QUESTION BANK

3 MARKS

1. Define Performance Management.

Performance management is a comprehensive method of tracking employees’ work

performances and developing their skills so they can contribute optimally to
department and company objectives.
Performance management involves three phases that prompt individuals to improve
their performance level:
Planning. Establishing and measuring individual goals that also align with company
objectives allows HR to assess employee improvements.
Check-in. Managers and employees should meet routinely to engage in two-way
conversations regarding areas for improvement and progress.
Review. Frequent check-ins throughout the year prepare managers and employees
for quarterly or biannual performance reviews. These informal meetings help
managers accurately assess employee progress, achievements, and performances.

2. What do you mean by Region Based Approach?

In this approach, expatriates are paid working in their local regions, for example,
Germans working in South East Asia, at relatively lower levels than those working in
other geographical regions. This approach can reduce compensation costs, while
providing equitable compensation to all employees. However, an assumption of
small economic and cultural differences within regions may prove to be false in
many cases.
3. Explain Going Rate Approach.

Going Rate Approach – When the compensation packages of the expatriates are
determined on the basis of the salary structure prevailing in the host nation, it is
called the going rate approach or market rate approach. Typically, the salary in this
method is decided on the basis of the survey undertaken in the host country where
the business is located. However, international companies usually grant additional
pay and benefits to expatriates if they happen to work in nations where their pay is
low.
4. Explain COL allowance.

One of the most common kinds of allowance internationally is the Cost of Living
Allowance (COLA). It typically involves a payment to compensate for the
differences in the cost of living between the two countries resulting in an eventual
difference in the expenditure made.
5. Explain the concept of Global Staffing Policy.
There are four primary approaches that multinational companies use in staffing
decisions, including geocentric, ethnocentric, polycentric, and regiocentric
approaches.
6. What do you mean by geocentric staffing approach?
This staffing policy is used when firms hires the best employees regardless of where
they live. Not only is this staffing policy the costliest to implement, but it is also the
most complex to run.
7. What do you mean by polycentric staffing approach?

The polycentric approach to recruitment means that we hire locals to fill our
positions in a host country. For example, we could advertise on local job boards or
create a contract with a local recruitment agency.

We use the polycentric approach when [we need the skills of locals to conduct our
business. For example, if we want to expand our clientele to a specific country, we’d
hire a local professional who knows the market and can coordinate our sales
operations

8.

7 MARKS

1. Explain the components of Performance Management system.

1. Performance Planning: Performance planning is the first crucial component of any

performance management process which forms the basis of performance appraisals.
Performance planning is jointly done by the appraisee and also the reviewee in the
beginning of a performance session. During this period, the employees decide upon
the targets and the key performance areas which can be performed over a year within
the performance budget., which is finalized after a mutual agreement between the
reporting officer and the employee.
2. Performance Appraisal and Reviewing: The appraisals are normally performed
twice in a year in an organization in the form of mid reviews and annual reviews
which is held in the end of the financial year. In this process, the appraisee first
offers the self filled up ratings in the self appraisal form and also describes his/her
achievements over a period of time in quantifiable terms. After the self appraisal, the
final ratings are provided by the appraiser for the quantifiable and measurable
achievements of the employee being appraised. The entire process of review seeks an
active participation of both the employee and the appraiser for analyzing the causes
of loopholes in the performance and how it can be overcome. This has been
discussed in the performance feedback section.
3. Feedback on the Performance followed by personal counseling and performance
facilitation: Feedback and counseling is given a lot of importance in the performance
management process. This is the stage in which the employee acquires awareness
from the appraiser about the areas of improvements and also information on whether
the employee is contributing the expected levels of performance or not. The
employee receives an open and a very transparent feedback and along with this the
training and development needs of the employee is also identified. The appraiser
adopts all the possible steps to ensure that the employee meets the expected
outcomes for an organization through effective personal counseling and guidance,
mentoring and representing the employee in training programmes which develop the
competencies and improve the overall productivity.
4. Rewarding good performance: This is a very vital component as it will determine
the work motivation of an employee. During this stage, an employee is publicly
 recognized for good performance and is rewarded. This stage is very sensitive for an
employee as this may have a direct influence on the self esteem and achievement
orientation. Any contributions duly recognized by an organization helps an employee
in coping up with the failures successfully and satisfies the need for affection.
5. Performance Improvement Plans: In this stage, fresh set of goals are established
for an employee and new deadline is provided for accomplishing those objectives.
The employee is clearly communicated about the areas in which the employee is
expected to improve and a stipulated deadline is also assigned within which the
employee must show this improvement. This plan is jointly developed by the
appraisee and the appraiser and is mutually approved.
6. Potential Appraisal: Potential appraisal forms a basis for both lateral and vertical
movement of employees. By implementing competency mapping and various
assessment techniques, potential appraisal is performed. Potential appraisal provides
crucial inputs for succession planning and job rotation.

2. Describe the Performance management in Japan.

The Japanese performance appraisal system, which plays an impor part in

employment practices here, was initially introduced in the 1905 and 1930s, modelled
after a system that was gaining wider use in USA. Performance appraisal in Japanese
organisations needs to be understood in the context of Zen philosophy and the Japane
management styles. Appraisals are so integrated into organisational that it is difficult
to isolate and talk about appraisal systems and mechanisms. The appraisal of
individual performance is underplayed Japanese organisations and group work and
organisational identity promoted. At the same time, human needs are well attended
through variety of practices like life-long employment, that individual employees
need not bother much about the psychological, social and needs and focus their
attention on performance.

