Chapter 6 For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 1 of 20 Chapter 6 INTERNATIONAL PERFORMANCE MANAGEMENT START Chapter 6 Click on an item to go to its section. INTERNATIONAL PERFORMANCE MGMT. Vocabulary Objectives Introduction Multinational performance management Control & performance management Performance mgmt. of int. employees Performance appraisal of int. employees For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 2 of 20 Chapter 6 Click on the book cover below to return to this table of contents. performance management, performance appraisal foreign subsidiary bureaucratic control system, relative comparative data 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, going native merit-based, intellectual capital, competency-based collective bargaining virtual assignees hard goals, soft goals, contextual goals 360-degree feedback process communication medium cultural applicability For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 3 of 20 Chapter 6 Vocabulary Objectives For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 4 of 20 Chapter 6 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 & role ■ host environment factors 4. Performance management of expatriates & non-expatriates those on non-standard tasks & assignments such as commuters & virtual workers 5. Issues related to performance appraisal of international employees For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 5 of 20 Chapter 6 Introduction For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 6 of 20 Chapter 6 Figure 6.1 Perspectives, issues, actions & consequences in MNE performance management For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 7 of 20 Chapter 6 Multinational performance management MNE performance mgmt. constraints Whole vs. part Non-comparable data Volatility in the global business environment Separation by time & distance Variable levels of maturity across markets: the need for relevant comparative data For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 8 of 20 Chapter 6 1. 2. 3. 4. 5. For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 9 of 20 Chapter 6 Control & performance management For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 10 of 20 Chapter 6 Figure 6.2 MNE control & performance For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 11 of 20 Chapter 6 Performance management of international employees For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 12 of 20 Chapter 6 Figure 6-3 Variables affecting expatriate performance 1. CEO or subsidiary manager oversees & directs entire foreign operation 2. Structure reproducer reproduces structure similar to what s/he knows from another part of the company 3. Troubleshooter analyzes & solves a particular operational problem 4. Operative performs functional job tasks in existing operational structure, in generally lower level, supervisory positions For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 13 of 20 Chapter 6 Expatriate tasks 1. Technical (5-10%) short-term knowledge transfer 2. Developmental (5-10%) in-country performance & 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 & practices For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 14 of 20 Chapter 6 Types of expatriate assignments For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 15 of 20 Chapter 6 Figure 6.4 PCN role conception For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 16 of 20 Chapter 6 Figure 6.5 TCN role conception Performance criteria & 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 & failures will challenge performance appraisal process Performance appraisals are complicated by international context, outside appraisers Ways to improve & rewards are unclear Impact of non-standard work on HCN co-workers For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 17 of 20 Chapter 6 Non-expatriate performance management challenges For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 18 of 20 Chapter 6 Performance appraisal of international employees Performance criteria hard, soft, & contextual goals Who conducts the performance appraisal? typically subsidiary manager, but could be team of evaluators Standardized or customized appraisal forms? Frequency of appraisal? Performance feedback the communication medium matters Appraisal of HCN employees For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 19 of 20 Chapter 6 Performance appraisal aspects of international employees For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 20 of 20 Chapter 6 Figure 6.6 HCN role conception