Performance

Appraisal

 Expatriates performance
appraisal
Variable influencing
Performance of Expatriate
Issues and challenges in
international performance
management

Definitions
According to Newstrom, It is the process of evaluating the
performance of employees, sharing that information with them
and searching for ways to improve their performance.
Performance appraisal is the step where the management finds
out how effective it has been at hiring and placing employees
A Performance appraisal is a process of evaluating an employees
performance of a job in terms of its requirements.

Objectives of Performance Appraisal

According to:
Employee

Organization

concrete and tangible

particulars about their work
assessment of
performance

measuring the efficiency

maintaining organizational
control.

Aims at:
Personal development
work satisfaction
involvement in the
organization.

mutual goals of the

employees & the organization.
growth & development
increase harmony & enhance
effectiveness

Methods of Performance Appraisal

Traditional Methods
1. Paired comparison
2. Graphic Rating scales
3. Forced choice Description
method
4. Forced Distribution Method
5. Checks lists
6.
7.
8.
9.

Free essay method

Critical Incidents
Group Appraisal
Field Review Method

10.Confidential Report
11.Ranking

Modern Methods
1. Assessment Center
2. Appraisal by Results or
Management by
Objectives

3. Human Asset
Accounting
4. Behaviorally Anchored
Rating scales

5. 360 Degree Feedback

SDKSDHKS

Objective -:

Introduction
Challenges of International performance management
Areas to be appraised
Who should appraise the performance?
System of Performance appraisal
Problems of performance appraisal
How to make appraisal effective?

International Performance Management

It is the process of assessing an individual's performance in a
systematic way.
The performance being measured against various job related
factors as well as individual traits.
In addition one's potential for performance is measured.
IHRM is a process that enables the multinational to evaluate and
continuously improve individual, subsidiary unit and corporate performance,
against clearly defined, pre-set goals and targets.

Why Appraise Performance?

Periodic evaluation helps mangers to have a better understanding of each
employee's skills with the goal to facilitate, train and develop abilities and
power to their employees
A chase to assess job development, encourage interest and enhance job
performance by pointing out the development and recognizing
productive work
A feedback system will help to improve the performance.

Purpose Performance Appraisal

To provide feedback to individuals about how well they are doing

To provide a basis for rewarding top performers

To identify areas in which additional training and development may be needed

To identify problem areas that may call for a change in assignment

Problem: Performance appraisal

Unintentional bias
Host-nation biased by cultural frame of reference
Home-country biased by distance and lack of experience working abroad

Expatriate managers believe that headquarters unfairly evaluates and under

appreciates them

Guidelines for performance appraisal

More weight should be given to onsite managers evaluation as they are able
to recognize the soft variables

Expatriate who worked in same location should assist home-office manager

with evaluation
If foreign on-site managers prepare an evaluation, home-office manager should
be consulted before completion of formal the terminal evaluation

Challenges of International Performance

Management
Total company vs. part of it.

Frequency of appraisal

Standardized or customized appraisal

Variable levels of maturity

form
Time differences and distance separation
Unreliable data across boundaries
Complex and volatile environments
Who conducts the performance appraisal

Volatility of the global environment

Non-comparable data

Cultural adjustment
Host environment
Raters Bias

Performance Criteria
Hard Goals: are objective,
quantifiable, and can be directly
measured such as Return-on-Investment
( ROI ), market share, so on
Soft
goals

Hard
goals

Contextual
goals

Soft Goals: tend to be relationshipbased or trait-based such as leadership

style, interpersonal skills, etc.

Contextual Goals: attempt to take into

consideration factors that result from the
situation in which performance occurs.

An appraisal system that uses hard, soft

and contextual criteria is advocated

Factors to be considered in individual performance

& appraisal process

Headquarters support
Compensation Package
Task
Host Environment
Expatriate Performance Management System
Cultural Adjustment

Compensation: such assignments taken for

perceived financial benefits and career progression
Compensation is one of the key factor closely associated with expats
performance.
Well compensated expatriates definitely happier and more productive.
Pay, according to Herzberg's two factor theory of motivation, is a
hygiene factor which
when adequately provided for removes dissatisfaction but fails to activate
motivation and
performance.
But money continues to remain as one of the most significant
motivators for expats.

2. Task:
An expatriate is sent on an overseas assignment either as chief executive, system
replicator, trouble shooter or as a simple operator.
Whatever, the nature of assignment, task has considerable impact on an
individuals
performance.
A tougher task tends to evolve better performance than a job which is relatively
easy to
handle.
People tend to show their best when the job is tough and challenging.

