PERFORMANCE MANAGEMENT IN INTERNATIONAL HUMAN RESOURCE MANAGEMENT
Nov 26, 2014
PERFORMANCE MANAGEMENT IN
INTERNATIONAL HUMAN RESOURCE MANAGEMENT
What is performance management??
Performance management is a process that
enables the multinational to evaluate and
continuously improve individual, subsidiary
units and corporate performance against
clearly defined, pre-set goals and targets.
Various constraints1. Whole versus part-the balance sheet of this particular
subsidiary might be continually in the red, but this strategy, by tying up the competitor’s resources, may allow higher returns in another market.
2. Non-comparable data: -Example1-sales in brazil -Example2-sales in peru Physical measures of performance may be easier to
interpret than in these examples, but difficulties may still arise.
Contd…….
3. volatility of global environment
4. separation by time and distance
5. variable levels of maturity
Figure : Variables affecting expatriate performance
COMPENSATION PACKAGE
• The task:– Chief executive officer– Structure reproducer– Troubleshooter– Operative
• Task variables more under the control of the multinational than environmental factors
Figure : PCN role conception
Figure : TCN role conception
THEORIES
• Gregerson and Black
• Feldman and Tompson
Factors affecting commitment:• Role conflict and autonomy• Lack of discretion• Role expectations• Rationale behind using TCNs• Expatriates appraisal• Similarity of jobs
HEADQUARTER’S SUPPORT
• Removal from the comfort zone• Primary motivation• Support important
HOST ENVIRONMENT
• Environmental impact
• Performance depends on various demands
CULTURAL ADJUSTMENTS
• Critical determinant• Difficulty in adjusting(expatriate and
family)• Individuals vary in terms of reaction and
coping.• Conscious and responsive
A contextual model of expatriate performance
management•Tahvanainen has taken a grounded theory approach and qualitative analysis.•Case study of Nokia Telecommunications: The model illustrates how performance evaluation is both an outcome of the company’s strategies and goals and an important source of information on which other personnel-related activities, such as training and development and performance-related pay are based
Contextual Model of Expatriate Performance Management
Who are non expatriates?
• Non expatriates are employees whose work involved international travel but are not considered international assignees.
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Non-expatriate Performance Management
• Effects of factors associated with constant air travel, e.g.– Depression, anxiety, sleep disturbance, health – Stress associated with frequent absences and
effect on family relationships
• Non-standard assignments share these aspects, e.g.– Commuter arrangements– Virtual assignments
Performance appraisal of international
employees
Performance criteria
Basis for performance criteria:• Hard goals • Soft goals • Contextual goals
Conducting of performance appraisal
• Subsidiary managers tend to assess according to subsidiary performance.
• Appraisal for other employees is likely to be conducted by subsidiary's chief.
• Multiple raters are sometimes used in the domestic context.
• Virtual assignment situation.
PERFORMANCE
APPRAISAL OF HCN
EMPLOYEES
HCN ROLE CONCEPTION :
Communicates role conception
Cultural boundary: USE HOST COUNTRY NATIONALS TO ASSISTS IN DEVISING A SUITABLE SYSTEM
Parent company
HCN managerRole recipientHC Stakeholders
Role senders
HCN manager’s role behaviour