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85% of the firms surveyed were found to have a robust innovative program in terms of compensation and payment. This is achieved through a performance appraisal programme such as upward/peer appraisal and forced distribution. 72% of the MNC's utilized an innovative scheme for managers, through individual ‘output' criteria which were supplemented by a range of other criteria including behaviour in relation to desired competencies and to corporate values.

1.6.2 Innovative HR Practice: Training & Development Programmes

In respect of adoption of high potential innovative training programmes among MNCs, the organisations were asked if both their UK and overseas operations had a management development programme specifically aimed at developing its ‘high potentials' or senior management and employee potential. The data show that high potential programmes are adopted by 70% of organisations; 30% of organisations are not using them. Organisations were asked whether they used a global high potential programme that was adopted elsewhere worldwide, or a local, nationally specific programme. Most organisations indicated that their programmes are global in scope.

1.6.3 Innovative HR Practice: Appraisal Activities

In comparison of performance appraisal practices and management values, the formal performance appraisal schemes for all three groups are very widespread; over nine out of ten firms have them for key group and managers, and over 80% have them for large occupational groups. Only 3% of firms have no formal appraisals at all. Just over a fifth of firms use ‘forced distributions' for the results of appraisal. A clear majority of firms use the results of appraisal as the basis of decisions on redundancy and redeployment.

1.6.4 Innovative HR Practice: Employee Involvement & Communication

UK-based multinationals most commonly cite ‘setting a broad policy HR programme as being significant or very significant (62% and 66% for training and development and for employee involvement policy respectively). HR advice and consultancy is also relatively prominent for training and development policy (53% significant or very significant), but less so for employee involvement policy (33%). For training and development, and employee involvement, policy, the respective proportions reporting the other means of influence as significant or very significant are: setting detailed HR policies (32% and 31%); monitoring HR policy implementation (39% and 34%); and HR benchmarking and information exchange (42% and 28%).

1.6.5 Innovative HR Practice: Global Knowledge Sharing & Diffusion

In respect of innovative HR programmes which promote employee knowledge, learning and diffusion, international employee learning mechanisms are used extensively across all MNC both within the UK and across overseas operations. The survey focused on five formal organisational learning mechanisms used by managers that are international in their scope:

International projects groups or task forces, which are often used to address specific issues;

International formal committees;

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