International Business: 7th Class-08/5/2021 (Final Term)

-Supantha Shaha

Performance appraisal and compensation

Performance appraisal and compensation is the ongoing issue.

The purpose Performance appraisal are:

1. Two provide feedback in individuals on how well they are doing

2. To provide a basis for the rewarding
3. To identify the training and development need
4. To identify the problem areas that need changes

Performance appraisal of international business manager must be based on the firm clear understanding of
its goals for its foreign operation.

In accessing the international business performance the firm may consider sales, profit margin, market share
growth or any other majors.

In Performance appraisal business managers actual and expect performance must be compare.

Determining compensation in international business

To remain competitive firms must offer prevailing compensation packages for their managers in
the market with includes salary and non-salary items.

Compensating Expatriate manager:

This managers need to provide different compensation to make up the difference of currency,
standard of living, life style and so on.

The starting point in differential compensation are:

1. Cost-of-living allowance.
2. Hardship premium
3. Tax equalization system

Benefits Packages for Expatriate Managers

International businesses must provide not only salary adjustments but also special forms of benefits for
their expatriate managers in addition to standard benefits such as health insurance and vacation allowances.
Special benefits include housing, education, medical treatment, travel to the home country, and club
memberships.
 International Business: 7th Class-08/5/2021 (Final Term)
-Supantha Shaha

In compensating Expatriate issue of equity must be address.

Retention and Turnover

Retention is the extent to which a firm is able to retain valued employees. Turnover, essentially the opposite,
is the rate at which people leave a firm.

Why people leave firm:

1. Dissatisfaction
2. Work location changes
3. Exit Interview

Human Resource Issues for Non-managerial Employees

The HRM issues of Non-managerial Employees are influenced by local labor law, Culture and economic
conditions.

The firms International Business Managers must be willing to do the things the way the local swan.

1. Recruitment and Selection: The IBM should implement a plan for Recruitment and Selection in a
host country and the plan should include assessment of HR needs, supply of lobar, lobar for skill
for talent, skill requirement and condition of local lobar market.
2. Training and Development: HR managers also must assess the training and development needs of
the host country’s workforces to help them perform their jobs more effectively.
3. Compensation and Performance Appraisal: depending on local laws, customs, and cultures.
Compensation depends on local law, culture, economic conditions, and prevailing wage rate.

Lobar Relations:

1. Comparative Labor: Relations Labor relations in a host country often reflect its laws, culture, social
structure, and economic conditions.
2. Collective Bargaining: Collective bargaining is the process used to make agreements between
management and labor unions. Depends on Differences countries different laws.
3. Union Influence and Codetermination: Union influence can be manifested in various ways,
including membership, strikes, and public relations.

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