Describing the Zen philosophy. Pascale and Athos remark the Japanese each
individual as having economic, social. psycho-logical and spiritual needs, much as
we do when we step back and think about it But Japanese executives assume that it is
their task to attend to much more of the whole of the person, and not leave so much
to other

Institutions (such as government, family, or religious ones). And they believe it is

only when the individuals' needs are well met within the lure of a corporation that
they can largely be freed for productive work that is in larger part outstanding.

The Japanese accept ambiguity, uncertainty, and imperfection as much re of a given

in organisational life and this results in dealing with each other in entirely different
ways. As a result, egoism and defensiveness are likely to be much less. Performance
feedback is smooth and indirect, the Japanese see themselves as far more
interdependent. They are prepared to make far greater investments in people and in
the skills necessary to be effective with others'
3. Analyze the various approaches of compensation in Global Assignment.

Approaches to International Compensation

(1) Going Rate Approach – When the compensation packages of the expatriates are
determined on the basis of the salary structure prevailing in the host nation, it is
called the going rate approach or market rate approach. Typically, the salary in this
method is decided on the basis of the survey undertaken in the host country where
the business is located. However, international companies usually grant additional
pay and benefits to expatriates if they happen to work in nations where their pay is
low.

(2) Balance Sheet Approach – It is also known as the build-up approach. The
balance sheet approach is arguably the dominant compensation system used in
multinational companies. The approach has been used for more than 20 years, yet
nearly two of every three companies still use a form of this approach to
compensation. The basic objective of the balance sheet approach is to ensure that
employees can maintain a standard of living in the country of assignment similar to
that which they enjoy in their home country. This keeps the shock from changes in
standard of living relatively small. The basic premise of the balance sheet approach
is that companies use a set of allowances or differentials to maintain employees’
purchasing power while on international assignments. Fundamentally, assignees
should neither benefit nor be hurt economically as a result of relocating.

(3) Citizen’s Approach – In this approach, an international basket of goods is used

for all expatriates, regardless of country of origin. The basket of goods includes food,
clothing, housing, and so forth. However, expatriates are not provided salary
adjustments that would allow them to purchase exactly the same items in the host
country as in the home country. Rather, they receive adjustments that would allow
them to purchase a comparable local product of the same nature; e.g., rather than a
Mercedes (which they had in the home country), they would buy a local luxury car.
Alternatively called the global salary systems, the international citizen’s approach is
appropriate when an MNC has a team of dedicated international managers
Europeans, Americans or Asians – who are ready to move to any part of the globe
easily and effectively. Global salary systems seek to provide worldwide equity in
rewards and allow managers to move between countries with minimal effects on
lifestyle.

(4) Lump Sum Approach – This involves giving the expatriate a predetermined
salary and letting the individual decide about how to spend it. Finally, there is the
regional system, under which the MNC sets a compensation system for all
expatriates who are assigned to a particular region. Thus, everyone going to Europe
falls under one particular system and those going to South Africa come under a
different system.

4. Explain the motives for international transfers/assignments.

Motives for International Transfers/Assignment Objectives of international

assignments are as follows:
1) To help in Leadership Development: International assignments are a key element
 in developing management teams that are globally focused and globally competent.
According to Duncan, "There is no substitute for the learning that occurs on an
international assignment". According to Duncan international assignments help in
developing global leaders.
2) To encourage High Levels of Coordination and Control: Expatriate assignments
encourage high levels of coordination and control among business units. This is
especially important when an organisation internationalizes by acquiring or creating
widely dispersed production and marketing facilities, then integrating them with the
rest of the overall business. Expatriates possess knowledge about the way the overall
company operates its long-term goals, and its problem-solving resources that may
enable them to identify and capitalize on synergies, while noting duplications of
effort.
3) To Facilitate Information Exchange and Dissemination: International business
both of internal information sharing and information exchange, because of
geographical distances, cultural diversity. communication, complex supply and
demand conditions, and other similar pressures. Such information sharing is key to
effective strategic and tactical decision-making.
While e-mail and other technological developments facilitate in- terpersonal contact,
global assignments provide the opportunity to work side by side and to develop
relationships of collaboration and trust over an extended period of time. Such
relationships do not end after the expat "returns home" (or goes on to the next
assignment).
The continuous exchange of rich information, particularly when people share
competitive, marketplace, and technological information, may enable an organisation
to seize opportunities and respond to challenges more quickly and effectively.
4) To Develop Global Competencies: Another objective of international assignments
is to develop global competencies in the management team. Creating in-house
globally competent employees can enhance a firm's global competitive advantage.
Providing opportunities to develop global competencies could form part of an
organisation's development strategy. International assignments enhance an
individual's career prospects, as well as supporting organisational goals. By helping
to nurture its internal talent, through opportunities to develop international careers,
firms can also retain key staff.
5) To Help in Knowledge Transfer: International assignments aid the process of
knowledge transfer within a company. The transfer of knowledge is twofold - from
the assignee to the foreign subsidiary, and, via the assignee, from the subsidiary to
the home organisation.

5. Explain the complexities faced by IHR Manager.

Some of the major challenges faced by human resource managers are as follows:
1. Recruitment and Selection
2. Emotional and Physical Stability of Employees
3. Balance Between Management and Employees
4. Training, Development and Compensation
5. Performance Appraisal
6. Dealing with Trade Union.

