International Human Resource Management

Managing people in a multinational context

Chapter Objectives
We address: Multinational performance management at the global and local level: o considering aspects such as non-comparable data, o the volatility of the global environment, o the effect of distance, and o level of subsidiary maturity Performance management as part of a MNEs control system Factors associated with expatriate performance, including compensation package, task and role, headquarters support, host environment factors and cultural adjustment Performance management of expatriates and non-expatriates, and for those on non-standard tasks and assignments such commuter and virtual issues related to the performance appraisal of international employees

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Terms
non-comparable data sales on consignment face-to-face going native role clarity work adjustment 360-degree feedback saving face

Assignments: technical developmental strategic functional IAS IJV FCPA

Expatriate tasks: chief executive officer structure reproducer troubleshooter operative

formal control mechanisms international employees corporate governance psychologically distant host environment customized performance appraisal form cultural adjustment performance feedback performance appraisal
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Figure 11-1

Perspectives, issues, actions and consequences in MNE performance management

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MNE subsidiary performance constraints

1. 2. 3. 4. 5. 6. Whole versus part Non-comparable data Volatility of the global environment Separation by time and distance Variable levels of maturity Control and performance management

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Figure 11-2

MNE control and performance

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Figure 11-3

Variables affecting expatriate performance

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Figure 11-4

PCN role conception

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Figure 11-5

TCN role conception

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Figure 11-6

HCN role conception

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Discussion Questions
1. In the section on the volatility of the global environment, several world events were listed that have had profound implications for the global and local strategies of MNEs. Select a recent world event, identify the specific HR implications that may arise from this, and devise policies as to how these may be handled. 2. Discuss the major factors associated with appraisal of expatriate managerial performance. 3. One of the dangers of performance appraisal is that, because the focus is so much on a particular individual, the teamwork aspect gets lost. In an international location, it is perhaps desirable to focus more on how the PCN has settled in and is operating as part of a team rather than as an individual at the possible detriment of the team. Do you agree with this statement? 4. Why is it important to include hard, soft and contextual goals when assessing managerial performance? 5. In what ways would the role of a manager working in a non-standard international assignment differ from that of a typical expatriate manager?
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