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Unit 11: Multinational Performance Management

this is done in order to gain information how things are running and how the expatriate Notes
is managing his/her work tasks.
The typical evaluator for the expatriate is the immediate manager, because he/she possesses
useful knowledge and information in order to perform a qualitative evaluation.
Nonetheless, when the entire project is evaluated Skanska utilises the evaluation process
through a manager from the human resource department. During the evaluation process
of the expatriates there are two people involved, the immediate manager and the project
manager. Apart from the expatriation evaluation the project manager further evaluates
different work groups in order to gather information how the situation in different groups
are and if some people do not get along they could be transferred between groups. Finally,
the immediate manager has a meeting with the project manager to discuss the expatriate
and his/her performances.
When evaluating and interviewing the expatriates Skanska sometimes finds out that the
work group has unresolved problems. These often occur due to the intimate nature of
living within the camp and for the fact that people do not always get along. In order to
solve these sorts of problems the company sometimes has to relocate or send home a few
expatriates. Evidence shows that expatriates who originate from sparsely populated areas
in Sweden are those who most successfully manage to adapt to the life in camp. Mr.
Ousbäck explains this by claiming that they have experience of living under similar
circumstances and are therefore accustomed to a situation where everyone knows
everything about everyone.
Skanska does not change its evaluation strategy for different projects because each project has
the same organisation and also the same evaluation process.
Question
Summarise the performance evaluation method of Skanska.

Source: epubl.ltu.se/1402-1552/2007/005/LTU-DUPP-07005-SE.pdf

11.5 Summary

 Performance management refers to the ongoing process of setting goals, self-assessment,
manager assessment, peer-assessment, coaching, development planning, and evaluation.
 It provides a convenient starting point of the link between the multinational’s
internationalisation strategies, its goals for individuals international operations in terms
of contribution to global profitability, and individual performance management, whether
PCN, TCN or HCN.
 The multinational has specific expectations for each of its foreign affiliates in terms of
market performance and contribution to total profits and competitiveness.

 Individual performance management involves job analysis, job goals and standards, and
performance appraisal. It comprises a formal process of goal setting, performance appraisal,
and feedback.
 Performance management is a process that enables the multinational to evaluate and
continuously improve individual, subsidiary unit, and corporate performance, against
clearly defined, pre-set goals and targets.
 By adopting a performance management approach, multinationals are building on the
goal-setting strengths of management-by-objectives and more traditional methods of
performance appraisal.

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