Performance Appraisal of
International Employees
Presented by:
Tat on Lo
Caroline Wong
Ki Ming Chan
Victor Le
Byron Maldonado
Today’s Content
Tat On -- Introduce the topic and explain the importance of the topic to
IHRM.
Caroline -- Present the theoretical framework and existing HRM and
IHRM concepts and systems.
Ki Ming -- Present a full profile of the target country and show how
different the cultures are between U.S. and China.
Victor -- Present on the practical issues and IHRM questions dealing with
China and U.S.
Byron -- Present the research findings and results of data analysis and
explain how it is linked to what we have studied through the course and
conclude our presentation and provide suggestions for the class.
What is Performance Appraisal
A communication tool to measure each
individual's contribution
– To evaluate talent and achievement with sensible
consistency and accuracy
– To help distinguish barriers to top performance
Why Appraise Performance
Periodic evaluation helps mangers to have a better understanding
of each employee's skills with the goal to facilitate, train and
develop abilities and power to their employees
– A chase to assess job development, encourage interest and
enhance job performance by pointing out the development and
recognizing productive work
– A feedback system that might otherwise be overlooked
Importance of IHRM
Increased focus on international
companies and on the human resource
issues, functions, policies and practices
that result from the strategic activities
of these
HRM in China
HRM not considered strategically
important in their globalization process.
Globalization increasing more attention
given towards subject.
– Shortage of experienced HR Managers in
China or HRM materials in Chinese.
Performance Appraisal
“performance appraisal, if it is to succeed,
required listening, giving and receiving
feedback, and counseling and dealing with
emotions. Ironically, although smooth
interpersonal relations are emphasized in
the Chinese culture …they tend to be
reluctant to pursue two-way
communications or provide counseling.”
(International Journal of Manpower)
Cultural Issues
Hofstede – Power Distance
Harmony
Saving Face
Comparison
Reward system
– USA: A wide variety of rewards are used in the
incentive system.
– PRC Range of wage and salary is narrow; bonus is
not based on individual performance; pay is more
motivating than in the USA.
Performance appraisal
– USA: Two-way communication and counseling are
widely used in the performance appraisal process.
– PRC: Superiors have absolute authority to evaluate
subordinates; standards of performance are vague
and generic.
Participative management
– USA: Participative management is welcome and
encouraged, even if it is not prevalent yet.
– PRC: Collective leadership is widely used but the
participation of workers in major decisions is
superficial and symbolic.
(International Journal of Manpower)
Employee Characteristics in China
China Geographic Location
Eastern Asia,
bordering the East
China Sea, Korea
Bay, Yellow Sea,
and South China
Sea, between
North Korea and
Vietnam.
Overview of Chinese Labor
About 800 million Labor
Force (2004)
– Agriculture 50%
– Industry 22%
– Services 28%
Unemployment rate: 12%
(2004)
Average working hours
– 10-12 hours/day
– 6 days/week
28%
50%
22%
Agriculture
Industry
Services
Chinese workers Characteristics
Focus on moralistic duty
Maslow’s Hierarchy of Needs:
– External Rewards
Physiological Needs
– Internalized Motivation
 Self-actualization needs
Example of “External Rewards”
Material: incentives use to stimulate performance
Money: a motivator for employees
Bonuses: exist in China since 1978
Pay system: individual performance
Culture: strongly collectivist culture
Pay differentials: based in length of service
Wage structures: subsidies, bonuses & allowances
Performance: short-term, loyalty
Belongingness: long-term
Example of “Internalized motivation”
Political Campaigning
– “emulation campaigns”
in communist China
– labor heroes: Tiananmen Square
Japanese Companies in China
– Chinese employees: send to Japan
– learn and expose a foreign culture.
Build on a sense of belongingness & loyalty
Practical Issues In IHRM
East Meets West
Different does not equal wrong
Must adapt to culture change
Flag-planting does not always work
U.S. Management
Individualism
Low power distance
Self-actualization needs
Short-term view
Chinese Management
Collectivism
Silent Achievers
Need for Affiliation
Need for Status
High power distance
Long-term view
Example
Less motivated when Individual
performance and short-term goal is
emphasized.
Would actually purposely slide back into
the group where he/she feels comfortable
Chinese Motivation Hierarchy
Social acceptance
Work ethics and life goal priority
Safety within group harmony and family support
Social awareness
Self actualization to the service of collectivity
Social altruism
Leader fitness for multi-dimensional development
Future Outlook
South China Morning Post (Hong Kong)
And the survey says: The long term outlook for China’s
HR problem is bright but the short term is pessimistic.
“I have come the the conclusion that you can become
rapidly obsolete as a China expert”.
- Rick A. Swaak
Senior Consultant
Frank E. Allen & Associates
Problems
State owned industries took in losses of 43.6%
– USD$6.4 billion
– Multinational unrest
Intellectual property rights have been an ongoing
struggle between China and U.S.
Chinese leadership is concentrated in the hands of a few
aging Communist Party men.
Corruption and bribery is on the rise
Guanxi
Relationships
– Chinese practice of developing and nurturing intricate
networks of personal relationships, sometimes giving
them priority over bottom-line performance.
– Makes hiring of Chinese nationals difficult
Struggle with Western Practices
– Instead of an emphasis on process and integration
across the business, for example, they are more
accustomed to compartmentalization and diligent
adherence to taking orders from above
Steps Toward a Solution
“Whilst the local manager is more cost effective than
an expatriate, the western manager is perceived to
be a more sophisticated and efficient businessman
with solid proven international business knowhow”.
Fiducia Management Consulting
Beijing, Shanghai, Hong Kong
Steps Toward a Solution
China adopts IPMA-HR certification
program
– IPMA-HR: International Public Managers
Association for Human Recourses.
– Chinese Training Center
SAFEA: State Administration of Foreign Expert
Affairs
Motorola
In the early 1980’s Motorola was asked
– “Will you provide us with a place to live?”
Apartments were built and loans offered
– Free multi-course lunches
– Free transportation to work
– Special training for new hires
37% of Chinese students earn engineering
degrees compared to 6% in the U.S.
– Lack of emphasis on Management
– Motorola University in Beijing
Motorola
When I was there(in the late 1990’s) I hired a guy
from a Chinese university and I tripled the pay he
was getting…now that made him very happy.”
Greg Wang- former Human Recourses
Manager, Associate Director of the Workforce
Development Campus, James Madison University