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CH 6.PMS - INtl
CH 6.PMS - INtl
INTERNATIONAL
PERFORMANCE
MANAGEMENT
Chapter 6
For use with International Human Resource Management 7e ISBN-10: 1473719026
By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning
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Chapter 6
INTERNATIONAL
PERFORMANCE MANAGEMENT
C O N T E N T S
START
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Objectives
cover below to
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of contents.
Introduction
O F
Performance management of
international employees
Performance appraisal of
international employees
Chapter 6
For use with International Human Resource Management 7e ISBN-10: 1473719026
By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning
2 of 21
Vocabulary
performance management, performance appraisal
foreign subsidiary
bureaucratic control system
expatriate = PCNs, TCNs, and HCNs on assignment to
headquarters
= international employee
compensation package, remuneration
tasks: CEO, structure reproducer, troubleshooter, operative
types of assignments: technical, developmental, strategic, functional
role clarity, role expectations, merit-based, intellectual capital
coaching and competency-based assessments
collective bargaining
virtual assignees
hard goals, soft goals, contextual goals
360-degree feedback process
Chapter 6
communication medium
cultural applicability
For use with International Human Resource Management 7e ISBN-10: 1473719026
By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning
3 of 21
Objectives
We address:
1. Multinational performance management at the global & local level:
■
non-comparable data ■
volatility of the global environment
■
effect of distance ■
level of subsidiary maturity
2. Performance management as part of a MNE’s control system
3. Factors associated with expatriate performance, including
■
compensation package ■
headquarters’ support
■
task and role ■
host environment factors
■
cultural adjustment
4. Performance management of
■
task and role expatriates and non-expatriates
■
those on non-standard tasks and assignments such as
commuter and virtual work
5. Issues related to performance appraisal
of international employees
Chapter 6
For use with International Human Resource Management 7e ISBN-10: 1473719026
By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning
4 of 21
Introduction
Chapter 6
For use with International Human Resource Management 7e ISBN-10: 1473719026
By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning
5 of 21
Figure 6.1
Perspectives, issues, actions, and consequences
in MNE performance management
Chapter 6
For use with International Human Resource Management 7e ISBN-10: 1473719026
By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning
6 of 21
Multinational
performance management
Chapter 6
For use with International Human Resource Management 7e ISBN-10: 1473719026
By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning
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MNE performance mgmt. constraints
1. Whole vs. part
2. Non-comparable data
3. Volatility in the global business environment
4. Separation by time and distance
5. Variable levels of maturity across markets:
the need for relevant comparative data
Chapter 6
For use with International Human Resource Management 7e ISBN-10: 1473719026
By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning
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Control and
performance management
Chapter 6
For use with International Human Resource Management 7e ISBN-10: 1473719026
By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning
9 of 21
MNE performance mgmt. constraints
1. Whole vs. part
2. Non-comparable data
3. Volatility in the global business environment
4. Separation by time and distance
5. Variable levels of maturity across markets:
the need for relevant comparative data
Chapter 6
For use with International Human Resource Management 7e ISBN-10: 1473719026
By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning
10 of 21
Figure 6.2
MNE control and performance
Chapter 6
For use with International Human Resource Management 7e ISBN-10: 1473719026
By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning
11 of 21
Performance management of
international employees
Chapter 6
For use with International Human Resource Management 7e ISBN-10: 1473719026
By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning
12 of 21
To determine expatriate performance,
consider the impact and interrelationships of:
the compensation package
The task
– the assignment task variables and the expatriate’s role
headquarter’s support
the environment in which performance occurs
– the subsidiary or foreign facility
cultural adjustment
– of the individual and
the accompanying family members
Chapter 6
For use with International Human Resource Management 7e ISBN-10: 1473719026
By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning
13 of 21
Figure 6-3
Variables affecting expatriate performance
Chapter 6
For use with International Human Resource Management 7e ISBN-10: 1473719026
By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning
14 of 21
Expatriate tasks
1. CEO or subsidiary manager
oversees and directs entire foreign operation
2. Structure reproducer
reproduces structure similar to what he or she knows
from another part of the company
3. Troubleshooter
analyzes and solves a particular operational problem
4. Operative
performs functional job tasks in existing operational
structure; generally in lower level
supervisory positions
Chapter 6
For use with International Human Resource Management 7e ISBN-10: 1473719026
By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning
15 of 21
Types of international assignments
1. Technical (5-10%)
short-term knowledge transfer
2. Developmental (5-10%)
in-country performance and
acquisition of local understanding by assignee
3. Strategic (10-15%)
high-profile activities for developing global
perspective
4. Functional (55-80%)
more enduring two-way transfer of
existing processes and practices
Chapter 6
For use with International Human Resource Management 7e ISBN-10: 1473719026
By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning
16 of 21
Figure 6.4
PCN role conception
Chapter 6
For use with International Human Resource Management 7e ISBN-10: 1473719026
By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning
17 of 21
Figure 6.5
TCN role conception
Chapter 6
For use with International Human Resource Management 7e ISBN-10: 1473719026
By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning
18 of 21
Non-expatriate performance
management challenges
Performance criteria and goals for non-standard work
Criteria for performance is subject to cultural differences
Isolating international dimensions of job performance is not
as straightforward as for traditional expatriate jobs
Outstanding/under-performance and failures will challenge
performance appraisal process
Performance appraisals are complicated by
international context, outside appraisers
Ways to improve and what to reward is unclear
Impact of non-standard work
on HCN co-workers
Chapter 6
For use with International Human Resource Management 7e ISBN-10: 1473719026
By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning
19 of 21
Performance appraisal of
international employees
Chapter 6
For use with International Human Resource Management 7e ISBN-10: 1473719026
By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning
20 of 21
Figure 6.6
HCN role conception
Chapter 6
For use with International Human Resource Management 7e ISBN-10: 1473719026
By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning
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