PERFORMANCE MANAGEMENT

What is performance appraisal

• It the method of evaluating the behaviour of
employees in the work spot, normally
including both quantitative and qualitative
aspects of job performance.

– It’s the systematic description of an employee’s

job relevant strength and weakness.
– It is not job evaluation
– It’s continuous plan
 Primary objective
• To create and maintain a satisfactory level of performance.

• To contribute to the employee growth

• To help superior – proper understanding – subordinates

• To continuous ranking

• To facilitate fair and equitable compensation

• To facilitate for testing and validate selection tests

• To provide decision making – lay-off, retrenchment etc.

CHALLENGES OF INTERNATIONAL PERFORMANCE
MANAGEMENT
• Total company Vs part of it
• Standard format Vs customised format
• Uniformity of data
• Validity of performance criteria
• Time and distance variations
• Various levels of maturity and skills
• Rater competency
• Rater bias
• Host environment
• Cultural adjustment
 Total company Vs part of it
• MNC consist of HQ, Subsidiaries, other alliances
• Its critical – if its different appraisal form
• It affect the decision making of the firm
• Autonomous subsidies fix price
• Subsidies with low income & high income
• J&J USA, Japan and India - the result is arbitrage
How to make effective international performance
appraisal system.
• Reliability and validity
• Appraisals should be relevant
• Customisation of appraisal form
• of the appraiser and appraise
• Open and continuous communication
• Sensitive to ground realities
• Appraise s access to results
• Easy to operate
• Rater’s knowledge and appraise