PERFORMANCE MANAGEMENT
Dony Eko Prasetyo, S.IP.
What is performance management?
• A process that enables the multinational to
evaluate and continuously improve
individual, subsidiary unit and corporate
performance, against clearly defined, preset goals and targets
Basic components of performance management
Evaluating subsidiary performance
• Factors to consider:
– Whole versus part
– Non-comparable data
– Volatility of the global environment
– Separation by time and distance
– Variable levels of maturity
Control and performance
management
• Performance management is part of the
multinational’s control system
• Performance targets, for example, are part of
formal control
• Performance management contributes to
shaping corporate culture
Variables affecting expatriate performance
Individual performance
management
• The task:
– Chief executive officer
– Structure reproducer
– Troubleshooter
– Operative
• Task variables more under the control of the
multinational than environmental factors
Roles
• A role is the organized set of behaviours assigned to
a particular position
• Effective role behaviour is an interaction between
the concept of the role, the interpretation of
expectations, the person’s ambitions, and the norms
inherent in the role
(refer back to Chapter 7 – the role of the repatriate)
PCN role conception
TCN role conception
Expatriate performance
• The support of headquarters is important –
both to the individual expatriate and
accompanying family members – as a
performance variable
The host environment
• The external context can be a major determinant of
expatriate performance
• Differing demands in terms of context:
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Societal
Legal
Economic
Technical
Physical
Type of operation involved (eg. IJV versus wholly-owned
subsidiary)
Contextual model of expatriate performance management
Non-expatriate performance
management
• A seemingly neglected group
• Performance effects of factors associated with
constant air travel
– Depression, nervous anxiety, sleep disturbance, health
(DVT, weight gain, poor diet)
• Stress associated with frequent absences and effect
on family relationships
• Non-standard assignments such as commuter
arrangements and virtual assignments share these
aspects
Performance appraisal
• Performance criteria
– Hard goals: objective, quantifiable and can be
directly measured
– Soft goals: relationship or trait-based
– Contextual goals: factors that result from the
situation in which performance occurs
• An appraisal system that uses hard, soft and
contextual criteria is advocated
Other factors affecting appraisal
• Who conducts the performance appraisal
• Use of standardized or customized appraisal
form
• Frequency of appraisal
• Performance feedback
– Timely
– Geographical distance affects
Appraisal of HCNs
• The practice itself confronts the issue of
cultural applicability
• May be necessary to use local staff and a
customized form
• Level of position involved is an important
consideration
HCN role conception