Chapter 6

INTERNATIONAL
PERFORMANCE
MANAGEMENT

Chapter 6
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. Cengage Learning
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PERFORMANCE MGMT.
Vocabulary
Objectives
Introduction
Multinational performance management
Control & performance management
Performance mgmt. of int. employees
Performance appraisal of int. employees

Chapter 6
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. Cengage Learning
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Vocabulary
performance management, performance appraisal
foreign subsidiary
bureaucratic control system, relative comparative data
expatriate = PCNs, TCNs, and HCNs on assignment to headquarters
= international employee
compensation package, remuneration
tasks: CEO, structure reproducer, troubleshooter, operative
types of assignments: technical, developmental, strategic, functional
role clarity, role expectations, going native
merit-based, intellectual capital, competency-based
collective bargaining
virtual assignees
hard goals, soft goals, contextual goals
360-degree feedback process
communication medium

Chapter 6
cultural applicability
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. Cengage Learning
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Objectives
We address:
1. Multinational performance management at the global & local level:
non-comparable data volatility of the global environment
effect of distance level of subsidiary maturity

2. Performance management as part of a MNEs control system

3. Factors associated with expatriate performance, including
compensation package headquarters support
task & role host environment factors

4. Performance management of
expatriates & non-expatriates
those on non-standard tasks & assignments such as
commuters & virtual workers
5. Issues related to performance appraisal

Chapter 6
of international employees
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. Cengage Learning
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Introduction

Chapter 6
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. Cengage Learning
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Figure 6.1
Perspectives, issues, actions & consequences
in MNE performance management

Chapter 6
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. Cengage Learning
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Multinational
performance management

Chapter 6
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. Cengage Learning
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MNE performance mgmt. constraints
1. Whole vs. part
2. Non-comparable data
3. Volatility in the global business environment
4. Separation by time & distance
5. Variable levels of maturity across markets:
the need for relevant comparative data

Chapter 6
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. Cengage Learning
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Control &
performance management

Chapter 6
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. Cengage Learning
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Figure 6.2
MNE control & performance

Chapter 6
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. Cengage Learning
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Performance management of
international employees

Chapter 6
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. Cengage Learning
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Figure 6-3
Variables affecting expatriate performance

Chapter 6
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. Cengage Learning
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Expatriate tasks
1. CEO or subsidiary manager
oversees & directs entire foreign operation
2. Structure reproducer
reproduces structure similar to what s/he knows
from another part of the company
3. Troubleshooter
analyzes & solves a particular operational problem
4. Operative
performs functional job tasks in existing operational
structure, in generally lower level,
supervisory positions

Chapter 6
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. Cengage Learning
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Types of expatriate assignments
1. Technical (5-10%)
short-term knowledge transfer
2. Developmental (5-10%)
in-country performance &
acquisition of local understanding by assignee
3. Strategic (10-15%)
high-profile activities for developing global
perspective
4. Functional (55-80%)
more enduring two-way transfer of
existing processes & practices

Chapter 6
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. Cengage Learning
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Figure 6.4
PCN role conception

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For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. Cengage Learning
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Figure 6.5
TCN role conception

Chapter 6
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. Cengage Learning
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Non-expatriate performance
management challenges
Performance criteria & goals for non-standard work
Criteria for performance is subject to cultural differences
Isolating international dimensions of job performance is not
as straightforward as for traditional expatriate jobs
Outstanding/under-performance & failures will challenge
performance appraisal process
Performance appraisals are complicated by
international context, outside appraisers
Ways to improve & rewards are unclear
Impact of non-standard work

Chapter 6
on HCN co-workers

For use with International Human Resource Management 6e ISBN-10: 1408032090

By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. Cengage Learning
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Performance appraisal of
international employees

Chapter 6
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. Cengage Learning
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Performance appraisal aspects
of international employees
Performance criteria
hard, soft, & contextual goals
Who conducts the performance appraisal?
typically subsidiary manager, but could be team of
evaluators
Standardized or customized appraisal forms?
Frequency of appraisal?
Performance feedback
the communication medium matters
Appraisal of HCN employees

Chapter 6
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. Cengage Learning
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Figure 6.6
HCN role conception

Chapter 6
For use with International Human Resource Management 6e ISBN-10: 1408032090
By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. Cengage Learning
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