Success for international joint ventures investments are determined by effective consideration of issues affecting development, implementation, and evaluation of their management systems. This is mainly built on the business systems that intrinsically and externally affect the business entity. Performance management is a continuous process that involves building the necessary systems, articulating them in the immediate contest of the investment and monitoring them to ensure all the strategic goals are met.
It acts to link individual and organizational goals and objectives necessary for higher profitability. Acting as a direct bridge and an emphatic tool for organization culture, it tries to ensure better and effective system for greater results (Bititci et al, 2004). This essay evaluates the major issues that require to be addressed when developing and implementing a performance management system in a joint venture investment between US and China.
Besides, it explores the effective evaluation and monitoring issues and develops appropriate recommendation for ensuring their better application. Performance management As indicated earlier, performance management entails establishment and evaluation of the overall organization’s ability to meet its intended goals and objectives in its applications. It entails the respective feedback and through performance appraisal that ensures effective work planning and rating measures which operates concurrently to determine the results of the organization (Bob, 2007).
The joint venture should establish direct departmental targets and checks that can be used to evaluate its later performance. However, the systems establishment should be established in a cohesive mode that applies them in all the systems aspects and necessary for even development of all the systems. Culture Arguably, organization’s culture is one of the most difficult aspects to instill or change in an organization. International joint ventures are even harder to articulate specific aspects of culture with speed.
However, particularistic consideration and continued emphasis should be established by the leaders from the beginning. Whereas most of the manager’s emphasis on direct application of management systems with minimal deviation for ensuring better returns, the joint venture should establish strong organization management that incorporates the employees at all stages of management. Therefore I would develop a strong culture of identity where all the staff own the organization for better returns (Bititci et al, 2004).
Therefore, their activities would be applied as if they were applying them for personal considerations. I would also insist on culture of consultation, collective responsibility, and the direct desire to enhance better operations at all the stages and levels of management. This would subsequently be manifested in terms of reduced conflicts and harmonic exhaustion of alternatives during different problem solving situations in the venture.
Being a joint venture evaluation should be based on the direct outcome for the different locations of the business entities (Bourne et al, 2003). With the Chinese and American settings being very different, the factor should be featured in the evaluation consideration factoring in the direct regional capacity of the ventures establishment in US and China. Leadership Bob (2007) notes that over the years analysts have pointed out that a company’s internal performance management systems can easily be understood via evaluation of its leaders and leadership styles.
Therefore, there should be strong representation from both sides as a harmonization platform for better performance of the joint entity. Underscoring the need to ensure all the alternatives aspects of problem solving variations are considered for the best option to be arrived at when making key organization decisions, the leadership of the venture would include a cohesive team work at all the management levels. Performance of an organization is determined by the direct warmth of the staff and employees in the joint venture.
Besides, the management should also be emergent and based on the ability of the individual as opposed to bureaucratic selection which has direct omissions and possibility of omitting the correct leaders (Bourne et al, 2003). This would culminate to reduced resistance of change to decisions as all the staff from the American and Chinese side would be effectively represented and therefore part of it. Evaluation for the leadership should be based on the direct systems used and immediate satisfaction of the staff which is reflected on their operations.
As a result, there should be a coterminous approach in the management issues with greatly reduced conflicts. Though this may be hard to tell, especially in joint venture situations, the reflection should be based on direct productivity of services and/ or products from the company. Similar to organization culture in the joint venture, the holistic consideration of all the staff systems indicates a direct articulation of the new system for improved performance (David & Christine, 2008),. Customer focus
Arguably, the main intention of establishing the Chinese-American joint venture is to reap maximum profits from it. Therefore, performance management should be based on the projection of raising the total number of unit sales and capturing the market for higher profits. This should be implemented by giving customers the best in all the different considerations of the organization management and production. The venture should establish strong total quality management standards that aim at promoting better customer satisfaction from the offered goods and services (Bititci et al, 2004).
Besides, there should be enough corporate social responsibilities by the venture as a way of giving back and wining the customers to the business. This should be evaluated in terms of customer satisfaction and loyalty to the established business and simultaneously reflected in the sales and returns of the venture. Staff motivation According to David & Christine (2008), staff motivation acts as a direct performance benchmark for a venture that acts to support all the systems in an organization. Performance of an organization depends on motivation of the system.
The venture should establish rewards and gifts based on their work. This should in turn be broken to short win-win situations that link up to assist in realization of the long term goals in the organization. This should be reflected on the enthusiasm and overall output from the staff. Besides, it should be evaluated on the basis of the achievement of the short term and long term goals of the venture (Bourne et al, 2003). However, there should be a careful balance and effective benchmarks established to avoid starving the system.
Conclusion All the performance management issues in a joint venture should be addressed effectively to ensure better performance from the organization. As indicated in the discussion, the management should establish a direct and harmonic system as a direct applicability necessary for effective coordination of the system. All the staff should be incorporates in the system as a direct culture and identity development for internal satisfaction and external implication of the system.
Besides, a coordinative authority and evaluation technique should be done at all levels of management to raise the returns and productivity from the venture. Reference list Bititci, U. , Mendibil, K. , & Turner, T. (2004). The interplay between performance measurement, organizational culture and management styles. Measuring Business Excellence, 8 (3): 28-41. Bob, P. (2007). Five Key Principles of Corporate Performance Management. New York: John Wiley and Sons. Bourne, M. ,Franco, M. and Wilkes, J. (2003). Corporate performance management. Measuring Business Excellence. New York: Sage.