Performance Criteria-Forms-

Issues Performance Feedback

Factors affecting Expatriate Performance

Performance Appraisal- Process

Performance Management

MNE Performance Management & Constraints

Performance management is a process.

It enables the multinational to evaluate and

continuously improve-

individual, subsidiary unit and corporate

performance-

against clearly defined , pre-set goals and

targets.

Global multinational enterprises (MNEs) are

companies that operate on a global scale, as

opposed to MNEs that are regionally focused.

Whole versus part

Non-comparable data

Volatility of the global environment

Separation by time and distance

Variable levels of maturity

Control and performance management

Formal -informal control

activities

Focusing on standardisation of practices, Socialisation &

compliance to norms/values

Global mix of strategic outcomes and results

MNE HQ

Subsidiary

Expatriate performance – PCN,TCN, & HCN.

Issues –Short term & long term assignments.

Factors – Nature of assignment, Family.

Issues exist – Expatriates & Non- Expatriates

Cultural Adjustment

Host environment

Headquarters support

Compensation package

Task

Task

“Hays 4 Tasks”

1.CEO directs the entire foreign operation.

2.Structure reproducer- Marketing(reproduce)

3.Trouble Shooter- individual -foreign subsidiary - solve a operational problem.

4.Operative- perform functional job –existing operational structure.

Compensation Package-

• Importance of reward = performance equation.

• Financial benefit-career progression.

• Level of Motivation.

Cultural Adjustment-

• Difficulty in new environment.

• Impact on performance.

• Dilemma & Others Behavior.

Headquarters' support-

Assignment Domestic V/S International. Individual V/S Family transfer. Natural cultural comfort zones. Career & Finance V/S Loyalty. Emotions V/S Unfamiliar situations.

Host Environment-

Social,legal,economic,technical demands. Type of goal & operation. Developing or Emerging market.

Performance Appraisal is the systematic

evaluation of the performance of employees and

to understand the abilities of a person for further

growth and development.

Goal setting

Qualitative goals – they are the attributes to be

possessed by the employees .

Quantitative goals – they are measurable goals.

Performance appraisal :- in this step , the goals

are measured on a state of 1 to 5 by the

supervisor .

Feed back:- appropriate feedback is given.

Goals VS Performance appraisal criteria.

Hard goals and Soft goals.

Profit VS Interpersonal Behavioral

Immediate Superior

Subsidiary Manager

Subsidiary CEO

Parent Company Evaluator

Performance Appraisal are designed carefully &

often presumed to be static. The standard

appraisal system when tested , reduces future

development cost.

In practice the formal appraisal is commonly on a

yearly basis . This yearly performance rating will

determine the compensation.

The important aspects of an effective

performance management is the provision of

timely feedback.

The timely feedback helps the employees

improve their performance.

Inability- quantifying performance.

Cultural Factors.

Who should appraise the Expatriate.

Types of forms- standard or customized.