1. INTERNATIONAL PERFORMANCE MANAGEMENT
Chapter 6
INTERNATIONAL PERFORMANCE MANAGEMENT

2. INTERNATIONAL PERFORMANCE MGMT.
Chapter 6
INTERNATIONAL PERFORMANCE MGMT.
Vocabulary
Objectives
Introduction
Multinational performance management
Control & performance management
Performance mgmt. of int. employees
Performance appraisal of int. employees

3. Objectives We address:
Multinational performance management at the global & local level: ■ non-comparable data ■ volatility of the global environment ■ effect of distance ■ level of subsidiary maturity
Performance management as part of a MNE’s control system
Factors associated with expatriate performance, including ■ compensation package ■ headquarters’ support ■ task & role ■ host environment factors
Performance management of
expatriates & non-expatriates
those on non-standard tasks & assignments such as commuters & virtual workers
Issues related to performance appraisal of international employees

4. Definition We use it to determine excellence increases and
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.
We use it to determine excellence increases and
performance feedback for work done during the previous twelve months,
to determine training needs, and as a key tool in succession
planning.

5. Definition
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.
The appraisal is usually prepared by the employee’s immediate supervisor.
The procedure typically requires the supervisor to fill out a standardized assessment form that evaluates the individual on several different dimensions and
then discusses the results of the evaluation with the employee.

6. The Importance of Performance Appraisal
Providing feedback to employees about their performance
Determining who gets promoted
Encouraging performance improvement
Motivating superior performance
Setting and measuring goals
Counseling poor performers
Determining compensation changes
Encouraging coaching and mentoring
Supporting manpower planning or succession planning
Determining individual training and development needs
Determining organizational training and development needs
Confirming that good hiring decisions are being made
Providing legal defensibility for personnel decisions
Improving overall organizational performance

7. Strategy-based performance
management

8. Performance Management at MNE
Performance incentives in multinational companies can be a conflict issue.
Employees and management can have different views of fair and just pay and rewards on performance.
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

9. Figure 6.1
Perspectives, issues, actions & consequences in MNE performance management

10. MNE performance mgmt. constraints
Whole vs. part
Non-comparable data
Volatility in the global business environment
Separation by time & distance
Variable levels of maturity across markets: the need for relevant comparative data

11. Figure 6.2
MNE control & performance

12. Figure 6-3
Variables affecting expatriate performance

13. Expatriate tasks
CEO or subsidiary manager oversees & directs entire foreign operation
Structure reproducer reproduces structure similar to what s/he knows from another part of the company
Troubleshooter analyzes & solves a particular operational problem
Operative performs functional job tasks in existing operational structure, in generally lower level, supervisory positions

14. Types of expatriate assignments
Technical (5-10%) short-term knowledge transfer
Developmental (5-10%) in-country performance & acquisition of local understanding by assignee
Strategic (10-15%) high-profile activities for developing global perspective
Functional (55-80%) more enduring two-way transfer of existing processes & practices

15. Figure 6.4
PCN role conception

16. Figure 6.5
TCN role conception

17. 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

18. 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

19. Figure 6.6
HCN role conception

20. Examples
Performance appraisal