Global

Performance
Management
DONY XAVIER
FT, GHRM
SMS,CUSAT
“
In global terms, performance management
can be described as a process which allows
a multinational company to evaluate and
constantly improve individual and corporate
performance in relation to pre-set goals and
targets.
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 Performance Management

▸ PROVIDING FEEDBACK

▹ Feedback controls the work behaviour of employees by directing actions

▸ OPPORTUNITIES FOR IMPROVEMENT

▹ Feedback has a developmental aspect as it highlights the need for training and development

▹ Opportunities to expatriates to improve, socialize and adjust to local environment ably.

▸ LINKING REWARDS AND RESULTS

▹ establishing linkages between performance and compensation

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 FACTORS AFFECTING PERFORMANCE OF EXPATRIATES

The performance of an expatriate depends on several variables –

▸ Compensation Package

▸ Task

▸ Headquarters Support

▸ Host Environment

▸ Cultural Adjustment Asst. 

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 FACTORS AFFECTING PERFORMANCE OF
EXPATRIATES

Compensation Package

▸ Perceived as a balancing factor for the emotional relocation” that the assignment demands

▸ Pay, according to Herzbergs two-factor theory of motivation, is a hygiene factor

▸ Pay acts as remover of dissatisfaction as well as a booster for enhanced performance

▸ Money continues to remain as one of the most significant motivators for expats.
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 FACTORS AFFECTING PERFORMANCE OF
EXPATRIATES

Task

▸ Nature of the job tends to influence performance.

▸ A tougher task tends to evoke better performance than a job which is relatively easy to handle.

▸ How work is viewed by the expatriate also matters. 

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 FACTORS AFFECTING PERFORMANCE OF
EXPATRIATES
Headquarters Support

▸ It is necessary that the home office extends support and offers moral courage, particularly in times
when the expatriate is passing through a culture shock.

▸ The following are some specific support facilities required from the headquarters:
▹ Organisational support in managing the practical problems
▹ Setting up home in a new culture
▹ Enabling an expatriate to settle down.
▹ The provision of timely psychological counselling for expatriates
▹ Contributing to their mental health and performance
▹ The families of employees should also be assisted.
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 FACTORS AFFECTING PERFORMANCE OF
EXPATRIATES
 Host Environment

▸ Hostile host country environment, expatriates are under constant pressure and often there is a threat to

their life itself.

▸ The form of ownership of the subsidiary is important too.

9
 FACTORS AFFECTING PERFORMANCE OF
EXPATRIATES
Cultural Adjustment

Multicultural adjustability refers to being sensitive to the host culture

• Multicultural sensitivity

• Language ability

• Diplomacy

• Adaptability

• Positive attitude

• Emotional stability

• Maturity Asst.
10

Challenges of Global performance management

▸ Total Company versus Parts of it.

▸ Rater’s competence.
▸ Standard format versus Customized
▸ Rater’s bias.
format.

▸ Environmental variations Validity of ▹ Halo effect

performance criteria. ▹ The error of central Tendency

▸ Varied levels of maturity.

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Ethics in Performance management

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Performance Appraisals 
“Performance appraisals is to ‘identify
individual strengths and weaknesses,
evaluate training needs, plan future
development, and provide motivation through
serving as a basis for reward and career
feedback
14

 Performance appraisal

▸ It is the process of assessing an individuals performance in a systematic way.

▸ The performance being measured against various job related factors as well as individual traits.

▸ In addition ones potential for performance is measured.

▸ The performance appraisal outcome is linked to a number of personnel decisions. 

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 Performance Appraisal Criteria

▸ Performance Criteria – The criteria for assessing performance should be clear, relevant, practical and

reliable if assessments were to be meaningful

▸ Trait Based – Traits are abstract properties of individuals

▹ openness to other cultures

▹ ability to live in other cultures

▹ loyalty to the company

▹ articulation and level of initiative

▹ Focus here is on what a person is and not on what he or she does

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 Performance Appraisal Criteria

▸ Behaviour Based – Focus on what the person actually does •

▹ Accomplish the job is very important

▹ emphasize how a job is done. •

▸ Result Based – How much profit the assignee brought into the organisation during the assignment

▹ Meeting target dates for commissioning plants/offices

▹ Establishing strategic alliances

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Who Should Appraise Performance?

