performance management an international perspective
TRANSCRIPT
PERFORMANCE MANAGEMENT
AN INTERNATIONAL PERSPECTIVE
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MAJOR COMPONENTS
SUBSIDIARY GOALS
MNC’S GLOBAL STRATEGY AND
GOALS
PERFORMANCEAPPRAISAL
INDIVIDUAL EMPLOYEEJOB GOALS AND
STDS.
JOB ANALYSIS
TRAINING
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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
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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
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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
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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
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CONTROL AND PERFORMANCE MANAGEMENT
At HQs
At each subsidiary
level
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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
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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
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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
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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)
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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’.
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