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Page 1: Chapter  6 performance management

Performance Appraisal

bull Expatriatersquos performance appraisal

bull Variable influencing Performance of Expatriate

bull Issues and challenges in international performance management

Definitions

According to Newstrom ldquoIt is the process of evaluating the

performance of employees sharing that information with them

and searching for ways to improve their performancersquorsquo

Performance appraisal is the step where the management finds

out how effective it has been at hiring and placing employees

A ldquoPerformance appraisalrdquo is a process of evaluating an employeersquos

performance of a job in terms of its requirements

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 amp the organization

growth amp development

increase harmony amp enhance

effectiveness

Personal development

work satisfaction

involvement in the

organization

According to

Aims at

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

10Confidential Report

11Ranking

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

SDKSDHKS

Objective -

bull Introduction

bull Challenges of International performance management

bull Areas to be appraised

bull Who should appraise the performance

bull System of Performance appraisal

bull Problems of performance appraisal

bull How to make appraisal effective

bull

International Performance Management

ndash It is the process of assessing an individuals performance in asystematic way

ndash The performance being measured against various job relatedfactors as well as individual traits

ndash In addition ones potential for performance is measured

IHRM is a process ldquothat enables the multinational to evaluate and

continuously improve individual subsidiary unit and corporate performance

against clearly defined pre-set goals and targetsrdquo

Why Appraise Performance

Periodic evaluation helps mangers to have a better understanding of eachemployees skills with the goal to facilitate train and develop abilities andpower to their employees

ndash A chase to assess job development encourage interest and enhance jobperformance by pointing out the development and recognizingproductive work

ndash A feedback system will help to improve the performance

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

Problem Performance appraisal

Unintentional bias

bull Host-nation biased by cultural frame of reference

bull Home-country biased by distance and lack of experience working abroad

bull Expatriate managers believe that headquarters unfairly evaluates and under

appreciates them

Guidelines for performance appraisal

More weight should be given to onsite managerrsquos 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

Challenges of International Performance Management

bull Total company vs part of it

bull Standardized or customized appraisal

form

bull Time differences and distance separation

bull Unreliable data across boundaries

bull Complex and volatile environments

bull Who conducts the performance appraisal

bull Frequency of appraisal

bull Variable levels of maturity

bull Volatility of the global environment

bull Non-comparable data

bull Cultural adjustment

bull Host environment

bull Raters Bias

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

Factors to be considered in individual performance amp appraisal process

Headquartersrsquo support

Compensation Package

Task

Host Environment

Expatriate Performance Management System

Cultural Adjustment

Compensation such assignments taken for perceived financial benefits and career progression

1048766 Compensation is one of the key factor closely associated with expatrsquos performance

1048766 Well compensated expatriates definitely happier and more productive

1048766 Pay according to Herzbergs two factor theory of motivation is a hygiene factor which

when adequately provided for removes dissatisfaction but fails to activate motivation and

performance

1048766 But money continues to remain as one of the most significant motivators for expats

2 Task

1048766 An expatriate is sent on an overseas assignment either as chief executive system

replicator trouble shooter or as a simple operator

1048766 Whatever the nature of assignment task has considerable impact on an individualrsquos

performance

1048766 A tougher task tends to evolve better performance than a job which is relatively easy to

handle

1048766 People tend to show their best when the job is tough and challenging

Head quarterrsquos support

1048766 Home office support is a crucial in expatriate performance

1048766 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

1048766 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

Host Environment

1048766 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

1048766 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

1048766 Conflicting goals between parent companies are a common problem within

international joint ventures and can make the expatriatersquos job more difficult

The ability to live comfortably in an alien culture ndash is essential for the success of an

expatriate Multicultural adjustability refers to being sensitive to the host culture the

expatrsquos multicultural sensitivity language ability diplomacy adaptability positive

attitude emotional stability and maturity

1048766 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

The international HR Manager should decide on 3 key areas while assessing

an expatriatersquos performance

- Specific performance criteria

- Identifying the appraisers

- deciding on the frequency of appraisal

Expatriatersquos performance

appraisal

Basically there are three categories of performance indicators

1 Trait based (soft goal) ndash leadership style interpersonal skill etc

2 Behavior based (contextual goals) ndash attempts to take into consideration factors that

results

from the situation in which performance occurs

3 Result based (Hard goals) ndash objectives quantifiable and can be directly measured

such as Return On Investment (ROI) market share and so on

Non-expatriate Performance management

bull A seemingly neglected group

bull Performance effects of factors associated with constant air

travel

ndash Depression nervous anxiety sleep disturbance health issues

bull Stress associated with frequent absences and effect on family

relationships

bull Non-standard assignments such as commuter arrangements and

virtual assignments share these aspects

Performance Appraisal at

Pepsi-Cola International

bull 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

Conthellip

Five feed-back based mechanism

bull Instant feedback

bull Coaching

bull Accountability-based performance appraisal

bull Development feedback

bull Human resource plan for future

US Performance Appraisal

System

To build up employee performance plan

bull Discuss performance plan

bull Evaluating

bull Rewarding

bull Provide assistant

bull Repositioning or removing

bull Identifying

American Views of Performance

Objective To help achieve organizational objectives

bull Productivity and Quality

bull Achievement

ndash Individual group or organizational objectives

bull ldquorate the performance not the personrdquo

ndash Concentrate upon performance items

Chinese views of Performance

bull Objectives Maintain family control of

business

ndash Performance appraisals favor workers that are

loyal to the family

bull Emphasis upon ldquomoralrdquo characteristics

Appraisal of HCN Employees -

Japan

1048766 It is important to avoid direct confrontation to lsquosave facersquo and this

customs affects the way in which the performance appraisal is conducted

1048766 A Japanese manager can not directly point out a work related problem

or error committed by a subordinate

1048766 Developmental appraisal is usually conducted every month and

evaluation appraisal is performed after 12 years

1048766 Feed back is subtle and given orally Japanese employees never rebut

1048766 Appraisal process praise is given to the group

Appraisal of HCN Employees-

USA

1048766 Workers performance appraisals featured the us cultural concept of meritocracy which emphasis fairness and a short term orientation

1048766 Employee expect to be appraised individually and heavily on individual feedback regarding performance

1048766 PA in the US are usually conducted once a year

1048766 Feedback in the US process is direct and probably in writing

1048766 US employees tend to present their own rebutted to the feed back

1048766 Appraisal process praise is given individually

USA vs Peoples Republic of China (PRC)

bull Performance appraisal

ndash USA Two-way communication and counseling are widely used in the performance appraisal process

ndash Peoples Republic of China (PRC) Superiors have absolute authority to evaluate subordinates standards of performance are vague and generic

CONT

bull Reward system

ndash USA A wide variety of rewards are used in the incentive system

ndash Peoples 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

CONT

bull Participative management

ndash USA Participative management is welcome and

encouraged even if it is not prevalent yet

ndash Peoples Republic of China (PRC) Collective leadership

is widely used but the participation of workers in major

decisions is superficial and symbolic

Thank You

Page 2: Chapter  6 performance management

bull Expatriatersquos performance appraisal

bull Variable influencing Performance of Expatriate

bull Issues and challenges in international performance management

Definitions

According to Newstrom ldquoIt is the process of evaluating the

performance of employees sharing that information with them

and searching for ways to improve their performancersquorsquo

Performance appraisal is the step where the management finds

out how effective it has been at hiring and placing employees

A ldquoPerformance appraisalrdquo is a process of evaluating an employeersquos

performance of a job in terms of its requirements

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 amp the organization

growth amp development

increase harmony amp enhance

effectiveness

Personal development

work satisfaction

involvement in the

organization

According to

Aims at

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

10Confidential Report

11Ranking

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

SDKSDHKS

Objective -

bull Introduction

bull Challenges of International performance management

bull Areas to be appraised

bull Who should appraise the performance

bull System of Performance appraisal

bull Problems of performance appraisal

bull How to make appraisal effective

bull

International Performance Management

ndash It is the process of assessing an individuals performance in asystematic way

ndash The performance being measured against various job relatedfactors as well as individual traits

ndash In addition ones potential for performance is measured

IHRM is a process ldquothat enables the multinational to evaluate and

continuously improve individual subsidiary unit and corporate performance

against clearly defined pre-set goals and targetsrdquo

Why Appraise Performance

Periodic evaluation helps mangers to have a better understanding of eachemployees skills with the goal to facilitate train and develop abilities andpower to their employees

ndash A chase to assess job development encourage interest and enhance jobperformance by pointing out the development and recognizingproductive work

ndash A feedback system will help to improve the performance

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

Problem Performance appraisal

Unintentional bias

bull Host-nation biased by cultural frame of reference

bull Home-country biased by distance and lack of experience working abroad

bull Expatriate managers believe that headquarters unfairly evaluates and under

appreciates them

Guidelines for performance appraisal

More weight should be given to onsite managerrsquos 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

Challenges of International Performance Management

bull Total company vs part of it

bull Standardized or customized appraisal

form

bull Time differences and distance separation

bull Unreliable data across boundaries

bull Complex and volatile environments

bull Who conducts the performance appraisal

bull Frequency of appraisal

bull Variable levels of maturity

bull Volatility of the global environment

bull Non-comparable data

bull Cultural adjustment

bull Host environment

bull Raters Bias

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

Factors to be considered in individual performance amp appraisal process

Headquartersrsquo support

Compensation Package

Task

Host Environment

Expatriate Performance Management System

Cultural Adjustment

Compensation such assignments taken for perceived financial benefits and career progression

1048766 Compensation is one of the key factor closely associated with expatrsquos performance

1048766 Well compensated expatriates definitely happier and more productive

1048766 Pay according to Herzbergs two factor theory of motivation is a hygiene factor which

when adequately provided for removes dissatisfaction but fails to activate motivation and

performance

1048766 But money continues to remain as one of the most significant motivators for expats

2 Task

1048766 An expatriate is sent on an overseas assignment either as chief executive system

replicator trouble shooter or as a simple operator

1048766 Whatever the nature of assignment task has considerable impact on an individualrsquos

performance

1048766 A tougher task tends to evolve better performance than a job which is relatively easy to

handle

1048766 People tend to show their best when the job is tough and challenging

Head quarterrsquos support

1048766 Home office support is a crucial in expatriate performance

1048766 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

1048766 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

Host Environment

1048766 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

1048766 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

1048766 Conflicting goals between parent companies are a common problem within

international joint ventures and can make the expatriatersquos job more difficult

The ability to live comfortably in an alien culture ndash is essential for the success of an

expatriate Multicultural adjustability refers to being sensitive to the host culture the

expatrsquos multicultural sensitivity language ability diplomacy adaptability positive

attitude emotional stability and maturity

1048766 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

The international HR Manager should decide on 3 key areas while assessing

an expatriatersquos performance

- Specific performance criteria

- Identifying the appraisers

- deciding on the frequency of appraisal

Expatriatersquos performance

appraisal

Basically there are three categories of performance indicators

1 Trait based (soft goal) ndash leadership style interpersonal skill etc

2 Behavior based (contextual goals) ndash attempts to take into consideration factors that

results

from the situation in which performance occurs

3 Result based (Hard goals) ndash objectives quantifiable and can be directly measured

such as Return On Investment (ROI) market share and so on

Non-expatriate Performance management

bull A seemingly neglected group

bull Performance effects of factors associated with constant air

travel

ndash Depression nervous anxiety sleep disturbance health issues

bull Stress associated with frequent absences and effect on family

relationships

bull Non-standard assignments such as commuter arrangements and

virtual assignments share these aspects

Performance Appraisal at

Pepsi-Cola International

bull 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

Conthellip

Five feed-back based mechanism

bull Instant feedback

bull Coaching

bull Accountability-based performance appraisal

bull Development feedback

bull Human resource plan for future

US Performance Appraisal

System

To build up employee performance plan

bull Discuss performance plan

bull Evaluating

bull Rewarding

bull Provide assistant

bull Repositioning or removing

bull Identifying

American Views of Performance

Objective To help achieve organizational objectives

bull Productivity and Quality

bull Achievement

ndash Individual group or organizational objectives

bull ldquorate the performance not the personrdquo

ndash Concentrate upon performance items

Chinese views of Performance

bull Objectives Maintain family control of

business

ndash Performance appraisals favor workers that are

loyal to the family

bull Emphasis upon ldquomoralrdquo characteristics

Appraisal of HCN Employees -

Japan

1048766 It is important to avoid direct confrontation to lsquosave facersquo and this

customs affects the way in which the performance appraisal is conducted

1048766 A Japanese manager can not directly point out a work related problem

or error committed by a subordinate

1048766 Developmental appraisal is usually conducted every month and

evaluation appraisal is performed after 12 years

1048766 Feed back is subtle and given orally Japanese employees never rebut

1048766 Appraisal process praise is given to the group

Appraisal of HCN Employees-

USA

1048766 Workers performance appraisals featured the us cultural concept of meritocracy which emphasis fairness and a short term orientation

1048766 Employee expect to be appraised individually and heavily on individual feedback regarding performance

1048766 PA in the US are usually conducted once a year

1048766 Feedback in the US process is direct and probably in writing

1048766 US employees tend to present their own rebutted to the feed back

1048766 Appraisal process praise is given individually

USA vs Peoples Republic of China (PRC)

bull Performance appraisal

ndash USA Two-way communication and counseling are widely used in the performance appraisal process

ndash Peoples Republic of China (PRC) Superiors have absolute authority to evaluate subordinates standards of performance are vague and generic

CONT

bull Reward system

ndash USA A wide variety of rewards are used in the incentive system

ndash Peoples 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

CONT

bull Participative management

ndash USA Participative management is welcome and

encouraged even if it is not prevalent yet

ndash Peoples Republic of China (PRC) Collective leadership

is widely used but the participation of workers in major

decisions is superficial and symbolic

Thank You

Page 3: Chapter  6 performance management

Definitions

According to Newstrom ldquoIt is the process of evaluating the

performance of employees sharing that information with them

and searching for ways to improve their performancersquorsquo

Performance appraisal is the step where the management finds

out how effective it has been at hiring and placing employees

A ldquoPerformance appraisalrdquo is a process of evaluating an employeersquos

performance of a job in terms of its requirements

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 amp the organization

growth amp development

increase harmony amp enhance

effectiveness

Personal development

work satisfaction

involvement in the

organization

According to

Aims at

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

10Confidential Report

11Ranking

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

SDKSDHKS

Objective -

bull Introduction

bull Challenges of International performance management

bull Areas to be appraised

bull Who should appraise the performance

bull System of Performance appraisal

bull Problems of performance appraisal

bull How to make appraisal effective

bull

International Performance Management

ndash It is the process of assessing an individuals performance in asystematic way

ndash The performance being measured against various job relatedfactors as well as individual traits

ndash In addition ones potential for performance is measured

IHRM is a process ldquothat enables the multinational to evaluate and

continuously improve individual subsidiary unit and corporate performance

against clearly defined pre-set goals and targetsrdquo

Why Appraise Performance

Periodic evaluation helps mangers to have a better understanding of eachemployees skills with the goal to facilitate train and develop abilities andpower to their employees

ndash A chase to assess job development encourage interest and enhance jobperformance by pointing out the development and recognizingproductive work

ndash A feedback system will help to improve the performance

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

Problem Performance appraisal

Unintentional bias

bull Host-nation biased by cultural frame of reference

bull Home-country biased by distance and lack of experience working abroad

bull Expatriate managers believe that headquarters unfairly evaluates and under

appreciates them

Guidelines for performance appraisal

More weight should be given to onsite managerrsquos 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

