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Performance Appraisal of International Employees . Presented by: Ka Wai Li Phillip Gong Ethan Hung Lawrence Huang Joanna Chan. Today ’ s Agenda. Background of performance appraisal IHRM Vs HRM Employee characteristics in the United Stated and China

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performance appraisal of international employees

Performance Appraisal of International Employees

Presented by:

Ka Wai Li

Phillip Gong

Ethan Hung

Lawrence Huang

Joanna Chan

today s agenda
Today’s Agenda
  • Background of performance appraisal
  • IHRM Vs HRM
  • Employee characteristics in the United Stated and China
  • Two types of motivation theories in the U.S
  • External Rewards and Internalized motivation in China
  • US performance appraisal system
  • Chinese views of performance
  • Research Findings
  • Recommendations and conclusion
what is performance appraisal
What is Performance Appraisal
  • A communication instrument aimed to evaluate each individual's contribution
    • To determine ability and achievement with reasonable accuracy and consistency
    • To help identify obstacles to top performance
why appraise performance
Why Appraise Performance
  • Episodic evaluation helps supervisors acquire a better understanding of each employee's skills with the goal to facilitate train and develop abilities and potency
    • A opportunity to assess job progress, encourage interest and improve job performance by pointing out areas of development and by recognizing productive work
    • A feedback system that might otherwise be overlooked
ihrm vs hrm
IHRM Vs HRM

IHRM has three dimensions:

  • The broad human resource activities of procurement, allocation and utilization
  • The national or country categories involved in IHRM activities
  • The three categories of employees of an international firm
ihrm vs hrm6
IHRM Vs HRM

HRM has six activities:

  • Human resource planning
  • Staffing
  • Performance Management
  • Training and Development
  • Compensation and Benefits
  • Industrial Relations
differences between domestic and ihrm

Differences between domestic and IHRM

More HR activities

The need for a broader perspective

More involvement in employees’ personal lives

Changes in emphasis as the workforce mix of

expatriates and locals varies

Risk exposure

Broader external influences

slide8
Employee Characteristics in

United Stated and China

geographic location
Geographic Location

North America, bordering both North Atlantic Ocean and North Pacific Ocean, between Canada and Mexico

overview of united stated labor
Overview of United Stated Labor
  • 146 million Labor Force (2003)
    • Agriculture: 1.4%
    • Industry: 26.2%
    • Services: 72.5%
  • Unemployment rate: 6% (2003)
  • Average working hours
    • 8 hours/day
    • 5 days/week
two type of motivation theories
Two Type of Motivation Theories
  • Content Theories
    • Focus on “what,” identifying the factors that cause people to put effort into work
  • Process Theories
    • Concern on “how,” the steps an individual takes in putting forth effort
example
Example:
  • Culture with
  • low Uncertainty
  • Avoidance in the
  • United States
  • Working Styles
  • - Lesser rules
  • -Lesser formalities
  • -More flexible
  • -More acting on changes
how related
US values

Freedom

Individual

Not a great emphasis on history

Equality

US Working attitudes

Freely give opinions

Competition is encouraged

Present-oriented culture

Having the equal rights in the workplace

How related?
maslow s hierarchy of needs
Maslow’s Hierarchy of Needs
  • Physiological needs
  • Safety and Security needs
  • Affiliation needs
  • Esteem Needs
  • Self-actualization

What do we need?

common benefits
Common Benefits
  • Fair working conditions
    • private working area
    • clean and warm environment
  • Cafeteria Plan
    • Cash (taxable). E.g. dividends
    • Healthcare plan
    • Group term life insurance
    • Disability insurance and accidental death and dismemberment insurance
    • Elective contributions to 401K plan.
    • Elective paid vacation/sick leaves.
how to motivate employees more effectively
How to motivate employees more effectively?
  • Praising their works
    • Internal job promotion
  • Fulfilling their affiliation needs
    • Incentive Travel
    • Company Parties/Activities
geographic location17
Geographic Location

Eastern Asia, bordering the East China Sea, Korea Bay, Yellow Sea, and South China Sea, between North Korea and Vietnam.

overview of chinese labor
Overview of Chinese Labor
  • 778 million Labor Force (2003)
    • Agriculture 50%
    • Industry 22%
    • Services 28%
  • Unemployment rate: 10% (2003)
  • Average working hours
    • 10 hours/day
    • 6 days/week
chinese workers characteristics
Chinese workers Characteristics
  • Focus on moralistic
  • Maslow’s Hierarchy of Needs
    • External Rewards
      • Physiological Needs
    • Internalized Motivation
      • Self-actualization needs
example of external rewards
Example of “External Rewards”
  • Material incentives use to stimulate performance
  • Money as a motivator for employees
  • Bonuses have exist in China since 1978
  • Pay system is based on individual performance
  • Reflect a strongly collectivist culture
  • Pay differentials based in length of service
  • Wage structures based on subsidies, bonuses & allowances
  • Performance is short-term, loyalty & belongingness are long-term
example of internalized motivation
Example of “Internalized motivation”
  • Political Campaigning
    • Emulation Campaign
    • Tiananmen Square in 1989
  • Japanese Companies in China
    • Send Chinese employees to Japan to learn in order to expose a foreign culture.
  • Build on a sense of belongingness & loyalty
difficulties for managers
Difficulties for Managers
  • Definition of Performance varies in different culture
  • No cross-cultural studies concentrate on performance appraisal
    • How is performance defined
    • Why is performance evaluated
    • How is it measured
perspectives on performance appraisal
Perspectives on Performance Appraisal
  • Tool of organizational control
  • Cognitive aspects of managers’ evaluation of performance
us performance appraisal system
US Performance Appraisal System
  • To build up employee performance plan
  • Discuss performance plan
  • Evaluating
  • Rewarding
  • Provide assistant
  • Repositioning or removing
  • Identifying
american views of performance
American Views of Performance
  • Objective: To help achieve organizational objectives
  • Productivity and Quality
  • Achievement
    • Individual, group or organizational objectives
  • “rate the performance, not the person”
    • Concentrate upon performance items
chinese views of performance
Chinese views of Performance
  • Objectives: Maintain family control of business
    • Performance appraisals favor workers that are loyal to the family
  • Emphasis upon “moral” characteristics
characteristics that affect chinese performance appraisal
Characteristics that affect Chinese Performance appraisal
  • Fatalism
    • Adapting oneself to the world
  • Confucianism
    • Moral character is the most important
  • Face
    • Blame external factors to keep the face
research findings
Research Findings
  • Survey by HR consulting firm Development Dimensions International (DDI)
  • Participants
    • Local Chinese and foreign invested companies
results
Results
  • 95.8% use a company-sanctioned performance management system
  • 79.2% use the system for all employees and some of the organization
  • 12.6% use their performance management system for only 60% or fewer of their employees
results cont
Results (cont’)

Areas that are effective:

  • Structuring specific performance plans
  • Reviewing performance with employees at least once a year
  • Linking performance to pay
  • Holding supervisors accountable
results cont31
Results (cont’)

Areas that need improvement:

  • Developing the skills of appraisers
  • Evaluating performance in a fair manner
  • Reviewing approaches to differentiate the performance of employees
  • Increasing employees’ involvement in the performance management process
recommendations and conclusion
Recommendations and conclusion
  • Continual feedback
  • Communication skills
  • Equity, fairness, transparency
  • Forward-looking approach
  • HR as overseer