Performance Management Processes in Multinational Corporations for Expatriates and Differences From Traditional Systems
Overview
This paper analyzes performance management processes specifically designed for expatriates in multinational corporations and examines how they differ from traditional performance management systems. The study identifies key variables affecting expatriate performance including compensation packages, headquarters support, cultural adjustment, environmental factors, and task assignments, arguing that HR managers must understand these unique dimensions when evaluating expatriate performance.
What this essay covers
- Introduction and context of expatriate underperformance in multinational companies
- Key variables influencing expatriate performance: compensation, support, cultural adjustment, environment, and task types
- Analysis of different expatriate role categories (CEO, structure producer, troubleshooter, operatives) and their distinct performance requirements
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Analyzing Performance Management Processes in Multinational Corporations for Expatriates and How They Differ From a Traditional Performance Management System
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Analyzing Performance Management Processes in Multinational Corporations for Expatriates and How They Differ From a Traditional Performance Management System
Multinational companies always experience underperformance. For instance, a study by “Harvard Business Review” indicated that approximately 30% of managers in the United States who had stayed for expatriate assignment duration were unable to perform as expected (Liu & Lee, 2008). Therefore, human resource managers worldwide should design performance management processes that identify impending issues within the required time and offer a remediation strategy for the company to generate revenue. Expatriation is a significant dimension of performance. HR managers determining expat performance should examine how variables such as the compensation package, headquarters support, cultural adjustment, the environment, and the task influence performance.
Harzing et al. (2010) explain that HR managers should understand that reward and remuneration are essential in improving expat performance. For instance, the financial benefits motivate expatriates, therefore improving their performances. Besides, tasks, which comprises assigning expatriates to different foreign operations, is essential. For example, a CEO "Chief Executive Officer" is assigned tasks such as overseeing and directing oversee operations. Also, a structure producer has roles such as constructing a structure in the oversea subsidiary. The production tasks include developing a manufacturing plant, establishing a financial and accounting reporting system, or constructing a marketing framework (Lui & Lee, 2008).