Challenges of International Performance Management

bull Total company vs part of it

bull Standardized or customized appraisal

form

bull Time differences and distance separation

bull Unreliable data across boundaries

bull Complex and volatile environments

bull Who conducts the performance appraisal

bull Frequency of appraisal

bull Variable levels of maturity

bull Volatility of the global environment

bull Non-comparable data

bull Cultural adjustment

bull Host environment

bull Raters Bias

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

Factors to be considered in individual performance amp appraisal process

Headquartersrsquo support

Compensation Package

Task

Host Environment

Expatriate Performance Management System

Cultural Adjustment

Compensation such assignments taken for perceived financial benefits and career progression

1048766 Compensation is one of the key factor closely associated with expatrsquos performance

1048766 Well compensated expatriates definitely happier and more productive

1048766 Pay according to Herzbergs two factor theory of motivation is a hygiene factor which

when adequately provided for removes dissatisfaction but fails to activate motivation and

performance

1048766 But money continues to remain as one of the most significant motivators for expats

2 Task

1048766 An expatriate is sent on an overseas assignment either as chief executive system

replicator trouble shooter or as a simple operator

1048766 Whatever the nature of assignment task has considerable impact on an individualrsquos

performance

1048766 A tougher task tends to evolve better performance than a job which is relatively easy to

handle

1048766 People tend to show their best when the job is tough and challenging

Head quarterrsquos support

1048766 Home office support is a crucial in expatriate performance

1048766 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

1048766 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

Host Environment

1048766 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

1048766 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

1048766 Conflicting goals between parent companies are a common problem within

international joint ventures and can make the expatriatersquos job more difficult

The ability to live comfortably in an alien culture ndash is essential for the success of an

expatriate Multicultural adjustability refers to being sensitive to the host culture the

expatrsquos multicultural sensitivity language ability diplomacy adaptability positive

attitude emotional stability and maturity

1048766 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

The international HR Manager should decide on 3 key areas while assessing

an expatriatersquos performance

- Specific performance criteria

- Identifying the appraisers

- deciding on the frequency of appraisal

Expatriatersquos performance

appraisal

Basically there are three categories of performance indicators

1 Trait based (soft goal) ndash leadership style interpersonal skill etc

2 Behavior based (contextual goals) ndash attempts to take into consideration factors that

results

from the situation in which performance occurs

3 Result based (Hard goals) ndash objectives quantifiable and can be directly measured

such as Return On Investment (ROI) market share and so on

Non-expatriate Performance management

bull A seemingly neglected group

bull Performance effects of factors associated with constant air

travel

ndash Depression nervous anxiety sleep disturbance health issues

bull Stress associated with frequent absences and effect on family

relationships

bull Non-standard assignments such as commuter arrangements and

virtual assignments share these aspects

Performance Appraisal at

Pepsi-Cola International

bull 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

Conthellip

Five feed-back based mechanism

bull Instant feedback

bull Coaching

bull Accountability-based performance appraisal

bull Development feedback

bull Human resource plan for future

US Performance Appraisal

System

To build up employee performance plan

bull Discuss performance plan

bull Evaluating

bull Rewarding

bull Provide assistant

bull Repositioning or removing

bull Identifying

American Views of Performance

Objective To help achieve organizational objectives

bull Productivity and Quality

bull Achievement

ndash Individual group or organizational objectives

bull ldquorate the performance not the personrdquo

ndash Concentrate upon performance items

Chinese views of Performance

bull Objectives Maintain family control of

business

ndash Performance appraisals favor workers that are

loyal to the family

bull Emphasis upon ldquomoralrdquo characteristics

Appraisal of HCN Employees -

Japan

1048766 It is important to avoid direct confrontation to lsquosave facersquo and this

customs affects the way in which the performance appraisal is conducted

1048766 A Japanese manager can not directly point out a work related problem

or error committed by a subordinate

1048766 Developmental appraisal is usually conducted every month and

evaluation appraisal is performed after 12 years

1048766 Feed back is subtle and given orally Japanese employees never rebut

1048766 Appraisal process praise is given to the group

Appraisal of HCN Employees-

USA

1048766 Workers performance appraisals featured the us cultural concept of meritocracy which emphasis fairness and a short term orientation

1048766 Employee expect to be appraised individually and heavily on individual feedback regarding performance

1048766 PA in the US are usually conducted once a year

1048766 Feedback in the US process is direct and probably in writing

1048766 US employees tend to present their own rebutted to the feed back

1048766 Appraisal process praise is given individually

USA vs Peoples Republic of China (PRC)

bull Performance appraisal

ndash USA Two-way communication and counseling are widely used in the performance appraisal process

ndash Peoples Republic of China (PRC) Superiors have absolute authority to evaluate subordinates standards of performance are vague and generic

CONT

bull Reward system

ndash USA A wide variety of rewards are used in the incentive system

ndash Peoples 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

CONT

bull Participative management

ndash USA Participative management is welcome and

encouraged even if it is not prevalent yet

ndash Peoples Republic of China (PRC) Collective leadership

is widely used but the participation of workers in major

decisions is superficial and symbolic

Thank You

Page 4: Chapter  6 performance management

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 amp the organization

growth amp development

increase harmony amp enhance

effectiveness

Personal development

work satisfaction

involvement in the

organization

According to

Aims at

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

10Confidential Report

11Ranking

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

SDKSDHKS

Objective -

bull Introduction

bull Challenges of International performance management

bull Areas to be appraised

bull Who should appraise the performance

bull System of Performance appraisal

bull Problems of performance appraisal

bull How to make appraisal effective

bull

International Performance Management

ndash It is the process of assessing an individuals performance in asystematic way

ndash The performance being measured against various job relatedfactors as well as individual traits

ndash In addition ones potential for performance is measured

IHRM is a process ldquothat enables the multinational to evaluate and

continuously improve individual subsidiary unit and corporate performance

against clearly defined pre-set goals and targetsrdquo

Why Appraise Performance

Periodic evaluation helps mangers to have a better understanding of eachemployees skills with the goal to facilitate train and develop abilities andpower to their employees

ndash A chase to assess job development encourage interest and enhance jobperformance by pointing out the development and recognizingproductive work

ndash A feedback system will help to improve the performance

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

Problem Performance appraisal

Unintentional bias

bull Host-nation biased by cultural frame of reference

bull Home-country biased by distance and lack of experience working abroad

bull Expatriate managers believe that headquarters unfairly evaluates and under

appreciates them

Guidelines for performance appraisal

More weight should be given to onsite managerrsquos 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

Challenges of International Performance Management

bull Total company vs part of it

bull Standardized or customized appraisal

form

bull Time differences and distance separation

bull Unreliable data across boundaries

bull Complex and volatile environments

bull Who conducts the performance appraisal

bull Frequency of appraisal

bull Variable levels of maturity

bull Volatility of the global environment

bull Non-comparable data

bull Cultural adjustment

bull Host environment

bull Raters Bias

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

Factors to be considered in individual performance amp appraisal process

Headquartersrsquo support

Compensation Package

Task

Host Environment

Expatriate Performance Management System

Cultural Adjustment

Compensation such assignments taken for perceived financial benefits and career progression

1048766 Compensation is one of the key factor closely associated with expatrsquos performance

1048766 Well compensated expatriates definitely happier and more productive

1048766 Pay according to Herzbergs two factor theory of motivation is a hygiene factor which

when adequately provided for removes dissatisfaction but fails to activate motivation and

performance

1048766 But money continues to remain as one of the most significant motivators for expats

2 Task

1048766 An expatriate is sent on an overseas assignment either as chief executive system

replicator trouble shooter or as a simple operator

1048766 Whatever the nature of assignment task has considerable impact on an individualrsquos

performance

1048766 A tougher task tends to evolve better performance than a job which is relatively easy to

handle

1048766 People tend to show their best when the job is tough and challenging

Head quarterrsquos support

1048766 Home office support is a crucial in expatriate performance

1048766 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

1048766 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

Host Environment

1048766 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

1048766 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

1048766 Conflicting goals between parent companies are a common problem within

international joint ventures and can make the expatriatersquos job more difficult

The ability to live comfortably in an alien culture ndash is essential for the success of an

expatriate Multicultural adjustability refers to being sensitive to the host culture the

expatrsquos multicultural sensitivity language ability diplomacy adaptability positive

attitude emotional stability and maturity

1048766 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

The international HR Manager should decide on 3 key areas while assessing

an expatriatersquos performance

- Specific performance criteria

- Identifying the appraisers

- deciding on the frequency of appraisal

Expatriatersquos performance

appraisal

Basically there are three categories of performance indicators

1 Trait based (soft goal) ndash leadership style interpersonal skill etc

2 Behavior based (contextual goals) ndash attempts to take into consideration factors that

results

from the situation in which performance occurs

3 Result based (Hard goals) ndash objectives quantifiable and can be directly measured

such as Return On Investment (ROI) market share and so on

Non-expatriate Performance management

bull A seemingly neglected group

bull Performance effects of factors associated with constant air

travel

ndash Depression nervous anxiety sleep disturbance health issues

bull Stress associated with frequent absences and effect on family

relationships

bull Non-standard assignments such as commuter arrangements and

virtual assignments share these aspects

Performance Appraisal at

Pepsi-Cola International

bull 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

Conthellip

Five feed-back based mechanism

bull Instant feedback

bull Coaching

bull Accountability-based performance appraisal

bull Development feedback

bull Human resource plan for future

US Performance Appraisal

System

To build up employee performance plan

bull Discuss performance plan

bull Evaluating

bull Rewarding

bull Provide assistant

bull Repositioning or removing

bull Identifying

American Views of Performance

Objective To help achieve organizational objectives

bull Productivity and Quality

bull Achievement

ndash Individual group or organizational objectives

bull ldquorate the performance not the personrdquo

ndash Concentrate upon performance items

Chinese views of Performance

bull Objectives Maintain family control of

business

ndash Performance appraisals favor workers that are

loyal to the family

bull Emphasis upon ldquomoralrdquo characteristics

Appraisal of HCN Employees -

Japan

1048766 It is important to avoid direct confrontation to lsquosave facersquo and this

customs affects the way in which the performance appraisal is conducted

1048766 A Japanese manager can not directly point out a work related problem

or error committed by a subordinate

1048766 Developmental appraisal is usually conducted every month and

evaluation appraisal is performed after 12 years

1048766 Feed back is subtle and given orally Japanese employees never rebut

1048766 Appraisal process praise is given to the group

Appraisal of HCN Employees-

USA

1048766 Workers performance appraisals featured the us cultural concept of meritocracy which emphasis fairness and a short term orientation

1048766 Employee expect to be appraised individually and heavily on individual feedback regarding performance

1048766 PA in the US are usually conducted once a year

1048766 Feedback in the US process is direct and probably in writing

1048766 US employees tend to present their own rebutted to the feed back

1048766 Appraisal process praise is given individually

USA vs Peoples Republic of China (PRC)

bull Performance appraisal

ndash USA Two-way communication and counseling are widely used in the performance appraisal process

ndash Peoples Republic of China (PRC) Superiors have absolute authority to evaluate subordinates standards of performance are vague and generic

CONT

bull Reward system

ndash USA A wide variety of rewards are used in the incentive system

ndash Peoples 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

CONT

bull Participative management

ndash USA Participative management is welcome and

encouraged even if it is not prevalent yet

ndash Peoples Republic of China (PRC) Collective leadership

is widely used but the participation of workers in major

decisions is superficial and symbolic

Thank You

Page 5: Chapter  6 performance management

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

10Confidential Report

11Ranking

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

SDKSDHKS

Objective -

bull Introduction

bull Challenges of International performance management

bull Areas to be appraised

bull Who should appraise the performance

bull System of Performance appraisal

bull Problems of performance appraisal

bull How to make appraisal effective

bull

International Performance Management

ndash It is the process of assessing an individuals performance in asystematic way

ndash The performance being measured against various job relatedfactors as well as individual traits

ndash In addition ones potential for performance is measured

IHRM is a process ldquothat enables the multinational to evaluate and

continuously improve individual subsidiary unit and corporate performance

against clearly defined pre-set goals and targetsrdquo

Why Appraise Performance

Periodic evaluation helps mangers to have a better understanding of eachemployees skills with the goal to facilitate train and develop abilities andpower to their employees

ndash A chase to assess job development encourage interest and enhance jobperformance by pointing out the development and recognizingproductive work

ndash A feedback system will help to improve the performance

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

Problem Performance appraisal

Unintentional bias

bull Host-nation biased by cultural frame of reference

bull Home-country biased by distance and lack of experience working abroad

bull Expatriate managers believe that headquarters unfairly evaluates and under

appreciates them

Guidelines for performance appraisal

More weight should be given to onsite managerrsquos 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

Challenges of International Performance Management

bull Total company vs part of it

bull Standardized or customized appraisal

form

bull Time differences and distance separation

bull Unreliable data across boundaries

bull Complex and volatile environments

bull Who conducts the performance appraisal

bull Frequency of appraisal

bull Variable levels of maturity

bull Volatility of the global environment

bull Non-comparable data

bull Cultural adjustment

bull Host environment

bull Raters Bias

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

Factors to be considered in individual performance amp appraisal process

Headquartersrsquo support

Compensation Package

Task

Host Environment

Expatriate Performance Management System

Cultural Adjustment

Compensation such assignments taken for perceived financial benefits and career progression

1048766 Compensation is one of the key factor closely associated with expatrsquos performance

1048766 Well compensated expatriates definitely happier and more productive

1048766 Pay according to Herzbergs two factor theory of motivation is a hygiene factor which

when adequately provided for removes dissatisfaction but fails to activate motivation and

performance

1048766 But money continues to remain as one of the most significant motivators for expats

2 Task

1048766 An expatriate is sent on an overseas assignment either as chief executive system

replicator trouble shooter or as a simple operator

1048766 Whatever the nature of assignment task has considerable impact on an individualrsquos

performance

1048766 A tougher task tends to evolve better performance than a job which is relatively easy to

handle

1048766 People tend to show their best when the job is tough and challenging

Head quarterrsquos support

1048766 Home office support is a crucial in expatriate performance

1048766 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

1048766 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

Host Environment

1048766 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

1048766 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

1048766 Conflicting goals between parent companies are a common problem within

international joint ventures and can make the expatriatersquos job more difficult

The ability to live comfortably in an alien culture ndash is essential for the success of an

expatriate Multicultural adjustability refers to being sensitive to the host culture the

expatrsquos multicultural sensitivity language ability diplomacy adaptability positive

attitude emotional stability and maturity

1048766 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

The international HR Manager should decide on 3 key areas while assessing

an expatriatersquos performance

- Specific performance criteria

- Identifying the appraisers

- deciding on the frequency of appraisal

Expatriatersquos performance

appraisal

Basically there are three categories of performance indicators

1 Trait based (soft goal) ndash leadership style interpersonal skill etc

2 Behavior based (contextual goals) ndash attempts to take into consideration factors that

results

from the situation in which performance occurs

3 Result based (Hard goals) ndash objectives quantifiable and can be directly measured

such as Return On Investment (ROI) market share and so on

Non-expatriate Performance management

bull A seemingly neglected group

bull Performance effects of factors associated with constant air

travel

ndash Depression nervous anxiety sleep disturbance health issues

bull Stress associated with frequent absences and effect on family

relationships

bull Non-standard assignments such as commuter arrangements and

virtual assignments share these aspects

Performance Appraisal at

Pepsi-Cola International

bull 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

Conthellip

Five feed-back based mechanism

bull Instant feedback

bull Coaching

bull Accountability-based performance appraisal

bull Development feedback

bull Human resource plan for future

US Performance Appraisal

System

To build up employee performance plan

bull Discuss performance plan

bull Evaluating

bull Rewarding

bull Provide assistant

bull Repositioning or removing

bull Identifying

American Views of Performance

Objective To help achieve organizational objectives

bull Productivity and Quality

bull Achievement

ndash Individual group or organizational objectives

bull ldquorate the performance not the personrdquo

ndash Concentrate upon performance items

Chinese views of Performance

bull Objectives Maintain family control of

business

ndash Performance appraisals favor workers that are

loyal to the family

bull Emphasis upon ldquomoralrdquo characteristics

Appraisal of HCN Employees -

Japan

1048766 It is important to avoid direct confrontation to lsquosave facersquo and this

customs affects the way in which the performance appraisal is conducted

1048766 A Japanese manager can not directly point out a work related problem

or error committed by a subordinate

1048766 Developmental appraisal is usually conducted every month and

evaluation appraisal is performed after 12 years

1048766 Feed back is subtle and given orally Japanese employees never rebut

1048766 Appraisal process praise is given to the group

Appraisal of HCN Employees-

USA

1048766 Workers performance appraisals featured the us cultural concept of meritocracy which emphasis fairness and a short term orientation