1. Recruitment and Selection Finding a suitable candidate for the job from a large
number of applicants is a basic problem for the human resource manager. They have
 to make suitable changes from time to time in the selection pro-cedure and see to it
that the candidate is up to the mark fulfilling the job requirements. If required, the
candidate should be provided with training to get quality results.
2. Emotional and Physical Stability of Employees: Providing with wages and salaries
to employees is not sufficient in today’s world. The human resource manager should
maintain proper emotional balance of employees. They should try to understand the
attitude, requirements and feelings of employees, and motivate them whenever and
wherever required.
3. Balance Between Management and Employees: The human resource manager has
a responsibility to balance the interest of management and employees. Profits,
commitment, cooperation, loyalty, and sincerely are the factors expected by
management, whereas better salaries and wages, safety and security, healthy working
conditions, career development, and participative working are the factors expected
by employees from management.
4. Training, Development and Compensation: A planned execution of training
programmes and managerial development programmes is required to be undertaken
to sharpen and enhance the skills, and to develop knowledge of employees.
Compensation in the form of salary, bonus, allowances, incentives and perquisites is
to be paid according to the performance of people. A word or letter of appreciation is
also to be given, if some of them have done their jobs beyond expectations to keep
their morale up.
5. Performance Appraisal: This activity should not be considered a routine process
by the human resource manager. If employees are not getting proper feedback from
them, it may affect their future work. A scientific appraisal technique according to
changing needs should be applied and the quality of it should be checked from time
to time.
6. Dealing with Trade Union: Union members are to be handled skilfully as they are
usually the people who oppose the company policies and procedures. Demands of
the union and interests of the management should be matched properly.

6. Analyze the theories of compensation.

Theories of Compensation

Definition: The Compensation is the remuneration given to the employees for the
work they do for the organization. In other words, an employee is entitled to both the
financial and the nonfinancial benefits in return for his contribution to the
organization.

To understand which component of compensation is efficient, we need to go through

the theories of compensation. There are three theories of compensation viz.
Reinforcement and Expectancy Theory, Equity Theory and Agency theory which are
explained below.

Theories of Compensation
1. Reinforcement and Expectancy Theory: This theory is based on the assumption
that, the reward-earning behavior is likely to be repeated, i.e. an employee would do
the same thing again for which he was acknowledged once.
Similarly, in the case of Expectancy Theory, given by Vroom, the employee is
motivated to do a particular thing for which he is sure or is expected that
performance will be followed by a definite reward or an outcome.

2. Equity Theory: According to this theory, there should be equity or the uniformity in
the pay structure of an employee’s remuneration. If the employee feels he is not
being paid fairly for the amount of work he does in a day will result in lower
productivity, increased turnover and high absenteeism. The remuneration system
should comply with three types of equity:
2.1 Internal Equity: The employee perceives the fairness in different pay for
different jobs based on the nature of work involved, i.e. he must feel that pay
differentials among the jobs are fair.

2.2 External Equity: The employee should feel the fairness in what they are being
paid is in line with what other players in the same industry are paying to their
employees for the same kind of job.

2.3: Individual Equity: The employee perceives the pay differentials among the
individuals who are performing the same kind of a job and within the same
organization. Usually, an individual with more experience gets high remuneration as
compared to the fresher irrespective of the nature of a job.

3. Agency Theory: This theory states that both the employer and the employee are the
stakeholders of the company, and the remuneration paid to the employee is the
agency cost. The employee will try to get an increased agency cost whereas the
employer will try to minimize it. Hence, the remuneration should be decided in such
 a way that the interest of both the parties can be aligned.
Thus, these theories posit that the compensation in the form of salary or wages can
be decided on the basis of the outcome or the behavior of an employee.

7. List out the benefits and drawbacks of Cross Cultural Training.

Advantages and Disadvantages of Cross Culture Relationship

Culture tends to nothing rather than its values and beliefs. There are many people,
for whom culture matters a lot. With the cultural globalization phenomena, cross
culture relationship has become a current issue. Every people in this world tend to
have different values and beliefs according to their cultural activities so it becomes
very difficult to manage the cross culture relationship. You may find easy to talk
about culture but the real problem lies when any one faces it. However, it is very
essential to know about the advantages and disadvantages of having cross culture
relation.
The advantages of cross culture relationship are:-
 Development of interpersonal skill: - You will get a chance to develop
your interpersonal skills. If you learn to get connected with the people who
are completely different according to your value and beliefs then you will
have much tolerance, patience, open-mind and willingly to value other
person’s point of view.
 Open your eyes for international events:-It is very important to keep your
eyes wide open for international current topics. You will become aware of
global issues which can affect both your cultures. By doing this you will
become more observant and analytical.
 Appreciation of other culture:- You will have much appreciation
for diversity because you are likely to open up your senses to another
culture’s tastes, smells, sounds and sights;
 Open yourself to life possibilities:- If you are in cross culture relationship
then you will open up yourself to life’s possibilities. You will begin to
understand that there is no right or wrong, only viewpoint.
 Ability to compromise: - If you are cross culture relationship then the ability
to comprise will grow within you. In such relationship you will be able to
negotiate about what is good and what is not in the relation. You will try to
learn about which parts of your culture strengthen a relationship and which
ones don't. This will help to create mental and emotional strength between
you two people.
 Different food: - In cross culture relationship you can try out different and
new recipe of food. You will expose yourself to different spices, vegetables
and other ingredients. You may even find ways to put a cultural twist in
common dishes.
 Celebration of more holidays: - In cross culture relationship you will have
more holidays. More holidays’ means more excuses for fun dates and new
experiences. You both will spend quality time with each other.
 Travel: - In cross culture relationship you are likely to travel to distant places
where you might not have been. You will be able to create wondrous and life
enhancing memories.
 The disadvantages you are likely to face in cross culture relationship are:
 Giving up your beliefs: - In such type of relationship you have to
compromise your most cherished beliefs. There are chances of having an
intermediate in cross culture relationship. At some point you may think about
whether to keep such relationship or letting go some of your cultural
prejudice. Would you like to give up your beliefs in which you have been
nurtured for a person of other religion?
 Huge adjustment to make: - In such relationship you need to entirely make
a huge leap of adjustment, especially if the other person is not of the same
region. It is assumed that religion and politics are generally the most hotly
contested grounds between the person who are coming from the north and for
the people who are coming from the south. Among the couple one of you
may have to agree to the values of the other so that harmony is maintained in
the relationship.
 Deal with practices that are hurtful: - In the cross culture relationship, you
need to deal with those practices that are acceptable in the other person’s
society but are hurtful for you to accept. For example: - if you may marry
into a culture that practices and sometimes even promote sex-selective
abortion. In such type of situation you will have to decide whether this is
something you will do for love or ditch the relationship because you cannot
let go of your deep-seated respect for life.
 Missing your home: - In such relationship you are likely to miss out your
home culture a lot. In any occasion you will not find your family and
relatives near you and it would make you sad a lot.
Though there are certain disadvantages of being in cross culture relationship yet it is
up to us whether to accept the cross culture relationship of be in the same culture
relationship. At last, we can say that being in cross culture relationship is not
completely good or bad but it is up to us which side of the relationship we are taking.

