Page 219 - DMGT548_GLOBAL_HRM

Global HRM

Notes Self Assessment

State whether the following statements are true or false:
14. Performance appraisal in different nations can be interpreted as a signal of distrust or
even an insult.

15. Expatriate appraisal can be effective in stipulating the assignments’ difficulty level.

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Case Study Skanska

Company Background
Skanska was founded in 1887 as manufacturer of cement products. The organisation rapidly
expanded into a construction company and within 10 years its first international order
was received. Currently Skanska offers a broad variety of construction-related services
and project development. Its mission is to develop, build and maintain the physical
environment for living, traveling and working. By 2005 Skanska’s annual turnover
amounted to 124 667 million SEK. Skanska has approximately 54 000 employees around
the globe and mainly in its home market, Sweden and the Scandinavian countries, the US,
UK, Poland, the Czech Republic and Argentina. Although Skanska’s operations in its
home market are fairly decentralised, the operations outside of these markets are run
from the parent company by the international division.
The growth in Sweden has been followed by expansion internationally. In the mid-fifties
the company made a significant move on the international market. Its technical competence
and its ability to adjust in foreign environments was a key to the success. These skills were
widely utilised when Skanska moved into markets of Africa and the Middle East in the
late sixties and Poland and USSR in the seventies. As a result of its ability to adjust in
foreign markets Skanska is often considered as a local company by the locals. The motive
for expanding internationally has for a number of years been to guarantee a stable growth
by spreading the risks. The international division strives toward a yearly turnover of
2000 – 3000 million SEK by having approximately six projects on a yearly basis. A criterion
for one single project is that it should have a turnover of at least 1 000 million SEK.
Performance Evaluation
The two primary objectives for Skanska’s international projects are to build fast and make
as much money as possible. Moreover, almost every goal that Skanska sets up has the
characteristics of hard goals. Mr. Ousbäck claims that these goals are mainly directed towards
the whole project and not so much towards individuals and as a result the goals are settled
with high expectations. Beside these primary goals Skanska develops several secondary
goals that aim towards expatriates in leader positions. All goals concerning international
projects are developed in the home-country and then further mediated to the project
managers. Moreover, the planning of the entire project is carried out in the home-country.
However, these plans are frequently changed depending on how things evolve during the
actual project and as a result new goals could be developed.
The evaluation process of the expatriates’ performances is prepared and conducted by his/
her immediate manager once a year. Furthermore, Skanska utilises a strategy where one
HR representative interviews the expatriate at least twice a year. Mr Ousbäck claims that

Contd...

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