1048766 Employee expect to be appraised individually and heavily on individual feedback regarding performance

1048766 PA in the US are usually conducted once a year

1048766 Feedback in the US process is direct and probably in writing

1048766 US employees tend to present their own rebutted to the feed back

1048766 Appraisal process praise is given individually

USA vs Peoples Republic of China (PRC)

bull Performance appraisal

ndash USA Two-way communication and counseling are widely used in the performance appraisal process

ndash Peoples Republic of China (PRC) Superiors have absolute authority to evaluate subordinates standards of performance are vague and generic

CONT

bull Reward system

ndash USA A wide variety of rewards are used in the incentive system

ndash Peoples 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

CONT

bull Participative management

ndash USA Participative management is welcome and

encouraged even if it is not prevalent yet

ndash Peoples Republic of China (PRC) Collective leadership

is widely used but the participation of workers in major

decisions is superficial and symbolic

Thank You

Page 6: Chapter  6 performance management

SDKSDHKS

Objective -

bull Introduction

bull Challenges of International performance management

bull Areas to be appraised

bull Who should appraise the performance

bull System of Performance appraisal

bull Problems of performance appraisal

bull How to make appraisal effective

bull

International Performance Management

ndash It is the process of assessing an individuals performance in asystematic way

ndash The performance being measured against various job relatedfactors as well as individual traits

ndash In addition ones potential for performance is measured

IHRM is a process ldquothat enables the multinational to evaluate and

continuously improve individual subsidiary unit and corporate performance

against clearly defined pre-set goals and targetsrdquo

Why Appraise Performance

Periodic evaluation helps mangers to have a better understanding of eachemployees skills with the goal to facilitate train and develop abilities andpower to their employees

ndash A chase to assess job development encourage interest and enhance jobperformance by pointing out the development and recognizingproductive work

ndash A feedback system will help to improve the performance

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

Problem Performance appraisal

Unintentional bias

bull Host-nation biased by cultural frame of reference

bull Home-country biased by distance and lack of experience working abroad

bull Expatriate managers believe that headquarters unfairly evaluates and under

appreciates them

Guidelines for performance appraisal

More weight should be given to onsite managerrsquos 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

Challenges of International Performance Management

bull Total company vs part of it

bull Standardized or customized appraisal

form

bull Time differences and distance separation

bull Unreliable data across boundaries

bull Complex and volatile environments

bull Who conducts the performance appraisal

bull Frequency of appraisal

bull Variable levels of maturity

bull Volatility of the global environment

bull Non-comparable data

bull Cultural adjustment

bull Host environment

bull Raters Bias

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

Factors to be considered in individual performance amp appraisal process

Headquartersrsquo support

Compensation Package

Task

Host Environment

Expatriate Performance Management System

Cultural Adjustment

Compensation such assignments taken for perceived financial benefits and career progression

1048766 Compensation is one of the key factor closely associated with expatrsquos performance

1048766 Well compensated expatriates definitely happier and more productive

1048766 Pay according to Herzbergs two factor theory of motivation is a hygiene factor which

when adequately provided for removes dissatisfaction but fails to activate motivation and

performance

1048766 But money continues to remain as one of the most significant motivators for expats

2 Task

1048766 An expatriate is sent on an overseas assignment either as chief executive system

replicator trouble shooter or as a simple operator

1048766 Whatever the nature of assignment task has considerable impact on an individualrsquos

performance

1048766 A tougher task tends to evolve better performance than a job which is relatively easy to

handle

1048766 People tend to show their best when the job is tough and challenging

Head quarterrsquos support

1048766 Home office support is a crucial in expatriate performance

1048766 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

1048766 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

Host Environment

1048766 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

1048766 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

1048766 Conflicting goals between parent companies are a common problem within

international joint ventures and can make the expatriatersquos job more difficult

The ability to live comfortably in an alien culture ndash is essential for the success of an

expatriate Multicultural adjustability refers to being sensitive to the host culture the

expatrsquos multicultural sensitivity language ability diplomacy adaptability positive

attitude emotional stability and maturity

1048766 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

The international HR Manager should decide on 3 key areas while assessing

an expatriatersquos performance

- Specific performance criteria

- Identifying the appraisers

- deciding on the frequency of appraisal

Expatriatersquos performance

appraisal

Basically there are three categories of performance indicators

1 Trait based (soft goal) ndash leadership style interpersonal skill etc

2 Behavior based (contextual goals) ndash attempts to take into consideration factors that

results

from the situation in which performance occurs

3 Result based (Hard goals) ndash objectives quantifiable and can be directly measured

such as Return On Investment (ROI) market share and so on

Non-expatriate Performance management

bull A seemingly neglected group

bull Performance effects of factors associated with constant air

travel

ndash Depression nervous anxiety sleep disturbance health issues

bull Stress associated with frequent absences and effect on family

relationships

bull Non-standard assignments such as commuter arrangements and

virtual assignments share these aspects

Performance Appraisal at

Pepsi-Cola International

bull 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

Conthellip

Five feed-back based mechanism

bull Instant feedback

bull Coaching

bull Accountability-based performance appraisal

bull Development feedback

bull Human resource plan for future

US Performance Appraisal

System

To build up employee performance plan

bull Discuss performance plan

bull Evaluating

bull Rewarding

bull Provide assistant

bull Repositioning or removing

bull Identifying

American Views of Performance

Objective To help achieve organizational objectives

bull Productivity and Quality

bull Achievement

ndash Individual group or organizational objectives

bull ldquorate the performance not the personrdquo

ndash Concentrate upon performance items

Chinese views of Performance

bull Objectives Maintain family control of

business

ndash Performance appraisals favor workers that are

loyal to the family

bull Emphasis upon ldquomoralrdquo characteristics

Appraisal of HCN Employees -

Japan

1048766 It is important to avoid direct confrontation to lsquosave facersquo and this

customs affects the way in which the performance appraisal is conducted

1048766 A Japanese manager can not directly point out a work related problem

or error committed by a subordinate

1048766 Developmental appraisal is usually conducted every month and

evaluation appraisal is performed after 12 years

1048766 Feed back is subtle and given orally Japanese employees never rebut

1048766 Appraisal process praise is given to the group

Appraisal of HCN Employees-

USA

1048766 Workers performance appraisals featured the us cultural concept of meritocracy which emphasis fairness and a short term orientation

1048766 Employee expect to be appraised individually and heavily on individual feedback regarding performance

1048766 PA in the US are usually conducted once a year

1048766 Feedback in the US process is direct and probably in writing

1048766 US employees tend to present their own rebutted to the feed back

1048766 Appraisal process praise is given individually

USA vs Peoples Republic of China (PRC)

bull Performance appraisal

ndash USA Two-way communication and counseling are widely used in the performance appraisal process

ndash Peoples Republic of China (PRC) Superiors have absolute authority to evaluate subordinates standards of performance are vague and generic

CONT

bull Reward system

ndash USA A wide variety of rewards are used in the incentive system

ndash Peoples 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

CONT

bull Participative management

ndash USA Participative management is welcome and

encouraged even if it is not prevalent yet

ndash Peoples Republic of China (PRC) Collective leadership

is widely used but the participation of workers in major

decisions is superficial and symbolic

Thank You

Page 7: Chapter  6 performance management

Objective -

bull Introduction

bull Challenges of International performance management

bull Areas to be appraised

bull Who should appraise the performance

bull System of Performance appraisal

bull Problems of performance appraisal

bull How to make appraisal effective

bull

International Performance Management

ndash It is the process of assessing an individuals performance in asystematic way

ndash The performance being measured against various job relatedfactors as well as individual traits

ndash In addition ones potential for performance is measured

IHRM is a process ldquothat enables the multinational to evaluate and

continuously improve individual subsidiary unit and corporate performance

against clearly defined pre-set goals and targetsrdquo

Why Appraise Performance

Periodic evaluation helps mangers to have a better understanding of eachemployees skills with the goal to facilitate train and develop abilities andpower to their employees

ndash A chase to assess job development encourage interest and enhance jobperformance by pointing out the development and recognizingproductive work

ndash A feedback system will help to improve the performance

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

Problem Performance appraisal

Unintentional bias

bull Host-nation biased by cultural frame of reference

bull Home-country biased by distance and lack of experience working abroad

bull Expatriate managers believe that headquarters unfairly evaluates and under

appreciates them

Guidelines for performance appraisal

More weight should be given to onsite managerrsquos 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

Challenges of International Performance Management

bull Total company vs part of it

bull Standardized or customized appraisal

form

bull Time differences and distance separation

bull Unreliable data across boundaries

bull Complex and volatile environments

bull Who conducts the performance appraisal

bull Frequency of appraisal

bull Variable levels of maturity

bull Volatility of the global environment

bull Non-comparable data

bull Cultural adjustment

bull Host environment

bull Raters Bias

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

Factors to be considered in individual performance amp appraisal process

Headquartersrsquo support

Compensation Package

Task

Host Environment

Expatriate Performance Management System

Cultural Adjustment

Compensation such assignments taken for perceived financial benefits and career progression

1048766 Compensation is one of the key factor closely associated with expatrsquos performance

1048766 Well compensated expatriates definitely happier and more productive

1048766 Pay according to Herzbergs two factor theory of motivation is a hygiene factor which

when adequately provided for removes dissatisfaction but fails to activate motivation and

performance

1048766 But money continues to remain as one of the most significant motivators for expats

2 Task

1048766 An expatriate is sent on an overseas assignment either as chief executive system

replicator trouble shooter or as a simple operator

1048766 Whatever the nature of assignment task has considerable impact on an individualrsquos

performance

1048766 A tougher task tends to evolve better performance than a job which is relatively easy to

handle

1048766 People tend to show their best when the job is tough and challenging

Head quarterrsquos support

1048766 Home office support is a crucial in expatriate performance

1048766 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

1048766 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

Host Environment

1048766 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

1048766 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

1048766 Conflicting goals between parent companies are a common problem within

international joint ventures and can make the expatriatersquos job more difficult

The ability to live comfortably in an alien culture ndash is essential for the success of an

expatriate Multicultural adjustability refers to being sensitive to the host culture the

expatrsquos multicultural sensitivity language ability diplomacy adaptability positive

attitude emotional stability and maturity

1048766 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

The international HR Manager should decide on 3 key areas while assessing

an expatriatersquos performance

- Specific performance criteria

- Identifying the appraisers

- deciding on the frequency of appraisal

Expatriatersquos performance

appraisal

Basically there are three categories of performance indicators

1 Trait based (soft goal) ndash leadership style interpersonal skill etc

2 Behavior based (contextual goals) ndash attempts to take into consideration factors that

results

from the situation in which performance occurs

3 Result based (Hard goals) ndash objectives quantifiable and can be directly measured

such as Return On Investment (ROI) market share and so on

Non-expatriate Performance management

bull A seemingly neglected group

bull Performance effects of factors associated with constant air

travel

ndash Depression nervous anxiety sleep disturbance health issues

bull Stress associated with frequent absences and effect on family

relationships

bull Non-standard assignments such as commuter arrangements and

virtual assignments share these aspects

Performance Appraisal at

Pepsi-Cola International

bull 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

Conthellip

Five feed-back based mechanism

bull Instant feedback

bull Coaching

bull Accountability-based performance appraisal

bull Development feedback

bull Human resource plan for future

US Performance Appraisal

System

To build up employee performance plan

bull Discuss performance plan

bull Evaluating

bull Rewarding

bull Provide assistant

bull Repositioning or removing

bull Identifying

American Views of Performance

Objective To help achieve organizational objectives

bull Productivity and Quality

bull Achievement

ndash Individual group or organizational objectives

bull ldquorate the performance not the personrdquo

ndash Concentrate upon performance items

Chinese views of Performance

bull Objectives Maintain family control of

business

ndash Performance appraisals favor workers that are

loyal to the family

bull Emphasis upon ldquomoralrdquo characteristics

Appraisal of HCN Employees -

Japan

1048766 It is important to avoid direct confrontation to lsquosave facersquo and this

customs affects the way in which the performance appraisal is conducted

1048766 A Japanese manager can not directly point out a work related problem

or error committed by a subordinate

1048766 Developmental appraisal is usually conducted every month and

evaluation appraisal is performed after 12 years

1048766 Feed back is subtle and given orally Japanese employees never rebut

1048766 Appraisal process praise is given to the group

Appraisal of HCN Employees-

USA

1048766 Workers performance appraisals featured the us cultural concept of meritocracy which emphasis fairness and a short term orientation

1048766 Employee expect to be appraised individually and heavily on individual feedback regarding performance

1048766 PA in the US are usually conducted once a year

1048766 Feedback in the US process is direct and probably in writing

1048766 US employees tend to present their own rebutted to the feed back

1048766 Appraisal process praise is given individually

USA vs Peoples Republic of China (PRC)

bull Performance appraisal

ndash USA Two-way communication and counseling are widely used in the performance appraisal process

ndash Peoples Republic of China (PRC) Superiors have absolute authority to evaluate subordinates standards of performance are vague and generic

CONT

bull Reward system

ndash USA A wide variety of rewards are used in the incentive system

ndash Peoples 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

CONT

bull Participative management

ndash USA Participative management is welcome and

encouraged even if it is not prevalent yet

ndash Peoples Republic of China (PRC) Collective leadership

is widely used but the participation of workers in major

decisions is superficial and symbolic

Thank You

Page 8: Chapter  6 performance management

International Performance Management

ndash It is the process of assessing an individuals performance in asystematic way

ndash The performance being measured against various job relatedfactors as well as individual traits

ndash In addition ones potential for performance is measured

IHRM is a process ldquothat enables the multinational to evaluate and

continuously improve individual subsidiary unit and corporate performance

against clearly defined pre-set goals and targetsrdquo

Why Appraise Performance

Periodic evaluation helps mangers to have a better understanding of eachemployees skills with the goal to facilitate train and develop abilities andpower to their employees

ndash A chase to assess job development encourage interest and enhance jobperformance by pointing out the development and recognizingproductive work

ndash A feedback system will help to improve the performance

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

Problem Performance appraisal

Unintentional bias

bull Host-nation biased by cultural frame of reference

bull Home-country biased by distance and lack of experience working abroad

bull Expatriate managers believe that headquarters unfairly evaluates and under

appreciates them

Guidelines for performance appraisal

More weight should be given to onsite managerrsquos 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

Challenges of International Performance Management

bull Total company vs part of it

bull Standardized or customized appraisal

form

bull Time differences and distance separation

bull Unreliable data across boundaries

bull Complex and volatile environments

bull Who conducts the performance appraisal

bull Frequency of appraisal

bull Variable levels of maturity

bull Volatility of the global environment

bull Non-comparable data

bull Cultural adjustment

bull Host environment

bull Raters Bias

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

Factors to be considered in individual performance amp appraisal process

Headquartersrsquo support

Compensation Package

Task

Host Environment

Expatriate Performance Management System

Cultural Adjustment

Compensation such assignments taken for perceived financial benefits and career progression

