PERFORMANCE MANAGEMENT

by
Sanjay Kumar
Eve III Yr 2844
 Definition
• A process that enables the multinational to
evaluate and continuously improve individual,
subsidiary unit and corporate performance
against clearly defined, preset goals and
targets.
 Basic Components
• Multinational’s global strategies and goals
• Subsidiary Goals
• Job Analysis
• Individual employee
• Performance apraisal
• Trainings
 Multinational performance management

• Various constraints are below

– Whole v/s part
– Non-comparable data
– Volatility of the global environment
– Separation by time and distance
– Variable levels of maturity
– Control and performance management: Fig 10.2
 Performance management of international
employees
• Expatriate performance management :
Important to consider the impact of following
variables and their inter-relationship
– Compensation package
– Task
– Headquarter’s support
– Host environment
– Cultural adjustment – self and family
Fig 10.4 & 10.5
 Multinational PCN Manager
(role sender) (role recipient)

Cultural boundary
--------------------------------------------------------------

Host Country PCN Manager’s

Stakeholders Role behaviour
(role senders)

Fig 10.4 Role of managers in cross-cultural settings

 Cultural boundary
Parent company TCN Manager
Commu
(role sender) communicates (role recipient)
role conception

Cultural boundary
--------------------------------------------------------------
Host Country PCN Manager’s
Stakeholders Role behaviour
(role senders)

Fig 10.5 Role of managers in cross-cultural settings

Contextual model of expatriate performance
management
• Orgn context is comprised of
– Nature of job
– Orgn structure
– Standard appraisal system
– Top management support
– Size of subsidiary unit
– Style and skill of manager and employees
– Fig 10.6
– Performance management of non-expatriates
Maturity level of company operations in the host country international context

National culture in the host and the home country Domestic context

Company
strategy and
goals

Clarifications of
Performance
performance
evaluation
expectations

Other use
Training and Performance
organisational
development related pay
purposes
Cont’d….
• Some performance management challenges
– Determining performance criteria and goals
related to effective conduct of non-standard
assignments.
– Isolating international dimensions of job
performance
– Outstanding performance, underperformance in
non-expat and non-standard assignments will
challenge the performance appraisal process.
 Performance appraisal of international
employees
• Performance Criteria
– Hard goals are objective, quantifiable and can be
directly measured- such as ROI & market share.
– Soft goals tend to be relationship r trait-based
such as leadership style or interpersonal skills.
-- Contextual goals attempt to take into
consideration factors that result from situation
in which performance occurs.
• Who Conducts performance appraisal
– Generally carried out by immediate superior

– An issue for CEO of subsidiary unit, for appraisal of

the one is carried out by some superior back at
headquarters who seldom face-to-face to
appraise.

– CEO would make decisions keeping in view short

term gain which might be detrimental in long
term.
• Standardised or customised performance
appraisal form
– Standardised appraisal form is advisable so long as
environment context does not change, but it does
change in case of expatriate case.

– Often questions are posed whether standard form

should be adapted when used for appraising
international managers.
• Frequency of appraisal

– Commonly yearly basis

Performance feedback
(a) Timely feedback is effective performance mgmt
(b) In case of virtual assignee, it is difficult
(c) Sometimes feedback may be misunderstood
 Appraisal of HCN employee
• Fig 10.7 HCN role conception
• It is advisable to take help of HCN for devising
a suitable system
 Parent company role
sender communicates role conception

Cultural boundary

--------------------------------------------------------------

HCN manager
(role recipient)

Host country
stakeholders
(role senders)
HCN manager’s role
behaviour

Fig 10.7 HCN role conception