PERFORMANCE MANAGEMENT

1. PERFORMANCE MANAGEMENT Dony Eko Prasetyo, S.IP.

2. What is performance management? • A process that enables the multinational to evaluate and continuously improve individual, subsidiary unit and corporate performance, against clearly defined, pre-set goals and targets

3. Basic components of performance management

4. Evaluating subsidiary performance • Factors to consider: • Whole versus part • Non-comparable data • Volatility of the global environment • Separation by time and distance • Variable levels of maturity

5. Control and performance management • Performance management is part of the multinational’s control system • Performance targets, for example, are part of formal control • Performance management contributes to shaping corporate culture

6. Variables affecting expatriate performance

7. Individual performance management • The task: • Chief executive officer • Structure reproducer • Troubleshooter • Operative • Task variables more under the control of the multinational than environmental factors

8. Roles • A role is the organized set of behaviours assigned to a particular position • Effective role behaviour is an interaction between the concept of the role, the interpretation of expectations, the person’s ambitions, and the norms inherent in the role (refer back to Chapter 7 – the role of the repatriate)

9. PCN role conception TCN role conception

10. Expatriate performance • The support of headquarters is important – both to the individual expatriate and accompanying family members – as a performance variable

11. The host environment • The external context can be a major determinant of expatriate performance • Differing demands in terms of context: • Societal • Legal • Economic • Technical • Physical • Type of operation involved (eg. IJV versus wholly-owned subsidiary)

12. Contextual model of expatriate performance management

13. Non-expatriate performance management • A seemingly neglected group • Performance effects of factors associated with constant air travel • Depression, nervous anxiety, sleep disturbance, health (DVT, weight gain, poor diet) • Stress associated with frequent absences and effect on family relationships • Non-standard assignments such as commuter arrangements and virtual assignments share these aspects

14. Performance appraisal • Performance criteria • Hard goals: objective, quantifiable and can be directly measured • Soft goals: relationship or trait-based • Contextual goals: factors that result from the situation in which performance occurs • An appraisal system that uses hard, soft and contextual criteria is advocated

15. Other factors affecting appraisal • Who conducts the performance appraisal • Use of standardized or customized appraisal form • Frequency of appraisal • Performance feedback • Timely • Geographical distance affects

16. Appraisal of HCNs • The practice itself confronts the issue of cultural applicability • May be necessary to use local staff and a customized form • Level of position involved is an important consideration

17. HCN role conception