Performance

management
process will
differ for
An Assignment On
local and
international
employee’s
context.

Submission Date: 23rd April, 2021

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HRM 408 : International Human Resource Management

Prepared for

Mrs. Meherun Nesa

Assistant Professor

Green Business School

Green University of Bangladesh

Prepared by

Porosh Uddin Ahmed Taposh

ID : 183006024

Green Business School

Green University of Bangladesh

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 Letter of Transmittal

23rd April, 2021

Mrs. Meherun Nesa

Assistant professor
Green Business School
Green University of Bangladesh

Subject: Submission of assignment titled “Performance management process will differ

for local and international employee’s context”.

Dear Ma'am,

With due respect, I am the student of bachelor of business administration program, 183 batch
have assigned on “Performance Management Process” under the course “International
Human Resource Management.”

Though I am in learning line, this case study has enabled me to gain insight into the core fact
about performance management. By this case study, I have learnt about various terms and
conditions about performance management process will differ for local and international
employee’s context. Therefore, it becomes an interesting experience for me. Thank you
ma'am, for your supportive consideration to develop this idea. Without your inspiration, this
assignment would have been an incomplete one.

Therefore, I would be thankful once again if you please give your judicious advice on my
effort.

Yours’ sincerely

Porosh Uddin Ahmed Taposh

ID : 183006024
Green Business School

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Green University of Bangladesh

Acknowledgement

In my preparation for the assignment, I had to take help and guidance from some respected
people. I am grateful because I managed to complete the “International Human Resource
Management” course’s group presentation assignment within the time frame given by our
respectable course instructor Mrs. Meherun Nesa. I also sincerely thank our course instructor,
Mrs. Meherun Nesa for the guidance and encouragement in finishing this group presentation
assignment and also for teaching us the course. Last but not least, I would like to extend my
gratitude to all those who have directly indirectly guided me in writing this assignment.

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 Table of Content

SL Topic Page

1 Introduction 6

2 Literature Review 7

3 Discussion 8

4 Conclusion 15

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 Introduction

My assignment is based on the performance management process will differ for local and
international employee’s context. Performance management is a communication process by
which managers and employees work together to plan, monitor and review an employee's
work objectives and overall contribution to the organization. International performance
management is the evaluation of an individual who works in a foreign subsidiary on a
temporary basis to transfer knowledge or develop global leadership skills. At its best,
international performance management should feed into the global goals of the business.

Performance management is a very important process of international human resource

management (IHRM), in general. It implies an assessment of current or previous results or
performance of the employee, team or the whole organization. It is a base for many business
practices related to IHRM like the need for staff training, new recruitment, career
development, rewarding, etc. Performance management helps to boost employee engagement
and productivity. Engaged employees stay longer, actively involve themselves in the work-
place and produce better results. Improving levels of employee engagement is key to boosting
productivity and maximizing ROI. Performance management, done well, is a vital tool for
having engaged employees. Performance management encourages employee reward and
recognition. It also helps to create employee development strategies. The importance of feed-
back in performance management cannot be overstated. Employees want feedback  and they
want it regularly. They need and deserve to know how they are performing and how they can
improve. Furthermore, they should have the opportunity to give feedback on their company
and management. This is the only way company processes can evolve and become more
streamlined.

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 Literature Review

My assigned topic is the performance management process will differ for local and
international employee’s context. This topic is assigned by our course instructor. After
researching this topic I have come to know that there are some slight differences of
performance management process between local and international employee’s context. I have
got this information through the international human resource management book and other
online websites. Performance management is the general term for a number of human
resource functions that are concerned with managing performance. It is the systematic
process that involves employees, as individuals and members of a group, in improving
organizational effectiveness in the accomplishment of the firm’s mission and goals.
Employee performance management includes: planning  work and setting expectations,
continually monitoring performance,developing thecapacitytoperform,periodically appraising
performance, and rewarding good performance. It is important to reiterate here that these
numerous functions are much more complex to administer in an international setting. The
aspects of the performance management cycle are magnified and become more complex
when a firm globalizes. When a company does internationalize its operations, the human
resource manager needs to become familiar with the aspects of performance management that
may be influenced by the political, economic, legal and cultural feature of the countries in
which the MNCs is operating. In addition the human resource manager must be aware of the
various stages of evolution of the subsidiary and how these stages may impact on the
individual functions of the performance management system. The appraisal is therefore a
component of the performance management system, albeit, a major component. It is forms
part of the umbrella of performance management along with the other important functions.
The cycle can form a structure for the design of a performance management system in diverse
cultures. However its particular form and method of implementation may vary in different
cultures. So by discussing the performance management process for local and international
employees context we can differentiate their performance management process. After
researching this topic I have come to know that there are some slight differences of
performance management process between local and international employee’s context.

