The influence of global uncertainty on the cross-border performance appraisal: A real options approach

Abstract

Purpose

The aim of this paper is to examine the practice of performance management in a cross-border context in times of global uncertainty.

Design/methodology/approach

This is a conceptual paper.

Findings

The findings expose global uncertainty to be wielding a significant influence on performance management.

Practical implications

A practical framework is developed using real options theory. This approach offers suggestions for multinational corporations to increase the effectiveness of their performance management while at the same time focusing on profit-maximisation.

Originality/value

This paper enhances international management research by recognizing that real options theory can effectively be applied to improve the effectiveness of performance management in global uncertainty.

Citation

Maley, J. and Kramer, R. (2014), "The influence of global uncertainty on the cross-border performance appraisal: A real options approach", Personnel Review, Vol. 43 No. 1, pp. 19-40. https://doi.org/10.1108/PR-10-2011-0160