IHRM

2. Performance Criteria-Forms-
Issues Performance Feedback
Factors affecting Expatriate Performance
Performance Appraisal- Process
Performance Management
MNE Performance Management & Constraints

3.  Performance management is a process.
 It enables the multinational to evaluate and
continuously improve-
 individual, subsidiary unit and corporate
performance-
 against clearly defined , pre-set goals and
targets.

4. Global multinational enterprises (MNEs) are
companies that operate on a global scale, as
opposed to MNEs that are regionally focused.

5.  Whole versus part
 Non-comparable data
 Volatility of the global environment
 Separation by time and distance
 Variable levels of maturity
 Control and performance management

6. Formal -
informal
control
activities
Focusing on standardisation of
practices, Socialisation &
compliance to norms/values
Global mix
of strategic
outcomes
and results
MNE HQ
Subsidiary

7.  Expatriate performance – PCN,TCN, & HCN.
 Issues –Short term & long term assignments.
 Factors – Nature of assignment, Family.
 Issues exist – Expatriates & Non- Expatriates

8. Cultural
Adjustment
Host
environment
Headquarters
support
Compensation
package
Task

9. Task
“Hays 4 Tasks”
1.CEO directs the entire foreign operation.
2.Structure reproducer- Marketing(reproduce)
3.Trouble Shooter- individual -foreign subsidiary
- solve a operational problem.
4.Operative- perform functional job –existing
operational structure.

10.  Compensation Package-
• Importance of reward = performance equation.
• Financial benefit-career progression.
• Level of Motivation.
 Cultural Adjustment-
• Difficulty in new environment.
• Impact on performance.
• Dilemma & Others Behavior.

11.  Headquarters' support-
 Assignment Domestic V/S International.
 Individual V/S Family transfer.
 Natural cultural comfort zones.
 Career & Finance V/S Loyalty.
 Emotions V/S Unfamiliar situations.
 Host Environment-
 Social,legal,economic,technical demands.
 Type of goal & operation.
 Developing or Emerging market.

14.  Performance Appraisal is the systematic
evaluation of the performance of employees and
to understand the abilities of a person for further
growth and development.

15.  Goal setting
 Qualitative goals – they are the attributes to be
possessed by the employees .
 Quantitative goals – they are measurable goals.
 Performance appraisal :- in this step , the goals
are measured on a state of 1 to 5 by the
supervisor .
 Feed back:- appropriate feedback is given.

16. Goals VS Performance appraisal criteria.
Hard goals and Soft goals.
Profit VS Interpersonal Behavioral

17. Immediate Superior
Subsidiary Manager
Subsidiary CEO
Parent Company Evaluator

18.  Performance Appraisal are designed carefully &
often presumed to be static. The standard
appraisal system when tested , reduces future
development cost.

19.  In practice the formal appraisal is commonly on a
yearly basis . This yearly performance rating will
determine the compensation.

20.  The important aspects of an effective
performance management is the provision of
timely feedback.
 The timely feedback helps the employees
improve their performance.

22. Inability- quantifying performance.
Cultural Factors.
Who should appraise the Expatriate.
Types of forms- standard or customized.