1048766 Compensation is one of the key factor closely associated with expatrsquos performance

1048766 Well compensated expatriates definitely happier and more productive

1048766 Pay according to Herzbergs two factor theory of motivation is a hygiene factor which

when adequately provided for removes dissatisfaction but fails to activate motivation and

performance

1048766 But money continues to remain as one of the most significant motivators for expats

2 Task

1048766 An expatriate is sent on an overseas assignment either as chief executive system

replicator trouble shooter or as a simple operator

1048766 Whatever the nature of assignment task has considerable impact on an individualrsquos

performance

1048766 A tougher task tends to evolve better performance than a job which is relatively easy to

handle

1048766 People tend to show their best when the job is tough and challenging

Head quarterrsquos support

1048766 Home office support is a crucial in expatriate performance

1048766 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

1048766 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

Host Environment

1048766 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

1048766 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

1048766 Conflicting goals between parent companies are a common problem within

international joint ventures and can make the expatriatersquos job more difficult

The ability to live comfortably in an alien culture ndash is essential for the success of an

expatriate Multicultural adjustability refers to being sensitive to the host culture the

expatrsquos multicultural sensitivity language ability diplomacy adaptability positive

attitude emotional stability and maturity

1048766 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

The international HR Manager should decide on 3 key areas while assessing

an expatriatersquos performance

- Specific performance criteria

- Identifying the appraisers

- deciding on the frequency of appraisal

Expatriatersquos performance

appraisal

Basically there are three categories of performance indicators

1 Trait based (soft goal) ndash leadership style interpersonal skill etc

2 Behavior based (contextual goals) ndash attempts to take into consideration factors that

results

from the situation in which performance occurs

3 Result based (Hard goals) ndash objectives quantifiable and can be directly measured

such as Return On Investment (ROI) market share and so on

Non-expatriate Performance management

bull A seemingly neglected group

bull Performance effects of factors associated with constant air

travel

ndash Depression nervous anxiety sleep disturbance health issues

bull Stress associated with frequent absences and effect on family

relationships

bull Non-standard assignments such as commuter arrangements and

virtual assignments share these aspects

Performance Appraisal at

Pepsi-Cola International

bull 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

Conthellip

Five feed-back based mechanism

bull Instant feedback

bull Coaching

bull Accountability-based performance appraisal

bull Development feedback

bull Human resource plan for future

US Performance Appraisal

System

To build up employee performance plan

bull Discuss performance plan

bull Evaluating

bull Rewarding

bull Provide assistant

bull Repositioning or removing

bull Identifying

American Views of Performance

Objective To help achieve organizational objectives

bull Productivity and Quality

bull Achievement

ndash Individual group or organizational objectives

bull ldquorate the performance not the personrdquo

ndash Concentrate upon performance items

Chinese views of Performance

bull Objectives Maintain family control of

business

ndash Performance appraisals favor workers that are

loyal to the family

bull Emphasis upon ldquomoralrdquo characteristics

Appraisal of HCN Employees -

Japan

1048766 It is important to avoid direct confrontation to lsquosave facersquo and this

customs affects the way in which the performance appraisal is conducted

1048766 A Japanese manager can not directly point out a work related problem

or error committed by a subordinate

1048766 Developmental appraisal is usually conducted every month and

evaluation appraisal is performed after 12 years

1048766 Feed back is subtle and given orally Japanese employees never rebut

1048766 Appraisal process praise is given to the group

Appraisal of HCN Employees-

USA

1048766 Workers performance appraisals featured the us cultural concept of meritocracy which emphasis fairness and a short term orientation

1048766 Employee expect to be appraised individually and heavily on individual feedback regarding performance

1048766 PA in the US are usually conducted once a year

1048766 Feedback in the US process is direct and probably in writing

1048766 US employees tend to present their own rebutted to the feed back

1048766 Appraisal process praise is given individually

USA vs Peoples Republic of China (PRC)

bull Performance appraisal

ndash USA Two-way communication and counseling are widely used in the performance appraisal process

ndash Peoples Republic of China (PRC) Superiors have absolute authority to evaluate subordinates standards of performance are vague and generic

CONT

bull Reward system

ndash USA A wide variety of rewards are used in the incentive system

ndash Peoples 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

CONT

bull Participative management

ndash USA Participative management is welcome and

encouraged even if it is not prevalent yet

ndash Peoples Republic of China (PRC) Collective leadership

is widely used but the participation of workers in major

decisions is superficial and symbolic

Thank You

Page 9: Chapter  6 performance management

Why Appraise Performance

Periodic evaluation helps mangers to have a better understanding of eachemployees skills with the goal to facilitate train and develop abilities andpower to their employees

ndash A chase to assess job development encourage interest and enhance jobperformance by pointing out the development and recognizingproductive work

ndash A feedback system will help to improve the performance

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

Problem Performance appraisal

Unintentional bias

bull Host-nation biased by cultural frame of reference

bull Home-country biased by distance and lack of experience working abroad

bull Expatriate managers believe that headquarters unfairly evaluates and under

appreciates them

Guidelines for performance appraisal

More weight should be given to onsite managerrsquos 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

Challenges of International Performance Management

bull Total company vs part of it

bull Standardized or customized appraisal

form

bull Time differences and distance separation

bull Unreliable data across boundaries

bull Complex and volatile environments

bull Who conducts the performance appraisal

bull Frequency of appraisal

bull Variable levels of maturity

bull Volatility of the global environment

bull Non-comparable data

bull Cultural adjustment

bull Host environment

bull Raters Bias

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

Factors to be considered in individual performance amp appraisal process

Headquartersrsquo support

Compensation Package

Task

Host Environment

Expatriate Performance Management System

Cultural Adjustment

Compensation such assignments taken for perceived financial benefits and career progression

1048766 Compensation is one of the key factor closely associated with expatrsquos performance

1048766 Well compensated expatriates definitely happier and more productive

1048766 Pay according to Herzbergs two factor theory of motivation is a hygiene factor which

when adequately provided for removes dissatisfaction but fails to activate motivation and

performance

1048766 But money continues to remain as one of the most significant motivators for expats

2 Task

1048766 An expatriate is sent on an overseas assignment either as chief executive system

replicator trouble shooter or as a simple operator

1048766 Whatever the nature of assignment task has considerable impact on an individualrsquos

performance

1048766 A tougher task tends to evolve better performance than a job which is relatively easy to

handle

1048766 People tend to show their best when the job is tough and challenging

Head quarterrsquos support

1048766 Home office support is a crucial in expatriate performance

1048766 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

1048766 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

Host Environment

1048766 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

1048766 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

1048766 Conflicting goals between parent companies are a common problem within

international joint ventures and can make the expatriatersquos job more difficult

The ability to live comfortably in an alien culture ndash is essential for the success of an

expatriate Multicultural adjustability refers to being sensitive to the host culture the

expatrsquos multicultural sensitivity language ability diplomacy adaptability positive

attitude emotional stability and maturity

1048766 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

The international HR Manager should decide on 3 key areas while assessing

an expatriatersquos performance

- Specific performance criteria

- Identifying the appraisers

- deciding on the frequency of appraisal

Expatriatersquos performance

appraisal

Basically there are three categories of performance indicators

1 Trait based (soft goal) ndash leadership style interpersonal skill etc

2 Behavior based (contextual goals) ndash attempts to take into consideration factors that

results

from the situation in which performance occurs

3 Result based (Hard goals) ndash objectives quantifiable and can be directly measured

such as Return On Investment (ROI) market share and so on

Non-expatriate Performance management

bull A seemingly neglected group

bull Performance effects of factors associated with constant air

travel

ndash Depression nervous anxiety sleep disturbance health issues

bull Stress associated with frequent absences and effect on family

relationships

bull Non-standard assignments such as commuter arrangements and

virtual assignments share these aspects

Performance Appraisal at

Pepsi-Cola International

bull 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

Conthellip

Five feed-back based mechanism

bull Instant feedback

bull Coaching

bull Accountability-based performance appraisal

bull Development feedback

bull Human resource plan for future

US Performance Appraisal

System

To build up employee performance plan

bull Discuss performance plan

bull Evaluating

bull Rewarding

bull Provide assistant

bull Repositioning or removing

bull Identifying

American Views of Performance

Objective To help achieve organizational objectives

bull Productivity and Quality

bull Achievement

ndash Individual group or organizational objectives

bull ldquorate the performance not the personrdquo

ndash Concentrate upon performance items

Chinese views of Performance

bull Objectives Maintain family control of

business

ndash Performance appraisals favor workers that are

loyal to the family

bull Emphasis upon ldquomoralrdquo characteristics

Appraisal of HCN Employees -

Japan

1048766 It is important to avoid direct confrontation to lsquosave facersquo and this

customs affects the way in which the performance appraisal is conducted

1048766 A Japanese manager can not directly point out a work related problem

or error committed by a subordinate

1048766 Developmental appraisal is usually conducted every month and

evaluation appraisal is performed after 12 years

1048766 Feed back is subtle and given orally Japanese employees never rebut

1048766 Appraisal process praise is given to the group

Appraisal of HCN Employees-

USA

1048766 Workers performance appraisals featured the us cultural concept of meritocracy which emphasis fairness and a short term orientation

1048766 Employee expect to be appraised individually and heavily on individual feedback regarding performance

1048766 PA in the US are usually conducted once a year

1048766 Feedback in the US process is direct and probably in writing

1048766 US employees tend to present their own rebutted to the feed back

1048766 Appraisal process praise is given individually

USA vs Peoples Republic of China (PRC)

bull Performance appraisal

ndash USA Two-way communication and counseling are widely used in the performance appraisal process

ndash Peoples Republic of China (PRC) Superiors have absolute authority to evaluate subordinates standards of performance are vague and generic

CONT

bull Reward system

ndash USA A wide variety of rewards are used in the incentive system

ndash Peoples 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

CONT

bull Participative management

ndash USA Participative management is welcome and

encouraged even if it is not prevalent yet

ndash Peoples Republic of China (PRC) Collective leadership

is widely used but the participation of workers in major

decisions is superficial and symbolic

Thank You

Page 10: Chapter  6 performance management

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

Problem Performance appraisal

Unintentional bias

bull Host-nation biased by cultural frame of reference

bull Home-country biased by distance and lack of experience working abroad

bull Expatriate managers believe that headquarters unfairly evaluates and under

appreciates them

Guidelines for performance appraisal

More weight should be given to onsite managerrsquos 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

Challenges of International Performance Management

bull Total company vs part of it

bull Standardized or customized appraisal

form

bull Time differences and distance separation

bull Unreliable data across boundaries

bull Complex and volatile environments

bull Who conducts the performance appraisal

bull Frequency of appraisal

bull Variable levels of maturity

bull Volatility of the global environment

bull Non-comparable data

bull Cultural adjustment

bull Host environment

bull Raters Bias

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

Factors to be considered in individual performance amp appraisal process

Headquartersrsquo support

Compensation Package

Task

Host Environment

Expatriate Performance Management System

Cultural Adjustment

Compensation such assignments taken for perceived financial benefits and career progression

1048766 Compensation is one of the key factor closely associated with expatrsquos performance

1048766 Well compensated expatriates definitely happier and more productive

1048766 Pay according to Herzbergs two factor theory of motivation is a hygiene factor which

when adequately provided for removes dissatisfaction but fails to activate motivation and

performance

1048766 But money continues to remain as one of the most significant motivators for expats

2 Task

1048766 An expatriate is sent on an overseas assignment either as chief executive system

replicator trouble shooter or as a simple operator

1048766 Whatever the nature of assignment task has considerable impact on an individualrsquos

performance

1048766 A tougher task tends to evolve better performance than a job which is relatively easy to

handle

1048766 People tend to show their best when the job is tough and challenging

Head quarterrsquos support

1048766 Home office support is a crucial in expatriate performance

1048766 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

1048766 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

Host Environment

1048766 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

1048766 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

1048766 Conflicting goals between parent companies are a common problem within

international joint ventures and can make the expatriatersquos job more difficult

The ability to live comfortably in an alien culture ndash is essential for the success of an

expatriate Multicultural adjustability refers to being sensitive to the host culture the

expatrsquos multicultural sensitivity language ability diplomacy adaptability positive

attitude emotional stability and maturity

1048766 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

The international HR Manager should decide on 3 key areas while assessing

an expatriatersquos performance

- Specific performance criteria

- Identifying the appraisers

- deciding on the frequency of appraisal

Expatriatersquos performance

appraisal

Basically there are three categories of performance indicators

1 Trait based (soft goal) ndash leadership style interpersonal skill etc

2 Behavior based (contextual goals) ndash attempts to take into consideration factors that

results

from the situation in which performance occurs

3 Result based (Hard goals) ndash objectives quantifiable and can be directly measured

such as Return On Investment (ROI) market share and so on

Non-expatriate Performance management

bull A seemingly neglected group

bull Performance effects of factors associated with constant air

travel

ndash Depression nervous anxiety sleep disturbance health issues

bull Stress associated with frequent absences and effect on family

relationships

bull Non-standard assignments such as commuter arrangements and

virtual assignments share these aspects

Performance Appraisal at

Pepsi-Cola International

bull 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

Conthellip

Five feed-back based mechanism

bull Instant feedback

bull Coaching

bull Accountability-based performance appraisal

bull Development feedback

bull Human resource plan for future

US Performance Appraisal

System

To build up employee performance plan

bull Discuss performance plan

bull Evaluating

bull Rewarding

bull Provide assistant

bull Repositioning or removing

bull Identifying

American Views of Performance

Objective To help achieve organizational objectives

bull Productivity and Quality

bull Achievement

ndash Individual group or organizational objectives

bull ldquorate the performance not the personrdquo

ndash Concentrate upon performance items

Chinese views of Performance

bull Objectives Maintain family control of

business

ndash Performance appraisals favor workers that are

loyal to the family

bull Emphasis upon ldquomoralrdquo characteristics

Appraisal of HCN Employees -

Japan

1048766 It is important to avoid direct confrontation to lsquosave facersquo and this

customs affects the way in which the performance appraisal is conducted

1048766 A Japanese manager can not directly point out a work related problem

or error committed by a subordinate

1048766 Developmental appraisal is usually conducted every month and

evaluation appraisal is performed after 12 years

1048766 Feed back is subtle and given orally Japanese employees never rebut

1048766 Appraisal process praise is given to the group

Appraisal of HCN Employees-

USA

1048766 Workers performance appraisals featured the us cultural concept of meritocracy which emphasis fairness and a short term orientation

1048766 Employee expect to be appraised individually and heavily on individual feedback regarding performance

1048766 PA in the US are usually conducted once a year

1048766 Feedback in the US process is direct and probably in writing

1048766 US employees tend to present their own rebutted to the feed back

1048766 Appraisal process praise is given individually

USA vs Peoples Republic of China (PRC)

bull Performance appraisal

ndash USA Two-way communication and counseling are widely used in the performance appraisal process

ndash Peoples Republic of China (PRC) Superiors have absolute authority to evaluate subordinates standards of performance are vague and generic

CONT

bull Reward system

ndash USA A wide variety of rewards are used in the incentive system

ndash Peoples 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

CONT

bull Participative management

ndash USA Participative management is welcome and

encouraged even if it is not prevalent yet

ndash Peoples Republic of China (PRC) Collective leadership

is widely used but the participation of workers in major

decisions is superficial and symbolic

Thank You

Page 11: Chapter  6 performance management

Problem Performance appraisal

Unintentional bias

bull Host-nation biased by cultural frame of reference

bull Home-country biased by distance and lack of experience working abroad

bull Expatriate managers believe that headquarters unfairly evaluates and under

appreciates them

Guidelines for performance appraisal

More weight should be given to onsite managerrsquos 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

Challenges of International Performance Management

bull Total company vs part of it

bull Standardized or customized appraisal

form

bull Time differences and distance separation

bull Unreliable data across boundaries

bull Complex and volatile environments

bull Who conducts the performance appraisal

bull Frequency of appraisal

bull Variable levels of maturity

bull Volatility of the global environment

bull Non-comparable data

bull Cultural adjustment

bull Host environment

bull Raters Bias

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

Factors to be considered in individual performance amp appraisal process

Headquartersrsquo support

Compensation Package

Task

Host Environment

Expatriate Performance Management System

Cultural Adjustment

Compensation such assignments taken for perceived financial benefits and career progression

