International Human Resource Management IHRM Chapter 11 International Human Resource Management Managing people in a multinational context Performance Management

Chapter Objectives We address: Multinational performance management at the global and local level: considering aspects such as non-comparable data, the volatility of the global environment, the effect of distance, and level of subsidiary maturity Performance management as part of a MNE’s control system Factors associated with expatriate performance, including compensation package, task and role, headquarters’ support, host environment factors and cultural adjustment Performance management of expatriates and non-expatriates, and for those on non-standard tasks and assignments such commuter and virtual issues related to the performance appraisal of international employees IHRM Chapter 11

Terms Assignments: Expatriate tasks: non-comparable data technical developmental strategic functional Expatriate tasks: chief executive officer structure reproducer troubleshooter operative non-comparable data sales on consignment face-to-face ‘going native’ role clarity work adjustment 360-degree feedback ‘saving face’ IAS IJV FCPA formal control mechanisms ‘international employees’ ‘corporate governance’ psychologically distant host environment cultural adjustment performance appraisal customized performance appraisal form performance feedback IHRM Chapter 11 3

Perspectives, issues, actions and consequences in MNE performance management Figure 11-1 IHRM Chapter 11 4

MNE subsidiary performance constraints Whole versus part Non-comparable data Volatility of the global environment Separation by time and distance Variable levels of maturity Control and performance management IHRM Chapter 11 5

MNE control and performance Figure 11-2 MNE control and performance IHRM Chapter 11 6

Variables affecting expatriate performance Figure 11-3 Variables affecting expatriate performance IHRM Chapter 11 7

Figure 11-4 PCN role conception IHRM Chapter 11 8

Figure 11-5 TCN role conception IHRM Chapter 11 9

Figure 11-6 HCN role conception IHRM Chapter 11 10

Discussion Questions In the section on the volatility of the global environment, several world events were listed that have had profound implications for the global and local strategies of MNEs. Select a recent world event, identify the specific HR implications that may arise from this, and devise policies as to how these may be handled. Discuss the major factors associated with appraisal of expatriate managerial performance. ‘One of the dangers of performance appraisal is that, because the focus is so much on a particular individual, the teamwork aspect gets lost. In an international location, it is perhaps desirable to focus more on how the PCN has settled in and is operating as part of a team rather than as an individual at the possible detriment of the team.’ Do you agree with this statement? Why is it important to include hard, soft and contextual goals when assessing managerial performance? In what ways would the role of a manager working in a non-standard international assignment differ from that of a typical expatriate manager? IHRM Chapter 11 11