Economics at your fingertips  

International Differences in Subjective Performance Evaluation,Compensation and Career Dynamics in a Global Company

Nikolaj Halse (), Valérie Smeets () and Frédéric Warzynski
Additional contact information
Nikolaj Halse: Novo Nordisk
Valérie Smeets: Institut for Økonomi - Nationaløkonomi, Postal: Hermodsvej 22, lokale FH329, 8230 Åbyhøj, Danmark,

No 11-15, Working Papers from University of Aarhus, Aarhus School of Business, Department of Economics

Abstract: In this paper, we use confidential personnel records from a large multinational firm to study the differences in subjective performance evaluation and their consequences across countries. We focus our analysis on three different sets of countries: Europe (where the headquarter is established), U.S. and Asia (Japan and China). We try to understand why performance evaluation is distributed differently across countries, and how these differences affect wage growth, the size of the bonus and promotion decisions. We find that evaluations tend to be better on average at the headquarter, but also that wages, bonuses and promotion decisions are less sensitive to performance, therefore diminishing the strength of the incentive mechanism behind performance evaluation. We document how learning about managerial ability occurs through repeated observations. We then discuss the long run implications of these differences on career dynamics and the policy implications for the firm if it wants to implement a consistent human resource policy across countries.

Keywords: No; keywords (search for similar items in EconPapers)
JEL-codes: A10 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2011-10-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link) (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to (No such host is known. )

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this paper

More papers in Working Papers from University of Aarhus, Aarhus School of Business, Department of Economics The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark. Contact information at EDIRC.
Bibliographic data for series maintained by Helle Vinbaek Stenholt ( this e-mail address is bad, please contact ).

Page updated 2023-12-02
Handle: RePEc:hhs:aareco:2011_015