1. PERFORMANCE MANAGEMENT
AN INTERNATIONAL PERSPECTIVE 1

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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)

12. 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’.

13. THANK YOU !!!