An assignment
On
PERFORMANCE MANAGEMENT OF INTERNATIONAL
EMPLOYEES
(Chapter- 10)
“An assignment is submitted in the partial
fulfillment of the requirement for the course International Human Resource
Management”
Course code: HRM-612
Submitted to:
Professor
Dr.M.Ataur Rahman
(Director, evening
MBA, DU)
Course
instructor, MBA program, MIU
Submitted by:
Md. Sojibur Rahman
March 19, 2013
Masters
of Business Administration
Manarat
International University (MIU), Dhaka
Acknowledgment
At first we would like to thank our
honorable course coordinator Dr.M.Ataur Rahman to assign us for the topic
‘performance management of international employees’ as class assignment. We know, performance management is the important
and very crucial managerial action for any regional or multinational company
but we did it as theoretical essence by providing some knowledge and
information about this managerial action as the title ‘performance management
for international employees’. So we are really proud to continue this task by
directly supervision under him with respect wishes to his long live and we
further hope that any error during this assignment done that he will forgive
us.
Contents
|
|
Titles
|
Page no.
|
Introduction
of performance management
|
02
|
Meaning
of performance management
|
03
|
Basic
components of performance management
|
04
|
Variables/factors
influencing on international employees performance management
|
06
|
Roles
of international employees in performance management
|
08
|
Job
analysis in performance management
|
10
|
Performance
appraisal in performance management
|
10
|
Training
and development for international employees
|
13
|
Contextual
model of expatriate performance management
|
14
|
Model
questions
|
16
|
References
and links essence
|
18
|
Introduction
Performance
management is the process that enables multinational companies to evaluate
& continuously improve individual, subsidiary unit & corporate
performance. This is against clearly defined, pre-set goals & targets.
Employees are employed from several places like: PCN, TCN, and HCN for
international or multinational company. That’s why they have to be treated with
several matters, for language, cultural differentiations, geographical cop-up,
political concern for performing as well in any multinational company.
Multinational companies or international companies employees performance
management is really quite complex than domestic companies performance
management cause there also have to face international barriers, laws,
government’s restrictions, political issues, new environment, cultural,
language problems and also family transferring problems. So there has discussed
about performance management meaning from different views, it’s relationship
with performance appraisal, model of contextual system for expatriate,
variables may effect to international employees performance and roles of
international employees.
Meaning of Performance management:
Performance
management is the process of creating a work environment or setting in which
people are enabled to perform to the best of their abilities. It is a whole
work system that begins when a job is defined as needed. It ends when an
employee leaves organization.
According
to scholars:
-
“Performance
Management is a means of getting better results from organizations, teams
and individuals within an agreed framework of planned goals, objectives
and standards”.
- ARMSTRONG AND MURLIS
-
“The essence of
performance management is the development of individuals with competence
and commitment, working towards the achievement of shared meaningful objectives
within an organization which supports and encourages their achievement”.
Definition:
- LOCKETT
-
“Performance
management for international employees means evaluating their performance for
duration with the standard tools of measurement system considering every
influencing factor and taking improvement actions on performance in
international market”.
-MD.NUR HOSEN
·
Comparing
performance appraisal and performance management:
-
Performance
appraisal: It is an evaluating system of employees present and
past performance according to the standard for which they are assigned during a
fixed time.
-
Performance
management: It is the whole processes which consolidate employees’
performance according to goal setting which is ensuring that employees
performance supporting to company’s ultimate strategic goals toward bring aimed
success as ultimate result.
So,
performance management is the managerial system of employees performance to
accumulate their performance for bring company’s goal by taking such
performance appraisal.
Basic components of performance
management:
Performance
management is related with strategically goal of company in international
market, there have to correlation with employees participations and target standard
if fail anywhere lack of according to their actual expectation then have to
take proper improvement action providing proper training and development programs.
So there have some components which are really essentials a manager to manage employees’
performance, like:
Multinational’s global strategies
and goals:
Human
resource manager always try to match correlation with company’s strategies and
employees present performance in foreign region which are measured by setting standard
portion of performance including it’s
-
Vision,
-
Mission,
-
Values, and also
-
Strategies.
Subsidiary goals:
·
Following
the Mission Statement: companies adopt a mission
statement that reflects the company’s values, vision and goals. This statement
governs how employees conduct themselves when representing the company it also
shows consumers what is important to the company in the foreign or
international market.