1048766 Compensation is one of the key factor closely associated with expatrsquos performance

1048766 Well compensated expatriates definitely happier and more productive

1048766 Pay according to Herzbergs two factor theory of motivation is a hygiene factor which

when adequately provided for removes dissatisfaction but fails to activate motivation and

performance

1048766 But money continues to remain as one of the most significant motivators for expats

2 Task

1048766 An expatriate is sent on an overseas assignment either as chief executive system

replicator trouble shooter or as a simple operator

1048766 Whatever the nature of assignment task has considerable impact on an individualrsquos

performance

1048766 A tougher task tends to evolve better performance than a job which is relatively easy to

handle

1048766 People tend to show their best when the job is tough and challenging

Head quarterrsquos support

1048766 Home office support is a crucial in expatriate performance

1048766 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

1048766 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

Host Environment

1048766 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

1048766 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

1048766 Conflicting goals between parent companies are a common problem within

international joint ventures and can make the expatriatersquos job more difficult

The ability to live comfortably in an alien culture ndash is essential for the success of an

expatriate Multicultural adjustability refers to being sensitive to the host culture the

expatrsquos multicultural sensitivity language ability diplomacy adaptability positive

attitude emotional stability and maturity

1048766 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

The international HR Manager should decide on 3 key areas while assessing

an expatriatersquos performance

- Specific performance criteria

- Identifying the appraisers

- deciding on the frequency of appraisal

Expatriatersquos performance

appraisal

Basically there are three categories of performance indicators

1 Trait based (soft goal) ndash leadership style interpersonal skill etc

2 Behavior based (contextual goals) ndash attempts to take into consideration factors that

results

from the situation in which performance occurs

3 Result based (Hard goals) ndash objectives quantifiable and can be directly measured

such as Return On Investment (ROI) market share and so on

Non-expatriate Performance management

bull A seemingly neglected group

bull Performance effects of factors associated with constant air

travel

ndash Depression nervous anxiety sleep disturbance health issues

bull Stress associated with frequent absences and effect on family

relationships

bull Non-standard assignments such as commuter arrangements and

virtual assignments share these aspects

Performance Appraisal at

Pepsi-Cola International

bull 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

Conthellip

Five feed-back based mechanism

bull Instant feedback

bull Coaching

bull Accountability-based performance appraisal

bull Development feedback

bull Human resource plan for future

US Performance Appraisal

System

To build up employee performance plan

bull Discuss performance plan

bull Evaluating

bull Rewarding

bull Provide assistant

bull Repositioning or removing

bull Identifying

American Views of Performance

Objective To help achieve organizational objectives

bull Productivity and Quality

bull Achievement

ndash Individual group or organizational objectives

bull ldquorate the performance not the personrdquo

ndash Concentrate upon performance items

Chinese views of Performance

bull Objectives Maintain family control of

business

ndash Performance appraisals favor workers that are

loyal to the family

bull Emphasis upon ldquomoralrdquo characteristics

Appraisal of HCN Employees -

Japan

1048766 It is important to avoid direct confrontation to lsquosave facersquo and this

customs affects the way in which the performance appraisal is conducted

1048766 A Japanese manager can not directly point out a work related problem

or error committed by a subordinate

1048766 Developmental appraisal is usually conducted every month and

evaluation appraisal is performed after 12 years

1048766 Feed back is subtle and given orally Japanese employees never rebut

1048766 Appraisal process praise is given to the group

Appraisal of HCN Employees-

USA

1048766 Workers performance appraisals featured the us cultural concept of meritocracy which emphasis fairness and a short term orientation

1048766 Employee expect to be appraised individually and heavily on individual feedback regarding performance

1048766 PA in the US are usually conducted once a year

1048766 Feedback in the US process is direct and probably in writing

1048766 US employees tend to present their own rebutted to the feed back

1048766 Appraisal process praise is given individually

USA vs Peoples Republic of China (PRC)

bull Performance appraisal

ndash USA Two-way communication and counseling are widely used in the performance appraisal process

ndash Peoples Republic of China (PRC) Superiors have absolute authority to evaluate subordinates standards of performance are vague and generic

CONT

bull Reward system

ndash USA A wide variety of rewards are used in the incentive system

ndash Peoples 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

CONT

bull Participative management

ndash USA Participative management is welcome and

encouraged even if it is not prevalent yet

ndash Peoples Republic of China (PRC) Collective leadership

is widely used but the participation of workers in major

decisions is superficial and symbolic

Thank You

Page 12: Chapter  6 performance management

Guidelines for performance appraisal

More weight should be given to onsite managerrsquos 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

Challenges of International Performance Management

bull Total company vs part of it

bull Standardized or customized appraisal

form

bull Time differences and distance separation

bull Unreliable data across boundaries

bull Complex and volatile environments

bull Who conducts the performance appraisal

bull Frequency of appraisal

bull Variable levels of maturity

bull Volatility of the global environment

bull Non-comparable data

bull Cultural adjustment

bull Host environment

bull Raters Bias

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

Factors to be considered in individual performance amp appraisal process

Headquartersrsquo support

Compensation Package

Task

Host Environment

Expatriate Performance Management System

Cultural Adjustment

Compensation such assignments taken for perceived financial benefits and career progression

1048766 Compensation is one of the key factor closely associated with expatrsquos performance

1048766 Well compensated expatriates definitely happier and more productive

1048766 Pay according to Herzbergs two factor theory of motivation is a hygiene factor which

when adequately provided for removes dissatisfaction but fails to activate motivation and

performance

1048766 But money continues to remain as one of the most significant motivators for expats

2 Task

1048766 An expatriate is sent on an overseas assignment either as chief executive system

replicator trouble shooter or as a simple operator

1048766 Whatever the nature of assignment task has considerable impact on an individualrsquos

performance

1048766 A tougher task tends to evolve better performance than a job which is relatively easy to

handle

1048766 People tend to show their best when the job is tough and challenging

Head quarterrsquos support

1048766 Home office support is a crucial in expatriate performance

1048766 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

1048766 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

Host Environment

1048766 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

1048766 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

1048766 Conflicting goals between parent companies are a common problem within

international joint ventures and can make the expatriatersquos job more difficult

The ability to live comfortably in an alien culture ndash is essential for the success of an

expatriate Multicultural adjustability refers to being sensitive to the host culture the

expatrsquos multicultural sensitivity language ability diplomacy adaptability positive

attitude emotional stability and maturity

1048766 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

The international HR Manager should decide on 3 key areas while assessing

an expatriatersquos performance

- Specific performance criteria

- Identifying the appraisers

- deciding on the frequency of appraisal

Expatriatersquos performance

appraisal

Basically there are three categories of performance indicators

1 Trait based (soft goal) ndash leadership style interpersonal skill etc

2 Behavior based (contextual goals) ndash attempts to take into consideration factors that

results

from the situation in which performance occurs

3 Result based (Hard goals) ndash objectives quantifiable and can be directly measured

such as Return On Investment (ROI) market share and so on

Non-expatriate Performance management

bull A seemingly neglected group

bull Performance effects of factors associated with constant air

travel

ndash Depression nervous anxiety sleep disturbance health issues

bull Stress associated with frequent absences and effect on family

relationships

bull Non-standard assignments such as commuter arrangements and

virtual assignments share these aspects

Performance Appraisal at

Pepsi-Cola International

bull 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

Conthellip

Five feed-back based mechanism

bull Instant feedback

bull Coaching

bull Accountability-based performance appraisal

bull Development feedback

bull Human resource plan for future

US Performance Appraisal

System

To build up employee performance plan

bull Discuss performance plan

bull Evaluating

bull Rewarding

bull Provide assistant

bull Repositioning or removing

bull Identifying

American Views of Performance

Objective To help achieve organizational objectives

bull Productivity and Quality

bull Achievement

ndash Individual group or organizational objectives

bull ldquorate the performance not the personrdquo

ndash Concentrate upon performance items

Chinese views of Performance

bull Objectives Maintain family control of

business

ndash Performance appraisals favor workers that are

loyal to the family

bull Emphasis upon ldquomoralrdquo characteristics

Appraisal of HCN Employees -

Japan

1048766 It is important to avoid direct confrontation to lsquosave facersquo and this

customs affects the way in which the performance appraisal is conducted

1048766 A Japanese manager can not directly point out a work related problem

or error committed by a subordinate

1048766 Developmental appraisal is usually conducted every month and

evaluation appraisal is performed after 12 years

1048766 Feed back is subtle and given orally Japanese employees never rebut

1048766 Appraisal process praise is given to the group

Appraisal of HCN Employees-

USA

1048766 Workers performance appraisals featured the us cultural concept of meritocracy which emphasis fairness and a short term orientation

1048766 Employee expect to be appraised individually and heavily on individual feedback regarding performance

1048766 PA in the US are usually conducted once a year

1048766 Feedback in the US process is direct and probably in writing

1048766 US employees tend to present their own rebutted to the feed back

1048766 Appraisal process praise is given individually

USA vs Peoples Republic of China (PRC)

bull Performance appraisal

ndash USA Two-way communication and counseling are widely used in the performance appraisal process

ndash Peoples Republic of China (PRC) Superiors have absolute authority to evaluate subordinates standards of performance are vague and generic

CONT

bull Reward system

ndash USA A wide variety of rewards are used in the incentive system

ndash Peoples 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

CONT

bull Participative management

ndash USA Participative management is welcome and

encouraged even if it is not prevalent yet

ndash Peoples Republic of China (PRC) Collective leadership

is widely used but the participation of workers in major

decisions is superficial and symbolic

Thank You

Page 13: Chapter  6 performance management

Challenges of International Performance Management

bull Total company vs part of it

bull Standardized or customized appraisal

form

bull Time differences and distance separation

bull Unreliable data across boundaries

bull Complex and volatile environments

bull Who conducts the performance appraisal

bull Frequency of appraisal

bull Variable levels of maturity

bull Volatility of the global environment

bull Non-comparable data

bull Cultural adjustment

bull Host environment

bull Raters Bias

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

Factors to be considered in individual performance amp appraisal process

Headquartersrsquo support

Compensation Package

Task

Host Environment

Expatriate Performance Management System

Cultural Adjustment

Compensation such assignments taken for perceived financial benefits and career progression

1048766 Compensation is one of the key factor closely associated with expatrsquos performance

1048766 Well compensated expatriates definitely happier and more productive

1048766 Pay according to Herzbergs two factor theory of motivation is a hygiene factor which

when adequately provided for removes dissatisfaction but fails to activate motivation and

performance

1048766 But money continues to remain as one of the most significant motivators for expats

2 Task

1048766 An expatriate is sent on an overseas assignment either as chief executive system

replicator trouble shooter or as a simple operator

1048766 Whatever the nature of assignment task has considerable impact on an individualrsquos

performance

1048766 A tougher task tends to evolve better performance than a job which is relatively easy to

handle

1048766 People tend to show their best when the job is tough and challenging

Head quarterrsquos support

1048766 Home office support is a crucial in expatriate performance

1048766 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

1048766 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

Host Environment

1048766 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

1048766 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

1048766 Conflicting goals between parent companies are a common problem within

international joint ventures and can make the expatriatersquos job more difficult

The ability to live comfortably in an alien culture ndash is essential for the success of an

expatriate Multicultural adjustability refers to being sensitive to the host culture the

expatrsquos multicultural sensitivity language ability diplomacy adaptability positive

attitude emotional stability and maturity

1048766 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

The international HR Manager should decide on 3 key areas while assessing

an expatriatersquos performance

- Specific performance criteria

- Identifying the appraisers

- deciding on the frequency of appraisal

Expatriatersquos performance

appraisal

Basically there are three categories of performance indicators

1 Trait based (soft goal) ndash leadership style interpersonal skill etc

2 Behavior based (contextual goals) ndash attempts to take into consideration factors that

results

from the situation in which performance occurs

3 Result based (Hard goals) ndash objectives quantifiable and can be directly measured

such as Return On Investment (ROI) market share and so on

Non-expatriate Performance management

bull A seemingly neglected group

bull Performance effects of factors associated with constant air

travel

ndash Depression nervous anxiety sleep disturbance health issues

bull Stress associated with frequent absences and effect on family

relationships

bull Non-standard assignments such as commuter arrangements and

virtual assignments share these aspects

Performance Appraisal at

Pepsi-Cola International

bull 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

Conthellip

Five feed-back based mechanism

bull Instant feedback

bull Coaching

bull Accountability-based performance appraisal

bull Development feedback

bull Human resource plan for future

US Performance Appraisal

System

To build up employee performance plan

bull Discuss performance plan

bull Evaluating

bull Rewarding

bull Provide assistant

bull Repositioning or removing

bull Identifying

American Views of Performance

Objective To help achieve organizational objectives

bull Productivity and Quality

bull Achievement

ndash Individual group or organizational objectives

bull ldquorate the performance not the personrdquo

ndash Concentrate upon performance items

Chinese views of Performance

bull Objectives Maintain family control of

business

ndash Performance appraisals favor workers that are

loyal to the family

bull Emphasis upon ldquomoralrdquo characteristics

Appraisal of HCN Employees -

Japan

1048766 It is important to avoid direct confrontation to lsquosave facersquo and this

customs affects the way in which the performance appraisal is conducted

1048766 A Japanese manager can not directly point out a work related problem

or error committed by a subordinate

1048766 Developmental appraisal is usually conducted every month and

evaluation appraisal is performed after 12 years

1048766 Feed back is subtle and given orally Japanese employees never rebut

1048766 Appraisal process praise is given to the group

Appraisal of HCN Employees-

USA

1048766 Workers performance appraisals featured the us cultural concept of meritocracy which emphasis fairness and a short term orientation

1048766 Employee expect to be appraised individually and heavily on individual feedback regarding performance

1048766 PA in the US are usually conducted once a year

1048766 Feedback in the US process is direct and probably in writing

1048766 US employees tend to present their own rebutted to the feed back

1048766 Appraisal process praise is given individually

USA vs Peoples Republic of China (PRC)

bull Performance appraisal

ndash USA Two-way communication and counseling are widely used in the performance appraisal process

ndash Peoples Republic of China (PRC) Superiors have absolute authority to evaluate subordinates standards of performance are vague and generic

CONT

bull Reward system

ndash USA A wide variety of rewards are used in the incentive system

ndash Peoples 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

CONT

bull Participative management

ndash USA Participative management is welcome and

encouraged even if it is not prevalent yet

ndash Peoples Republic of China (PRC) Collective leadership

is widely used but the participation of workers in major

decisions is superficial and symbolic

Thank You

Page 14: Chapter  6 performance management

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

Factors to be considered in individual performance amp appraisal process

Headquartersrsquo support

Compensation Package

Task

Host Environment

Expatriate Performance Management System

Cultural Adjustment

Compensation such assignments taken for perceived financial benefits and career progression

1048766 Compensation is one of the key factor closely associated with expatrsquos performance

1048766 Well compensated expatriates definitely happier and more productive

1048766 Pay according to Herzbergs two factor theory of motivation is a hygiene factor which

when adequately provided for removes dissatisfaction but fails to activate motivation and

performance

1048766 But money continues to remain as one of the most significant motivators for expats

2 Task

1048766 An expatriate is sent on an overseas assignment either as chief executive system

replicator trouble shooter or as a simple operator

1048766 Whatever the nature of assignment task has considerable impact on an individualrsquos

performance

1048766 A tougher task tends to evolve better performance than a job which is relatively easy to

handle

1048766 People tend to show their best when the job is tough and challenging

Head quarterrsquos support

1048766 Home office support is a crucial in expatriate performance

1048766 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

1048766 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

Host Environment

1048766 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

1048766 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

1048766 Conflicting goals between parent companies are a common problem within

international joint ventures and can make the expatriatersquos job more difficult

