Global Workforce Performance Management

EXMBA HRM IGNOU-NIIT Batch 01 Shivaji Maitra (S11MMMMM00755)

Topics of Discussion
Global Organisation & Performance Management Challenges in a Global Organisation Why Appraise Performance What to keep in mind? How to truly make Performance Management Global? Tools for Performance Management in a Global Organization

Global Organisation
In his book A Managers Guide to Globalization Dr. Steven Rhinesmith says, Going Global does not mean just doing business abroad.

In a true Global Company:

There is harmony between different cultures. Resources and materials are moved seamlessly across different countries to enjoy maximum competitive advantage

Performance Management
Performance Management is a means of getting better results from the organizations, teams and individuals within an agreed framework of planned goals, objectives and standards. -ARMSTRONG AND MURLIS The essence of performance management is the development of individuals with competence and commitment, working towards the achievement of shared meaningful objectives within an organisation which supports and encourages their achievement. -LOCKETT This is a communication tool to measure each individual's contribution
To evaluate talent and achievement with sensible consistency and accuracy To help distinguish barriers to top performance

Challenges in a Global Organisation

Globalization has entailed far-reaching erosion of boundaries introducing the current buzz-word Complexity. Complexity is generated by the following 4 factors:
Diversity of HR pool, management systems, goals, business models, customer needs, cultural values and a broad variety of stakeholders Interdependence of all the diverse forces Ambiguity through too much or too little usable information. Flux or change, rendering a constant state of instability in terms of size, technology, work pattern and business models

Challenges in a Global Organisation

Other Challenges:
Competitiveness Interpersonal Distance Language Communication Type & Context Power Distance Discrimination on race, culture, gender, etc.

Cultural Challenges to Performance

Lewiss 3 Culture Model
Linear-active: Task-oriented planners; Timeline important Multi-active: People Oriented Interactors; Relationship is priority Reactive: Introverted Listeners

Trompenaars 6 Dimensions of Cross-Cultural Business

Universalism v/s Particularism - Valuing Sameness Individualism v/s Communitarianism Valuing Personal Growth Specificity v/s Diffuseness Limiting Authority Achieved v/s Ascribed Status Valuing Action over Lineage Inner v/s Outer Direction Importance of Self over Others Sequential v/s Synchronous Time Significance of Time

How to use this Knowledge?

To answer key questions:
What motivates the employees? How to evaluate and communicate performance? How to reward achievements? How to handle negotiations and expectations? How to plan individual development?

Why Appraise Performance

Periodic evaluation helps mangers to have a better understanding of each employee's skills with the goal to facilitate, train and develop abilities and power to their employees
A method to assess job development, encourage interest, motivate and enhance job performance by pointing out development paths and recognizing productive work A feedback system that incorporate all sources of information about performance that might otherwise be overlooked

Goals of Performance Management

When we know what is expected of us, and have played a role in forming these expectations, we will do our best to meet the expectations. We can meet expectations only through our capability and if we get support from the management through processes, systems and resources.

Performance Management System

Making Performance Management Global : Design Process

Goal setting Performance appraisal

The Performance Management Process

Performance Appraisal: Guidelines

1. 2. 3. Fit the evaluation criteria to strategy Fine-tune the evaluation criteria Use multiple sources of evaluation with varying periods of evaluation

To reduce bias in performance appraisal:

1. 2. 3. Most expatriates believe more weight should be given to an onsite manager's appraisal than to an off-site manager's appraisal. A former expatriate who has served in the same location could be involved in the appraisal process to help reduce bias. When the policy is for foreign on-site mangers to write performance evaluations, home office managers should probably be consulted

Considerations and Conditions

Performance Appraisal: Factors

Factors to be considered in the Individual Performance and Appraisal process :
Frequency of Appraisal
Regular informal feedback to avoid surprises Take 10 Sandwiching

Customization of Performance Appraisal System

Host Country environment Cultural adjustment

Performance Management System for expatriates

Multiple reporting levels Matrix Managers / Rater Selection Different objective or purpose of expatriation

Criteria
Qualitative
Behavioral Technical Cultural sensitivity

Quantitative - measurable

Compensation
Package Task Assignment Promotion / Re-assignment Bonus

Headquarters Support

Talent Management Process

Role & Competency Design Deployment & Mobility Strategies

Vision Culture Values

Business Strategy & Objectives

Workforce Analytics, Planning & Recruitment

Total Rewards & Recognition

People & Business Results

Alignment

Learning, Training & Leadership Development Career Management & Succession Planning

Performance Management

Integration

Performance Appraisal & Rewards

Organisational Support Goal Acceptance

Intrinsic Rewards

Goal Difficulty Performance Goal Directed Effort Goal Specificity

Satisfaction
Extrinsic Rewards

Goal Commitment Individual Abilities & Traits

Performance Appraisal: Challenges

Fit of international operation in multinational strategy Unreliable date Complex and volatile environments Time difference and distance separation Local cultural situation In most cases, two groups evaluate the performance of expatriate managers
host nation managers and home office managers - and both are subject to unintentional bias

Home country managers tend to rely on hard data when evaluating expatriates Host country managers can be biased towards their own frame of evaluation

Performance Appraisal: Challenges

Challenges in appraising overseas managers :
Determining who should appraise the manager. Deciding on which factors to base the appraisal.

Improving the expatriate appraisal process

Stipulate the assignments difficulty level, and adapt the performance criteria to the situation. Weigh the evaluation more toward the on-site managers appraisal than toward the home-site managers. If the home-office manager does the actual written appraisal, use a former expatriate from the same

360 Degree Feedback

360 Degree Feedback Approach