This document discusses performance management in multinational companies. It addresses controlling performance at a global and local level when there are challenges like non-comparable data and distance between locations. Performance management is part of an overall control system for multinational enterprises. Expatriate performance depends on factors such as compensation, job role, support from headquarters, and cultural adjustment. Performance is also discussed for different types of international assignments and employees without standard expatriate roles, which presents additional challenges for performance appraisal in a multinational context.
This document discusses performance management in multinational companies. It addresses controlling performance at a global and local level when there are challenges like non-comparable data and distance between locations. Performance management is part of an overall control system for multinational enterprises. Expatriate performance depends on factors such as compensation, job role, support from headquarters, and cultural adjustment. Performance is also discussed for different types of international assignments and employees without standard expatriate roles, which presents additional challenges for performance appraisal in a multinational context.
This document discusses performance management in multinational companies. It addresses controlling performance at a global and local level when there are challenges like non-comparable data and distance between locations. Performance management is part of an overall control system for multinational enterprises. Expatriate performance depends on factors such as compensation, job role, support from headquarters, and cultural adjustment. Performance is also discussed for different types of international assignments and employees without standard expatriate roles, which presents additional challenges for performance appraisal in a multinational context.
This document discusses performance management in multinational companies. It addresses controlling performance at a global and local level when there are challenges like non-comparable data and distance between locations. Performance management is part of an overall control system for multinational enterprises. Expatriate performance depends on factors such as compensation, job role, support from headquarters, and cultural adjustment. Performance is also discussed for different types of international assignments and employees without standard expatriate roles, which presents additional challenges for performance appraisal in a multinational context.
INTERNATIONAL PERFORMANCE MANAGEMENT § Vocabulary § Objectives § Introduction § Multinational performance management § Control and performance management § Performance management of international employees § Performance appraisal of international employees Vocabulary § performance management, performance appraisal § foreign subsidiary § bureaucratic control system § 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, merit-based, intellectual capital § coaching and competency-based assessments § collective bargaining § virtual assignees § hard goals, soft goals, contextual goals § 360-degree feedback process § communication medium § cultural applicability Objectives 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 system
3. Factors associated with expatriate performance, including ■ compensation package ■ headquarters’ support ■ task and role ■ host environment factors ■ cultural adjustment
4. Performance management of ■ task and role expatriates and non-expatriates ■ those on non-standard tasks and assignments such as
commuter and virtual work
5. Issues related to performance appraisal of international employees Figure 6.1 Perspectives, issues, actions, and consequences in MNE performance management MNE performance mgmt. constraints 1. Whole vs. part 2. Non-comparable data 3. Volatility in the global business environment 4. Separation by time and distance 5. Variable levels of maturity across markets: the need for relevant comparative data MNE performance mgmt. constraints 1. Whole vs. part 2. Non-comparable data 3. Volatility in the global business environment 4. Separation by time and distance 5. Variable levels of maturity across markets: the need for relevant comparative data Figure 6.2 MNE control and performance To determine expatriate performance, consider the impact and interrelationships of: § the compensation package § The task – the assignment task variables and the expatriate’s role § headquarter’s support § the environment in which performance occurs – the subsidiary or foreign facility § cultural adjustment – of the individual and the accompanying family members Figure 6-3 Variables affecting expatriate performance Expatriate tasks 1. CEO or subsidiary manager oversees and directs entire foreign operation 2. Structure reproducer reproduces structure similar to what he or she knows from another part of the company 3. Troubleshooter analyzes and solves a particular operational problem 4. Operative performs functional job tasks in existing operational structure; generally in lower level supervisory positions Types of international assignments 1. Technical (5-10%) short-term knowledge transfer 2. Developmental (5-10%) in-country performance and 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 of existing processes and practices Figure 6.4 PCN role conception Figure 6.5 TCN role conception Non-expatriate performance management challenges § Performance criteria and 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 and failures will challenge performance appraisal process § Performance appraisals are complicated by international context, outside appraisers § Ways to improve and what to reward is unclear § Impact of non-standard work on HCN co-workers Figure 6.6 HCN role conception