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 Discussion

The steps in the performance management process for a local company can be broken down
into four broad categories: Planning, coaching, reviewing and rewarding. Each step is equally
important, and together form the backbone of a company’s performance management
process.

1. Planning

The first step of the performance management process is Planning.

 The defining stage

The performance management process for a local company begins with the planning stage.
HR and management need to define the job itself, including a comprehensive description,
long and short-term goals, identify key objectives and develop a clear metric for how those
objectives and goals will be assessed. Goals should be clear, done in the SMART format
(specific, measurable, attainable, relevant, time-based) and clear performance standards
should be set.

 The feedback stage

Once management has completed the defining stage, employees should have the opportunity
to give input on this material. They are the one doing their job and will have a key insight
into what skills, competencies and goals will best assist the company to achieve
organizational goals.

 The approval stage

Management and employees both agree to the definition of the role, goals and objectives. By
making this first step of the performance management process collaborative, management
sets the stage for the process as a whole to be collaborative, and the employee feels that they
are involved in goal setting - an important thing, as evidenced by the Gallup study.

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 2. Coaching

The second step in performance management process is Coaching.

 Organize meetings on a timely, regular basis

Once the parameters of the job and objectives for the future have been set, the next step of the
performance management process begins. The coaching process is extremely important and
must be done on a regular basis. Meetings should be at least quarterly, although monthly
meetings are the ideal.

 Provide necessary training, coaching and solutions

These meetings should focus on solutions and coaching opportunities, rather than punitive
measures for lackluster performance. If accountability is made into a negative, then
employees will avoid it rather than being honest about where they are struggling. In some
cases, management training in this area can be very helpful to an organization.

 Solicit feedback on both sides

Management should be able to give - and receive - honest feedback and work with employees
rather than adopting a combative stance. The ability to give actionable feedback is important
here.

 Revisit objectives as necessary

As the performance management process continues, management should revisit objectives to

see if adjustments should be made, as well as pay attention to career development
opportunities for their employees. This step involves reviewing the overall performance of
the employee, how well the process itself worked, and it also includes the reward - which is
an extremely important part of the overall process.

3. Reviewing

The third step in performance management process is Reviewing.

 Reviewing employee performance

At the end of the yearly performance management cycle, there should be an employee

review, which is sometimes also called a performance appraisal. Typically, these are held

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once a year, to look at how well the employee performed over that span of time. There should
be a clear record from previous check-ins to show the employee’s progress throughout the
year. The monthly check-ins are to help the employee with problem-solving, adjusting goals
and other future-looking tasks. This performance review is the only step that looks backward,
to assess the behavior of the past year.

 Reviewing the performance management process

At this stage, it is important for both management and employees to look over the previous
year and see how well the performance management process worked.

 Reviewing overall goal completion

Of course, one of the main questions to answer is ‘did the employee reach their goals?’ How
well did the employee succeed at the tasks given to them throughout the year? It is important
to look at both smaller and larger goals, as this can give an indication to problem areas where
training or interventions can be applied.

 Giving actionable feedback

A key part of the review is to give and receive feedback. Management should give actionable
feedback for the employee so that they know areas where they can improve future
performance. The employee should also be invited to give feedback on the process, and how
management can do better on their end.

4. Action

The last step in performance management process is Action.

