Performance Management

of International HR
IHRM
 Factors impacting multinational
performance
• Whole Vs part approach
• Non-comparable data
• Volatility of global environment
• Separation by time and distance
• Variable levels of maturity
– Ref: IHRM by Dowling
Ref: IHRM – P Subba Rao
 Figure 6.1
Perspectives, issues, actions & consequences
in MNE performance management – process model
 Performance appraisal of international
employees - issues
• Establishment of performance goals:
– Soft . Hard , contextual goals
• Appraiser: subsidiary chief, host country
supervisor
• Appraisal form: to be designed based on
diversity
• Frequency of appraisal: firm specific
• Feedback: to be given by compatriots
 Expatriate performance management
• Based on :
– Compensation package
– Assignment task variables – expat role
– Headquarter support
– Subsidiary environment
– Cultural adjustment – self and family
 Expat Performance appraisal
• Based on:
– Parent company role communication
– The cultural boundary between host and home
– Host/home country role sender
– Host/home country manager’s role conception
– expat role behaviour
 Expatriate tasks
1. CEO or subsidiary manager
oversees & directs entire foreign operation
checks overall performance
2. Structure reproducer
reproduces structure similar to what s/he knows from another
part of the company
Checks structural role conformance
3. Troubleshooter
analyzes & solves a particular operational problem
Uses critical incidents to check performance
4. Operative
functional job tasks in existing operational structure, in
generally lower level, supervisory positions
Checks functional performance
Ref: IHRM – Subba Rao. P
 Challenges to expat performance appraisal
• Performance criteria & 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 & failures will challenge
performance appraisal process – extremities in performance
• Performance appraisals are complicated by international
context, outside appraisers
• Non standard rewards
• Impact of non-standard work on HCN co-workers