10 MARKS

1. Explain Expatriates Performance Management.

International performance management is the evaluation of an individual who works

in a foreign subsidiary on a temporary basis to transfer knowledge or develop global
leadership skills. At its best, international performance management should feed into
the global goals of the business.
Environmental variations
Performance management systems rarely work in the same way domestically and
internationally. Environmental variations including; different growth rates, the
immediate environment and differences in performance, usually mean international
performance appraisals need to be unique to each expatriate manager.
 Time and distance Improvements in technology make this less of an issue
than it once was, but time differences and local infrastructure will impact on
performance and appraisals. This is particularly true of expats working in
underdeveloped countries.
 Cultural adjustment The employee’s ability to adjust to the organizational
culture within the subsidiary, as well as the wider culture within their new
 country, is likely to impact performance. An understanding of the local
organizational culture by the HR team, the management team and the
employee will facilitate the creation of a measurable international
performance management system.
 Inconsistency of implementation Like all performance development, it will
only be successful if implemented consistently in company subsidiaries.
Oversight of this may be a challenge if most Human Resource functions are
centralized to headquarters, meaning some employees thrive while others are
left directionless.
 Performance management system for expatriate Developing a system that
will work successfully across markets is a significant challenge for a global
human resources manager. To further compound the situation, there is very
little best practice research as existing studies do not focus on the same
variables or countries.
 Define, facilitate and encourage performance Ultimately the goal of an
expatriate performance management system is to define, facilitate and
encourage performance in the individual and the teams they work with.

Your company’s international performance management system should

enable managers of expat employees to set specific, realistic, measurable
goals that feed into the overall objectives of the business. However, setting
goals is not sufficient for success, the programme should also contain a
method of assessing performance on several occasions over a year.

To achieve the goals that have been set, employees need to be able to
facilitate performance through removal of barriers like outdated equipment or
software, poor procedures and micro-management. However, international
employees may encounter further difficulty with government requirements or
personal safety depending on where they are based. Flexibility needs to be
included in this regard when developing an expat performance management
system.

Finally, encouraging performance has been shown to be another marker of a

successful international assignment. The methods for encouraging
performance may vary from country to country. While additional
remuneration may work successfully at headquarters, time off or other special
privileges may be more valued in other countries. The easiest way to find out
what may work best is to survey international employees. Once agreed it is
essential that the appraisal process is transparent and fair.

● Training Essential to successful international performance management is a

clear and effective training plan for all stakeholders. Once complete,
managers need to be held accountable for implementing the process across
their own employees, ideally in the form of their own performance appraisal
by senior management and/or human resources.

As a Global HR Manager, you should also provide new expatriates with the
tools they need to succeed and help to prevent costly expat failure. See our
tips on how to prepare expats for foreign assignment.
 ● Cross-cultural differences When creating a performance development plan
that is going to work cross-culturally the differences in how performance
feedback should be provided needs to be accounted for. For example, in some
European cultures feedback should be direct and actionable where as in some
Asian cultures the same feedback could cause unacceptable loss of face for
the employee. Therefore, it is important to understand the culture on the
ground when creating guidelines on how feedback should be provided.

2. Discuss the factors affecting culture and Performance Management System.

FACTORS AFFECTING PERFORMANCE MANAGEMENT SYSTEMS: For a

performance management system to be implemented, there are a number of
conditions that must exist prior to its execution.
These factors include:
1. Ability of manager to mobilize the organization.
2. Effectively communicating the roles, duties and responsibilities of all such
individuals who are the participants in the process of bringing about change.
● Transparency and Simplicity
● Practicality and Participation
● Equality and Objectivity
Most managers know that the basics of effective performance management should
include goal setting, coaching, development planning, and recognition. While these
are the actual pillars of performance management, there are also certain factors that
can dictate its success.
As a thought leader in performance management, Josh Bersin of the Deloitte Bersin
research firm has identified the top 10 factors in a performance management process,
which are outlined below. Take a look at the list to determine if you’ve gotten the
following factors right in your performance management approach:
● Philosophy, purpose, and culture
● Identify your company’s philosophy and purpose, and build them into your
corporate culture.
● Make goal-setting agile, local, and meaningful
Make sure that goals are aligned, clear, and have a specific purpose employees can
understand. Have managers collaborate with their peers to help them set goals that
support company objectives at the individual level.
● Use check-ins instead of the annual review
Annual reviews are antiquated, ineffective, time-consuming, and costly. Use weekly
check-ins instead.
● Reduce (or eliminate) impact of ratings
If you still want to use a rating scale to gauge performance, make sure that you’re
having discussions with employees about their performance regularly (via check-
ins). Consider getting rid of numeric scales to assess performance altogether.
● Coach and develop your employees
The best managers are coaches who give ample feedback to help their employees
perform at the highest possible level. You must also present them with the resources
they need to pursue the development opportunities they seek.
● Redesign compensation processes
Not all companies link pay to goal achievement, but it is possible to do. Find out
which compensation processes will work best for motivating high performance in
your organization, and make any changes as needed.
● Recognize employee contributions
Even top performers who regularly excel want to be noticed for their efforts. Praise
both small accomplishments and major wins using the specific methods for
recognition that each individual prefers (e.g., a private email vs. recognizing their
achievements publicly).
● Simplify your processes
Eliminate redundancies by ensuring that all goals and efforts are aligned and
everyone is making unique contributions towards achieving team, department, and
company-level goals.
● Use metrics to measure success
Identify the performance metrics that will determine success both in terms of goal
achievement and ongoing performance. Make sure that employees have a thorough
understanding of how their performance will be measured in advance, well before
performance-related discussions take place.
● Train managers on these practices
Train management to ensure that they’re managing their teams according to
companywide performance management strategies. These Performance Management
Tactics are simple, but by incorporating them into your overall strategy, you can lead
your teams in the right direction and increase goal achievement across your entire
organization.