 Reward and recognition

The last step of the performance management process is the reward and recognition. This step
is absolutely key - employees will not stay motivated if they are given no reason to. This does
not necessarily have to be monetary, although it likely will include monetary compensation.
Other rewards could be new projects, company-wide recognition, time off, or leadership
opportunities.

 Setting the stage for next year’s performance management cycle

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The end of the performance management cycle gives management and employees one last
chance to offer feedback on the process as a whole and asks for thoughts and feedback for the
planning stage for the next year’s cycle.

The complexities of managing performance in a MNE’s various globally distributed facilities

have received a great deal of professional and academic attention in the last decade. As
diversity in cultures, production and operations, geographical dispersal and varieties of
modes of operations all combine to make performance measurement and the creation of
performance management processes that are simultaneously locally relevant and globally
comparable a major challenge for HRM practitioners Monitoring performance and ensuring
conformity to agreed-upon standards are significant elements in the managerial control
system of a multinational firm and the terrain of global performance management systems is
largely uncharted.

While a given firm’s general strategic position may vary (depending on, for instance, its size,
industry and geographic dispersal), a multinational makes strategic choices based on
economic and political imperatives. Within this context, the MNE has specific expectations
for each of its foreign subsidiaries, cooperative ventures and other forms of operation modes,
in terms of market performance and contribution to total profits and competitiveness. When
evaluating subsidiary performance against these expectations, however, it is important to
recognize various constraints that may affect goal attainment.

Having considered the broader context, we now turn our attention to individual performance
management. Consistent with our general approach, we use the term ‘expatriate’ to cover
PCNs, TCNs and those HCNs on assignment to headquarters. We also address performance
management issues relating to those on non-standard and short-term assignments (such as
commuter and virtual) and non-expatriates (e.g. international business travelers). Given the
broad scope, and the fact that often issues are common to both expatriates and non-
expatriates, we use the term ‘international employees’ when all these various groups are
involved. International assignments vary in terms of the duration and scope of physical
relocation required. That is, from traditional expatriate assignments when expatriates and,
usually, their family members relocate; to virtual assignments, where no physical relocation
by employees or their families is required. When attempting to manage the performance of
staff working across the multinational, it is essential to consider all these variables in relation
to the nature of the international assignment. The following sections also identify some

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performance management issues associated with both expatriate and non-expatriate
international assignments.

In expatriate performance management expatriation remains a key dimension of multinational

enterprise and performance. When attempting to determine expatriate performance, it is
important to consider the impact of the following variables and their interrelationship:

 The compensation package.

 The task – the assignment task variables and role of the expatriate.
 Headquarters’ support.
 The environment in which performance occurs – the subsidiary or foreign facility.
 Cultural adjustment – of the individual and the accompanying family members.

Above these variables and forms the basis upon which we will explore the nature of the
international assignment, how performance is managed, the criteria for assessment and the
other elements that comprise an effective performance management system.

Compensation package :
It is essential that we recognize the importance of remuneration and reward in the
performance equation. Perceived financial benefits, along with the progression potential
associated with an overseas assignment, are often important motives for accepting the
posting. If these expectations are not realized during the assignment, the level of motivation
and commitment is likely to decrease, thus affecting performance.

Task :
As outlined earlier, expatriates are assigned to foreign operations to fulfill specific tasks.
Hays identified four such tasks:

 The chief executive officer, or subsidiary manager, who oversees and directs the
entire foreign operation.
 The structure reproducer carries the assignment of building or reproducing in a
foreign subsidiary a structure similar to that which he or she knows from another part
of the company. He or she could be building a marketing framework, implementing

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 an accounting and financial reporting system, or establishing a production plant, for
example.
 The troubleshooter is the individual who is sent to a foreign subsidiary to analyze and
solve a particular operational problem.
 The operative is the individual whose assignment is to perform functional job tasks in
an existing operational structure, in generally lower level, supervisory positions.

Interesting presentations on executive performance management have recently been provided

as part of a wider discussion of ‘corporate governance’. Issues of performance criteria (an
overreliance on ‘shareholder value’ models of executive performance) and the evolving roles,
responsibilities and institutional safeguards to assure a complete, accurate and unbiased
assessment of top level managers are widely cited for this critical task group.