·
Setting
Organizational Goals: Setting company goals is always
challenging but even more so for a subsidiary manager. The needs of the parent
company typically outweigh those of the child, but the manager has to consider
both when setting goals. Increasing revenue is a popular goal for most
businesses, but in the case of a subsidiary there may be an alternative
function. Managers may find themselves at odds with the overall goals.
· Financial Reporting: Financial reporting for a subsidiary can sometimes be tricky. Parent companies sometimes create subsidiaries to camouflage a nonrevenue producing component of the company. In this way, the losses are not as overt on the primary balance sheet. Many parent companies use subsidiaries to hide expenses that would normally appear on their balance sheets. While this is not necessarily illegal, it can sometimes lead to catastrophic results if continued for a long period, as was the case with Enron. A subsidiary manager needs to make sure that the financial reporting follows acceptable accounting practices. In most cases, the subsidiary's financials are separate from the parent companies and appear as a footnote on the shareholders' annual statements.
· Employee Considerations: Employees working for a subsidiary may sometimes feel overshadowed by their counterparts in the parent organization. This is especially true in situations where the subsidiary has low grossing revenue. Depending on the parent company’s involvement, employees may be left out of perks given to those working for the parent company. This can cause disgruntlement among workers, which a manager must contend with. The challenge for the manager is to help the employees understand that while they are a part of the parent company’s overall organization, they are a separate business entity and not necessarily privy to the parental rewards.
Variables/factors effect on employees
(PCN, TCN, HCN) performance management:
|
Performance management
(PCN,
TCN, HCN) employees
Cultural
adjustment-self & family
Head office
support
Task
Compensation
package
 |
·
Cultural
adjustment:
-
Lack
of ability to speak the host national language
-
Lack
of understanding of the host national culture
-
Integrating
information and business practices from various cultural sources
-
Inadequate
transfer of technical concepts and expertise
-
Working
effectively in the host country
-
Communicating
and relating with host nationals
-
Difficulty
getting along with host nationals
-
Find
it difficult to effectively report to host national leaders and team mates
-
Inadequate
salary
-
Poorly
motivated co-workers
-
Conflicts
with host nationals
-
Living
conditions
-
Organizational
stressors
-
Working
overtime
-
Lack
of recognition for good work
-
Performing
tasks not in job description
-
Assignment
of increased responsibility
-
Insufficient
personnel to handle an assignment
-
Poor
or inadequate supervision
-
Insufficient personal time
·
Tasks:
Expatriates are
assigned to foreign operations to fulfill specific tasks like:
-
As the chief executive officer or
subsidiary manager: who observe the foreign operations.
-
The structure producers: Who carry the
assignment of building or reproducing in a foreign subsidiary a structure
similar from others company. There build marketing framework, implementing
accounting and financing reporting system or establishing the production plan
aging newly.
-
As troubleshooter: who assigned for
problem solution.
-
The operative: Assigned for operational
job, etc.
·
Headquarter
supports:
-
By financially
-
Required accommodations
-
Family carrying out with
-
Information provide about culture
-
Pre-training provide for language,
environment cop-up
-
Geographical knowledge provide
-
Political support managing in host
country etc.
·
Host
environment:
Environment fall great impact on
any job which becomes primary importance for expatriate management in
international context with it’s:
-
Different societal
-
Legal
-
Economical
-
Technical and physical demands
-
Company’s strategies in international
environment etc.
·
Cultural
adjustment: Difficulties with:
-
New environment: Impact on employees’
performance.
-
Foreign cultures and customs, beliefs,
behaviors etc.
Roles
of international employees (individual PCN, TCN, HCN) in performance
management:
PCN role conception
Communicates role conception
 |
Cultural boundary
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - -
 |
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TCN role conception
Cultural boundary communicates role conception
 |
Cultural boundary
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - -
 |
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HCN Role Conception
Job
analysis in performance management:
It is the
process used to collect information about the duties, responsibilities, necessary
skills, outcomes, and work environment of a particular job. There need as much
data as possible to put together a job
description, which is the frequent outcome of the job analysis. Additional
outcomes include recruiting plans, position
postings and advertisements, and performance
development planning within company’s performance
management system.