The ability to live comfortably in an alien culture ndash is essential for the success of an

expatriate Multicultural adjustability refers to being sensitive to the host culture the

expatrsquos multicultural sensitivity language ability diplomacy adaptability positive

attitude emotional stability and maturity

1048766 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

The international HR Manager should decide on 3 key areas while assessing

an expatriatersquos performance

- Specific performance criteria

- Identifying the appraisers

- deciding on the frequency of appraisal

Expatriatersquos performance

appraisal

Basically there are three categories of performance indicators

1 Trait based (soft goal) ndash leadership style interpersonal skill etc

2 Behavior based (contextual goals) ndash attempts to take into consideration factors that

results

from the situation in which performance occurs

3 Result based (Hard goals) ndash objectives quantifiable and can be directly measured

such as Return On Investment (ROI) market share and so on

Non-expatriate Performance management

bull A seemingly neglected group

bull Performance effects of factors associated with constant air

travel

ndash Depression nervous anxiety sleep disturbance health issues

bull Stress associated with frequent absences and effect on family

relationships

bull Non-standard assignments such as commuter arrangements and

virtual assignments share these aspects

Performance Appraisal at

Pepsi-Cola International

bull 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

Conthellip

Five feed-back based mechanism

bull Instant feedback

bull Coaching

bull Accountability-based performance appraisal

bull Development feedback

bull Human resource plan for future

US Performance Appraisal

System

To build up employee performance plan

bull Discuss performance plan

bull Evaluating

bull Rewarding

bull Provide assistant

bull Repositioning or removing

bull Identifying

American Views of Performance

Objective To help achieve organizational objectives

bull Productivity and Quality

bull Achievement

ndash Individual group or organizational objectives

bull ldquorate the performance not the personrdquo

ndash Concentrate upon performance items

Chinese views of Performance

bull Objectives Maintain family control of

business

ndash Performance appraisals favor workers that are

loyal to the family

bull Emphasis upon ldquomoralrdquo characteristics

Appraisal of HCN Employees -

Japan

1048766 It is important to avoid direct confrontation to lsquosave facersquo and this

customs affects the way in which the performance appraisal is conducted

1048766 A Japanese manager can not directly point out a work related problem

or error committed by a subordinate

1048766 Developmental appraisal is usually conducted every month and

evaluation appraisal is performed after 12 years

1048766 Feed back is subtle and given orally Japanese employees never rebut

1048766 Appraisal process praise is given to the group

Appraisal of HCN Employees-

USA

1048766 Workers performance appraisals featured the us cultural concept of meritocracy which emphasis fairness and a short term orientation

1048766 Employee expect to be appraised individually and heavily on individual feedback regarding performance

1048766 PA in the US are usually conducted once a year

1048766 Feedback in the US process is direct and probably in writing

1048766 US employees tend to present their own rebutted to the feed back

1048766 Appraisal process praise is given individually

USA vs Peoples Republic of China (PRC)

bull Performance appraisal

ndash USA Two-way communication and counseling are widely used in the performance appraisal process

ndash Peoples Republic of China (PRC) Superiors have absolute authority to evaluate subordinates standards of performance are vague and generic

CONT

bull Reward system

ndash USA A wide variety of rewards are used in the incentive system

ndash Peoples 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

CONT

bull Participative management

ndash USA Participative management is welcome and

encouraged even if it is not prevalent yet

ndash Peoples Republic of China (PRC) Collective leadership

is widely used but the participation of workers in major

decisions is superficial and symbolic

Thank You

Page 15: Chapter  6 performance management

Factors to be considered in individual performance amp appraisal process

Headquartersrsquo support

Compensation Package

Task

Host Environment

Expatriate Performance Management System

Cultural Adjustment

Compensation such assignments taken for perceived financial benefits and career progression

1048766 Compensation is one of the key factor closely associated with expatrsquos performance

1048766 Well compensated expatriates definitely happier and more productive

1048766 Pay according to Herzbergs two factor theory of motivation is a hygiene factor which

when adequately provided for removes dissatisfaction but fails to activate motivation and

performance

1048766 But money continues to remain as one of the most significant motivators for expats

2 Task

1048766 An expatriate is sent on an overseas assignment either as chief executive system

replicator trouble shooter or as a simple operator

1048766 Whatever the nature of assignment task has considerable impact on an individualrsquos

performance

1048766 A tougher task tends to evolve better performance than a job which is relatively easy to

handle

1048766 People tend to show their best when the job is tough and challenging

Head quarterrsquos support

1048766 Home office support is a crucial in expatriate performance

1048766 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

1048766 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

Host Environment

1048766 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

1048766 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

1048766 Conflicting goals between parent companies are a common problem within

international joint ventures and can make the expatriatersquos job more difficult

The ability to live comfortably in an alien culture ndash is essential for the success of an

expatriate Multicultural adjustability refers to being sensitive to the host culture the

expatrsquos multicultural sensitivity language ability diplomacy adaptability positive

attitude emotional stability and maturity

1048766 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

The international HR Manager should decide on 3 key areas while assessing

an expatriatersquos performance

- Specific performance criteria

- Identifying the appraisers

- deciding on the frequency of appraisal

Expatriatersquos performance

appraisal

Basically there are three categories of performance indicators

1 Trait based (soft goal) ndash leadership style interpersonal skill etc

2 Behavior based (contextual goals) ndash attempts to take into consideration factors that

results

from the situation in which performance occurs

3 Result based (Hard goals) ndash objectives quantifiable and can be directly measured

such as Return On Investment (ROI) market share and so on

Non-expatriate Performance management

bull A seemingly neglected group

bull Performance effects of factors associated with constant air

travel

ndash Depression nervous anxiety sleep disturbance health issues

bull Stress associated with frequent absences and effect on family

relationships

bull Non-standard assignments such as commuter arrangements and

virtual assignments share these aspects

Performance Appraisal at

Pepsi-Cola International

bull 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

Conthellip

Five feed-back based mechanism

bull Instant feedback

bull Coaching

bull Accountability-based performance appraisal

bull Development feedback

bull Human resource plan for future

US Performance Appraisal

System

To build up employee performance plan

bull Discuss performance plan

bull Evaluating

bull Rewarding

bull Provide assistant

bull Repositioning or removing

bull Identifying

American Views of Performance

Objective To help achieve organizational objectives

bull Productivity and Quality

bull Achievement

ndash Individual group or organizational objectives

bull ldquorate the performance not the personrdquo

ndash Concentrate upon performance items

Chinese views of Performance

bull Objectives Maintain family control of

business

ndash Performance appraisals favor workers that are

loyal to the family

bull Emphasis upon ldquomoralrdquo characteristics

Appraisal of HCN Employees -

Japan

1048766 It is important to avoid direct confrontation to lsquosave facersquo and this

customs affects the way in which the performance appraisal is conducted

1048766 A Japanese manager can not directly point out a work related problem

or error committed by a subordinate

1048766 Developmental appraisal is usually conducted every month and

evaluation appraisal is performed after 12 years

1048766 Feed back is subtle and given orally Japanese employees never rebut

1048766 Appraisal process praise is given to the group

Appraisal of HCN Employees-

USA

1048766 Workers performance appraisals featured the us cultural concept of meritocracy which emphasis fairness and a short term orientation

1048766 Employee expect to be appraised individually and heavily on individual feedback regarding performance

1048766 PA in the US are usually conducted once a year

1048766 Feedback in the US process is direct and probably in writing

1048766 US employees tend to present their own rebutted to the feed back

1048766 Appraisal process praise is given individually

USA vs Peoples Republic of China (PRC)

bull Performance appraisal

ndash USA Two-way communication and counseling are widely used in the performance appraisal process

ndash Peoples Republic of China (PRC) Superiors have absolute authority to evaluate subordinates standards of performance are vague and generic

CONT

bull Reward system

ndash USA A wide variety of rewards are used in the incentive system

ndash Peoples 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

CONT

bull Participative management

ndash USA Participative management is welcome and

encouraged even if it is not prevalent yet

ndash Peoples Republic of China (PRC) Collective leadership

is widely used but the participation of workers in major

decisions is superficial and symbolic

Thank You

Page 16: Chapter  6 performance management

Compensation such assignments taken for perceived financial benefits and career progression

1048766 Compensation is one of the key factor closely associated with expatrsquos performance

1048766 Well compensated expatriates definitely happier and more productive

1048766 Pay according to Herzbergs two factor theory of motivation is a hygiene factor which

when adequately provided for removes dissatisfaction but fails to activate motivation and

performance

1048766 But money continues to remain as one of the most significant motivators for expats

2 Task

1048766 An expatriate is sent on an overseas assignment either as chief executive system

replicator trouble shooter or as a simple operator

1048766 Whatever the nature of assignment task has considerable impact on an individualrsquos

performance

1048766 A tougher task tends to evolve better performance than a job which is relatively easy to

handle

1048766 People tend to show their best when the job is tough and challenging

Head quarterrsquos support

1048766 Home office support is a crucial in expatriate performance

1048766 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

1048766 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

Host Environment

1048766 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

1048766 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

1048766 Conflicting goals between parent companies are a common problem within

international joint ventures and can make the expatriatersquos job more difficult

The ability to live comfortably in an alien culture ndash is essential for the success of an

expatriate Multicultural adjustability refers to being sensitive to the host culture the

expatrsquos multicultural sensitivity language ability diplomacy adaptability positive

attitude emotional stability and maturity

1048766 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

The international HR Manager should decide on 3 key areas while assessing

an expatriatersquos performance

- Specific performance criteria

- Identifying the appraisers

- deciding on the frequency of appraisal

Expatriatersquos performance

appraisal

Basically there are three categories of performance indicators

1 Trait based (soft goal) ndash leadership style interpersonal skill etc

2 Behavior based (contextual goals) ndash attempts to take into consideration factors that

results

from the situation in which performance occurs

3 Result based (Hard goals) ndash objectives quantifiable and can be directly measured

such as Return On Investment (ROI) market share and so on

Non-expatriate Performance management

bull A seemingly neglected group

bull Performance effects of factors associated with constant air

travel

ndash Depression nervous anxiety sleep disturbance health issues

bull Stress associated with frequent absences and effect on family

relationships

bull Non-standard assignments such as commuter arrangements and

virtual assignments share these aspects

Performance Appraisal at

Pepsi-Cola International

bull 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

Conthellip

Five feed-back based mechanism

bull Instant feedback

bull Coaching

bull Accountability-based performance appraisal

bull Development feedback

bull Human resource plan for future

US Performance Appraisal

System

To build up employee performance plan

bull Discuss performance plan

bull Evaluating

bull Rewarding

bull Provide assistant

bull Repositioning or removing

bull Identifying

American Views of Performance

Objective To help achieve organizational objectives

bull Productivity and Quality

bull Achievement

ndash Individual group or organizational objectives

bull ldquorate the performance not the personrdquo

ndash Concentrate upon performance items

Chinese views of Performance

bull Objectives Maintain family control of

business

ndash Performance appraisals favor workers that are

loyal to the family

bull Emphasis upon ldquomoralrdquo characteristics

Appraisal of HCN Employees -

Japan

1048766 It is important to avoid direct confrontation to lsquosave facersquo and this

customs affects the way in which the performance appraisal is conducted

1048766 A Japanese manager can not directly point out a work related problem

or error committed by a subordinate

1048766 Developmental appraisal is usually conducted every month and

evaluation appraisal is performed after 12 years

1048766 Feed back is subtle and given orally Japanese employees never rebut

1048766 Appraisal process praise is given to the group

Appraisal of HCN Employees-

USA

1048766 Workers performance appraisals featured the us cultural concept of meritocracy which emphasis fairness and a short term orientation

1048766 Employee expect to be appraised individually and heavily on individual feedback regarding performance

1048766 PA in the US are usually conducted once a year

1048766 Feedback in the US process is direct and probably in writing

1048766 US employees tend to present their own rebutted to the feed back

1048766 Appraisal process praise is given individually

USA vs Peoples Republic of China (PRC)

bull Performance appraisal

ndash USA Two-way communication and counseling are widely used in the performance appraisal process

ndash Peoples Republic of China (PRC) Superiors have absolute authority to evaluate subordinates standards of performance are vague and generic

CONT

bull Reward system

ndash USA A wide variety of rewards are used in the incentive system

ndash Peoples 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

CONT

bull Participative management

ndash USA Participative management is welcome and

encouraged even if it is not prevalent yet

ndash Peoples Republic of China (PRC) Collective leadership

is widely used but the participation of workers in major

decisions is superficial and symbolic

Thank You

Page 17: Chapter  6 performance management

2 Task

1048766 An expatriate is sent on an overseas assignment either as chief executive system

replicator trouble shooter or as a simple operator

1048766 Whatever the nature of assignment task has considerable impact on an individualrsquos

performance

1048766 A tougher task tends to evolve better performance than a job which is relatively easy to

handle

1048766 People tend to show their best when the job is tough and challenging

Head quarterrsquos support

1048766 Home office support is a crucial in expatriate performance

1048766 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

1048766 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

Host Environment

1048766 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

1048766 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

1048766 Conflicting goals between parent companies are a common problem within

international joint ventures and can make the expatriatersquos job more difficult

The ability to live comfortably in an alien culture ndash is essential for the success of an

expatriate Multicultural adjustability refers to being sensitive to the host culture the

expatrsquos multicultural sensitivity language ability diplomacy adaptability positive

attitude emotional stability and maturity

1048766 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

The international HR Manager should decide on 3 key areas while assessing

an expatriatersquos performance

- Specific performance criteria

- Identifying the appraisers

- deciding on the frequency of appraisal

Expatriatersquos performance

appraisal

Basically there are three categories of performance indicators

1 Trait based (soft goal) ndash leadership style interpersonal skill etc

2 Behavior based (contextual goals) ndash attempts to take into consideration factors that

results

from the situation in which performance occurs

3 Result based (Hard goals) ndash objectives quantifiable and can be directly measured

such as Return On Investment (ROI) market share and so on

Non-expatriate Performance management

bull A seemingly neglected group

bull Performance effects of factors associated with constant air

travel

ndash Depression nervous anxiety sleep disturbance health issues

bull Stress associated with frequent absences and effect on family

relationships

bull Non-standard assignments such as commuter arrangements and

virtual assignments share these aspects

Performance Appraisal at

Pepsi-Cola International

bull 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

Conthellip

Five feed-back based mechanism

bull Instant feedback

bull Coaching

bull Accountability-based performance appraisal

bull Development feedback

bull Human resource plan for future

US Performance Appraisal

System

To build up employee performance plan

bull Discuss performance plan

bull Evaluating

bull Rewarding

bull Provide assistant

bull Repositioning or removing

bull Identifying

American Views of Performance

Objective To help achieve organizational objectives

bull Productivity and Quality

bull Achievement

ndash Individual group or organizational objectives

bull ldquorate the performance not the personrdquo

ndash Concentrate upon performance items

Chinese views of Performance

bull Objectives Maintain family control of

business

ndash Performance appraisals favor workers that are

loyal to the family

bull Emphasis upon ldquomoralrdquo characteristics

Appraisal of HCN Employees -

Japan

1048766 It is important to avoid direct confrontation to lsquosave facersquo and this

customs affects the way in which the performance appraisal is conducted

1048766 A Japanese manager can not directly point out a work related problem

or error committed by a subordinate

1048766 Developmental appraisal is usually conducted every month and

evaluation appraisal is performed after 12 years

1048766 Feed back is subtle and given orally Japanese employees never rebut

1048766 Appraisal process praise is given to the group

Appraisal of HCN Employees-

USA

1048766 Workers performance appraisals featured the us cultural concept of meritocracy which emphasis fairness and a short term orientation

