Effective International Performance Appraisals: Easily Said, Hard to Do

Abstract

International performance appraisal (IPA) is a strategic HRM process that enables the multinational corporation (MNC) to evaluate and improve continuously individual, subsidiary unit, and corporate performance against clearly defined, preset objectives. Effective IPA creates an incentive system that can ensure international employees and overseas subsidiaries are acting in accordance with the home company’s interests. IPA is complex mainly due to “information asymmetry” and “goal incongruence” between the parent company and its subsidiaries. There are many approaches to IPAs for MNCs to choose from, and these approaches are affected by many host-contextual and firm-specific factors. Although there is wide recognition of the importance of IPAs, most MNCs have not effectively managed IPAs. This article overviews various issues of IPA, including methods, criteria, and difficulties in the IPA process and the implementation of IPA in some MNCs. The implications for practitioners in MNCs are also discussed.

Scholars, strategists or stakeholders? Competing rationalities and impact of performance evaluation for academic managers in Chinese universities

“…Managers’ superiors and subordinates believe that the use of PE for MDMPs has little impact on managers’ job performance. Arguably, the preference for harmonious relationships in the Chinese culture makes it difficult for Chinese people to openly and frankly discuss others’ performance problems because this potentially causes conflict (see for example, Cooke and Huang ; Shen ). The result is that the participants in the evaluation meetings may show indifference to the PE of middle managers in order to maintain consensus, preserve existing relationships and save face .…”

Proposing processes of global performance management: an analysis of the literature

“…(Cascio, 2006)  Formalized vs. normative emphasis in system (Cascio, 2006)  Feedback capabilities of various actors in the system (Cascio, 2006)  How explicit or implicit, how quantitative or qualitative, how additive or gestalt the assessment process is required to be (Caligiuri, 2006;Cascio, 2006)  The focus of performance, traits, behaviors or outcomes (Engle, Dowling and Festing, 2008;Silverman, 1991). Examples of recent research under this heading includes presentations on "strategic intent" and performance management characteristics (Shen, 2005), particularly on the potential for the strategic emphasis on global standardization or local customization to effect the centralization or decentralization of practices and activities (Festing, Eidems and Royer, 2007), "systems scope" issues, namely determining who is considered legitimate actors (Bailey and Fletcher, 2008), their culturally ascribed roles (Aycan et al, 2000), their role comfort (Milliman et al, 1995), willingness to locally deviate from centrally prescribed roles (Bjorkman et al, 2009) and the criticality of line managers in accepting these roles (den Hartog, Boselie and Paauwe, 2004;Milliman et al, 1998).…”

Strategic Upstream and Downstream Considerations for Effective Global Performance Management

“…This dimension is reflected in the performance management process at work in terms of where employees are on the control spectrum, ranging from their belief that they are personally in control of their job performance, to a belief that external factors are the major cause of their work performance outcomes. Although the performance management process is based on the fundamental assumption that employees must accept some degree of control and responsibility for their actions and performance outcomes, there still should be an awareness that external factors may affect performance outcomes and should be considered in assessing and planning for improving an individual's work performance (Shen, 2005). In some cases such a discussion can be very enlightening for a western manager whose actions, based on an assumption of complete personal control, are repeatedly frustrated, and who would greatly benefit by exploring how his or her efforts can fit in more harmoniously within existing intransigent social and institutional systems.…”

“…ment, and compensation (Shen, 2005). On a broader, more strategic level, effective performance management provides an important means for aligning individual employee and team working behaviors with the organization's goals.…”