Control and Performance Evaluation in MNCs

Abstract

This chapter examines the control and performance evaluation functions in MNCs, with particular emphasis on the effects of various forms of control upon the performance evaluation of divisions, subsidiaries and managers. Therefore, we shall also discuss the design of performance evaluation and control systems. Another issue that falls within this topic pertains to the advantages and disadvantages of various measures of performance. As we shall discover, this topic is closely related to the topic dealt with in Chapter 9— that is, transfer pricing. This is because transfer pricing affects the control and evaluation systems used by MNCs.