Performance Management Culture

Every organization has a company culture. No matter the business size, industry or
location, every business has an identity that reflects the goals and expectations of the
organization. However, not all company cultures are created equal or reflect what its
top leadership believes is their culture.
Amidst the myriad tools that organizations have at their fingertips, including data
mining, social media engagement, instant analytics and vast databases, it is the
culture of a company that often makes the difference between a highly successful
organization and an average organization. The reason that a performance
management culture is so important amidst the technological advantages that
organizations have today is because it prioritizes people over results. A performance
management culture is a direct result of the strategies implemented by the
organization’s leadership, however without employee inspiration, strategic
leadership means nothing. For this reason building a performance management
culture is dependent on the development of employee talent and motivating an
organization through a shared goal. Studies have shown that employees that feel
valued within their organization are more likely to report better physical and mental
health, higher levels of engagement, motivation and career satisfaction. Even when
organizations express high-level expectations on their employees, if an employee
feels valued, they are more likely to not only meet high-level expectations, but also
surpass them. This is why organizations like Google, Apple and Facebook have
flourished as organizations that demand the most out of their employees, yet provide
a creative, collaborative culture that stimulates innovation. Many performance
management systems struggle to keep up with the culture of Google, Apple and
Facebook due to an emphasis placed on systematic performance reviews conducted
during particular times throughout the year. To properly implement a culture of
performance, an ongoing strategy must take place all year long. To enact a
performance management culture, organizations must:
● Motivate Change – Assess the current culture of the organization and the
 roadblocks to cultural performance. Organizational leaders must be consistent when
seeking to clearly act out the organization’s mission and brand strategy. Often time’s
organizations discover that employee evaluations based on regularly scheduled
performance reviews not only do not work to motivate a staff, but also create wasted
time. To motivate change, leaders must do without outdated perceptions of reviewing
employee talent.
● Create the Groundwork – Introduce new concepts and expectations for both
employees and managers. A performance management culture is established through
open, honest and clear communication. By communicating the big picture,
employees will not only feel included and valued, but also internalize and take
ownership of the goals of the organization.
● Sustain Behavior – Provide resources for employee motivation that drive
individual performance and sustainability. Employees must be given ongoing
feedback in both expectations and accomplishments. This feedback is critical for
both the employee and manager to commit to share both positive and disappointing
results. Through the development of sustainable expectations, managers are able to
delegate quicker and more efficiently to employees who grow with increased
expectations and organizational goals. Studies show that routine check-ins in
employee performance gives employees a constant feed of information that
stimulates professional growth and performance.
● Provide New Resources – Enable employee motivation through an evaluation of
current skills and provide resources to improve upon and gain new expertise.
Employees that grow in various expertise and skills are able to adapt more quickly to
organizational demands as well as contribute to wiser and more engaging solutions
to industry problems. By building a performance management culture, organizations
better adapt to changing technologies, create environments of creativity and
collaboration, as well as develop sustainable results. As technologies continue to
change and organizations utilize the vast resources for industry advancement, the
constant of human capital must remain the same. Creating a performance
management culture impacts a large amount of business success, which is why it is
important to utilize the best individuals to enact organizational change. At MK
Strategic Resources, analyzing employee talent and understanding the core
organizational needs allows us to seamlessly improve upon existing strategies.

3. Explain the international total reward objectives

International total reward Objectives

To design an efficient reward system, the organization needs to fully

understand the definition and meaning of the reward system. It also needs to
set up clear objectives for its reward system. These are five key objectives
that can be achieved by applying a reward system.
1. Attraction and Retention: Research shows that a reward system can
directly affect the job choice, career choice and turnover rate of the
organization. Organizations that give the highest rewards tend to attract
and retain more people. This indicates that the better reward system can
give a higher satisfaction level to employees. The higher satisfaction level
will lead to a longer length of service and reduce organizational turnover
rate.In the retail industry, employees are the most important resources.
The organization needs to retain high performance employees and remove
 inefficient employees. To maintain the top performers, the current reward
system needs to be compared with other organization’s. The firm needs to
ensure that its reward system is superior than its competitors.
However, it is very costly to maintain a higher reward system. This will
increase the labor cost of the organization. In certain organizations, the
labor cost covers 50% of overall operational cost. In addition, if all
employees are awarded at the same level, it can cause feelings of inequity
because the better performers are likely to feel inequitably treated when
they are rewarded at the same level as poor performers in the same
organization.

2. Motivation of Performance:

When certain conditions exist, reward systems have been demonstrated to

motivate performance.

The reward system must be directly linked to effective performance. Staff

should be rewarded according to their needs. Once the staff is rewarded
for their outstanding performance, they will further improve their work
process. The effect of this reward system depends on the situation and the
needs of people. There are three factors that can affect the motivation
effect by using a reward system.

