Global Performance Management and Appraisal process

Global Performance Management and Appraisal process

1. IHRM – Unit III Multinational Performance Management Dr. I. Parvin Banu Associate Professor and Head PG and Research Department of International Business Sri Ramakrishna College of Arts and Science Coimbatore - 641 006 Tamil Nadu, India 1

2. Global Performance Management Process that enables the MNE to evaluate and continuously improve individual, subsidiary unit and corporate performance against clearly defined pre-set goals and targets.

3. Global Corporate Strategies - Roles Pattern of priorities – global or local emphasis Local strategies - Roles Remote Appraisal Source/Input Performance management process for individual employees Local Appraisal Sources/Inputs Critical Issues Criteria Implicit/Explicit Person vs. activities vs outcomes Purpose Developmental Pay Task/Roles Timing Individual Outcomes Training Career implications Financial Consequences Additional subsequent Assessment purpose Organisational Outcomes Control Reputation Legal compliance Perspectives – Issues – Actions – Consequences MNE Performance Management

4. TOP 25 MNCs IN INDIA

5. BIGGEST COMPANIES IN INDIA WITH FOREIGN SUBSIDIARIES

6. WORLD’S FAMOUS NON-FINANCIAL MNCs

7. CONSTRAINS THAT MAY AFFECT GOAL ATTAINMENT 1. Whole/Part The growth of entire MNE has to be considered, not a single subsidiary. Eg : 1. An MNC establishes operation in a particular market where its global competitor has a dominant position. 2. An MNE establishes a joint venture in a particular market in order to have a presence, not for any expectations. 2. Non-comparable data Frequently the data obtained from subsidiaries may be neither interpretable nor reliable. Eg : 1. Sales in Brazil may be skyrocketing – New exchange controls by Brazilian Government. 2. Sales in Peru – Sales on consignment treated as sales – difficulty in comparison with other subsidiaries 3. Quality Control checks 4. Import tariffs 5. Dock strike in one country may affect the supply of necessary components to a manufacturing plant in another country. 6. Labour laws

8. CONSTRAINS THAT MAY AFFECT GOAL ATTAINMENT 3. Volatility in Global Business Environment Turbulence and Fluctuation in Global Business Environment. Goals and deadlines set by a distant head quarters strategic team are inflexible and unrealistic. Few Event that had impact on International Business: Communal rule in East Europe and Soviet Union (1980s) Adoption of Euro ( € ) as the single currency for EU. Chinese Market Reforms SARS and Bird Flu epidemics International Terrorism Gulf war Raising of Oil prices high profile corporate collapses Adoption of International Accounting Standards (IAS) Tsunami disaster (2004) Global Financial crisis (2008) Arab spring political disturbance (2011) Covid – 19 (2000) Ukraine war (2022)

9. CONSTRAINS THAT MAY AFFECT GOAL ATTAINMENT 4. Separation by Time and Distance Constrains: Physical Distance Time Zone difference Frequency of contact between Head Office and subsidiary Cost of reporting system Solution: Growth and use of web based Human Resource Information System(HRIS). 5. Variable levels of Maturity across markets Supporting infrastructure of Parent is very essential At home, established brands can support new products and new business.