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For use with International Human Resource Management 6eBy Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr.

ISBN-10: 1408032090© Cengage Learning

INTERNATIONALPERFORMANCEMANAGEMENT

Chapter 6

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Chapter 6

Vocabulary Objectives Introduction Multinational performance management Control & performance management Performance mgmt. of int. employees Performance appraisal of int. employees

INTERNATIONALPERFORMANCE MGMT.

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performance management, performance appraisal foreign subsidiary bureaucratic control system, relative comparative data 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, going native merit-based, intellectual capital, competency-based collective bargaining virtual assignees hard goals, soft goals, contextual goals 360-degree feedback process communication medium cultural applicability

Vocabulary

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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 system3. Factors associated with expatriate performance, including

■ compensation package ■ headquarters’ support■ task & role ■ host environment factors

4. Performance management of expatriates & non-expatriates those on non-standard tasks & assignments such as

commuters & virtual workers5. Issues related to performance appraisal

of international employees

Objectives

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Introduction

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Perspectives, issues, actions & consequencesin MNE performance management

Figure 6.1

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Multinationalperformance management

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MNE performance mgmt. constraints1. Whole vs. part2. Non-comparable data3. Volatility in the global business environment4. Separation by time & distance5. Variable levels of maturity across markets:

the need for relevant comparative data

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Control &performance management

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MNE control & performanceFigure 6.2

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Performance management ofinternational employees

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Variables affecting expatriate performanceFigure 6-3

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Expatriate tasks1. CEO or subsidiary manager

oversees & directs entire foreign operation2. Structure reproducer

reproduces structure similar to what s/he knows from another part of the company

3. Troubleshooteranalyzes & solves a particular operational problem

4. Operativeperforms functional job tasks in existing operational structure, in generally lower level,supervisory positions

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Types of expatriate assignments1. Technical (5-10%)

short-term knowledge transfer2. Developmental (5-10%)

in-country performance &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 ofexisting processes & practices

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PCN role conceptionFigure 6.4

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TCN role conceptionFigure 6.5

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Non-expatriate performance management challenges 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 Performance appraisals are complicated by

international context, outside appraisers Ways to improve & rewards are unclear Impact of non-standard work

on HCN co-workers

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Performance appraisal ofinternational employees

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Performance appraisal aspects of international employees Performance criteria

hard, soft, & contextual goals Who conducts the performance appraisal?

typically subsidiary manager, but could be team of evaluators

Standardized or customized appraisal forms? Frequency of appraisal? Performance feedback

the communication medium matters Appraisal of HCN employees

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HCN role conceptionFigure 6.6

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