A Subsidiary Assessment Framework (Case study: Kerman Office Machinery Company)

The perceptional gap between headquarters and subsidiaries on the one hand and the gap between each subsidiary and the others on the other hand have turned the assessment of sales subsidiary performance a daunting task for organizations with geographically-dispersed structures. The present study relies on a triad of theories namely, heterarchical structures, due process and power obsolescence, to formulate a theoretical-applied framework for appraising the performance of provincial sales subsidiaries.

The framework employs BSC in combination with multi-criteria decision algorithms, AHP and TOPSIS to capture a comprehensive account of performance criteria. As a case study, the model was utilized to assess the performance of sales subsidiaries in Kerman Office Machinery Company.

The suggested framework focuses on the process through which an appropriate level of subsidiary involvement in assessment procedure is practically guaranteed. In addition, it seeks to improve the managers’ perceived process fairness as far as performance assessment is concerned. This may enhance subsidiaries’ support and increase their commitment to strategic organizational decisions and assessment outcome.