition, the respondents have also felt that the performance review should be signed by both the managers and employees to encourage the two-way communication between superiors and subordinates creating open and honest way of management style.

Table 7: Employee feedback on the working environment in Aker

Bases	No. of Respondents	Managerial (17)	Non-Managerial(43)	% of Managerial	% of Non-Managerial
Strongly Agree	22	08	14	47.06	32.56
Agree	31	07	24	41.18	55.82
Neutral	05	02	03	11.76	6.98
Disagree	01	00	01	0.00	2.32
Strongly Disagree	01	00	01	0.00	2.32

Interpretation:

Feedback on performance management should be factual. The success of performance management depends on effective feedback from the employees thereby creating an environment of empathy, trust, openness and cooperation. Thus, in Aker Solutions they have a clear procedure on employee feedback with regard to work environment helps the employee perception, attitude, and commitment to work. The above table indicates that around 89 percent and 88 percent of the respondents from managerial and non managerial cadre of Aker Solutions felt that each and every department seeks an effective feedback on the core activities of individual functional departments which results in making up the deficiencies. They also felt that team work create an effective working environment. However 16 percent of the both the sample respondents were neutral towards the statement.

Participative management is an outcome of effective feedback process and data reveals that employee feedback is given top priority in assessing the employee performance realizing the fact that it is required for creating a positive work environment which in turn reflects the organizational performance.

SUMMARY AND ANALYSIS OF HYPOTHESIS:

Global performance management is important to consider the fairness of the evaluation to ensure that the MNC receives full value from its managers. In a developing country like India having an Industry like Aker Solutions an MNC encourages its employees to take a quality based decision. Thus the respondents at Aker solutions felt that decision making is participative parameter in evaluating the performance of an individual.

The value system of Aker solutions includes focus on customer satisfaction, Hands on management, delivering results, open ended direct dialogue, Health, Safety Environment, mindset and people and teams. Aker also expects that its employees goals should be aligned with the company’s ‘value system.

The first hypothesis stating "performance management solutions have a relationship with organizations success and effectiveness" has been proved because in Aker all the employees ‘have knowledge about the mission, vision and objectives of the organization and they are clearly communicated the same through an effective communication pattern in addition, they are often given feedback on what they have achieved and what they are supposed to achieve in a positive manner.

The second hypotheses stating "Performance management enhances competitive advantage, it increases financial performance and productivity and fosters positive out comes with the customers and suppliers" has also been proved showing a significant relationship between all.

The third hypothesis stating "There is a positive relationship between the outcomes of performance system and the personal and organizational variables" is also been proved showing a significant relationship between outcomes and personal and organizational variables.

However, As the company is a global limited company and operations are carried out in different areas As a result, work force is of heterogeneous combination with different attitude mix, cross country cultures and languages due to which there may be a chance of communication gap between the appraiser and the appraise thus performance management/appraisal template to be translated compulsorily into the local language of the country/region where the company is operating to reduce language barrier. In addition, Oil and Gas industry being highly competitive needs highly specialized talented work force for its operations thus revisions are not to be implemented strictly based on ratings but should be considered other attributes and related performance evaluation techniques, revisions etc, so that the existing talent may not be lost and easy to retain.

CONCLUSION:

In the global world that we live in with the World Wide Web, improving education and frequent travelling many companies now compete in an international environment with a more diffused line between countries‘ borders where managing a foreign work force is more difficult than managing a domestic one. At this juncture, the subject of global performance Management was triggered by this gap of how MNCs deal with it on a daily basis.

Performance management in its fullest sense is based on the belief that everything that people do at work at any level contributes to achieving the overall purpose of the organization. It is therefore concerned with what people do (their work), how they do it (their behavior) and what they achieve (their results). It also embraces all formal and informal measures adopted by an organization to increase corporate, team and individual effectiveness and continuously to develop knowledge, skill and competence.

Performance management reminds us that being busy is not the same as producing results or training. Nor strong commitment and hard work alone are considered. The major contribution of performance management is its focus on achieving results, useful products and services for customers inside and outside the organization.

The present study which was conducted in Aker Solutions, a Multinational corporation realizing the fact that People differ in their abilities and their attitudes and thus treats its employees with dignity and respect and the company believes equitability in practices, in terms of implementing the principles of management. The Open-ended and direct dialogue is an effective feature of Aker Solutions India in addition, the decision making, participative management, alignment of key result areas and key performance areas with the overall organizational objectives, effective communication processes and transparency contributes to consistent improvement in performance of Aker Solutions in India. However, scope to conduct further research in related arenas are to be encouraged to understand and make the best use of performance management system in a MNC like Aker solutions to reduce the cross cultural barriers for better economic prosperity of India.

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Received on 03.07.2017 Modified on 09.08.2017

Asian J. Management; 2017; 8(4):1221-1226.

DOI: 10.5958/2321-5763.2017.00185.8