performance management

1. Performance
Appraisal

2. • Expatriate’s performance
appraisal
• Variable influencing
Performance of Expatriate
• Issues and challenges in
international performance
management

4. Definitions
According to Newstrom, “It is the process of evaluating the
performance of employees, sharing that information with them
and searching for ways to improve their performance’’.
Performance appraisal is the step where the management finds
out how effective it has been at hiring and placing employees
A “Performance appraisal” is a process of evaluating an employee’s
performance of a job in terms of its requirements.

5. Objectives of Performance Appraisal
Employee Organization
measuring the efficiency
maintaining organizational
control.
concrete and tangible
particulars about their work
assessment of
performance
mutual goals of the
employees & the organization.
growth & development
increase harmony & enhance
effectiveness
 Personal development
 work satisfaction
 involvement in the
organization.
According to:
Aims at:

6. 1. Paired comparison
2. Graphic Rating scales
3. Forced choice Description
method
4. Forced Distribution Method
5. Checks lists
6. Free essay method
7. Critical Incidents
8. Group Appraisal
9. Field Review Method
10.Confidential Report
11.Ranking
1. Assessment Center
2. Appraisal by Results or
Management by
Objectives
3. Human Asset
Accounting
4. Behaviorally Anchored
Rating scales
5. 360 Degree Feedback
Traditional Methods Modern Methods
Methods of Performance Appraisal

7. SDKSDHKS

8. Objective -:
• Introduction
• Challenges of International performance management
• Areas to be appraised
• Who should appraise the performance?
• System of Performance appraisal
• Problems of performance appraisal
• How to make appraisal effective?
•

9. International Performance Management
– It is the process of assessing an individual's performance in a
systematic way.
– The performance being measured against various job related
factors as well as individual traits.
– In addition one's potential for performance is measured.
IHRM is a process “that enables the multinational to evaluate and
continuously improve individual, subsidiary unit and corporate performance,
against clearly defined, pre-set goals and targets”.

10. 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 will help to improve the performance.

11. Purpose Performance Appraisal
To provide feedback to individuals about how well they are doing
To provide a basis for rewarding top performers
To identify areas in which additional training and development may be needed
To identify problem areas that may call for a change in assignment

12. Problem: Performance appraisal
 Unintentional bias
• Host-nation biased by cultural frame of reference
• Home-country biased by distance and lack of experience working abroad
• Expatriate managers believe that headquarters unfairly evaluates and under
appreciates them

13. Guidelines for performance appraisal
More weight should be given to onsite manager’s evaluation as they are able
to recognize the soft variables
Expatriate who worked in same location should assist home-office manager
with evaluation
If foreign on-site managers prepare an evaluation, home-office manager should
be consulted before completion of formal the terminal evaluation

14. Challenges of International Performance
Management
• Total company vs. part of it.
• Standardized or customized appraisal
form
• Time differences and distance separation
• Unreliable data across boundaries
• Complex and volatile environments
• Who conducts the performance appraisal
• Frequency of appraisal
• Variable levels of maturity
• Volatility of the global environment
• Non-comparable data
• Cultural adjustment
• Host environment
• Raters Bias

15. Performance Criteria
Contextual
goals
Soft
goals
Hard
goals
An appraisal system that uses hard, soft
and contextual criteria is advocated
Hard Goals: are objective,
quantifiable, and can be directly
measured such as Return-on-Investment
( ROI ), market share, so on
Soft Goals: tend to be relationship-
based or trait-based such as leadership
style, interpersonal skills, etc.
Contextual Goals: attempt to take into
consideration factors that result from the
situation in which performance occurs.

16. Factors to be considered in individual performance
& appraisal process
Headquarters’ support
Compensation Package
Task
Host Environment
Expatriate Performance Management System
Cultural Adjustment

17. Compensation: such assignments taken for
perceived financial benefits and career progression
􀂾 Compensation is one of the key factor closely associated with expat’s
performance.
􀂾 Well compensated expatriates definitely happier and more productive.
􀂾 Pay, according to Herzberg's two factor theory of motivation, is a
hygiene factor which
when adequately provided for removes dissatisfaction but fails to activate
motivation and
performance.
􀂾 But money continues to remain as one of the most significant
motivators for expats.

18. 2. Task:
􀂾 An expatriate is sent on an overseas assignment either as chief executive, system
replicator, trouble shooter or as a simple operator.
􀂾 Whatever, the nature of assignment, task has considerable impact on an
individual’s
performance.
􀂾 A tougher task tends to evolve better performance than a job which is relatively
easy to
handle.
􀂾 People tend to show their best when the job is tough and challenging.

19. Head quarter’s support
􀂾 Home office support is a crucial in expatriate performance.
􀂾 An assignee has accepted an overseas job for three objectives: making
extra money, career prospectus and loyalty to the organization and
commitment to make the firm successful.
􀂾 It is necessary that the home office extends support and offer moral
courage by psychological counseling, particularly in times when the
expatriate is passing through a culture shock.