1048766 Employee expect to be appraised individually and heavily on individual feedback regarding performance

1048766 PA in the US are usually conducted once a year

1048766 Feedback in the US process is direct and probably in writing

1048766 US employees tend to present their own rebutted to the feed back

1048766 Appraisal process praise is given individually

USA vs Peoples Republic of China (PRC)

bull Performance appraisal

ndash USA Two-way communication and counseling are widely used in the performance appraisal process

ndash Peoples Republic of China (PRC) Superiors have absolute authority to evaluate subordinates standards of performance are vague and generic

CONT

bull Reward system

ndash USA A wide variety of rewards are used in the incentive system

ndash Peoples 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

CONT

bull Participative management

ndash USA Participative management is welcome and

encouraged even if it is not prevalent yet

ndash Peoples Republic of China (PRC) Collective leadership

is widely used but the participation of workers in major

decisions is superficial and symbolic

Thank You

Page 18: Chapter  6 performance management

Head quarterrsquos support

1048766 Home office support is a crucial in expatriate performance

1048766 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

1048766 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

Host Environment

1048766 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

1048766 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

1048766 Conflicting goals between parent companies are a common problem within

international joint ventures and can make the expatriatersquos job more difficult

The ability to live comfortably in an alien culture ndash is essential for the success of an

expatriate Multicultural adjustability refers to being sensitive to the host culture the

expatrsquos multicultural sensitivity language ability diplomacy adaptability positive

attitude emotional stability and maturity

1048766 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

The international HR Manager should decide on 3 key areas while assessing

an expatriatersquos performance

- Specific performance criteria

- Identifying the appraisers

- deciding on the frequency of appraisal

Expatriatersquos performance

appraisal

Basically there are three categories of performance indicators

1 Trait based (soft goal) ndash leadership style interpersonal skill etc

2 Behavior based (contextual goals) ndash attempts to take into consideration factors that

results

from the situation in which performance occurs

3 Result based (Hard goals) ndash objectives quantifiable and can be directly measured

such as Return On Investment (ROI) market share and so on

Non-expatriate Performance management

bull A seemingly neglected group

bull Performance effects of factors associated with constant air

travel

ndash Depression nervous anxiety sleep disturbance health issues

bull Stress associated with frequent absences and effect on family

relationships

bull Non-standard assignments such as commuter arrangements and

virtual assignments share these aspects

Performance Appraisal at

Pepsi-Cola International

bull 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

Conthellip

Five feed-back based mechanism

bull Instant feedback

bull Coaching

bull Accountability-based performance appraisal

bull Development feedback

bull Human resource plan for future

US Performance Appraisal

System

To build up employee performance plan

bull Discuss performance plan

bull Evaluating

bull Rewarding

bull Provide assistant

bull Repositioning or removing

bull Identifying

American Views of Performance

Objective To help achieve organizational objectives

bull Productivity and Quality

bull Achievement

ndash Individual group or organizational objectives

bull ldquorate the performance not the personrdquo

ndash Concentrate upon performance items

Chinese views of Performance

bull Objectives Maintain family control of

business

ndash Performance appraisals favor workers that are

loyal to the family

bull Emphasis upon ldquomoralrdquo characteristics

Appraisal of HCN Employees -

Japan

1048766 It is important to avoid direct confrontation to lsquosave facersquo and this

customs affects the way in which the performance appraisal is conducted

1048766 A Japanese manager can not directly point out a work related problem

or error committed by a subordinate

1048766 Developmental appraisal is usually conducted every month and

evaluation appraisal is performed after 12 years

1048766 Feed back is subtle and given orally Japanese employees never rebut

1048766 Appraisal process praise is given to the group

Appraisal of HCN Employees-

USA

1048766 Workers performance appraisals featured the us cultural concept of meritocracy which emphasis fairness and a short term orientation

1048766 Employee expect to be appraised individually and heavily on individual feedback regarding performance

1048766 PA in the US are usually conducted once a year

1048766 Feedback in the US process is direct and probably in writing

1048766 US employees tend to present their own rebutted to the feed back

1048766 Appraisal process praise is given individually

USA vs Peoples Republic of China (PRC)

bull Performance appraisal

ndash USA Two-way communication and counseling are widely used in the performance appraisal process

ndash Peoples Republic of China (PRC) Superiors have absolute authority to evaluate subordinates standards of performance are vague and generic

CONT

bull Reward system

ndash USA A wide variety of rewards are used in the incentive system

ndash Peoples 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

CONT

bull Participative management

ndash USA Participative management is welcome and

encouraged even if it is not prevalent yet

ndash Peoples Republic of China (PRC) Collective leadership

is widely used but the participation of workers in major

decisions is superficial and symbolic

Thank You

Page 19: Chapter  6 performance management

Host Environment

1048766 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

1048766 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

1048766 Conflicting goals between parent companies are a common problem within

international joint ventures and can make the expatriatersquos job more difficult

The ability to live comfortably in an alien culture ndash is essential for the success of an

expatriate Multicultural adjustability refers to being sensitive to the host culture the

expatrsquos multicultural sensitivity language ability diplomacy adaptability positive

attitude emotional stability and maturity

1048766 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

The international HR Manager should decide on 3 key areas while assessing

an expatriatersquos performance

- Specific performance criteria

- Identifying the appraisers

- deciding on the frequency of appraisal

Expatriatersquos performance

appraisal

Basically there are three categories of performance indicators

1 Trait based (soft goal) ndash leadership style interpersonal skill etc

2 Behavior based (contextual goals) ndash attempts to take into consideration factors that

results

from the situation in which performance occurs

3 Result based (Hard goals) ndash objectives quantifiable and can be directly measured

such as Return On Investment (ROI) market share and so on

Non-expatriate Performance management

bull A seemingly neglected group

bull Performance effects of factors associated with constant air

travel

ndash Depression nervous anxiety sleep disturbance health issues

bull Stress associated with frequent absences and effect on family

relationships

bull Non-standard assignments such as commuter arrangements and

virtual assignments share these aspects

Performance Appraisal at

Pepsi-Cola International

bull 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

Conthellip

Five feed-back based mechanism

bull Instant feedback

bull Coaching

bull Accountability-based performance appraisal

bull Development feedback

bull Human resource plan for future

US Performance Appraisal

System

To build up employee performance plan

bull Discuss performance plan

bull Evaluating

bull Rewarding

bull Provide assistant

bull Repositioning or removing

bull Identifying

American Views of Performance

Objective To help achieve organizational objectives

bull Productivity and Quality

bull Achievement

ndash Individual group or organizational objectives

bull ldquorate the performance not the personrdquo

ndash Concentrate upon performance items

Chinese views of Performance

bull Objectives Maintain family control of

business

ndash Performance appraisals favor workers that are

loyal to the family

bull Emphasis upon ldquomoralrdquo characteristics

Appraisal of HCN Employees -

Japan

1048766 It is important to avoid direct confrontation to lsquosave facersquo and this

customs affects the way in which the performance appraisal is conducted

1048766 A Japanese manager can not directly point out a work related problem

or error committed by a subordinate

1048766 Developmental appraisal is usually conducted every month and

evaluation appraisal is performed after 12 years

1048766 Feed back is subtle and given orally Japanese employees never rebut

1048766 Appraisal process praise is given to the group

Appraisal of HCN Employees-

USA

1048766 Workers performance appraisals featured the us cultural concept of meritocracy which emphasis fairness and a short term orientation

1048766 Employee expect to be appraised individually and heavily on individual feedback regarding performance

1048766 PA in the US are usually conducted once a year

1048766 Feedback in the US process is direct and probably in writing

1048766 US employees tend to present their own rebutted to the feed back

1048766 Appraisal process praise is given individually

USA vs Peoples Republic of China (PRC)

bull Performance appraisal

ndash USA Two-way communication and counseling are widely used in the performance appraisal process

ndash Peoples Republic of China (PRC) Superiors have absolute authority to evaluate subordinates standards of performance are vague and generic

CONT

bull Reward system

ndash USA A wide variety of rewards are used in the incentive system

ndash Peoples 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

CONT

bull Participative management

ndash USA Participative management is welcome and

encouraged even if it is not prevalent yet

ndash Peoples Republic of China (PRC) Collective leadership

is widely used but the participation of workers in major

decisions is superficial and symbolic

Thank You

Page 20: Chapter  6 performance management

The ability to live comfortably in an alien culture ndash is essential for the success of an

expatriate Multicultural adjustability refers to being sensitive to the host culture the

expatrsquos multicultural sensitivity language ability diplomacy adaptability positive

attitude emotional stability and maturity

1048766 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

The international HR Manager should decide on 3 key areas while assessing

an expatriatersquos performance

- Specific performance criteria

- Identifying the appraisers

- deciding on the frequency of appraisal

Expatriatersquos performance

appraisal

Basically there are three categories of performance indicators

1 Trait based (soft goal) ndash leadership style interpersonal skill etc

2 Behavior based (contextual goals) ndash attempts to take into consideration factors that

results

from the situation in which performance occurs

3 Result based (Hard goals) ndash objectives quantifiable and can be directly measured

such as Return On Investment (ROI) market share and so on

Non-expatriate Performance management

bull A seemingly neglected group

bull Performance effects of factors associated with constant air

travel

ndash Depression nervous anxiety sleep disturbance health issues

bull Stress associated with frequent absences and effect on family

relationships

bull Non-standard assignments such as commuter arrangements and

virtual assignments share these aspects

Performance Appraisal at

Pepsi-Cola International

bull 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

Conthellip

Five feed-back based mechanism

bull Instant feedback

bull Coaching

bull Accountability-based performance appraisal

bull Development feedback

bull Human resource plan for future

US Performance Appraisal

System

To build up employee performance plan

bull Discuss performance plan

bull Evaluating

bull Rewarding

bull Provide assistant

bull Repositioning or removing

bull Identifying

American Views of Performance

Objective To help achieve organizational objectives

bull Productivity and Quality

bull Achievement

ndash Individual group or organizational objectives

bull ldquorate the performance not the personrdquo

ndash Concentrate upon performance items

Chinese views of Performance

bull Objectives Maintain family control of

business

ndash Performance appraisals favor workers that are

loyal to the family

bull Emphasis upon ldquomoralrdquo characteristics

Appraisal of HCN Employees -

Japan

1048766 It is important to avoid direct confrontation to lsquosave facersquo and this

customs affects the way in which the performance appraisal is conducted

1048766 A Japanese manager can not directly point out a work related problem

or error committed by a subordinate

1048766 Developmental appraisal is usually conducted every month and

evaluation appraisal is performed after 12 years

1048766 Feed back is subtle and given orally Japanese employees never rebut

1048766 Appraisal process praise is given to the group

Appraisal of HCN Employees-

USA

1048766 Workers performance appraisals featured the us cultural concept of meritocracy which emphasis fairness and a short term orientation

1048766 Employee expect to be appraised individually and heavily on individual feedback regarding performance

1048766 PA in the US are usually conducted once a year

1048766 Feedback in the US process is direct and probably in writing

1048766 US employees tend to present their own rebutted to the feed back

1048766 Appraisal process praise is given individually

USA vs Peoples Republic of China (PRC)

bull Performance appraisal

ndash USA Two-way communication and counseling are widely used in the performance appraisal process

ndash Peoples Republic of China (PRC) Superiors have absolute authority to evaluate subordinates standards of performance are vague and generic

CONT

bull Reward system

ndash USA A wide variety of rewards are used in the incentive system

ndash Peoples 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

CONT

bull Participative management

ndash USA Participative management is welcome and

encouraged even if it is not prevalent yet

ndash Peoples Republic of China (PRC) Collective leadership

is widely used but the participation of workers in major

decisions is superficial and symbolic

Thank You

Page 21: Chapter  6 performance management

The international HR Manager should decide on 3 key areas while assessing

an expatriatersquos performance

- Specific performance criteria

- Identifying the appraisers

- deciding on the frequency of appraisal

Expatriatersquos performance

appraisal

Basically there are three categories of performance indicators

1 Trait based (soft goal) ndash leadership style interpersonal skill etc

2 Behavior based (contextual goals) ndash attempts to take into consideration factors that

results

from the situation in which performance occurs

3 Result based (Hard goals) ndash objectives quantifiable and can be directly measured

such as Return On Investment (ROI) market share and so on

Non-expatriate Performance management

bull A seemingly neglected group

bull Performance effects of factors associated with constant air

travel

ndash Depression nervous anxiety sleep disturbance health issues

bull Stress associated with frequent absences and effect on family

relationships

bull Non-standard assignments such as commuter arrangements and

virtual assignments share these aspects

Performance Appraisal at

Pepsi-Cola International

bull 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

Conthellip

Five feed-back based mechanism

bull Instant feedback

bull Coaching

bull Accountability-based performance appraisal

bull Development feedback

bull Human resource plan for future

US Performance Appraisal

System

To build up employee performance plan

bull Discuss performance plan

bull Evaluating

bull Rewarding

bull Provide assistant

bull Repositioning or removing

bull Identifying

American Views of Performance

Objective To help achieve organizational objectives

bull Productivity and Quality

bull Achievement

ndash Individual group or organizational objectives

bull ldquorate the performance not the personrdquo

ndash Concentrate upon performance items

Chinese views of Performance

bull Objectives Maintain family control of

business

ndash Performance appraisals favor workers that are

loyal to the family

bull Emphasis upon ldquomoralrdquo characteristics

Appraisal of HCN Employees -

Japan

1048766 It is important to avoid direct confrontation to lsquosave facersquo and this

customs affects the way in which the performance appraisal is conducted

1048766 A Japanese manager can not directly point out a work related problem

or error committed by a subordinate

1048766 Developmental appraisal is usually conducted every month and

evaluation appraisal is performed after 12 years

1048766 Feed back is subtle and given orally Japanese employees never rebut

1048766 Appraisal process praise is given to the group

Appraisal of HCN Employees-

USA

1048766 Workers performance appraisals featured the us cultural concept of meritocracy which emphasis fairness and a short term orientation

1048766 Employee expect to be appraised individually and heavily on individual feedback regarding performance

1048766 PA in the US are usually conducted once a year

1048766 Feedback in the US process is direct and probably in writing

1048766 US employees tend to present their own rebutted to the feed back

1048766 Appraisal process praise is given individually

USA vs Peoples Republic of China (PRC)

bull Performance appraisal

ndash USA Two-way communication and counseling are widely used in the performance appraisal process

ndash Peoples Republic of China (PRC) Superiors have absolute authority to evaluate subordinates standards of performance are vague and generic

CONT

bull Reward system

ndash USA A wide variety of rewards are used in the incentive system

ndash Peoples 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

CONT

bull Participative management

ndash USA Participative management is welcome and

encouraged even if it is not prevalent yet

ndash Peoples Republic of China (PRC) Collective leadership

is widely used but the participation of workers in major

decisions is superficial and symbolic

Thank You

Page 22: Chapter  6 performance management

Non-expatriate Performance management

bull A seemingly neglected group

bull Performance effects of factors associated with constant air

travel

ndash Depression nervous anxiety sleep disturbance health issues

bull Stress associated with frequent absences and effect on family

relationships

bull Non-standard assignments such as commuter arrangements and

virtual assignments share these aspects

Performance Appraisal at

Pepsi-Cola International

bull 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

Conthellip

Five feed-back based mechanism

bull Instant feedback

bull Coaching

bull Accountability-based performance appraisal

bull Development feedback

bull Human resource plan for future

US Performance Appraisal

System

To build up employee performance plan

bull Discuss performance plan

bull Evaluating

bull Rewarding

bull Provide assistant

bull Repositioning or removing

bull Identifying

American Views of Performance

Objective To help achieve organizational objectives

bull Productivity and Quality

bull Achievement

ndash Individual group or organizational objectives

bull ldquorate the performance not the personrdquo

ndash Concentrate upon performance items

Chinese views of Performance

bull Objectives Maintain family control of

business

ndash Performance appraisals favor workers that are

loyal to the family

bull Emphasis upon ldquomoralrdquo characteristics

Appraisal of HCN Employees -

Japan

1048766 It is important to avoid direct confrontation to lsquosave facersquo and this

customs affects the way in which the performance appraisal is conducted

1048766 A Japanese manager can not directly point out a work related problem

or error committed by a subordinate

1048766 Developmental appraisal is usually conducted every month and

evaluation appraisal is performed after 12 years

1048766 Feed back is subtle and given orally Japanese employees never rebut

1048766 Appraisal process praise is given to the group

Appraisal of HCN Employees-

USA

1048766 Workers performance appraisals featured the us cultural concept of meritocracy which emphasis fairness and a short term orientation

