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 constraints1. 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.

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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

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 :

Communicates role conception

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

Parent company

HCN managerRole recipientHC Stakeholders

Role senders

HCN manager’s role behaviour