20. Host Environment:
􀂾 Environment wields considerable influence on performance, particularly of the
expatriate. If the host environment is hostile, expatriate are under constant
pressure and often, there is a threat to their life itself.
􀂾 The form of ownership of the subsidiary is also important. For instance, it may
be relatively easier to perform in a wholly owned subsidiary than in a joint venture
with a state owned enterprise in China.
􀂾 Conflicting goals between parent companies are a common problem within
international joint ventures and can make the expatriate’s job more difficult.

21. The ability to live comfortably in an alien culture – is essential for the success of an
expatriate. Multicultural adjustability refers to being sensitive to the host culture, the
expat’s multicultural sensitivity, language ability, diplomacy, adaptability, positive
attitude, emotional stability and maturity.
􀂾 It is not enough if the expat. Alone acquires cross cultural adjustability. The trailing
spouse to adjust is often a major reason behind expatriate failure
Cultural Adjustment

22. The international HR Manager should decide on 3 key areas while assessing
an expatriate’s performance:
- Specific performance criteria
- Identifying the appraisers
- deciding on the frequency of appraisal
Expatriate’s performance
appraisal
Basically there are three categories of performance indicators:
1. Trait based (soft goal) – leadership style, interpersonal skill etc.
2. Behavior based (contextual goals) – attempts to take into consideration factors that
results
from the situation in which performance occurs.
3. Result based (Hard goals) – objectives, quantifiable, and can be directly measured
such as Return On Investment (ROI), market share and so on.

23. Non-expatriate Performance management
• A seemingly neglected group
• Performance effects of factors associated with constant air
travel
– Depression, nervous anxiety, sleep disturbance, health issues
• Stress associated with frequent absences and effect on family
relationships
• Non-standard assignments such as commuter arrangements and
virtual assignments share these aspects

24. Performance Appraisal at
Pepsi-Cola International
• Common performance appraisal system: focuses on
motivating managers to achieve and maintain high standards
of motivation.
 Factors associated with high performance in diverse markets
were identified:
 Handling business complexity
 Results orientation
 Organizational savvy
 Leadership
 Executive excellence
 Composure under pressure
 Technical knowledge
 Positive people skills
 Effective communication and impact
 Maturity

25. Cont.…
Five feed-back based mechanism:
• Instant feedback
• Coaching
• Accountability-based performance appraisal
• Development feedback
• Human resource plan for future

26. US Performance Appraisal
System
To build up employee performance plan
• Discuss performance plan
• Evaluating
• Rewarding
• Provide assistant
• Repositioning or removing
• Identifying

27. American Views of Performance
Objective: To help achieve organizational objectives
• Productivity and Quality
• Achievement
– Individual, group or organizational objectives
• “rate the performance, not the person”
– Concentrate upon performance items

28. Chinese views of Performance
• Objectives: Maintain family control of
business
– Performance appraisals favor workers that are
loyal to the family
• Emphasis upon “moral” characteristics

29. Appraisal of HCN Employees -
Japan
􀂾 It is important to avoid direct confrontation to ‘save face’ and this
customs affects the way in which the performance appraisal is conducted.
􀂾 A Japanese manager can not directly point out a work related problem
or error committed by a subordinate.
􀂾 Developmental appraisal is usually conducted every month and
evaluation appraisal is performed after 12 years.
􀂾 Feed back is subtle and given orally, Japanese employees never rebut.
􀂾 Appraisal process praise is given to the group.

30. Appraisal of HCN Employees-
USA
􀂾 Workers performance appraisals featured the us cultural concept
of meritocracy, which emphasis fairness and a short term
orientation.
􀂾 Employee expect to be appraised individually and heavily on
individual feedback regarding performance.
􀂾 P.A in the US are usually conducted once a year.
􀂾 Feedback in the US process is direct and probably in writing.
􀂾 US employees tend to present their own rebutted to the feed
back
􀂾 Appraisal process praise is given individually

31. USA vs. People's Republic of China (PRC):
• Performance appraisal
– USA: Two-way communication and counseling are
widely used in the performance appraisal process.
– People's Republic of China (PRC): Superiors have
absolute authority to evaluate subordinates; standards of
performance are vague and generic.

32. CONT.
• Reward system
– USA: A wide variety of rewards are used in the incentive
system.
– People's Republic of China (PRC) Range of wage and
salary is narrow; bonus is not based on individual
performance; pay is more motivating than in the USA.

33. CONT.
• Participative management
– USA: Participative management is welcome and
encouraged, even if it is not prevalent yet.
– People's Republic of China (PRC): Collective leadership
is widely used but the participation of workers in major
decisions is superficial and symbolic.

34. Thank You