1. Performance-Outcome Expectancy: Individuals expect that if they

behave in a certain way, they will get certain outcomes due to their
behaviors. For example, if a person sells ten units of product within one
month, they will receive their base salary without any additional bonus.
On the other hand, they can receive 15% of commission if they can sell
15 units per month. In this case, the staff will be motivated to achieve a
higher sells level in order to receive 15% of commission.

2. Attractiveness: Based on the perception of the staff, the outcome of

the reward system will lead to different attractiveness to employees. For
example, some staff want to be promoted as they have a higher desire to
gain more control power. Other staff might prefer an increment of their
salary rather than promotion. The firm needs to understand the
employee’s needs and select the most attractive way to retain and attract
motivated staff. In the retail industry, the firm should select the most
appropriate approach to reward its employees. For staff who want to lead
a team and manage people, the firm can promote them to be a leader of a
sales team. For staff who enjoy the interaction with customers, the
organization can increase their commission and keep them at ground
level.

3. Effort-Performance Expectancy: The expectancy represents the

individual’s perception of how hard it will be to achieve certain behavior.
For example, if the employee has very negative thoughts, they feel that
they can never achieve the sales target. The employees will be further
discouraged if they really fail to achieve the target. However, if the firm
creates a positive working environment, the staff will feel that the quota is
 achievable and they will be motivated to hit the target and receive the
reward. Therefore, most of the retail firms want to encourage their staff to
think positively and believe that the sales target is achievable. This could
help the staff to perform better.

3. Create Positive Organizational Culture: Reward systems can help the

firm to create a positive culture. Depending on the way that reward
systems are developed, administered, and managed, the organizational
culture will be affected according to these factors. For example, the
reward system can influence the human resources oriented culture,
entrepreneurial culture, innovative culture, competence based culture, fair
culture and participative culture. It can also affect the communication,
motivation and satisfaction of the employees. For example, the employees
will work hard to achieve their personal value if their efforts are
recognized by the organization. However if the organization rewards all
staff equally without appreciation of the individual’s effort, most of the
staff will tend to slack.

The established culture should be able to meet following standards

1. The individual believes that better behavior will lead to better

outcomes.
2. The individual feels that the reward is attractive enough for them to
improve their work. Organization needs to understand the needs of the
staff.
3. The individual believes that it is possible to achieve a certain level of
target. The firm should encourage the staff to think positively and set
an achievable target for them. For example, the monthly sales quota
needs to be reasonable.
4. Improve on Skills and Knowledge: The reward system can encourage
employees to continuously improve their skill sets. The firm can pay
employees based on their skill levels. Staff will be motivated to attend
extra courses and improve their skill sets in order to receive more
benefit.For example, the firm can reward staff with outstanding
explanation and presentation skills. Staff will take more initiatives to
improve their presentation skill and attend related courses.Both
organizations and staff can benefit from this. The firm can adjust the
setup of the reward system based on the requirement of the
organization. For example, effective communication skills and
customer service skills are more important in the retail industry. The
firm can provide benefits to staff who attend relevant courses and
have outstanding customer service skills.
5. Reinforce and Define Organizational Structure: The reward system
can reinforce and define the organizational structure. The firm might
not foresee the impact of the reward system on the firm's structure
changes. However, the reward systems can have a strong impact on
how integrated the organization is and how differentiated it is.

For example, if the company wants to create a united structure, it can

reward all staff in the same manner. In this case, more teamwork will
 be encouraged and there is less competition within the organization. If
the firm wants to differentiate the top performers from average
performers, they can apply a reward system that can create a more
competitive environment. In this system, employees focus on their
individual work instead of the benefit of the whole team. Insurance
companies encourage the agent’s individual efforts. The reward
system provides intensive benefits for top sellers and insurance agents
are not sharing their information even within their own team

4. Describe the Repatriate Issues in Global Context.

Repatriation issues

Everyone expects expats to have an adjustment period when moving to a new host
country, but what about when they return home? Most expatriates underestimate the
potential challenges to readjusting to life in their home country after an international
assignment. However, studies have shown that repatriation is often the most
challenging phase of an expatriate experience. Many people face both work-related
and personal repatriation challenges:

Work-related
● loss of visibility and isolation
● changes in the home workplace
● adjusting to the re-entry position
● others devaluing the international experience

Personal
● making assumptions of how quickly you will fit back in
● unrealistic expectations of life at home and how it has changed.
● social readjustment as friend and family relationships have changed
● difficulty supporting family members experiencing reverse culture shock Even
more distressing is the fact that most companies do not sponsor repatriation
programs to help assignees and their families adjust to their move back home.

To make repatriation a more positive experience, follow these tips:

● Keep up with current events and trends back home so that you will be up-to-date
with what is going on when you move back.
● Be sure to keep in touch with your family and friends while away to maintain
healthy relationships. Email or write to them often so that they will be familiar with
what you have experienced in your time away from home.
● Have a mentor or an associate in the old office who keeps you informed and keeps
your name in circulation while you are on your assignment.
● Make sure your new position at re-entry is clearly defined: review expectations
and clarify misconceptions.
● Make a list of what to take care of before departing your host country and also
what you need to do once you arrive back home.
● Relax! Anticipate an impact and be prepared for the unexpected.
5.
6. Discuss the International trends in global total reward.

International trends in global total reward

1. Hybrid working

Although the Covid-19 pandemic has shown signs of easing,

businesses have had to keep some safeguards in place. Working from
home has become the norm and some experts say that some sectors
will never return to the office. Research backs this claim up. Benefic
the Future of Work report found that 59% of people in Denmark
wanted to work from home in the future while PWC’s August 2021
survey found 41% of a group of remote workers wanted to stay fully
remote.

