International landscape of doing business is getting tougher and tougher day by day as more and more players are mushrooming into the different markets with more innovative ideas and strategies to capture the market. One of the most effective responses which MNEs can put forward is the setting up of an effective performance management system which can ensure that the organization’s strategic objectives are achieved with maximum efficiency. In such a context performance management, therefore, is a key concept which is however been vaguely described as most of the definitions fail to comprehensively capture the true essence of the performance management. (Anderson et.al, 2006).International Performance management is considered as A process that enables the MNE to evaluate amp. continuously improve individual, subsidiary unit amp. corporate performance against clearly defined, pre-set goals amp. targets.(Taken from the PowerPoint Presentation attached with your order. please reference it as I am not sure from which book this is taken)The above definition suggests that international performance management comprises of three distinct entities which MNEs have to manage in order to improve upon their performance. The above definition, therefore, suggests that the performance management is a very systematic process which involves a systematic approach of evaluating as well as developing goals for the effective performance management. However, what is also critical to understand is the fact that performance management is always a continuous process and requires an effective and on-going effort on the part of the top management of the firm to continuously monitor and evaluating the performance measurement criteria so that better systems and measurements can evolve to achieve the strategic objectives. Considering, therefore, the strategic nature of the performance management, it is important to understand the strategic context within which the issue of performance management shall be viewed as a failure to implement an effective performance management system.