Head quarters support

Home office support is a crucial in expatriate performance.
An assignee has accepted an overseas job for three objectives: making
extra money, career prospectus and loyalty to the organization and
commitment to make the firm successful.
It is necessary that the home office extends support and offer moral
courage by psychological counseling, particularly in times when the
expatriate is passing through a culture shock.

Host Environment:
Environment wields considerable influence on performance, particularly of the
expatriate. If the host environment is hostile, expatriate are under constant
pressure and often, there is a threat to their life itself.
The form of ownership of the subsidiary is also important. For instance, it
may be relatively easier to perform in a wholly owned subsidiary than in a joint
venture with a state owned enterprise in China.
Conflicting goals between parent companies are a common problem within
international joint ventures and can make the expatriates job more difficult.

Cultural Adjustment
The ability to live comfortably in an alien culture is essential for the success of an
expatriate. Multicultural adjustability refers to being sensitive to the host culture, the
expats multicultural sensitivity, language ability, diplomacy, adaptability, positive
attitude, emotional stability and maturity.

It is not enough if the expat. Alone acquires cross cultural adjustability. The
trailing
spouse to adjust is often a major reason behind expatriate failure

Expatriates performance
appraisal
The international HR Manager should decide on 3 key areas while assessing
an expatriates performance:
- Specific performance criteria
- Identifying the appraisers
- deciding on the frequency of appraisal
Basically there are three categories of performance indicators:
1. Trait based (soft goal) leadership style, interpersonal skill etc.
2. Behavior based (contextual goals) attempts to take into consideration factors that
results
from the situation in which performance occurs.
3. Result based (Hard goals) objectives, quantifiable, and can be directly measured
such as Return On Investment (ROI), market share and so on.

Non-expatriate Performance management

A seemingly neglected group
Performance effects of factors associated with constant air
travel
Depression, nervous anxiety, sleep disturbance, health issues

Stress associated with frequent absences and effect on family

relationships
Non-standard assignments such as commuter arrangements and
virtual assignments share these aspects

Performance Appraisal at
Pepsi-Cola International
Common performance appraisal system: focuses on
motivating managers to achieve and maintain high standards
of motivation.
Factors associated with high performance in diverse markets
were identified:

Handling business complexity

Results orientation
Organizational savvy
Leadership
Executive excellence

Composure under pressure

Technical knowledge
Positive people skills
Effective communication and impact

Maturity

Cont.
Five feed-back based mechanism:

Instant feedback
Coaching
Accountability-based performance appraisal
Development feedback
Human resource plan for future

US Performance Appraisal
System
To build up employee performance plan

Discuss performance plan

Evaluating
Rewarding
Provide assistant
Repositioning or removing
Identifying

American Views of Performance

Objective: To help achieve organizational objectives
Productivity and Quality
Achievement
Individual, group or organizational objectives

rate the performance, not the person

Concentrate upon performance items

Chinese views of Performance

Objectives: Maintain family control of
business
Performance appraisals favor workers that are
loyal to the family

Emphasis upon moral characteristics

Appraisal of HCN Employees Japan

It is important to avoid direct confrontation to save face and this
customs affects the way in which the performance appraisal is conducted.
A Japanese manager can not directly point out a work related problem
or error committed by a subordinate.
Developmental appraisal is usually conducted every month and
evaluation appraisal is performed after 12 years.
Feed back is subtle and given orally, Japanese employees never
rebut.

Appraisal process praise is given to the group.

Appraisal of HCN EmployeesUSA

Workers performance appraisals featured the us cultural
concept of meritocracy, which emphasis fairness and a short term
orientation.
Employee expect to be appraised individually and heavily on
individual feedback regarding performance.
P.A in the US are usually conducted once a year.
Feedback in the US process is direct and probably in writing.
US employees tend to present their own rebutted to the feed
back
Appraisal process praise is given individually

USA vs. People's Republic of China (PRC):

Performance appraisal
USA: Two-way communication and counseling are
widely used in the performance appraisal process.
People's Republic of China (PRC): Superiors have
absolute authority to evaluate subordinates; standards of
performance are vague and generic.

CONT.
Reward system
USA: A wide variety of rewards are used in the incentive
system.
People's Republic of China (PRC) Range of wage and
salary is narrow; bonus is not based on individual
performance; pay is more motivating than in the USA.

CONT.
Participative management
USA: Participative management is welcome and
encouraged, even if it is not prevalent yet.
People's Republic of China (PRC): Collective leadership
is widely used but the participation of workers in major
decisions is superficial and symbolic.

Thank You