PERFORMANCE MANAGEMENT AN INTERNATIONAL PERSPECTIVE 1

MAJOR COMPONENTS MNC’S GLOBAL STRATEGY AND GOALS SUBSIDIARY GOALS JOB ANALYSIS INDIVIDUAL EMPLOYEE JOB GOALS AND STDS. PERFORMANCE APPRAISAL THE BASIC COMPONENTS OF PMS TRAINING

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

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

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

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

CONTROL AND PERFORMANCE MANAGEMENT Through control mechanisms (formal and informal) The organization achieves: - consistency - co-ordination - compliance Of behavior and outcomes to implement its global strategy At HQs At each subsidiary level

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

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

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

HCN ROLE CONCEPTION( Torbiorn’s Model) Parent Company (Role Sender) Communicates Role conception Cultural Boundary HCN Manager (Role Recipient) Host Country Stakeholders (Role Senders) HCN Manager’s Role Behavior HCN ROLE CONCEPTION( Torbiorn’s Model)

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’.

THANK YOU !!!