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TRANSCRIPT
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Chapter 10
Performance Management
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Chapter Objectives
The aim of this chapter is to draw together the
ree!ant iterat"re on performance management in
the internationa conte#t as it reates to I$%M.
The foc"s is on identif&ing aspects that re'"ire as"(stantia modification of traditiona performance
management )especia& appraisa criteria and
processes* that are imposed (& internationa
operations. +e specifica& address the foowing aspects,
Cont.
The aim of this chapter is to draw together the
ree!ant iterat"re on performance management in
the internationa conte#t as it reates to I$%M.
The foc"s is on identif&ing aspects that re'"ire as"(stantia modification of traditiona performance
management )especia& appraisa criteria and
processes* that are imposed (& internationa
operations. +e specifica& address the foowing aspects,
Cont.
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Chapter Objectives (cont.)
M"tinationa performance management at the go(a and
oca e!e, onsidering aspects s"ch as non/compara(e
data0 the !oatiit& of the go(a en!ironment0 the effect of
distance and e!e of s"(sidiar& mat"rit&
Performance management as part of a m"tinationas contros&stem
actors associated with e#patriate performance0 inc"ding
compensation pac3age0 tas3 and roe0 head'"arters s"pport0
host en!ironment factors and c"t"ra ad4"stment
Performance management of e#patriates and non/e#patriates0 and for those on non/standard assignments s"ch
as comm"ter and !irt"a
Iss"es reated to the performance appraisa of internationa
empo&ees.
M"tinationa performance management at the go(a and
oca e!e, onsidering aspects s"ch as non/compara(e
data0 the !oatiit& of the go(a en!ironment0 the effect of
distance and e!e of s"(sidiar& mat"rit&
Performance management as part of a m"tinationas contros&stem
actors associated with e#patriate performance0 inc"ding
compensation pac3age0 tas3 and roe0 head'"arters s"pport0
host en!ironment factors and c"t"ra ad4"stment
Performance management of e#patriates and non/e#patriates0 and for those on non/standard assignments s"ch
as comm"ter and !irt"a
Iss"es reated to the performance appraisa of internationa
empo&ees.
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Performance Management
process that ena(es the m"tinationa
to e!a"ate and contin"o"s& impro!e
indi!id"a0 s"(sidiar& "nit0 and corporate
performance0 against cear& defined0pre/set goas and targets
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Evaluating Subsidiary Performance
actors to consider, +hoe !ers"s part
on/compara(e data
9oatiit& of the go(a en!ironment
Separation (& time and distance
9aria(e e!es of mat"rit&
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Control and Performance
Management Performance management is part of the
m"tinationas contro s&stem.
Performance targets are part of forma contro.
Performance management contri("tes to
shaping corporate c"t"re0 e.g. +ho cond"cts performance appraisa
Tangi(e !ers"s intangi(e criteria
Indi!id"a !ers"s team (ased appraisa
$ow res"ts in3ed to $% decisions0 e.g.0
compensation and promotion
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ariables !ffecting E"patriate
Performance
"t"ra ad4"stment ; sef and fami&
$ost en!ironment
$ead'"arters s"pport
Tas3
ompensation
pac3age
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#ndividual Performance Management
The tas3,
hief e#ec"ti!e officer
Str"ct"re reprod"cer
Tro"(eshooter
>perati!e
Tas3 !aria(es are genera& considered
more "nder the contro of the m"tinationathan en!ironmenta factors.
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$oles
roe is the organi@ed set of (eha!iors assigned
to a partic"ar position.
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PC% $ole Conception
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&C% $ole Conception
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'ead(uarters) Support
The s"pport of head'"arters is important
; (oth to the indi!id"a e#patriate and
accompan&ing fami& mem(ers ; as a
performance !aria(e
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&he 'ost Environment
The e#terna conte#t can (e a ma4or determinant
of e#patriate performance
Differing demands in terms of the conte#t,
Societa Aega
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Conte"tual Model of E"patriate Performance
Management
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%on*e"patriate Performance
Management
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Performance !ppraisal
Performance criteria $ard goas, o(4ecti!e0 '"antifia(e and can (e
direct& meas"red
Soft goas, reationship or trait/(ased onte#t"a goas, factors that res"t from the
sit"ation in which performance occ"rs
n appraisa s&stem that "ses hard0 soft
and conte#t"a criteria is ad!ocated
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Other +actors !ffecting !ppraisal
+ho cond"cts the performance appraisa
Use of standardi@ed or c"stomi@ed
appraisa form
re'"enc& of appraisa
Performance feed(ac3 Time&
Ceographica distance affects
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!ppraisal of 'C%s
The practice itsef confronts the iss"e of
c"t"ra appica(iit&.
Ma& (e necessar& to "se oca staff and a
c"stomi@ed form.
Ae!e of position in!o!ed is an important
consideration.
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'C% $ole Conception
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Chapter Summary
Technica competence is a necessar& ("t ins"fficient
condition for s"ccessf" internationa performance.
Most m"tinationa firms see3 manageria
characteristics when seecting internationamanagers0 e.g. ross/c"t"ra interpersona s3is
Sensiti!it& to foreign norms and !a"es and
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Chapter Summary (cont.)
+e ha!e e#pored in this chapter, The (asic components of performance management
s&stem that is conscio"s of and responds to the
organi@ationa0 nationa and internationa eements.
M"tinationa performance aspects s"ch as whoe )go(a*!ers"s part )s"(sidiar&*0 non/compara(e data0 the !oatiit&
of the go(a en!ironment0 the effect of distance0 and the
e!e of mat"rit&.
Performance management as a contro mechanism
actors associated with e#patriate performance, the
compensation pac3age tas3 and roe head'"arters
s"pport host en!ironment factors and c"t"ra ad4"stment.
(cont.)
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Chapter Summary (cont.)
Performance management of non/e#patriates and
those on non/standard assignments0 e.g. 9irt"a assignments as an i"stration of some of the
aspects that need to (e considered in non/traditiona
t&pes of assignments.
Specific iss"es reating to the performance
appraisa of internationa empo&ees
ppraisa of $ empo&ees in s"(sidiar&
operations.
(cont.)
Performance management of non/e#patriates and
those on non/standard assignments0 e.g. 9irt"a assignments as an i"stration of some of the
aspects that need to (e considered in non/traditiona
t&pes of assignments.
Specific iss"es reating to the performance
appraisa of internationa empo&ees
ppraisa of $ empo&ees in s"(sidiar&
operations.
(cont.)
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Chapter Summary (cont.)
Broadening o"t the disc"ssion to the m"tinationa
e!e and addressing performance management
and appraisa concerns reated to non/e#patriates
and those on non/standard assignments has (een"sef" to remind "s that there are man& dimensions
to internationa ("siness operations that need to (e
considered when designing an effecti!e
performance management s&stem in the
m"tinationa conte#t.