1048766 Employee expect to be appraised individually and heavily on individual feedback regarding performance

1048766 PA in the US are usually conducted once a year

1048766 Feedback in the US process is direct and probably in writing

1048766 US employees tend to present their own rebutted to the feed back

1048766 Appraisal process praise is given individually

USA vs Peoples Republic of China (PRC)

bull Performance appraisal

ndash USA Two-way communication and counseling are widely used in the performance appraisal process

ndash Peoples Republic of China (PRC) Superiors have absolute authority to evaluate subordinates standards of performance are vague and generic

CONT

bull Reward system

ndash USA A wide variety of rewards are used in the incentive system

ndash Peoples 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

CONT

bull Participative management

ndash USA Participative management is welcome and

encouraged even if it is not prevalent yet

ndash Peoples Republic of China (PRC) Collective leadership

is widely used but the participation of workers in major

decisions is superficial and symbolic

Thank You

Page 23: Chapter  6 performance management

Performance Appraisal at

Pepsi-Cola International

bull 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

Conthellip

Five feed-back based mechanism

bull Instant feedback

bull Coaching

bull Accountability-based performance appraisal

bull Development feedback

bull Human resource plan for future

US Performance Appraisal

System

To build up employee performance plan

bull Discuss performance plan

bull Evaluating

bull Rewarding

bull Provide assistant

bull Repositioning or removing

bull Identifying

American Views of Performance

Objective To help achieve organizational objectives

bull Productivity and Quality

bull Achievement

ndash Individual group or organizational objectives

bull ldquorate the performance not the personrdquo

ndash Concentrate upon performance items

Chinese views of Performance

bull Objectives Maintain family control of

business

ndash Performance appraisals favor workers that are

loyal to the family

bull Emphasis upon ldquomoralrdquo characteristics

Appraisal of HCN Employees -

Japan

1048766 It is important to avoid direct confrontation to lsquosave facersquo and this

customs affects the way in which the performance appraisal is conducted

1048766 A Japanese manager can not directly point out a work related problem

or error committed by a subordinate

1048766 Developmental appraisal is usually conducted every month and

evaluation appraisal is performed after 12 years

1048766 Feed back is subtle and given orally Japanese employees never rebut

1048766 Appraisal process praise is given to the group

Appraisal of HCN Employees-

USA

1048766 Workers performance appraisals featured the us cultural concept of meritocracy which emphasis fairness and a short term orientation

1048766 Employee expect to be appraised individually and heavily on individual feedback regarding performance

1048766 PA in the US are usually conducted once a year

1048766 Feedback in the US process is direct and probably in writing

1048766 US employees tend to present their own rebutted to the feed back

1048766 Appraisal process praise is given individually

USA vs Peoples Republic of China (PRC)

bull Performance appraisal

ndash USA Two-way communication and counseling are widely used in the performance appraisal process

ndash Peoples Republic of China (PRC) Superiors have absolute authority to evaluate subordinates standards of performance are vague and generic

CONT

bull Reward system

ndash USA A wide variety of rewards are used in the incentive system

ndash Peoples 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

CONT

bull Participative management

ndash USA Participative management is welcome and

encouraged even if it is not prevalent yet

ndash Peoples Republic of China (PRC) Collective leadership

is widely used but the participation of workers in major

decisions is superficial and symbolic

Thank You

Page 24: Chapter  6 performance management

Conthellip

Five feed-back based mechanism

bull Instant feedback

bull Coaching

bull Accountability-based performance appraisal

bull Development feedback

bull Human resource plan for future

US Performance Appraisal

System

To build up employee performance plan

bull Discuss performance plan

bull Evaluating

bull Rewarding

bull Provide assistant

bull Repositioning or removing

bull Identifying

American Views of Performance

Objective To help achieve organizational objectives

bull Productivity and Quality

bull Achievement

ndash Individual group or organizational objectives

bull ldquorate the performance not the personrdquo

ndash Concentrate upon performance items

Chinese views of Performance

bull Objectives Maintain family control of

business

ndash Performance appraisals favor workers that are

loyal to the family

bull Emphasis upon ldquomoralrdquo characteristics

Appraisal of HCN Employees -

Japan

1048766 It is important to avoid direct confrontation to lsquosave facersquo and this

customs affects the way in which the performance appraisal is conducted

1048766 A Japanese manager can not directly point out a work related problem

or error committed by a subordinate

1048766 Developmental appraisal is usually conducted every month and

evaluation appraisal is performed after 12 years

1048766 Feed back is subtle and given orally Japanese employees never rebut

1048766 Appraisal process praise is given to the group

Appraisal of HCN Employees-

USA

1048766 Workers performance appraisals featured the us cultural concept of meritocracy which emphasis fairness and a short term orientation

1048766 Employee expect to be appraised individually and heavily on individual feedback regarding performance

1048766 PA in the US are usually conducted once a year

1048766 Feedback in the US process is direct and probably in writing

1048766 US employees tend to present their own rebutted to the feed back

1048766 Appraisal process praise is given individually

USA vs Peoples Republic of China (PRC)

bull Performance appraisal

ndash USA Two-way communication and counseling are widely used in the performance appraisal process

ndash Peoples Republic of China (PRC) Superiors have absolute authority to evaluate subordinates standards of performance are vague and generic

CONT

bull Reward system

ndash USA A wide variety of rewards are used in the incentive system

ndash Peoples 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

CONT

bull Participative management

ndash USA Participative management is welcome and

encouraged even if it is not prevalent yet

ndash Peoples Republic of China (PRC) Collective leadership

is widely used but the participation of workers in major

decisions is superficial and symbolic

Thank You

Page 25: Chapter  6 performance management

US Performance Appraisal

System

To build up employee performance plan

bull Discuss performance plan

bull Evaluating

bull Rewarding

bull Provide assistant

bull Repositioning or removing

bull Identifying

American Views of Performance

Objective To help achieve organizational objectives

bull Productivity and Quality

bull Achievement

ndash Individual group or organizational objectives

bull ldquorate the performance not the personrdquo

ndash Concentrate upon performance items

Chinese views of Performance

bull Objectives Maintain family control of

business

ndash Performance appraisals favor workers that are

loyal to the family

bull Emphasis upon ldquomoralrdquo characteristics

Appraisal of HCN Employees -

Japan

1048766 It is important to avoid direct confrontation to lsquosave facersquo and this

customs affects the way in which the performance appraisal is conducted

1048766 A Japanese manager can not directly point out a work related problem

or error committed by a subordinate

1048766 Developmental appraisal is usually conducted every month and

evaluation appraisal is performed after 12 years

1048766 Feed back is subtle and given orally Japanese employees never rebut

1048766 Appraisal process praise is given to the group

Appraisal of HCN Employees-

USA

1048766 Workers performance appraisals featured the us cultural concept of meritocracy which emphasis fairness and a short term orientation

1048766 Employee expect to be appraised individually and heavily on individual feedback regarding performance

1048766 PA in the US are usually conducted once a year

1048766 Feedback in the US process is direct and probably in writing

1048766 US employees tend to present their own rebutted to the feed back

1048766 Appraisal process praise is given individually

USA vs Peoples Republic of China (PRC)

bull Performance appraisal

ndash USA Two-way communication and counseling are widely used in the performance appraisal process

ndash Peoples Republic of China (PRC) Superiors have absolute authority to evaluate subordinates standards of performance are vague and generic

CONT

bull Reward system

ndash USA A wide variety of rewards are used in the incentive system

ndash Peoples 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

CONT

bull Participative management

ndash USA Participative management is welcome and

encouraged even if it is not prevalent yet

ndash Peoples Republic of China (PRC) Collective leadership

is widely used but the participation of workers in major

decisions is superficial and symbolic

Thank You

Page 26: Chapter  6 performance management

American Views of Performance

Objective To help achieve organizational objectives

bull Productivity and Quality

bull Achievement

ndash Individual group or organizational objectives

bull ldquorate the performance not the personrdquo

ndash Concentrate upon performance items

Chinese views of Performance

bull Objectives Maintain family control of

business

ndash Performance appraisals favor workers that are

loyal to the family

bull Emphasis upon ldquomoralrdquo characteristics

Appraisal of HCN Employees -

Japan

1048766 It is important to avoid direct confrontation to lsquosave facersquo and this

customs affects the way in which the performance appraisal is conducted

1048766 A Japanese manager can not directly point out a work related problem

or error committed by a subordinate

1048766 Developmental appraisal is usually conducted every month and

evaluation appraisal is performed after 12 years

1048766 Feed back is subtle and given orally Japanese employees never rebut

1048766 Appraisal process praise is given to the group

Appraisal of HCN Employees-

USA

1048766 Workers performance appraisals featured the us cultural concept of meritocracy which emphasis fairness and a short term orientation

1048766 Employee expect to be appraised individually and heavily on individual feedback regarding performance

1048766 PA in the US are usually conducted once a year

1048766 Feedback in the US process is direct and probably in writing

1048766 US employees tend to present their own rebutted to the feed back

1048766 Appraisal process praise is given individually

USA vs Peoples Republic of China (PRC)

bull Performance appraisal

ndash USA Two-way communication and counseling are widely used in the performance appraisal process

ndash Peoples Republic of China (PRC) Superiors have absolute authority to evaluate subordinates standards of performance are vague and generic

CONT

bull Reward system

ndash USA A wide variety of rewards are used in the incentive system

ndash Peoples 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

CONT

bull Participative management

ndash USA Participative management is welcome and

encouraged even if it is not prevalent yet

ndash Peoples Republic of China (PRC) Collective leadership

is widely used but the participation of workers in major

decisions is superficial and symbolic

Thank You

Page 27: Chapter  6 performance management

Chinese views of Performance

bull Objectives Maintain family control of

business

ndash Performance appraisals favor workers that are

loyal to the family

bull Emphasis upon ldquomoralrdquo characteristics

Appraisal of HCN Employees -

Japan

1048766 It is important to avoid direct confrontation to lsquosave facersquo and this

customs affects the way in which the performance appraisal is conducted

1048766 A Japanese manager can not directly point out a work related problem

or error committed by a subordinate

1048766 Developmental appraisal is usually conducted every month and

evaluation appraisal is performed after 12 years

1048766 Feed back is subtle and given orally Japanese employees never rebut

1048766 Appraisal process praise is given to the group

Appraisal of HCN Employees-

USA

1048766 Workers performance appraisals featured the us cultural concept of meritocracy which emphasis fairness and a short term orientation

1048766 Employee expect to be appraised individually and heavily on individual feedback regarding performance

1048766 PA in the US are usually conducted once a year

1048766 Feedback in the US process is direct and probably in writing

1048766 US employees tend to present their own rebutted to the feed back

1048766 Appraisal process praise is given individually

USA vs Peoples Republic of China (PRC)

bull Performance appraisal

ndash USA Two-way communication and counseling are widely used in the performance appraisal process

ndash Peoples Republic of China (PRC) Superiors have absolute authority to evaluate subordinates standards of performance are vague and generic

CONT

bull Reward system

ndash USA A wide variety of rewards are used in the incentive system

ndash Peoples 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

CONT

bull Participative management

ndash USA Participative management is welcome and

encouraged even if it is not prevalent yet

ndash Peoples Republic of China (PRC) Collective leadership

is widely used but the participation of workers in major

decisions is superficial and symbolic

Thank You

Page 28: Chapter  6 performance management

Appraisal of HCN Employees -

Japan

1048766 It is important to avoid direct confrontation to lsquosave facersquo and this

customs affects the way in which the performance appraisal is conducted

1048766 A Japanese manager can not directly point out a work related problem

or error committed by a subordinate

1048766 Developmental appraisal is usually conducted every month and

evaluation appraisal is performed after 12 years

1048766 Feed back is subtle and given orally Japanese employees never rebut

1048766 Appraisal process praise is given to the group

Appraisal of HCN Employees-

USA

1048766 Workers performance appraisals featured the us cultural concept of meritocracy which emphasis fairness and a short term orientation

1048766 Employee expect to be appraised individually and heavily on individual feedback regarding performance

1048766 PA in the US are usually conducted once a year

1048766 Feedback in the US process is direct and probably in writing

1048766 US employees tend to present their own rebutted to the feed back

1048766 Appraisal process praise is given individually

USA vs Peoples Republic of China (PRC)

bull Performance appraisal

ndash USA Two-way communication and counseling are widely used in the performance appraisal process

ndash Peoples Republic of China (PRC) Superiors have absolute authority to evaluate subordinates standards of performance are vague and generic

CONT

bull Reward system

ndash USA A wide variety of rewards are used in the incentive system

ndash Peoples 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

CONT

bull Participative management

ndash USA Participative management is welcome and

encouraged even if it is not prevalent yet

ndash Peoples Republic of China (PRC) Collective leadership

is widely used but the participation of workers in major

decisions is superficial and symbolic

Thank You

Page 29: Chapter  6 performance management

Appraisal of HCN Employees-

USA

1048766 Workers performance appraisals featured the us cultural concept of meritocracy which emphasis fairness and a short term orientation

1048766 Employee expect to be appraised individually and heavily on individual feedback regarding performance

1048766 PA in the US are usually conducted once a year

1048766 Feedback in the US process is direct and probably in writing

1048766 US employees tend to present their own rebutted to the feed back

1048766 Appraisal process praise is given individually

USA vs Peoples Republic of China (PRC)

bull Performance appraisal

ndash USA Two-way communication and counseling are widely used in the performance appraisal process

ndash Peoples Republic of China (PRC) Superiors have absolute authority to evaluate subordinates standards of performance are vague and generic

CONT

bull Reward system

ndash USA A wide variety of rewards are used in the incentive system

ndash Peoples 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

CONT

bull Participative management

ndash USA Participative management is welcome and

encouraged even if it is not prevalent yet

ndash Peoples Republic of China (PRC) Collective leadership

is widely used but the participation of workers in major

decisions is superficial and symbolic

Thank You

Page 30: Chapter  6 performance management

USA vs Peoples Republic of China (PRC)

bull Performance appraisal

ndash USA Two-way communication and counseling are widely used in the performance appraisal process

ndash Peoples Republic of China (PRC) Superiors have absolute authority to evaluate subordinates standards of performance are vague and generic

CONT

bull Reward system

ndash USA A wide variety of rewards are used in the incentive system

ndash Peoples 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

CONT

bull Participative management

ndash USA Participative management is welcome and

encouraged even if it is not prevalent yet

ndash Peoples Republic of China (PRC) Collective leadership

is widely used but the participation of workers in major

decisions is superficial and symbolic

Thank You

Page 31: Chapter  6 performance management

CONT

bull Reward system

ndash USA A wide variety of rewards are used in the incentive system

ndash Peoples 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

CONT

bull Participative management

ndash USA Participative management is welcome and

encouraged even if it is not prevalent yet

ndash Peoples Republic of China (PRC) Collective leadership

is widely used but the participation of workers in major

decisions is superficial and symbolic

Thank You

Page 32: Chapter  6 performance management

CONT

bull Participative management

ndash USA Participative management is welcome and

encouraged even if it is not prevalent yet

ndash Peoples Republic of China (PRC) Collective leadership

is widely used but the participation of workers in major

decisions is superficial and symbolic

Thank You

Page 33: Chapter  6 performance management

Thank You