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      IBUS 618 Dr. Yang 1

    Chapter 10

    Performance Management

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      IBUS 618 Dr. Yang 2

    Chapter Objectives

    The aim of this chapter is to draw together the

    ree!ant iterat"re on performance management in

    the internationa conte#t as it reates to I$%M.

    The foc"s is on identif&ing aspects that re'"ire as"(stantia modification of traditiona performance

    management )especia& appraisa criteria and

    processes* that are imposed (& internationa

    operations. +e specifica& address the foowing aspects,

    Cont.

    The aim of this chapter is to draw together the

    ree!ant iterat"re on performance management in

    the internationa conte#t as it reates to I$%M.

    The foc"s is on identif&ing aspects that re'"ire as"(stantia modification of traditiona performance

    management )especia& appraisa criteria and

    processes* that are imposed (& internationa

    operations. +e specifica& address the foowing aspects,

    Cont.

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      IBUS 618 Dr. Yang -

    Chapter Objectives (cont.)

    M"tinationa performance management at the go(a and

    oca e!e, onsidering aspects s"ch as non/compara(e

    data0 the !oatiit& of the go(a en!ironment0 the effect of

    distance and e!e of s"(sidiar& mat"rit&

    Performance management as part of a m"tinationas contros&stem

    actors associated with e#patriate performance0 inc"ding

    compensation pac3age0 tas3 and roe0 head'"arters s"pport0

    host en!ironment factors and c"t"ra ad4"stment

    Performance management of e#patriates and non/e#patriates0 and for those on non/standard assignments s"ch

    as comm"ter and !irt"a

    Iss"es reated to the performance appraisa of internationa

    empo&ees.

    M"tinationa performance management at the go(a and

    oca e!e, onsidering aspects s"ch as non/compara(e

    data0 the !oatiit& of the go(a en!ironment0 the effect of

    distance and e!e of s"(sidiar& mat"rit&

    Performance management as part of a m"tinationas contros&stem

    actors associated with e#patriate performance0 inc"ding

    compensation pac3age0 tas3 and roe0 head'"arters s"pport0

    host en!ironment factors and c"t"ra ad4"stment

    Performance management of e#patriates and non/e#patriates0 and for those on non/standard assignments s"ch

    as comm"ter and !irt"a

    Iss"es reated to the performance appraisa of internationa

    empo&ees.

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      IBUS 618 Dr. Yang 5

    Performance Management

      process that ena(es the m"tinationa

    to e!a"ate and contin"o"s& impro!e

    indi!id"a0 s"(sidiar& "nit0 and corporate

    performance0 against cear& defined0pre/set goas and targets

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      IBUS 618 Dr. Yang 6

    Evaluating Subsidiary Performance

    actors to consider, +hoe !ers"s part

    on/compara(e data

    9oatiit& of the go(a en!ironment

    Separation (& time and distance

    9aria(e e!es of mat"rit&

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      IBUS 618 Dr. Yang :

    Control and Performance

    Management Performance management is part of the

    m"tinationas contro s&stem.

    Performance targets are part of forma contro.

    Performance management contri("tes to

    shaping corporate c"t"re0 e.g. +ho cond"cts performance appraisa

    Tangi(e !ers"s intangi(e criteria

    Indi!id"a !ers"s team (ased appraisa

    $ow res"ts in3ed to $% decisions0 e.g.0

    compensation and promotion

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      IBUS 618 Dr. Yang 8

    ariables !ffecting E"patriate

    Performance

    "t"ra ad4"stment ; sef and fami&

    $ost en!ironment

    $ead'"arters s"pport

    Tas3

    ompensation

    pac3age

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      IBUS 618 Dr. Yang =

    #ndividual Performance Management

    The tas3,

    hief e#ec"ti!e officer 

    Str"ct"re reprod"cer 

    Tro"(eshooter 

    >perati!e

    Tas3 !aria(es are genera& considered

    more "nder the contro of the m"tinationathan en!ironmenta factors.

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      IBUS 618 Dr. Yang 1?

    $oles

      roe is the organi@ed set of (eha!iors assigned

    to a partic"ar position.

