Performance management in cross culture

PERFORMANCE MANAGEMENT

IN CROSS CULTURAL

CONTEXT

Presentation By:Mandira AdhikariSailendra Adhikari

Introduction•Culture• complex whole• Includes knowledge, belief, art, morals, laws, customs and other capabilities and habits acquired by an individual as a member of a society

Introduction•Cross-culture• Phenomenon born due to market globalization• Culture is different by its contents and forms, such as language, behavior, food, dressing, beliefs, values, and ways of thinking• International companies are a good example of cross-culture

Introduction• International Companies do business internationally• Enter into a new country

•Cross-culture environment/situation is created. • International companies are a good example of cross-culture

Cross - Cultural Management • Process of achieving established organizational goals•By effective planning, organizing, directing, coordinating, and controlling•Use of organizational owned resources in a cross-cultural environment

Cross - Cultural Management •Management differs in different environments•Manager should clearly understand•Differences and similarities of his/her home culture and the host country’s culture

•Can overcome the conflicts generated from culture differences

•Manager also needs to learn and promote the way of management


• “Performance Management is a process for establishing a shared understanding about what is to be achieved and how it is to be achieved, and an approach to managing people that increases the probability of achieving success”

- Weiss and Hartle (1997)


•Brings together many people management practices including learning and development•Contributes to the effective management of individuals and teams•Helps to achieve improved levels• individual performance and development•organizational performance and development


• Establishes a culture• individuals and teams take responsibility• continuous improvement•Delivery of service using their own skills, behavior, and contributions


•Strategic process• Long term in nature• Aimed at the development of an appropriate culture linking people management, service issues, and long-term goals• It is not a once off quick fix process


•Difficult to know the 100% right path• It is required to•Review•Make corrections•Stay focused


•Requires the disciplined management•Need to Consider various activities in order to•Properly define•Monitor•Measure•Respond to the appropriate indicators

OBJECTIVES OF PM• To build a high performance culture for both the individuals and the teams•Outcomes• Jointly take the responsibility of improving the business processes on a continuous basis•Raise the competence bar by upgrading their own skills

OBJECTIVES OF PM• To enable the employees towards achievement of superior standards of work performance• To help the employees in identifying the knowledge and skills required for performing the job efficiently• To drive their focus towards performing the right task in the right way

OBJECTIVES OF PM• To boost the performance of the employees•By encouraging employee empowerment•Motivation• Implementation of an effective reward mechanism• To promote a two-way system of communication between the supervisors and the employees

OBJECTIVES OF PM• To identify the barriers to effective performance• To resolve those barriers through•Constant monitoring•Coaching•Development interventions

OBJECTIVES OF PM• To create a basis for several administrative decisions•Strategic planning•Succession planning•Promotions•Performance based payment

OBJECTIVES OF PM• To promote personal growth and advancement in the career of the employees by•helping them in acquiring the desired knowledge and skills

PM CYCLE/PROCESS

PM IN CROSS CULTURAL CONTEXT

• Competitive global business environment• Organizations need to aggressively compete for new

markets, products, services, and human talent within the global arena• Of the various resources organizations must manage

globally• Multinational/International companies have their

subsidiaries in various countries


• Transnational organizations must achieve a dynamic balance between•Need to be centralized, or tightly controlled by headquarters, and•Need to be decentralized, or operating differently across diverse locations


• Extreme centralization can provide an organization•Number of competitive benefits such as economies of scale, improved value chain linkages•Product/service standardization•Global branding


• Extreme decentralization can also be•Highly strategic

• Enabling a firm to modify products or servicesRespond to local competition

•Remain compliant with various governments' regulations in different countries of operation

•Readily attract local employees

• Penetrate local business networks


• Each diverse business strategy implies a different approach to managing HR• Global strategy• face strong pressure for worldwide integration but face weak pressure for local responsiveness


• Multi-domestic strategy• face strong pressures for local responsiveness and weak pressures for worldwide integration

• Transnational strategy

• face strong pressures for both worldwide integration and local responsiveness

HOFSTEDE’s FIVE CULTURE DIMENSIONS

•Power Distance • Individualism vs. Collectivism•Uncertainty Avoidance• Feminine vs. Masculinity• Long-Term vs. Short-Term Orientation

CHALLENGES

•Difficult to over-simplify national cultures•Constructing cross-cultural comparative analysis based on exaggerated cultural stereotypes•Difficult to distinguish clearly between cultural values and institutional arrangements

CHALLENGES

•Definition of Performance varies in different culture•Confusing on which activities of an employee•To consider as disciplinary action•Which to take as culture driven activities

CHALLENGES

•Difficult to manage employees in organizations with culture of high uncertainty avoidance•Rewarding for better performances becomes difficult as well in cross-cultural context•Determining hours of work is also difficult

CONCLUSION

•Managing across cultures is an increasingly important skill for business leaders in this globalizing world•Cross-cultural management in the expatriate context deserve careful consideration• The manager should ensure that there is better communication system in the organization

CONCLUSION

• It will ensure better working environment and motivated employees• Better performances and productivity•Should be managed tactfully with in depth research and considering consequences of each steps

References• http://hrweb.berkeley.edu/guides/managing-hr/managing-successfully/performance-

management/concepts

• http://www.ap-institute.com/Performance%20Management.html

• http://anthro.palomar.edu/culture/culture_1.htm

• http://www.managementstudyguide.com/objectives-of-performance-management.htm

• http://hr.commerce.gov/Practitioners/CompensationAndLeave/DEV01_006178

• https://www.opm.gov/policy-data-oversight/performance-management/performance-management-cycle/developing/understanding-performance-management-process-and-practices/

• Performance Management (Putting Research into Action), A book by James W. Smither and Manuel London

• Performance Management (A roadmap for developing, implementing and evaluating performance management systems), A book by Elaine D. Pulakos

Education

Performance management in cross culture