Performance management in international context

Performance management in international context

1. Performance Management in international Context Ligo Koshy , Faculty, MACFAST, Tiruvalla

2. Performance Management Its is a process that enable the MNE to evaluate and continuously improve individual, subsidiary unit and corporate performance against, clearly defined , pre-set goals and targets. Ligo Koshy, Faculty, MACFAST, Tiruvalla

3. Challenges of International Performance Management Total Company versus Part of it MNC’s consists of headquarters, subsidiaries and its various alliance companies. HR manager needs to use different type of appraisal techniques for each part as decision affects various organs of MNC differently Standard format versus customised format Should the HQ and subsidiaries adopt the same and standard criteria/ performance factors or different criteria Uniformity of data performance Since the subsidiaries are performing different functions ,uniformity of data for the appraisal is not feasible Ligo Koshy, Faculty, MACFAST, Tiruvalla

4. Challenges of International Performance Management Validity of performance criteria Performance criteria valid in one country may not be valid in another country Time and distance variations Complications create by the geographical distance between HQ and subsidiaries and the time zone differences Varied levels of maturity The maturity level of people in different countries are different Rater’s competence Rates ignorance about factors which influence working in foreign countries Rater’s bias The problems with the subjective measure have opportunity for bias Host Environment Social , Political, Economic issues affects the performance of employees Cultural Adjustments Adjust of the employee to the organisational culture significantly influences the performance Ligo Koshy, Faculty, MACFAST, Tiruvalla

5. Variables Affecting Performance of an expatriate Compensation Package Perceived financial benefits, potential career prospects affects the level of commitment and motivation Task and the Role Depending up on the nature of assignment , degree of task responsibility varies Headquarters Support Relocating and adapting to a culturally and environmentally different country. Host Environment Varying social, legal, economic, technical demands in different countries, type of operation( wholly owned subsidiary or International joint venture) Cultural Adjustment The more the differences between the culture of the parent country and host country the more difficult to adjust work behaviour Ligo Koshy, Faculty, MACFAST, Tiruvalla

6. Role Aspects of Performance of Foreign Employees The Performance Appraisal of the foreign employee should consider the Role rather than just the task Role includes tasks and various other factors Ligo Koshy, Faculty, MACFAST, Tiruvalla

7. PCN’s Role Conception Parent company’s expectation from PCN Role Perception of PCN Organisational culture of the Parent company Culture of the parent company’s country Role content of Parent Country Nationals Subsidiary’s Expectations from the PCN Organisational Norms of the subsidiary Host country’s culture Ligo Koshy, Faculty, MACFAST, Tiruvalla

8. TCN’s Role Conception Parent company’s expectation from TCN Role Perception of TCN Organisational culture of the Parent company Culture of the TCN’s country Role content of TCN Subsidiary’s Expectations from the TCN Organisational Norms of the subsidiary Host country’s culture Culture of organisations where TCN worked Previously Ligo Koshy, Faculty, MACFAST, Tiruvalla

9. Role Conception of HCN Parent Company’s Expectation from HCN Role Perception of HCN Role content of HCN Organisational Culture of subsidiary Organisational Culture of parent country Subsidiary expectations Ligo Koshy, Faculty, MACFAST, Tiruvalla

10. Appraising The Performance The international HR manager should decide on three key areas Specifying performance criteria Identifying the appraisers Deciding on the frequency of appraisal. Ligo Koshy, Faculty, MACFAST, Tiruvalla

11. Appraising The Performance Specifying performance criteria Hard criteria Performance based or tangible outcome based Eg : profits, market share etc. Soft criteria Relationship or trait based/ interpersonal criteria Focus here is on what a person is and not on what he or she does Contextual criteria Situation specific criteria Represents a variety of external conditions that may affect both hard and soft criteria Usually includes cultural, language and environmental differences Ligo Koshy, Faculty, MACFAST, Tiruvalla

12. Common Appraisal/ Rating Errors Halo Effect Leniency and Strictness Central Tendency Recency Ligo Koshy, Faculty, MACFAST, Tiruvalla

13. Appraising The Performance Who are the Appraisers? Appraisers are immediate managers at the host and parent locations, team members and clients Self-appraisal is a common practice In most MNC's, appraisal systems have a combination of these appraisers Ligo Koshy, Faculty, MACFAST, Tiruvalla

14. Appraising The Performance Frequency of Assessment The general trend is to evaluate Once in three months Six months Once in a year Ligo Koshy, Faculty, MACFAST, Tiruvalla

15. Performance Management of International employees Establish Performance standard Communicate standards to employees as well as evaluators Decide upon the performance appraisal format/ technique Measuring actual Performance by evaluators through observation, interview, records and reports. Frequency of Appraisal- Normally once in a year Adjust actual performance due to environmental influence Ligo Koshy, Faculty, MACFAST, Tiruvalla

16. Performance Management of International employees Compare the actual/adjusted performance with standards and find out deviations if any Feedback to the appraise Consider the Appraisal results for contract renewal and promotion Plan for employee training and development Suggest changes in job analysis and standards ,if any Ligo Koshy, Faculty, MACFAST, Tiruvalla

17. How to make Performance Appraisal Effective Reliability and validity Customisation of Appraisal Forms Consensus of the Appraiser and Appraise Open and continuous communication Sensitive to ground realities Easy to operate Feedback Raters knowledge of the Appraise. Ligo Koshy, Faculty, MACFAST, Tiruvalla