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Unit 11: Multinational Performance Management

toward group success, not individual success. Individual appraisals often conflict with this Notes
group-orientation, causing serious personnel problems.
In South Korea, performance appraisal features worker development, seniority, attitude,
loyalty, and initiative. In the People’s Republic of China (PRC), formal performance
evaluations are being introduced in more progressive institutions, but they tend to evaluate
employee dependability, loyalty, and contributions to the group, as opposed to actual job
performance. By contrast, U.S. workers fully expect to be appraised individually and rely
heavily on individual feedback regarding performance.
By way of comparison, performance appraisals in the U.S. are usually conducted once a
year; but, in Japan, developmental appraisal is usually conducted every month and
evaluation appraisal is performed after 12 years. Feedback in the U.S. process is direct and
probably in writing, but the Japanese feedback is subtle and given orally. U.S. employees
tend to present their own rebuttal to the feedback, but Japanese employees never rebut. In
the U.S. appraisal process, praise is given individually, but Japanese praise is given to the
group. Research has also found that U.S. workers react more favourably to individual
performance feedback than English workers do.

Task Taking the example of Tata-Corus, examine the parameters on which the HR manager
will manage the performance of the expatriates in host-country.

Example:
1. Exxon: The Compensation and Executive Development (COED) system at Exxon is designed
to ensure a disciplined approach to the development of managerial talent for the company.
The system is directed from the top, where the COED committee is headed by the CEO,
and is made up of members of Exxon’s board. The committee is in-charge of reviewing the
development and placement of the top 250 Exxon executives (many of them expatriates).
Meeting nearly every Monday, the COED committee needs to ensure that there is a continual
flow of managerial talent for the company and that all positions have back-up candidates.
The committee then compares the performance of executives and makes decisions according
to their future development needs.

There is also a COED system within each of the Exxon subsidiaries, where the president of
each subsidiary has his own COED committee, similar to the one at the head office. This
enables the COED system to reach the top 2,000 managers at Exxon. In discussion with
senior Exxon managers, it is rather striking to hear the universal acclaim given to the
system. Most agree that the system accounts for Exxon’s overall success.
2. General Motors: General Motors is another company with an equally strong tradition of
performance management.

At General Motors, the Supreme Court of Executive Review has included the top six
executives in the company. During the week-long sessions in the board room of the
Detroit headquarters each February and July, the members spend long days and nights
listening to the analysis of more than 600 managers from each of GM’s ten vice-presidents
and group executives. A variety of questions are covered to get an accurate picture of
where the individual stands in his career development.

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