Table 1

Performance
Management

Compensation
Management

Development
management

Pros

Motivation
Career development
Compensation
Identification of HP
Development Opportunities

Type of appraisal

Formal and Informal

Goal of Appraisal

Employee performance measurement

Growth Opportunities

What to evaluate

Output based PA (Output in terms of collaboration to company indices)

Input based PA (Individual competences - managerial, non managerial)

When to perform

Setting goals
Mid year evaluation
Annual evaluation

Who participates

360 degrees - peers, supervisor, subordinates, customers

Pros: more comprehensive, quality of information is better, it emphasize the
importance of internal and external clients, lessen bias/prejudice as evaluation
comes from various sources, tool for self development.
Cons: system may be complex, the feedback can be intimidating if most
respondents have a negative view, requires considerable time, requires training to
work it efficiently

Appraisal Methods

Categoring methods (1 to 5)
Comparative methods (between employees)
Narrative Methods (essay)
Behavioral Methods ( BARS, BOS)

IHRM appraisal

SMART targets in global system - cascade from global strategy to individual

Challenges-whole vs part, fragility of global markets, distance between parties
Multisourced: Formal, Informal, Self evaluation
Factors expat performance: Compensation, tasks, support from mother company,
employee relations in daughter company, cultural assimilation of expat and family

Total Reward
definition

Monetary and non monetary rewards, to motivate, attract and retain

Objectives Total
Reward

Legal compliance
Compensation efficiency
Performance enhancement
Internal and external equity

Compensation
Equity

Extrenal: Being competitive with outside organizations (top, in line, below)

It can be benchmark via payment surveys
Internal: payment in accordance to their KSA and value creation

Philosophies of
compensation

Job Based System: Job description, job evaluation

Employee based system: seniority, competences and performance

Total reward
elements

Extrinsic Rewards
Direct Compensation (Monetary): Base pay, allowances, varaible pay
Base pay: base wage, base salary
Allowances: overtime, night, sunday, shift, on duty
Variable pay: bonus, profit sharing, stock options, recognition rewards
Indirect Compensation (Non Monetary): Benefits (vacations, health insurance)
Benefit: generally cheaper than wage, aids on retention, HR marketing
Benefit design (flexible, standard), administration (IT, paper based), control and
communication
Intrinsic Rewards (Non monetary): social phycological effect

Compensating
Expats

Benefit: Provisions, vacations, home country benefit pack

Allowances: Housing, flight back, education, relocation, spouse
Hardship premium: variable depending on location, tax, climate, political
environment
Base Salary: home salary, PNC, TNC currency

Approaches to
compensating
expats

Going rate approach: same as locals.

Balance sheet approach: same level of life as in home country
Tax
Equalization: Company pays receive tax difference in regard to home country
Protection: Company gives back if tax benefit, and pays if tax liability in
comparison to home country

Pros and cons

Pros: skills needed, internal change in technology, processes, organization,

environmental changes, development, succesion plans.
Strategic for reaching the goals
Cons: Time consuming, difficult to reallize, expensive

Training needs
assessment

Organization wide sources

Job task analysis
Individual analysis

Budgeting training

Develop of organizational budget, Definition of approaches and details,

identification of individual training and development plan

Planning activities

PReparation: Definition of users, places and time. as well as topics and depth
required. Identification of source, infrastructure selection, follow up criteria
definition

Developing Training Intenal training: cost effective, motivating, sensitive data protection, lack of
expertise
External Training: Expensive, flexible, focused
On the job training
Mentoring
Coaching
Off the job training
Classroom
Conference
e-learnign
Evaluation of
Training

Pre and post measures

Reactions
Training evaluations
Behavior
Results

Responsibilities
division

HR: Assessments, HRD planning, execution, monitoring, evaluation, on boarding

Manager: Assessment and planning support, employee participation promotion, on
boarding process participation

IHRM and HRD

Predeparture
Training for expats

Cultural awareness
Preliminary visit to company and country
Language training
Train the trainer program

Global leadership
programs

Short term assignments

International project work
Global conferences
Global rotation
Language training

Knowledge transfer

One way: parent company to daughter company

Shared Service Center: within the SSC organization
Multidimensions: Daughter to daughter, to parent

Intercultural training

Cognitive
Behavioural
Emotional

Foreign language
skills

Corporate official language

Bilinguism

Stock Exchanges (SE)