Headquarters’ support :
The expatriate assignment differs from a domestic relocation as it involves the transfer of the
individual (and possibly accompanying family members) into a foreign environment, outside
their normal cultural comfort zones. The individual’s primary motivation for accepting the
assignment may be career or financially orientated, but this is often mixed with a genuine
feeling of loyalty and commitment to the sending organization. As mentioned previously, the
process of adjustment to the foreign location typically produces, to varying degrees, a range
of emotional and psychological reactions to unfamiliar situations encountered over the period
of the stay in the host country. The level of headquarters’ support provided to the individual
and the family is an important performance variable.

Host environment :
The environment has an impact on any job, but it becomes of primary importance with regard
to expatriate management. According to the international context – with its differing societal,
legal, economic, technical and physical demands can be a major determinant of expatriate
performance. Consequently, expatriate performance should be placed within its international
as well as its organizational context. Therefore, the five major constraints identified above in
terms of multinational strategy and goal setting for the subsidiary are important
considerations for expatriate performance management.

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Cultural adjustment.
The process of cultural adjustment may be a critical determinant of expatriate job
performance. Indeed, much of the literature reviewed in our discussion of the cause of
expatriate ‘failure’ covers the process of adjustment. It is likely that expatriates and their
families will have some difficulty adjusting to a new environment, and this will impact on the
manager’s work performance. The dilemma is that adjustment to a foreign culture is
multifaceted, and individuals vary in terms of their reaction and coping behaviors.
Determining the relevance of adjustment to the new environment when assessing expatriate
work performance may be problematical.

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 Conclusion

At the conclusion of the assignment I would like to say that corporate and local strategies and
role expectations create much of the potential for complexity and conflict in the definitions
underlying criteria, processes and standards that make up performance management.
Regional and national institutional, regulatory and historical contexts can impact the
character of the criteria selected, task definitions, the timing and even the purposes of
performance management. We present three examples of the relationship between national
context and firm level practices. Chinese performance management systems have been
described as personalized, network driven, focused on pay decision consequences, often
implicit or under-spoken, and largely historical and critical in nature.

In France, legal and cultural factors combine to create a performance management system
characterized by administrators with a high level of legal expertise even though France’s
labor laws allow some flexibility in assessing performance, within a merit-based, and non
discriminatory framework. It is seen as a system linked to motivation and developing
intellectual capital via coaching and competency-based assessments, with tasks often
facilitated by the acceptance of advanced forms of technology. Centralization in processes,
implicit or nontransparent procedures, a propensity to have more or less favorable
impressions of individuals based on the prestige of their previous university corporate
governmental experiences, and a strong link between assessment and hierarchical
remuneration may be seen to result from widely held cultural norms and values within certain
segments of French society. As with any national assessment, care must be taken not to over
generalize. Practices in France vary by size of the firm with larger firms being more open to a
wider variety of performance management practices and criteria than smaller firms as well as
by industry, level of internationalization and occupational level of employee.

By contrast, and with the same caveats against overgeneralization, performance management
in Germany must adjust to a much more precisely delineated set of legal and institutional
factors. A strong tradition of collective bargaining be it on the plant, firm or industry level
plant level codetermination and a centuries old tradition of vocational training all contribute
to performance management systems characterized by a high level of worker input via works
councils, consensus building processes and activities, a long-term career focus, valuing

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flexibility in task capability to enhance long-term job security and a high value placed on
specialized technical knowledge. Processes tend to be more consensual, explicit, ongoing and
informal in a day-today setting, yet roles, standards, criteria, purposes, schedules and
consequences are explicitly formalized and regulated via codetermination. Performance based
pay, as a consequence or outcome of the performance management system has been much
slower to gain widespread acceptance among German firms. This may be due to the use of
short-term performance criteria often applied to trigger British and US models of
performance-based pay. German firms tend to focus on linking performance management
results to drive long-term training and development activities. So after discussing the
assignment topic I can say that the performance management process differ for a local and
international employees context.

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