The
job analysis may include these main activities:
·
Reviewing
job responsibilities: Reviewing the job responsibilities of
current employees,
·
Research
job
descriptions:
Doing Internet research and viewing sample job
descriptions online or offline highlighting similar jobs,
·
Analyzing: The work duties, tasks, and responsibilities
that need to be accomplished by the employee filling the position,
·
Researching
sharing : Researching and sharing with other companies that
have similar jobs, and
·
Articulation
outcomes: Articulation of the most important outcomes or
contributions needed from the position.
Performance appraisal in
performance management:
Performance
appraisal is the process
by which a manager
or consultant examines
and evaluates
an employee's
work behavior
by comparing it with preset standards, documents
the results
of the comparison,
and uses the results to provide feedback
to the employee
to show where improvements
are needed and why.
· Performance Appraisal and Performance Management correlation:
Performance appraisal: Is
sets job standards and evaluates past performance based on such set standards.
Performance management:
-
Whereas performance management aims at
managing performance real-time to ensure performance reaches the desired
levels.
-
Performance management is the
traditional approach to evaluating the performance of an employee. The
increased competitive nature of the economy and rapid changes in the external
environment has forced many organizations to shift from reactive performance
appraisals to the proactive performance management to boost productivity and
improve organizational performance.
The basic
relation of both performance appraisals and performance management entail
setting performance targets, reviewing the achievement of targets, and devising
ways to enable employees to meet targets. Both these systems establish clear
expectations on what an employee is expected to do, set the guidelines on what
constitutes successful job performance, and strive to identify barriers to
effective performance.
Steps of performance appraisal:
Six
steps of performance appraisal, like:
1. Establish a File
Managers to be
effective and help employees develop skills and capabilities, essential to
begin the performance management process on the employee. Create a file for
each employee and record the accomplishments, areas for improvement and regular
feedback throughout the year.
2. Provide Regular Feedback
Regular feedback
should occur at least once each quarter and more frequently if an employee
needs encouragement or motivation. The performance management process starts
with employee planning and ends with an evaluation of employee progress.
Managers and employees should meet to discuss planning and goals throughout the
year. If possible, formally sitting down with supervisor or manager on a
quarterly basis is optimal. The process, at its best, is a collaborative one
which should add value for both the employee and the employer. Employees thrive
on feedback because it ensures they are performing job duties and responsibilities
according to the company expectations. The feedback can be given in a casual
manner, provided the topic of the feedback is suitable for a casual meeting.
Always document any feedback provide to employees, even if it just to say great
job.
3. Discipline Issues
Employees may engage
in behavior that warrants disciplinary action. The company procedure for
addressing discipline should include a requirement to document every
disciplinary action taken. All disciplinary issues and improvements are taken
into account during the annual performance appraisal meeting.
4. Management by Objectives (MBO)
It’s used for some
employees who have defined goals and steps to achieve each goal. These MBOs
really should be reviewed quarterly to track progress or redefine the goal if manager
see neither enough progress. MBOs are also particularly helpful to employees
who are on a professional career track within the company.
5. Conduct the Appraisal Meeting
As the time nears
for scheduling the appraisal meeting, begin preparing the performance appraisal
document. Many companies have lengthy forms that require managers to record
relatively detailed information about the employees’ performance in all areas
of the job. Performance is rated in areas such as:
-
Job proficiency,
-
Interpersonal relationships
-
Communication skills and
-
Aptitude.
Some employers consider employee
self-evaluations. In these cases, the employee should prepare comments about performance
during the past year. Both the manager and the employee should feel comfortable
during the appraisal meeting. Tension will just make the meeting agenda much
more difficult and uncomfortable than it needs to be.
6. Follow Up Action
After the performance appraisal meeting,
there will likely be follow up matters such as:
-
Discussing areas for improvement,
-
Establishing
goals for the next year and confirming employees’ salary or wage increase.
-
In addition, the
manager and employee may schedule another time to discuss irresolvable issues
that arise during the performance appraisal meeting.
Training and development for
international employees:
Employee
Training and Development is a key ingredient in performance improvement. This
is essential to the ongoing success of every international organization.
Although technology and the internet have enabled global collaboration and
competition, people are the organization’s competitive advantage.
Employee training and development enables employees to develop skills and
competencies necessary to enhance bottom-line results for their
organization.
Key steps for performance improvement by training and
development:
1.
Assess and define performance improvement issues and gaps
2.
Gain management commitment for performance improvement
3.
Develop a business plan to manage performance improvement
4.
Establish best practices for work processes and performance standards
5.