Market Capitalization

Working Capital

Income Revenue and Profit

Dubai

Nasdaq Dubai

US$50 million

N/A

N/A

China

Hong Kong SE

US$25 million (HK$200 million)

Available suf cient working capital for

the companys present requirements

-Profit test: aggregate pro t of at

least HK$50 million
in the last three nancial years
-Market cap/revenue test: market
cap of at least HK$4 billion
-Market cap/revenue/cash ow
test: market cap of at least HK$2
billion

Shanghai SE

Share capital no less than US$7.5 million

N/A

Aggregate pro ts of over RMB30

million for the last three years

NYSE Euronext Paris

None but 200 million recommended

Declaration of suf cient (or not)

working capital for the next 12 months
to be included in the prospectus

N/A

NYSE Alternex Paris

N/A

Declaration of suf cient (or not)

working capital for the next 12 months
to be included in the prospectus

The company must be pro table

(except biotech companies)

Germany

Deutsche Borse

US$1.6 million (1.25 million)

N/A

N/A

India

Bombay SE

Large cap RS.250 million (US$5 million)

Small cap RS.50 million (US$1 million)

N/A

Small cap Rs.30 Million (US$6

Million) minimum income/
turnover in each of the preceding
three 12-month periods

National SE

RS.250 million (US$5 million)

N/A

N/A

NYSE Euronext Amsterdam

N/A

Declaration of suf cient (or not)

working capital for the next 12 months
to be included in the prospectus

N/A

NYSE Euronext Amsterdam

N/A

N/A

N/A

Poland

Warsaw SE

US$10 million

N/A

N/A

Russia

MICEX Moscow

Ordinary shares RUR10 billion (min)

Privileged shares RUR3 billion(min)

N/A

Break-even of issuer balance

two years from the last three
years

Singapore

Singapore Exchange

None specific but recommend S$150 million

Suficient working capital for at least

12 months after listing.

Profit before tax of at least S$1

million per year for the last
three years and cumulatively S
$7.5 million
Cumulative pre-tax profit of at
least S$10 million for the last
one or two years

Switzerland

SIX Swiss Exchange

CHF25 million

N/A

N/A

UK

London Stock Exchange

US$1.2 million (GBP700,000)

Suf cient working capital for at least

the next 12 months

N/A

AIM

N/A

Suf cient working capital for at least

the next 12 months

N/A

NYSE

Revenues (most recent scal year) US$75

million

N/A

Revenues (most recent scal year)

US$75 million

NYSE Arca

Revenues (most recent year or two of last

three years) US$50 million

N/A

Revenues (most recent year or

two of last three years) US$50
million

NYSE Amex

Pre-tax Income (most recent year or two of

last three years) US$750,000

N/A

Pre-tax income (most recent year

or two of last three years) US
$750,000

NASDAQ Global Select Market

Revenue >= US$110 million (Previous scal

year)

N/A

Revenue >= US$110 million

(previous scal year)

NASDAQ Global Market

Revenues (most recent year or two of last

three years) US$75 million

N/A

Revenues (most recent year or

two of last three years) US$75
million

NASDAQ Capital Market

Net Income US$750,000

N/A

Net income US$750,000

France

Netherlands

USA

Stock Exchanges (SE)

Equity Market Listing Fees

Annual Exchange fees

Time line of going Public

Dubai

Nasdaq Dubai

US$70-250,000

US$20-50,000

3-6 months

China

Hong Kong SE

From HK$150,000 to HK$650,000 depending

on the monetary value of equity securities to
be listed

From HK$145,000 to HK$1,188,000

6-12 months

Shanghai SE

A share: 0.03% of total par value listed and

not exceeding RMB30,000; B share: 0.1% of
total issued share capital, not more than
equivalent of US$5,000

A share, 0.012% of total par value

listed, not more than RMB6,000; B
share, US$600/year

6-24 months

NYSE Euronext Paris

Market capitalization ( million): under 10

10,000, under 100 0.6%, under 500
0.4%, under 1,000 0.3%, over 1,000
0.1%

From $2,800 to $23,000

6-12 months

NYSE Alternex Paris

Market capitalization ( million): under 10

10,000, under 100 0.6%, under 500
0.4%, under 1,000 0.3%, over 1,000
0.1%

From $2,800 to $23,000

4-12 months

Germany

Deutsche Borse

3,000 admission to trading 2,500 listed

securities

$10,000 (Prime Standard)