It’ll mean some companies will have to adapt their rewards and
benefits for their employees. This might include office equipment for
the home (eg rising desk, ergonomic chair) or critical communication
tools such as a reward and benefits platform or mobile app. The need
to communicate with employees whenever and wherever they are has
never been more acute.

2. Employees matching companies to them

Following on from hybrid work is the fact that employees have started
to match their needs to what an employer can offer or provide. This is
intrinsically linked to what’s been hailed as ‘The Great Resignation’
when people quit their jobs en masse, especially in the USA at the
beginning of 2021. The reasons for the exodus of employees in 2021
may differ from what is now happening at the start of 2022.
Employees who have got used to working from home are looking for
companies who offer better rewards and benefits and hybrid working
has meant that some have moved location if remote work is going to
become the norm. Therefore, employees are looking for employers
who offer freedom to work from home and this also means employees
can also consider moving to more remote locations to work.
Companies who offer this kind of flexibility also find it easier to
retain their employees.

3. Employee engagement through digital tools.

It’s critical for companies to have the best communication tools to

reach their employees, especially when they are working remotely.
With a reward and benefits platform or mobile app, you can
communicate online events to everyone at your organization, specific
teams or specific individuals.

Employees can also see their total value through the platform – for
example, how much health and wellbeing contribution they have, or
 how much their pensions are worth or how much holiday they are
entitled to. When HR is streamlined through digital tools, employees
are engaged and motivated for the work ahead of them.

4. Health & wellness

A 2018 report by the OECD said that mental illness was costing the
UK £94 billion a year when costs for treatment and social support
were factored in, and figures released by First Care for World Mental
Health Day suggest that 60% of workers leave their job due to the
same reason. With the pandemic also leaving some people feeling
isolated, employers need to offer employees not only health and
wellness benefits, but also other benefits, such as relaxation and spa
treatments.

This is where digital tools are engaging with employees. More and
more companies are offering their employees generous health and
wellness contributions through their total rewards platform to tackle
mental health issues head-on. Companies that offer health and
wellness contributions can reduce employee absence caused by
mental illness.

5. Work-life balance

With our homes having also become our offices, work-life balance
today means going for a run in the middle of the day, reminding
ourselves to take breaks, and switching off at the end of the day to
spend time with our families. Combined with hybrid work and
offering employees flexibility in their working day, work-life balance
is a trend that is easily managed with a total rewards platform, where
employers can gauge each employee’s health and wellbeing, as well
as targeting tailor-made benefits at them.

7. Harsha and Franklin both of them are postgraduates in management under different
streams from the same B-School. Both of them are close to each other from the
college days itself and the same friendship is continuing in the organization too as
they are placed in the same company, Hy-tech technology solutions. Harsha placed
in the HR department as employee counsellor and Franklin in the finance department
as a key finance executive. As per the grade is concerned both are at the same level
but when responsibility is concerned Franklin is holding more responsibility being in
core finance.

By nature, Harsha is friendly in nature and ready to help the needy. Franklin is silent
in nature ready to help if approached personally and always a bit egoistic in nature.
They have successfully completed 4 years in the organization. And management is
very much satisfied with both of them as they are equally talented and constant
performers.

Harsha felt that now a day’s Franklin is not like as he uses to be in the past. She
noticed some behavioural changes with him. During general conversations, she feels
that Franklin is taunting her that she is famous among the employees in the
organization, on the other hand, he is not even recognized by fellow employees.

One morning Mr. Mehta General Manager Hy-tech technology solutions shocked
while going through the mail received from Franklin about his resignation. Mr.
Mehta called Harsha immediately and discussed the same as she is close to Franklin.
By hearing the news Harsha got stunned and said that she does not know this before
she also revealed here current experience with him. Mr. Mehta who does not want to
lose both of them promised her that he will handle this and he won’t allow Franklin
to resign.

In the afternoon Mr. Metha took Franklin to Canteen to make him comfortable after
some general discussion he starts on the issue. Franklin, after some hesitation,
opened his thinking in front of Mr. Mehta. The problem of Franklin is

1) when he comes alone to canteen the people from others don’t even recognize him
but if he accompanied by Harsha he gets well treated by others.

2) one day Both of them entered the company together the security in the gate
wished them but the next day when he came alone the same security did not do so.

3) Even in meetings held in the office, the points raised by Harsha will get more
value so many times he keeps silent in the meeting.

It happens to Franklin that he has to face such degradation in each day of work
which totally disturbs him. Franklin also questioned that ” Harsha and myself have
the same qualification, from the same institute, passed out in the same year both with
first class. We have the same number of experiences in this organization. Moreover,
the responsibilities with me are more valuable than those of Harsha. After all these
things if I am been ignored or unrecognized by the fellow employees my ego does
not allow me to continue here”.

By listening to this statement Mr.Metha felt that it is not going to be very difficult to
stop his resignation. Mr. Mehta explained Franklin the reasons for such partial
behaviour of the employees.
After listening to Mr. Mehta Franklin said sorry for his reaction and ready to take
back his resignation. And he called Harsha and spoke with like before.

Questions
1. Find the reason that Mr. Mehta would have given to Franklin.

Solution for HRM Case Study 1

Mr. Mehta listening to this case understood the situation and realized the reason
behind the partial response given by the employees towards Franklin and Harsha. As
Franklin said both Harsha and Franklin are passed out from the same college in the
same year. Both of them joined the company together both have the same
experience. Even in performance-wise, both stands in the same level i.e. both are
constant performers and good performers.
 Franklin analyzed all the above-said similarities between him and Harsha. He also
stated that he holds more responsibility than that of Harsha. One thing Franklin did
not notice or analyzed is the job profile of Harsha. It is true that Franklin holds more
responsibility than that of Harsha but when it comes to direct interaction with
employees Harsha wins the employees’ attention in this aspect. Harsha being a
counsellor in HR she faces the employees every day. She developed good rapport
among the employees due to her friendly nature. She is always remembered by the
employees whenever they face any problem as she gives good counselling and most
of the time she suggests the best solutions for such issues.

