PERFORMANCE

MANAGEMENT IN
INTERNATIONAL HUMAN
RESOURCE MANAGEMENT
 What is performance
management??
Performance management is a process that
enables the multinational to evaluate and
continuously improve individual, subsidiary
units and corporate performance against
clearly defined, pre-set goals and targets.
 Various constraints
1. Whole versus part-the balance sheet of this particular
subsidiary might be continually in the red, but this
strategy, by tying up the competitor’s resources, may
allow higher returns in another market.
2. Non-comparable data:
-Example1-sales in brazil
-Example2-sales in peru
Physical measures of performance may be easier to
interpret than in these examples, but difficulties may
still arise.
Contd…….
3. volatility of global environment

4. separation by time and distance

5. variable levels of maturity

Figure : Variables affecting
expatriate performance
 COMPENSATION PACKAGE
• The task:
– Chief executive officer
– Structure reproducer
– Troubleshooter
– Operative
• Task variables more under the control of the
multinational than environmental factors
Figure : PCN role conception
Figure : TCN role conception
 THEORIES
• Gregerson and Black

• Feldman and Tompson

Factors affecting commitment:
• Role conflict and autonomy
• Lack of discretion
• Role expectations
• Rationale behind using TCNs
• Expatriates appraisal
• Similarity of jobs
 HEADQUARTER’S SUPPORT

• Removal from the comfort zone

• Primary motivation
• Support important
HOST ENVIRONMENT
• Environmental impact

• Performance depends on various

demands
 CULTURAL ADJUSTMENTS
• Critical determinant
• Difficulty in adjusting(expatriate and
family)
• Individuals vary in terms of reaction and
coping.
• Conscious and responsive
 A contextual model of expatriate
performance management
•Tahvanainen has taken a grounded theory
approach and qualitative analysis.
•Case study of Nokia Telecommunications:
The model illustrates how performance
evaluation is both an outcome of the company’s
strategies and goals and an important source of
information on which other personnel-related
activities, such as training and development and
performance-related pay are based
Contextual Model of Expatriate Performance Management
 Who are non expatriates?

• Non expatriates are employees whose

work involved international travel but
are not considered international
assignees.
 Non-expatriate Performance
Management
• Effects of factors associated with constant air
travel, e.g.
– Depression, anxiety, sleep disturbance, health
– Stress associated with frequent absences and
effect on family relationships

• Non-standard assignments share these aspects, e.g.

– Commuter arrangements
– Virtual assignments
17
Performance appraisal of
international employees
 Performance criteria
Basis for performance criteria:
• Hard goals
• Soft goals
• Contextual goals
Conducting of performance appraisal

• Subsidiary managers tend to assess according

to subsidiary performance.
• Appraisal for other employees is likely to be
conducted by subsidiary's chief.
• Multiple raters are sometimes used in the
domestic context.
• Virtual assignment situation.
PERFORMANCE APPRAISAL
OF HCN EMPLOYEES
 HCN ROLE CONCEPTION :

Parent
Communicates role conception
company

Cultural boundary:
USE HOST COUNTRY NATIONALS TO ASSISTS IN DEVISING A SUITABLE SYSTEM

HCN manager
HC Stakeholders Role recipient
Role senders

HCN manager’s
role behaviour