Performance Management in Global Operations

Weekly Reflection #8

750 Word Min.

Performance Management in Global Operations

Based on your readings the insight gained in the class thus far, reflect on and post an answer to the following questions:

1. Identify and analyze 3 of the specific factors that may impact the performance management process of a global company.

2. Discuss the specific cultural, social, political, economic, legal, host-country governmental, ethical, and global market factors that may significantly impact performance management practices and workplace operations.

3. Discuss how HR and management can address these differences in order to respond to the challenges of managing a global workforce.

Grading Criteria and Guidelines

Reflections:

Your reflections should be 750 words in length.

You are required to respond with depth, breadth and insight to the reflection question(s). Your reflection must be tied back to the chapter material and outside research is highly encouraged.

Properly format your reflection so  I can clearly discern which section of the post you are addressing and it does not appear as one long paragraph. The use of section headings is highly encouraged to organize your reflection.

Always cite your sources.

Response to the topic was…

· on time

· demonstrates outstanding knowledge of the subject matter through an understanding of the reading and specifically references the readings

· integrates the principles of the reading for the week with other material (either from this class, previous classes, additional sources and/or personal experience) in an original and creative way

· analyzes readings incorporating your own ideas and applies your own learning from the readings and/or your own experiences

Other points to remember:

· Proper grammar, spelling, and formatting should be used – these are academic content discussions … not chat sessions

· Ideas and responses are logical and well supported.

· Pay attention to the instructions and deadlines.

· Quality is more important than Quantity

Performance Management Process

The figure shows the elements of a typical performance management system and how these are related to each other. The performance management system is an on-going process that must first start with making clear statements on the organizational goals and values based on which performance management standards must be set to govern and direct acceptable employee performance and behavior on the job. Next, there must be a constant monitoring of employee performance with formal performance appraisal feedback and evaluation measures that ultimately should demonstrate the achievement of the stated business results by leading to organizational effectiveness and increasing employee growth.

Each phase of the performance management system is closely connected to the other parts and the relationship between each component is a dynamic relation implying that when one part changes, the other parts also must change simultaneously. Managers must pay close attention to setting clear performance goals and appropriate job standards for employees with consideration for differences in country and cultural environments. In addition, it is important to understand that performance management is a continuous process and to achieve the desired results, employee standards must be assessed and measured with appropriate assessment tools and feedback mechanisms. HR managers must be responsible for assuring a continuous and seamless operation of each phase of the performance management system.

Factors in Global Performance Management

Content Author: Dr. Gyongyi (Georgine) Konyu-Fogel

Common approaches for global performance management practices include upstream and downstream components that must be carefully balanced in global human resource management:

Upstream Approach

Global organizations must assure effective global integration and coordination of their operations in order to facilitate global competitiveness through organizational learning, cost-effective performance standards, alignment of employees at all levels with organizational goals and objectives, and managing knowledge transfer across the organization at multiple locations in multiple countries and in different cultures and foreign country environments. This approach in strategy requires the utilization of standard performance management practices across the organization.

The advantage of the upstream approach is the ability of the parent company to control the performance standards according to a common established system. This approach is often cost effective as the MNE may use the same policies, forms, and performance evaluation methods regardless of the country of operation’s practices. However, the downside of this approach lies in the difficulties of using the standard practices of the home country in foreign countries where the cultural and social norms and behaviors are widely different from that of the home country thus miscommunication and role conflicts may occur in managing employee standards and performance management expectations.

The upstream approach if accepted well in the organization could help the company develop innovation and knowledge transfer that in turn may contribute to increasing the competitive advantage of the firm. The upstream performance management approach may work well in cases when there is a need to develop worldwide customer responsiveness or consistency in customer service. Another example for this approach may be the high tech industry where it is critical to manage innovation and change through effective knowledge management and the sharing of best practices in a learning organization.

However, one of the important criteria in using the upstream approach in performance management is the ability to establish common core values, management priorities, organizational capabilities, and performance-based expectations. This requires that HR professionals achieve a high level of commitment among employees, build trust and a strong organizational culture for open communication, information sharing, mentoring, and high quality performance standards.

Other important HR functions in upstream performance management must include mentoring, continuous and on-going feedback, constructive performance appraisal processes, and multiple inputs across the organization on performance management systems and making effective managerial decisions in a timely manner with frequent interactions among employees and management including both formal and informal controls and behavioral modifications to improve individual and organizational performance.

Downstream Approach

The downstream approach in performance management considers developing strategies that address and respond to the differences in foreign country environments so that performance standards may be more closely aligned to meet the local, foreign country’s workplace practices, cultural, social norms, values, roles, religious and political beliefs, government and legal requirements, and local expectations.

One of the main emphases in this approach is to develop an awareness of differences and capabilities in accommodation and responsiveness to local needs and the foreign country’s conditions so the firm may be more successful in meeting its goals and objectives in serving the host country’s customers and market needs. To be able to achieve effective local responsiveness in performance management, it is necessary to develop accommodation and implementation of performance standards and expectations according to the particular foreign country’s management practices.

To learn about the differences in performance methods and procedures between the home and host country, HR managers should work in consultation with local experts, host country managers, government officials, community interest groups, and other constituents and stakeholders of the foreign subsidiary as well as the parent company’s stakeholders and management team to assure effective alignment of the sensitivity to cross-cultural differences in the performance management system with the overall company strategy.