▸ In case of domestic company an employee is appraised by the immediate supervisor.

▸ In case of a foreign employee it is difficult to determine immediate superior as managers from the host

country as well as the parent company supervise / oversee work of a foreign employee working in a

subsidiary.

▸ Therefore, most of the MNCs use multiple appraisers. Performance is appraised by superiors from both

the parent and host country. In case of PCN appraiser from parent country is a must to oversee PCN

career progression, if not the performance directly. 

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Who Should Appraise Performance?

▸ Some MNCs adopt 360 degree appraisal process under which the foreign employee’s performance is

appraised by various stakeholders like customers, bankers, government, suppliers, market

intermediaries, trade unions, subordinates, colleagues, human resource professionals, superior in the

parent company, superior in the subsidiary and certifying officer of the client company appraise the

performance of the employee. Even though several persons are party to the appraisal, home and host

country managers play the key role in appraising.

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System of Global Performance Appraisal

▸ Performance appraisal of international employees is a 12-step process.

1. Establish performance standards based on job description, job specification, cultural requirements,
and adaptability to foreign environment, talents in enabling family members to adjust to foreign
environment.

2. Communicate standards to employees as well as appraisers.

3. Decide upon the performance appraisal format.

4. Measuring actual performance by the evaluators through observation, interviews, records and reports. 
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System of Performance Appraisal

5. Frequency of appraisal. Normally once a year.

6. Adjust actual performance due to environmental influence.

7. Compare the adjusted performance with that of others and the previous performance.

8. Compare the actual performance with standards and find out deviations , if any.

9. Feedback to appraisee. Mutual discussion between the appraiser and appraisee, makes appraisal

close to perfectness in ratings.

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System of Performance Appraisal

10. Suggest changes to job analysis and standards to bring about improvements in job description, job

specification and standards of appraisal.

11. Consider the appraisal results for contract renewal and promotion.

12. Plan for employee training and development. Consider issues like demonstration of initiatives,

realization of potentiality, presentation of commitment behaviours, exhibiting interpersonal relations,

proof of intelligence and show casing distinctive capabilities and talents.

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How to Make Performance Appraisal Effective?

The problems discussed could be overcome by adapting

▸ Reliability and Validity:- the appraisal system should provide reliable and valid data and information.
Techniques of appraisal should be designed to assure this.

▸ Appraisal should be relevant:- The technique should be designed with the purpose of the appraisal in
mind.

▸ Customization of appraisal forms:- Different factors influence performance of employees. Similarly

requirements of the parent company and various subsidiaries vary significantly. The customized forms
should cover these and standard forms be discontinued.
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How to Make Performance Appraisal Effective?

▸ Consensus of Appraiser & appraisee:- The appraiser or the designer of the appraisal form is not aware

of all issues affecting job performance, but appraisee knows them . Hence the inputs from the

appraisee be used in design of the form, content of appraisal, technique to be used etc

▸ Open & Continuous Communication:- Foreign employees want to know continuously how well they are

performing on the job. An effective appraisal system should arrange for the continuous feedback to the

foreign employee. Expectations of the appraiser should be clearly indicated to employee in advance.
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How to Make Performance Appraisal Effective?

▸ Sensitive to ground realities:- Performance appraisal forms, appraisal procedure and evaluators should

be sensitive to the changing and varying ground realities related to culture factors, language, semantics,

foreign political factors, trade unions, Government policies and functioning.

▸ Appraisee’s access to the results:- The employee to be appraised must know the rules of the game.

He/she should receive information and adequate feedback about the performance results. 
25 PERFORMANCE MANAGEMENT @ COCO-COLA
28

Conclusion
International performance management and appraisal to be effective should

be close to the ground realities of the country where the employee

concerned is working. Global performance appraisal should not be like local

performance appraisal for a domestic company.

Therefore, it should be customized for the country, company and the

employee. Performance management should aim at improving the skills

rather than making employees redundant. 

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THANK YOU
Any questions?
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