PERFORMANCE MANAGEMENT

AN INTERNATIONAL PERSPECTIVE

Page 2

MAJOR COMPONENTS

SUBSIDIARY GOALS

MNC’S GLOBAL STRATEGY AND

GOALS

PERFORMANCEAPPRAISAL

INDIVIDUAL EMPLOYEEJOB GOALS AND

STDS.

JOB ANALYSIS

TRAINING

Page 3

Term expatriate used for PCN,HCN,TCN

Term international employees used for expats. and non expatriates (international business travelers who do not relocate yet manage international operations through frequent travel or virtual assignments

Page 4

Factors affecting performance management

1. Compensation: such assignments taken for perceived financial benefits and career progression

2. Task: Hays identifies four tasks

CEO to oversee the entire foreign operations

Structure reproducer to reproduce in a foreign subsidiary the ways of functioning of the head quarter

Trouble shooter to solve the operational problems

An operative to perform functional job tasks in the existing operational structure, may not be a very high position

Page 5

3. Head quarter’s support

The task determines the roles

Roles are organized set of behaviors that arte assigned to a particular position

Expatriates are role recipients and MNCs are role senders

Often there is a mismatch between role expectations from MNC and Host country stake holders due to differences in culture

Roles are decided in one culture and practiced in another

The MNCs prevent expats from becoming too close with the host country concerns (‘going native’) and could be recalled early

This often leads to expats ignoring the role expectations from the host country as the appraisal would be don by the head quarters

Problem complicated for TCN

Page 6

4. Environment in which performance occurs: easier to perform in a wholly owned subsidiary than in a joint venture

Problems are more in a JV operating in a developing market than a mature economy

5. Cultural adjustment: deals primarily with the adjustment in the new environment

Page 7

CONTROL AND PERFORMANCE MANAGEMENT

At HQs

At each subsidiary

level

Page 8

DIFFERENT ISSUES

– PERFORMANCE CRITERIA

Goals are translated to PA criteria.

Hard goals: Objective, Quantifiable Ex : ROI, Market Share

Soft Goals : Trait based Ex: Leadership and interpersonal skills

Contextual Goals : Takes Situation into Account

– WHO CONDUCTS THE APPRAISAL?

– STANDARDIZED OR CUSTOMIZED PERFORMANCE APPRAISAL FORM

– FREQUENCY OF APPRAISAL

– PERFORMANCE FEEDBACK

Page 9

PERFORMANCE MANAGEMENT OF NON

EXPATRIATES Individual Performance management involves job analysis, job goal

settings and standards, and performance appraisal.

Traditional approach: goal setting, performance appraisal and feedback.

Company Goals influence individuals job analysis ,job description, job

goals and standards.

Management by remote control

Differences exist within Companies. Example: German Vs U.S

Page 10

APPRAISAL OF HCN EMPLOYEES

Practices of PA itself confronts the issue of its cultural applicability.

Ex: Japan

Japanese manager cannot directly point out error committed by the subordinate

Page 11

Parent Company(Role Sender)

HCN Manager(Role Recipient)

Host Country Stakeholders (Role Senders)

HCN Manager’s Role Behavior

Communicates Role conception

Cultural Boundary

HCN ROLE CONCEPTION( Torbiorn’s Model)

Page 12

The Performance Appraisal remains problematic irrespective of cultural impacts.

Recent research across 10 countries shows that

‘It appears that the potential of appraisal is not fully realized in current practices, not only in US but also in other countries’.

Page 13