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For use with International Human Resource Management 6eBy Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.

ISBN-10: 1408032090© Cengage Learning

INTERNATIONALPERFORMANCEMANAGEMENT

Chapter 6

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ISBN-10: 1408032090© Cengage Learning

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Chapter 6

Vocabulary Objectives Introduction Multinational performance management Control & performance management Performance mgmt. of int. employees Performance appraisal of int. employees

INTERNATIONALPERFORMANCE MGMT.

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ISBN-10: 1408032090© Cengage Learning

We address:1. Multinational performance management at the global & local level:

■ non-comparable data ■ volatility of the global environment■ effect of distance ■ level of subsidiary maturity

2. Performance management as part of a MNE’s control system3. Factors associated with expatriate performance, including

■ compensation package ■ headquarters’ support■ task & role ■ host environment factors

4. Performance management of expatriates & non-expatriates those on non-standard tasks & assignments such as

commuters & virtual workers5. Issues related to performance appraisal

of international employees

Objectives

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ISBN-10: 1408032090© Cengage Learning

We define:Performance management: is a process by which managers and employees work together to plan, monitor and review an employee's work objectives and overall contribution to the organization.

1. We use it to determine excellence increases and

2. performance feedback for work done during the previous twelve months,

3. to determine training needs, and as a key tool in succession

planning.

Definition

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ISBN-10: 1408032090© Cengage Learning

We define:A performance appraisal (PA), also referred to as a performance review, performance evaluation, (career) development discussion, or employee appraisal is a method by which the job performance of an employee is documented and evaluated.

1. The appraisal is usually prepared by the employee’s immediate supervisor.

2. The procedure typically requires the supervisor to fill out a standardized assessment form that evaluates the individual on several different dimensions and

3. then discusses the results of the evaluation with the employee.

Definition

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ISBN-10: 1408032090© Cengage Learning

1.Providing feedback to employees about their performance2.Determining who gets promoted3.Encouraging performance improvement4.Motivating superior performance5.Setting and measuring goals6.Counseling poor performers7.Determining compensation changes8.Encouraging coaching and mentoring9.Supporting manpower planning or succession planning10.Determining individual training and development needs11.Determining organizational training and development needs12.Confirming that good hiring decisions are being made13.Providing legal defensibility for personnel decisions14.Improving overall organizational performance

The Importance of Performance Appraisal

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ISBN-10: 1408032090© Cengage Learning

Strategy-based performance management

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ISBN-10: 1408032090© Cengage Learning

1.Performance incentives in multinational companies can be a conflict issue. 2.Employees and management can have different views of fair and just pay and rewards on performance. 3.Furthermore there are cultural influences on the employees’ and the management’s understanding of good performance.

These cultural influences can differ from country to country and complicate the standardization of performance management policies in multinational companies

Performance Management at MNE

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ISBN-10: 1408032090© Cengage Learning

Perspectives, issues, actions & consequencesin MNE performance management

Figure 6.1

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ISBN-10: 1408032090© Cengage Learning

MNE performance mgmt. constraints1. Whole vs. part2. Non-comparable data3. Volatility in the global business environment4. Separation by time & distance5. Variable levels of maturity across markets:

the need for relevant comparative data

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ISBN-10: 1408032090© Cengage Learning

MNE control & performanceFigure 6.2

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ISBN-10: 1408032090© Cengage Learning

Variables affecting expatriate performanceFigure 6-3

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ISBN-10: 1408032090© Cengage Learning

Expatriate tasks1. CEO or subsidiary manager

oversees & directs entire foreign operation2. Structure reproducer

reproduces structure similar to what s/he knows from another part of the company

3. Troubleshooteranalyzes & solves a particular operational problem

4. Operativeperforms functional job tasks in existing operational structure, in generally lower level,supervisory positions

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ISBN-10: 1408032090© Cengage Learning

Types of expatriate assignments1. Technical (5-10%)

short-term knowledge transfer2. Developmental (5-10%)

in-country performance &acquisition of local understanding by assignee

3. Strategic (10-15%)high-profile activities for developing global perspective

4. Functional (55-80%)more enduring two-way transfer ofexisting processes & practices

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PCN role conceptionFigure 6.4

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ISBN-10: 1408032090© Cengage Learning

TCN role conceptionFigure 6.5

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ISBN-10: 1408032090© Cengage Learning

Non-expatriate performance management challenges Performance criteria & goals for non-standard work Criteria for performance is subject to cultural differences Isolating international dimensions of job performance is not

as straightforward as for traditional expatriate jobs Outstanding/under-performance & failures will challenge

performance appraisal process Performance appraisals are complicated by

international context, outside appraisers Ways to improve & rewards are unclear Impact of non-standard work

on HCN co-workers

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ISBN-10: 1408032090© Cengage Learning

Performance appraisal aspects of international employees Performance criteria

hard, soft, & contextual goals Who conducts the performance appraisal?

typically subsidiary manager, but could be team of evaluators

Standardized or customized appraisal forms? Frequency of appraisal? Performance feedback

the communication medium matters Appraisal of HCN employees

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ISBN-10: 1408032090© Cengage Learning

HCN role conceptionFigure 6.6

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ISBN-10: 1408032090© Cengage Learning

Examples Performance appraisal