6-12 months

India

Bombay SE

Rs.25,000 (US$425)

(i) Up to Rs.50 million (US$1 million): 6 months

Rs.10,000 (US$210)
(ii) Rs.100 million (US$2 million)
Rs.200 million (US$3 million): Rs.
30,000 (US$640)

National SE

Rs.25,000 (US$530)

10 Million (US$0.2 million) Rs.5000

million (US$105 million)
More than Rs.5,000 million (US$105
million) Rs.375,000 (US$7,800)
More than Rs.10,000 million (US$210
million): Rs.630,000 (US$13,000)

6 months

NYSE Euronext Amsterdam

Market capitalization ( million): under 10

10,000, under 100 0.6%, under 500
0.4%, under 1 000 0.3%, over 1,000
0.1%; maximum 3 million or 500,000 for nondomestic issuers that do not qualify for
Euronext 100 index

From 2,800 to 23,000

6-12 months

NYSE Euronext Amsterdam

Market capitalization ( million): under 10

10,000, under 100 0.6%, under 500
0.4%, under 1,000 0.3%, over 1,000
0.1%; maximum 3 million

From 3,000 to 20,000

4-12 months

Poland

Warsaw SE

0.03% of the issue (sale) value but

not less than PLN8,000 and not more than
PLN96,000

0.02% of the market value but not less 6-12 months

than PLN9,000 and not more than
PLN70,000

Russia

MICEX Moscow

RUR105,000 RUR265,000

RUR15,000

4 months

Singapore

Singapore Exchange

S$100 per million shares subject to a

minimum of S$50,000 and a maximum of S
$200,000

S$25 per million per shares subject to

a minimum of S$25,000

6-12 months

Switzerland

SIX Swiss Exchange

CHF15,000 CHF80,000

CHF6,000 plus CHF10 per 1 million of

capitalization

3-6 months

UK

London Stock Exchange

Market capitalization (GBP million): Under 5,

maximum GBP6,389 5-50, maximum
GBP44,189 50-250, maximum GBP107,189
250-500, maximum GBP133,439 Over 500,
maximum GBP369,689 Lower rates apply for
DRs

From GBP4,200 to GBP41,400

4-24 months

AIM

Min GBP6,400 Max GBP72,200

GBP5,100

3-24 months

NYSE

US$ per share:

<75 million US$0.0048 75-300 million US
$0.00375 >300 million US$0.0019

US$0.00093 per share, minimum US

$38,000

12-24 months

NYSE Arca

For both US and FPI:

Up to and including 30 million shares US
$100,000; 30+ million up to and including 50
million shares US$125,000;
50+ million shares US$150,000

Up to and including 10 million shares

US$30,000;
10+ million up to and including 100
million shares US$30,000 plus US
$0.000375 per share; 100+ million
shares US$85,000

12-24 months

NYSE Amex

Up to 5 million shares US$40,000

5+ to 10 million shares US$50,000 10+ to
15 million shares US$55,000 More than 15
million shares US$65,000

Less than 50 million shares US

$27,500 50+ to 75 million shares
US$32,500 More than 75 million
shares US$34,000

12-24 months

NASDAQ Global Select Market

Up to 30 million shares US$125,000; 30+

to 50 million shares US$150,000; 50+ to
100 million shares US$200,000; Over 100
million shares US$225,000

Up to 10 million shares US$35,000: 12-24 months

10+ to 50 million shares US
$37,500 50+ to 75 million shares
US$46,500 75+ to 100 million shares
US$68,500; 100+ to 150 million
shares US$89,000; over 150
million shares US$99,500

NASDAQ Global Market

Up to 30 million shares US$125,000; 30+

to 50 million shares US$150,000; 50+ to
100 million shares US$200,000; Over 100
million shares US$225,000

Up to 10 million shares US$35,000: 12-24 months

10+ to 50 million shares US
$37,500 50+ to 75 million shares
US$46,500 75+ to 100 million shares
US$68,500; 100+ to 150 million
shares US$89,000; over 150
million shares US$99,500

NASDAQ Capital Market

Up to 15 million shares US$50,000; Over

15 million shares US$75,000

US$27,500

France

Netherlands

USA

12-24 months