Definition of Performance management in MNCs

Dear learners, you might be aware of the globalization, its impacts and the role of MNCs spread across the world making the globe looks smaller and similar in all the parts of it. The challenges that HRM faces is multi dimensional. It is widely accepted that there are five core drivers in international HRM. They are

Efficiency orientation

Global services

Exchange of information and communication

Business process uniformity

Decentralisation of decision making.

The important areas that have to be concentrated in performance management of MNCs are as given below:

Managing the expatriate’s performance:

The performance of employees placed in different country is often challenging due to the language, race and cultural differences. Even the star performer may become a victim to the workplace discriminations which in turn affects his performance. On the other hand, the star performer from another country, creed and skin colour may create inferiority feeling among the local host country nationals who are not that competent to compete with him. Hence, the challenging part of managing the performance of employees from outside the country has to be given due importance and strategically managed.

Training of managers:

The performance managers play an important role in the Global Performance management. The concept and model of

Defining the performance,

Facilitating the performance and

Improving the performance

may help in managing the performance of diversified employees.

Managing the differences in implementation of the performance appraisals in various work cultures:

The challenge in implementing the performance appraisals system is in convincing the employees about the fairness of it. The employees, coming from various work cultures, for that matter from various cultures of work, life, religion and language may not believe in a common performance appraisal system. The issue is sensitive and should be handled carefully by maintaining high level of transparency and unbiased appraisals. This asks for trained managers who have the time, heart and competency to understand the actions and reactions of the employees.

Adapting the styles of local cultural environment performance:

The host country nationals form the part of sustainability of any work place harmony. Hence, the due importance should be given to the local cultural environment while designing the performance management models.

Managing the geographical spread of human resource and their job history:

The employee with a flawless job history may struggle to cope up with the new environment when posted in other country. The geographical boundaries should not become his obstacle in obtaining the benefits of his past performances. Care should be taken to communicate the work history of employees to the new division.

Similar performance Appraisals:

Adapting a similar performance appraisal method with diversified products and operations mode is important. The product and process differs in MNCs divisions. Hence, it should be seen to that the similarity in appraisal is maintained.

Organisational Vision:

Working out the model of performance management system without diluting the overall virtue of the organisations vision and strategies will help in managing the diversified people under one umbrella.

Let us see some examples of how some MNCs are strategising their performance management.

Nokia

Nokia has the concept of forming teams.

The performance Sustainability Leadership Team, Human Sustainability leadership team, Environment Sustainability leadership team and Talent sustainability leadership team are responsible for identifying issues and communicating them to the Sustainability steering committee.

Clarification of roles and responsibilities of employees and steered though the special teams, are the major notable area of this giant.

Previously, unlike most multinationals, which have a multitude of HR systems to contend with, Nokia had a single SAP HR system in place. It had a single set of HR data, covering its 60,000 employees in 73 countries. Nokia’s SAP system was heavily customised, which made it expensive to maintain and upgrade. Hence, Nokia opted to roll out a portal that would give employees and managers the ability to access and update their own HR data. The portal aims to free Nokia’s HR managers from the burden of administration to focus on more strategic areas of the business. Once it is fully rolled out, Nokia predicts HR staff will be able to reduce the proportion of the time they spend on administrative tasks from 60% to 20%; and double the time they spend supporting the business.

McDonald

Employee Value Proposition (EVP) of McDonald is what we are going to see now. McDonald gathers inputs from the crew members and develop key themes called -”people and culture”, Flexibility and Variety, Development and Opportunity etc. Then the EVP core elements 'Family and Friends', 'Flexibility and Future' are developed. McDonald’s has introduced a new Leadership Development Framework, which defines five levels of leadership in the organization. New Leadership Competencies reflecting McDonald’s Values at each leadership level were also introduced and are assessed yearly as part of our performance management system.

Summary