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Global HRM

Notes that are difficult to quantify such as leadership skills but their appraisal is somewhat
subjective and in the expatriate context more complicated due to cultural exchanges and
clashes. An appraisal system that uses hard, soft, and contextual criteria builds on the
strengths of each while minimising their disadvantages using multiple criteria wherever
possible is recommended.
2. Who Conducts the Performance Appraisal?: Employees are appraised by their immediate
superiors, and this can pose problems for subsidiary managers. They work in countries
geographically distant, yet are evaluated by superiors back at headquarters who are not in
the position to see on a day-to-day basis how the expatriate performs in a particular
situation.
Appraisal of other expatriate employees is likely to be conducted by the subsidiary’s chief
executive officer, the immediate host-country supervisor, or the individual’s home-country
manager, depending on the nature and level of the position concerned. Host-country
managers may have a clearer picture of expatriate performance and can take into
consideration contextual criteria, but they may have culturally bound biases (example,
about role behaviour) and lack an appreciation of the impact of the expatriate’s performance
in the broader organisational context.
3. Standardised or Customised Performance Appraisal Form: Domestic companies commonly
design performance appraisal forms for each job category, particularly those using a
traditional performance appraisal approach rather than performance management. Such
standardisation assists in the collection of accurate performance data on which personnel
decision can be made and allows for cross-employee comparisons.

4. Frequency of Evaluation: Evaluation is commonly performed on a yearly basis, and this
appears to extend to international performance systems.

Example: The majority of U.S. firms reported annual appraisal practices. The U.S. firms
using annual appraisal systems were more likely to use standard appraisal forms and hard
criteria.
5. Performance Feedback: An important aspect of an effective performance management
system is the provision of timely feedback of the evaluation process. Regular feedback is
an important aspect in terms of meeting targets and revising goals, as well as assisting in
motivation of work effort. The difficulty for the expatriate who is being evaluated by a
geographically distant manager is that timely, appropriate feedback is only viable against
hard criteria.

11.3.4 Contextual Model of Expatriate Performance Management

Tahvanainen developed a comprehensive model that illustrates how performance evaluation is
both an outcome of the company’s strategies and goals (through goal setting), and an important
source of information on which other personnel-related activities, such as training and
development and performance-related pay, are based.

The organisational context is comprised of the nature of the job, the organisational structure, a
standard performance management system, top-management support, size of the receiving unit
(subsidiary), and the style and skills of the manager and subsidiary employees.

Example: In Nokia, the organisational structure emerged as important. Nokia has adopted
a global matrix form that prevails at the top-management level of the multinational as an
overarching structure.

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