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Unit 11: Multinational Performance Management

a pulling up (Phase 3) as the person begins to adjust to the new environment. This levels- Notes
off over time described as healthy recovery (Phase 4).
Expatriate and his family members undergo these cycles individually but not all members
of the family face the same mood at the same time. Certain personality factors along with
support from headquarters and spouse, and pre-departure training can shorten the period
of depression and thus help in improving the performance.

Example: In the study of American managers in Japan, Korea, Taiwan, and Hong Kong,
it is found there is a high correlation between spouse and expatriate adjustment. Recognising
that cultural adjustment is a major problem when bringing HCNs (including Americans) into its
home operations, the Norwegian multinational, Norsk Hydro, has developed a family
monitoring programme. Supervised by Corporate Expatriate Services staff, Norsk Hydro
employees volunteer to ‘adopt’ a visiting family. The volunteers are generally employees who
have worked abroad as expatriates and thus have an understanding of what it is like to move a
family unit into another country.

Did u know? 360-degree Feedback
It is the feedback that comes from all around an employee. “360” refers to the 360 degrees
in a circle, with an individual figuratively in the center of the circle. Feedback is provided
by subordinates, peers, and supervisors. It also includes a self-assessment feedback from
external sources such as customers and suppliers or other interested stakeholders. It is also
called multi-rater feedback, multisource feedback, or multisource assessment.

Upward feedback is a feedback where managers are given feedback by their direct reports
or a traditional performance appraisal where the employees are most often reviewed
only by their managers.

11.3.3 Criteria used for Performance Appraisal of International Employees

Data from performance management appraisal process is often used to determine pay and
promotion, and training and development requirements. There are differences in the way this
process is handed within companies.

Example: In Germany and Sweden, it is common for employees to have input into job
goals setting, whereas in other countries such as the United States, job goals tend to be assigned.
1. Performance Criteria: Hard, soft, and contextual goals are used as the basis for performance
criteria.
(a) Hard goals are objective, quantifiable, and can be directly measured such as return-
on-investment, market share, etc.
(b) Soft goals tend to be relationship or trait-based, such as leadership style or
interpersonal skills.

(c) Contextual goals attempt to take into consideration factors that result from the
situation in which performance occurs.
The performance evaluation of subsidiary managers against hard criteria is supplemented
by frequent visits by headquarters staff and meetings with executives from the parent
company. Soft criteria can be used to complement hard goals, and take into account areas

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