When it is not OK: Performance management impacting employee acceptability and psychological contract in MNCs

Research output: Book chapter/Published conference paperConference paperpeer-review


Performance management (PM) is one of the most important and complex HR practices. Companies operating internationally are challenged in their PM practices as cultural peculiarities add complexity. In this conceptual study, we examine how unacceptable PM processes in multinational companies affect employees and their psychological contract (PC) with the company. The findings in our study reveal, when a PM is unacceptable to an employee, it is understood as a failure in four critical areas of organisational justice: distributive, procedural, interpersonal and informative. There are cultural differences in how these failures are assessed, and thus, how the PC is either breached or violated. At the individual employee level, symptoms of such breaches and violations include stress, reduced well-being, and poor performance among employees. At the organisational level, such breaches and violations can lead to poor overall performance. To improve the employee acceptance of PM in multi-national corporations and to reduce violations of the PC, we propose a unique theoretical model for acceptable PM that encompasses the four types of organisational justice.
Original languageEnglish
Title of host publicationBritish Academy of Management BAM2021
PublisherBritish Academy of Management
Number of pages34
ISBN (Electronic)9780995641341
Publication statusPublished - 2021
EventBritish Academy of Management 2021 Conference: BAM2021 Conference - Virtual (hosted by Lancaster University Management School), Lancaster, United Kingdom
Duration: 31 Aug 202103 Sept 2021
https://web.archive.org/web/20210831170636/https://www.bam.ac.uk/events-landing/conference.html (Conference website)
https://orghist.com/tag/bam/ (Call for papers)
https://virtual.oxfordabstracts.com/#/event/1821/topics (Proceedings)


ConferenceBritish Academy of Management 2021 Conference
Abbreviated titleRecovering from Covid: Responsible Management and Reshaping the Economy
Country/TerritoryUnited Kingdom
OtherOOTE: paper presentation times attached to PID 118734029
Virtual conference, hosted by Lancaster University Management School. Was also promoted as the 2nd BAM 2021 Conference In The Cloud.

In 2021, the 35th Conference and 2nd BAM Conference in the Cloud, will critically engage with the socio-economic recovery from the global Covid-19 pandemic.
Consumers, producers, frontline workers, managers, businesses, public and third sector organisations all have their own roles and responsibilities in transforming our marketised society for the post-pandemic world.
We will critically explore the challenges we all face, aiming to generate relevant, impactful insights into the innovative forms and means of mobilising the collective action that is required if we are to create a productive, flourishing and more inclusive society.
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