Franklin though holding a key position in finance his profile does not allow him to
interact with the employees. Though he has a helping tendency he does only when
someone approached him personally. As the employees of other departments do not
have any relation with him they never approach him for help.
Mr. Mehta having a good experience understood these things when Franklin
explained his problems one by one. Later he relates each situation, explained by
Franklin with the above said reasons and made Franklin understood the reality.
Mr. Mehta said that the security in the gate or the employees in the canteen who
recognized Harsha and not Franklin would have interacted with her during
counselling or approached her for any issues. And as usual, she would have
counselled well or solved the issues of them that is the reason why they treat her and
wish her whenever where ever they meet her. When it comes to the case of Franklin
they would have hardly met him or interacted with him.

When it comes to the point that even in-office meetings Harsha, points are valued so
Franklin keeps mum. For this, Mr. Mehta replied that the points put forward by her
would be related to employees or from the employees’ point of view which actually
the management wants to know so they give value to her points. And as quoted
Fraklin after, one or two such incidents keep silent in the meeting. He never made an
attempt to raise some suggestions so management does not have any option to listen
to that suggestion.

After listening to all the explanations given by Mr. Mehta Franklin realized his
mistake and felt proud of the Rapport developed by Harsha among the employees.
He said to Mr. Mehta that he will take back his resignation. And rushed to Harsha to
make an apology and to meet her as a friend as like his college days.

8. Watson Public Ltd Company is well known for its welfare activities and employee-
oriented schemes in the manufacturing industry for more than ten decades. The
company employs more than 800 workers and 150 administrative staff and 80
management-level employees. The Top-level management views all the employees
at the same level. This can be clearly understood by seeing the uniform of the
company which is the Same for all starting from MD to floor level workers. The
company has 2 different cafeterias at different places one near the plant for workers
and others near the Administration building. Though the place is different the
amenities, infrastructure and the food provided are of the same quality. In short, the
company stands by the rule of Employee Equality.
The company has one registered trade union. The relationship between the union and
the management is very cordial. The company has not lost a single man day due to
strike. The company is not a paymaster in that industry. The compensation policy of
that company, when compared to other similar companies, is very less still the
employees don’t have many grievances due to the other benefits provided by the
company. But the company is facing a countable number of problems in supplying
the materials in the recent past days. Problems like quality issues, mismatch in
packing materials (placing material A in the box of material B) incorrect labelling of
material, not dispatching the material on time, etc…

The management views the case as there are loopholes in the system of various
departments and hand over the responsibility to the HR department to solve the
issue. When the HR manager goes through the issues he realized that the issues are
not relating to the system but it relates to the employees. When investigated he come
to know that the reason behind the casual approach by employees in work is

 The company hired new employees for a higher-level post without considering
the potential internal candidates.

 The newly hired employees are placed with higher packages than that of existing
employees in the same cadre.

Questions
1. Narrate the case with a suitable title for the case. Justify your title.

Employee Equality is not the need for every hour. In the above-said case, Watson
Ltd had provided all facilities to employees at each grade in an equal manner. But
still, the employees started creating certain issues like materials are meeting the
quality supply schedule is not met etc. And the HR manager said that the policy of
hiring new employees for the higher post without considering old potential
employees is the major problem.

“Employee recognition VS Employee equality”. As the HR manager states that

employees are not been recognized for the potential rather the company has gone for
new recruitment. Because of which the company faces problems.

2. The points rose by the HR manager as the reason for the latest issues in the
organization is justifiable or not. Support your answer with Human resource
related concepts.

Yes, the points raised by the HR manager is justifiable because “Human beings are
social Animals as popularly” said by many Human resources Scholars. So human
minds demand social recognition, self-respect, consideration, etc for their work and
performance.

In the above-said case, even the company provides and stands by the concept of
employee equality when it fails to recognize the potential talents of existing
employee they felt dissatisfaction towards the organization and they showed in the
way of quality issues and slow down production.

Related HR concept.
Slow down Production:
The concept of slow down production is a type of employee’s strike. The Industrial
Relations sates that when the employee wants to show their dissatisfaction to the
management but don’t want to go for strike they follow slow down strike. The
impact of which will be understood after a particular time period.

Employee Recognition:
Human beings can be easily motivated by Rewards and recognition than that of
money. In this case, also the employee is not satisfied even after all facilities just
because of the reason that they are not recognized.

Hawthrone Experiment:
In the four types of test conducted by Elton Mayo, the remarkable hike in production
is recognized in the stage when they consulted the employees for the management
decisions regarding them. The same thing was missing in Watson Ltd. Before the
new hires if the management consulted the employees both management and
employees would have avoided this issue

Hygiene Factor:
The theory of hygiene factors states that there are certain factors related to
employees the presence of which will not create a major impact but the absence of
such things will lead to a de motivation to the employees. Employee Recognition is
one such factor when the management fails to do so it will Detroit the employees to a
great extent.

3. Help the organization to come out from this critical issue. If you are in the role of
HR manager what will be your immediate step to solve this case.

If I was in the post of the HR manager I will try to discuss the issue and ask for the
reason from the management for new recruiting rather than considering available
potential talents. I will personally analyse the reasons provided by management and
if acceptable I will discuss the same with the employees. Everything is possible with
a discussion. So I will discuss and convince the employee that this won’t happen
again in the organization. I will also initiate the collective bargaining process for
reasonable salary hike for the existing employees.