Contextual complexity: understanding unique appraisal reactions of top subsidiary managers

Official URL: https://dx.doi.org/10.1016/j.emj.2024.09.006

Effective performance appraisals are essential for managerial success and heavily depend on positive employee reactions, vital indicators of appraisal effectiveness. This study explores how isolation from supervisors and poor communication channels critically shape appraisal reactions among top subsidiary managers. Through an in-depth qualitative analysis of 34 managers, we investigate the unique adverse effects of these contextual factors. Using the leader–member exchange theory within the framework of subsidiary–headquarters interactions, we reveal complex, multidimensional communication challenges that are absent in conventional remote work settings. These challenges contribute to deteriorating relationships between managers and supervisors, highlighting the urgent need for enhanced communication strategies. Significantly, our findings highlight the distinct appraisal context of top subsidiary managers, whose experience diverges significantly from that of typical routine workers, necessitating tailored strategies to improve appraisal processes. This research establishes a robust agenda for enhancing these interactions, boosting appraisal effectiveness in multinational corporations.