BY

GUIDED BY
MADHUSHREE MUKHERJEE
Prof. Sushree Sangita Ray
MBA 4th SEM
 Performance Management

MNE Performance Management & Constraints

Factors affecting Expatriate Performance

Performance Appraisal- Process

Performance Criteria-Forms-
Issues Performance
Feedback
 Performance management is a process.
 It enables the multinational to evaluate and
continuously improve-

individual, subsidiary unit and
corporate performance-

against clearly defined , pre-set goals
and targets.
Global multinational enterprises (MNEs) are
companies that operate on a global scale, as
opposed to MNEs that are regionally focused.
 Whole versus part
 Non-comparable data
 Volatility of the global environment
 Separation by time and distance
 Variable levels of maturity
 Control and performance management
 MNE HQ

Formal - Global mix

Focusing on standardisation
of
informal of practices, Socialisation &
strategic
control compliance to norms/values
outcomes
activities and results

Subsidiary
 Expatriate performance – PCN,TCN, & HCN.

 Issues –Short term & long term assignments.

 Factors – Nature of assignment, Family.

 Issues exist – Expatriates & Non- Expatriates

 Cultural
Adjustment

Host
Tas
environment
k

Compensation Headquarters
package support
 Task
“Hays 4 Tasks”
1.CEO directs the entire foreign operation. 2.Structure
reproducer- Marketing(reproduce) 3.Trouble Shooter-
individual -foreign subsidiary
- solve a operational problem.

4.Operative- perform functional job –existing

operational structure.
 Compensation Package-

• Importance of reward = performance equation.

• Financial benefit-career progression.
• Level of Motivation.

 Cultural Adjustment-

• Difficulty in new environment.

• Impact on performance.
• Dilemma & Others Behavior.
 Headquarters' support-
 Assignment Domestic V/S International.
 Individual V/S Family transfer.
 Natural cultural comfort zones.
 Career & Finance V/S Loyalty.
 Emotions V/S Unfamiliar situations.

 Host Environment-
 Social,legal,economic,technical demands.
 Type of goal & operation.
 Developing or Emerging market.
 Qualitativegoals – they are the attributes
to be possessed by the employees .
 Quantitative goals – they are measurable
goals.
 Performance appraisal :- in this step , the

goals are measured on a state of 1 to 5 by

the supervisor .
 Feed back:- appropriate feedback is given.
 Goals VS Performance appraisal criteria.
 Hard goals and Soft goals.
 Profit VS Interpersonal Behavioral
 Immediate Superior
 Subsidiary Manager
 Subsidiary CEO
 Parent Company Evaluator
 Inability- quantifying performance.
 Cultural Factors.
 Who should appraise the Expatriate.
 Types of forms- standard or customized.