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

2. 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

3. 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

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

5. 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

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

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

8. Figure 11-4
PCN role conception
IHRM Chapter 11 8

9. Figure 11-5
TCN role conception
IHRM Chapter 11 9

10. Figure 11-6
HCN role conception
IHRM Chapter 11 10

11. 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