MODULE II

International Performance Management

Performance Management
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

Basic Components of Performance Management

Evaluating Subsidiary Performance

Factors to consider:

Whole versus part Non-comparable data Volatility of the global environment Separation by time and distance Variable levels of maturity

Control and Performance Management

Performance management is part of the

multinationals control system. Performance targets are part of formal control. Performance management contributes to shaping corporate culture, e.g.

Who conducts performance appraisal Tangible versus intangible criteria Individual versus team based appraisal How results linked to HR decisions, e.g., compensation and promotion

Variables Affecting Expatriate Performance

Cultural adjustment self and family Host environment Headquarters support

Task
Compensation package

Expatriate Performance

Individual Performance Management

The task:

Chief executive officer Structure reproducer Troubleshooter Operative

Task variables are generally considered

more under the control of the multinational than environmental factors.

Roles
A role is the organized set of behaviors assigned

to a particular position.
Effective role behavior is an interaction between

the concept of the role, the interpretation of expectations, the persons ambitions, and the norms inherent in the role.
The difficulty for the expatriate manager is that the

role may be defined in one country, but performed in another.

PCN Role Conception

TCN Role Conception

HCN Role Conception

Headquarters Support
The support of headquarters is important

both to the individual expatriate and accompanying family members as a performance variable

The Host Environment

The external context can be a major determinant

of expatriate performance Differing demands in terms of the context:

Societal Legal Economic Technical Physical Type of operation involved (e.g. IJV versus whollyowned subsidiary)

Contextual Model of Expatriate Performance Management

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
Performance criteria
Hard goals: objective, quantifiable and can be directly measured Soft goals: relationship or trait-based Contextual goals: factors that result from the situation in which performance occurs

An appraisal system that uses hard, soft and contextual criteria is advocated

Other Factors Affecting Appraisal

Who conducts the performance appraisal Use of standardized or customized

appraisal form Frequency of appraisal Performance feedback

Timely Geographical distance affects