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      IBUS 618 Dr. Yang 11

    PC% $ole Conception

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      IBUS 618 Dr. Yang 12

    &C% $ole Conception

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      IBUS 618 Dr. Yang 1-

    'ead(uarters) Support

    The s"pport of head'"arters is important

     ; (oth to the indi!id"a e#patriate and

    accompan&ing fami& mem(ers ; as a

    performance !aria(e

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      IBUS 618 Dr. Yang 15

    &he 'ost Environment

    The e#terna conte#t can (e a ma4or determinant

    of e#patriate performance

    Differing demands in terms of the conte#t,

    Societa Aega

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      IBUS 618 Dr. Yang 17

    Conte"tual Model of E"patriate Performance

    Management

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      IBUS 618 Dr. Yang 16

     %on*e"patriate Performance

    Management

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      IBUS 618 Dr. Yang 1:

    Performance !ppraisal

    Performance criteria $ard goas, o(4ecti!e0 '"antifia(e and can (e

    direct& meas"red

    Soft goas, reationship or trait/(ased onte#t"a goas, factors that res"t from the

    sit"ation in which performance occ"rs

     n appraisa s&stem that "ses hard0 soft

    and conte#t"a criteria is ad!ocated

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      IBUS 618 Dr. Yang 18

    Other +actors !ffecting !ppraisal

    +ho cond"cts the performance appraisa

    Use of standardi@ed or c"stomi@ed

    appraisa form

    re'"enc& of appraisa

    Performance feed(ac3 Time&

    Ceographica distance affects

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      IBUS 618 Dr. Yang 1=

    !ppraisal of 'C%s

    The practice itsef confronts the iss"e of

    c"t"ra appica(iit&.

    Ma& (e necessar& to "se oca staff and a

    c"stomi@ed form.

    Ae!e of position in!o!ed is an important

    consideration.

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      IBUS 618 Dr. Yang 2?

    'C% $ole Conception

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      IBUS 618 Dr. Yang 21

    Chapter Summary

    Technica competence is a necessar& ("t ins"fficient

    condition for s"ccessf" internationa performance.

    Most m"tinationa firms see3 manageria

    characteristics when seecting internationamanagers0 e.g.  ross/c"t"ra interpersona s3is

    Sensiti!it& to foreign norms and !a"es and

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      IBUS 618 Dr. Yang 22

    Chapter Summary (cont.)

    +e ha!e e#pored in this chapter, The (asic components of performance management

    s&stem that is conscio"s of and responds to the

    organi@ationa0 nationa and internationa eements.

    M"tinationa performance aspects s"ch as whoe )go(a*!ers"s part )s"(sidiar&*0 non/compara(e data0 the !oatiit&

    of the go(a en!ironment0 the effect of distance0 and the

    e!e of mat"rit&.

    Performance management as a contro mechanism

    actors associated with e#patriate performance, the

    compensation pac3age tas3 and roe head'"arters

    s"pport host en!ironment factors and c"t"ra ad4"stment.

    (cont.)

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      IBUS 618 Dr. Yang 2-

    Chapter Summary (cont.)

    Performance management of non/e#patriates and

    those on non/standard assignments0 e.g.  9irt"a assignments as an i"stration of some of the

    aspects that need to (e considered in non/traditiona

    t&pes of assignments.

    Specific iss"es reating to the performance

    appraisa of internationa empo&ees

     ppraisa of $ empo&ees in s"(sidiar&

    operations.

    (cont.)

    Performance management of non/e#patriates and

    those on non/standard assignments0 e.g.  9irt"a assignments as an i"stration of some of the

    aspects that need to (e considered in non/traditiona

    t&pes of assignments.

    Specific iss"es reating to the performance

    appraisa of internationa empo&ees

     ppraisa of $ empo&ees in s"(sidiar&

    operations.

    (cont.)

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      IBUS 618 Dr. Yang 25

    Chapter Summary (cont.)

    Broadening o"t the disc"ssion to the m"tinationa

    e!e and addressing performance management

    and appraisa concerns reated to non/e#patriates

    and those on non/standard assignments has (een"sef" to remind "s that there are man& dimensions

    to internationa ("siness operations that need to (e

    considered when designing an effecti!e

    performance management s&stem in the

    m"tinationa conte#t.