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Multinational Performance Management IHRM 10

This document discusses the challenges of performance management for multinational enterprises (MNEs). It identifies constraints like non-comparable data across markets and the variable maturity of markets. It also outlines different types of expatriate assignments and how the role of the expatriate, local national, and host country national are conceived. Finally, it discusses the additional challenges of appraising the performance of international employees and local nationals, such as determining appropriate performance criteria and feedback approaches.

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Jaanu
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640 views12 pages

Multinational Performance Management IHRM 10

This document discusses the challenges of performance management for multinational enterprises (MNEs). It identifies constraints like non-comparable data across markets and the variable maturity of markets. It also outlines different types of expatriate assignments and how the role of the expatriate, local national, and host country national are conceived. Finally, it discusses the additional challenges of appraising the performance of international employees and local nationals, such as determining appropriate performance criteria and feedback approaches.

Uploaded by

Jaanu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Performance Management

Figure 1: Perspectives, issues, actions & consequences


in MNE performance management

Dowling, Festing & Engle, 6/e, Cengage


Learning
MNE performance management constraints

1. Whole vs. part


2. Non-comparable data
3. Volatility in the global business environment
4. Separation by time & distance
5. Variable levels of maturity across markets:
the need for relevant comparative data

Dowling, Festing & Engle, 6/e, Cengage


Learning
Figure 2: MNE control & performance

Dowling, Festing & Engle, 6/e, Cengage


Learning
Figure 3: Variables affecting expatriate performance

Dowling, Festing & Engle, 6/e, Cengage


Learning
Expatriate tasks
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
Dowling, Festing & Engle, 6/e, Cengage
Learning
Types of expatriate assignments
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
Dowling, Festing & Engle, 6/e, Cengage
Learning
Figure 4: PCN role conception

Dowling, Festing & Engle, 6/e, Cengage


Learning
Figure 5: TCN role conception

Dowling, Festing & Engle, 6/e, Cengage


Learning
Non-expatriate performance
management challenges
• 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

Dowling, Festing & Engle, 6/e, Cengage


Learning
Performance appraisal aspects 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

Dowling, Festing & Engle, 6/e, Cengage


Learning
Figure 6: HCN role conception

Dowling, Festing & Engle, 6/e, Cengage


Learning

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