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Internationalization has become an integral part of organizations. This trend has no nationality. Predictions for the future indicate that internationalization will continue to grow, as companies from developing countries and emerging markets enter the global economy. Yet internationalization is just one trait characterizing contemporary organizations. Another is the tendency of successful organizations to build their competitive advantage using the unique features of human capital. The relationship between these two practices justifies the growing importance of managing human resources on an international scale. This paper aims to extend the knowledge of performance management practices as implemented by companies developing their international operations. This paper explores the importance of two issues. First, there continues to be a dearth of information on how to configure the performance management (PM) system during the transformation that accompanies internationalization in international human resource management literature. Second, in the area of international publications, there is a shortage of information dedicated to human resource management issues from developing countries, especially Poland – one of the fastest growing economies in the UE, ranked ninth among the top places in the world for outsourcing. As the direct investment activities of Poland are becoming more visible, especially in European Union countries, this paper focuses on an examination of these issues
