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Presentation on

PEFORMANCE MANAGEMENT

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Performance Management

It is a process that enables

multinational to evaluate &

continuously improve

individual,subsidary unit & corporate

peformance.against clearly defined, pre-set

goals & targets

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Basic components of PM

Training

Multinationals global

strategies & goals

Subsidiary goals

Individual employee

(PCN,TCN,HCN)

Job goals & standards

Performance appraisalJob analysis

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Multinational Performance

Management

While evaluating subsidiary performance

there might be the following constraints:

Whole vs. Part

Non-comparable data

Volatility of the global environment

Separation by time & distanceVariable levels of maturity

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MNE control & performance

Through organization of behavior &Control achieves outcomes to

Mechanisms -consistency implement its

(formal -coordination global& informal) -compliance strategy

At HQ

At each subsidary

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PM of international employees

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Expatriate PM

Cultural adjustment-self & family

Host environment

HQs support

Task

Compensation package

Expatriate performance

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PCN role conception

communicates role conception

Cultural boundary - - - - - - - - - - - - - - - - - - -

Multinational

(role sender)

PCN manager

(role recipient)

Host country stakeholders

(role senders)

PCN managers

Role behaviour

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TCN role conception

cultural boundary

communicates role

conception

Cultural boundary----------------------------------

Parent co.

(role sender)

TCN manager

(role recipient)

Host country stakeholders

(role senders)

TCN managers role

behavior

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One of the few studies that examined expat performance

mgt, as opposed to those that focused on appraisalonly

is conducted by Tahvanainen.

Tahvanainen explored the International, domestic and

organizational context in which expatriate PM occurred

within the Finnish Multinational Nokia Telecom.

They developed a comprehensive model that illustrates

the interrelationships between the various elements. The

model illustrates how PA through goal setting is both anoutcome of the company strategy n goalsand an imp

source of information on which other PM activities are

based

Contextual model of expatriate PM

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Contextual model of expatriate PM

Co. Strategies

n goals

Clarification

Of perform.

expectations

Performance

evaluation

T & DPerfm

Related

pay

Other

uses

Maturity level of the company operations in Host country

National culture in the in Host and the home country

Nature of the job, Org. Str.

INTERNATIONAL CONTEXT

DOMESTIC CONTEXT

ORGANIZATIONAL CONTEXT

Standard PMS

Topmgtsuppo

rt

S

ubsidiary

Daily Mgt

Style & skills of mgr & employee

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Finnish Culture indirectly affected Exp. PM

This is due to implementation of standard,

global PA System within Nokia, rather than

extending an existing domestic system to

Exp.

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Performance appraisal of

international employees

Performance criteria

Who conducts the PA?

Standardized or customized PA form Frequency of appraisal

Performance feedback

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Appraisal of HCN employees

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HCN role conception

communicates role

conception

----------------------------------------------------------Cultural boundary

Parent co.

(role sender)

Host country stakeholders

(role senders)

HCN manager

(role recipient)

HCN managers roleBehavior

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THANK YOU!!!