Provide employee training and development to develop required skills
6.
Establish new practices that support improved performance
7.
Measure and monitor results and provide coaching where needed
So,
Essential skills for many organizations include effective
time management, effective communication, collaboration, project management,
customer service, teamwork, and specialized technology skills and lost
productivity due to training gaps is expensive. A targeted training and
development program focused on strategic skills can significantly enhance
profits quickly for an international organization and business.
Contextual
Model of Expatriate Performance Management:
Taking a grounded theory approach and using
qualitative case methodology, Tahbanainen explored the international, domestic
and organizational context in which expatriate performance management occurred
within the multinational company, which has shown bellow:
·
Domestic
context
National culture in the host and
the home country: Here indicate that cultural matching or differentiations
with host country and home country, which understanding help to expatriate to
cop-up in the international level out of home country.
·
Organizational
context:
o
Nature
of the job and organizational structure: It means pattern
of the business, either manufacturing type or service type business and how
much it has relatively coexist in out of the national boundary.
o
Stages
of international business operations: That means in which
stage the company’s business remain like: at introducing/
growth/maturity/declining position. Cause manager have to take decision
according to business position always.
o
Daily
management: Those activities managers are dealing
on daily basis regularly that should be clearly clarified. There managers
activities may around bellow matters like:
-
Company’s strategy and goals
-
Performance evaluation within a fixed
time
-
Clarifying of performance expectations
-
Training and development
-
Performance related pay etc continuous
activities have to deal manager
·
International
context:
Maturity level of the company
operations in the host country: Here have to see
-
Target business duration of the company
in the foreighn country
-
Then have to choose expatriate for that
duration exactly by assessing the time of operation period.
-
And expatriate will be assigned for that
fixed period of time according to company’s targeted business duration in the
international market.
So,
based on overall three contexts of organizational, domestic and international
context the expatriate performance should be managed by evaluating with a
standard performance management and evaluating system.
Model
questions:
o
What is the purpose of performance
management---?
¨ To manage employees performance
¨ Matching with performance stander
¨ Tracking employees towards the
company’s goal
þ All above
o
MBO
is the ---- of performance management system.
¨ Definition
¨ system
þ Method
¨ Component
o
Performance
management is done by comparing with-----.
þ Standard measurement.
¨ Tools
¨ Techniques
¨ components
o
Performance
is evaluated after ending a ------ of employees’ works.
¨ Year
¨ Month
¨ Weak
þ Duration
o
Job
analysis is the ----- during performance management for international
employees.
þ Crucial
matter
¨ Less
important issue
¨ Hampering
issue in evaluation
¨ Technical
issue
o
PCN, TCN, HCN are employees for which
type of business?
¨ International
business
¨ Home
country’s business
¨ Multiannual
business
þ Both
of above
o
Performance management is done by------.
¨ Managing
director
¨ Regional
manager
¨ Financial
manager
þ Human
resource manager
o
Performance management is the management
of employees working output for ------ themselves within working environment.
þ Motivating
¨ Creating
pressure
¨ Downsizing
o
Expatriate is the assigned personnel for
multinational company who work as------- out of country.
þ Employee
¨ Manager
¨ Subordinate
¨ Humane
resource manager
o
Expatriate does performance management
for international company.
¨ True
þ False
References and links essence:
·
Dowling, P.J & Welch, Denice E. “International
human resource management”. Thomson business information Indea pvt.ltd. Fourth
edition-2006.
·
Dessler,Gary (Florida International
University). Human Resource management.
10th edition, printing by prentice hall of india private limited-new
delhi-110 001.
·
Burney, Adele.
Journal: Different challenges for a
manager of a subsidiary. Demand Media. (Link: http://smallbusiness.chron.com/different-challenges-manager-subsidiary-37827.html).
·
Presentation on performance management
(Link:http://www.scribd.com/doc/130877855/PM-in-Global-Perspective).
·
M.Heathfield,Susan.“Job Analysis”(http://humanresources.about.com/od/jobdescriptions/g/job_analysis.htm).
·
The Rothschild
Corporation, wining leadership solution, “Employee Training and Development”
link(http://www.managementtrainingconsultant.com/Default.aspx?tabid=61).
·
Mayhew, Ruth & Demand Media, “Six
Steps of the Performance Appraisal Process”. Link
(http://smallbusiness.chron.com/six-steps-performance-appraisal-process-1912.html).
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