GRP 7 PerformanceAppraisal.ppt
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GRP 7 PerformanceAppraisal.ppt

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    GRP 7 PerformanceAppraisal.ppt GRP 7 PerformanceAppraisal.ppt Presentation Transcript

    • Presented by: Ka Wai Li Phillip Gong Ethan Hung Lawrence Huang Joanna Chan Performance Appraisal of International Employees
    • 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
      • 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
      • 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 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 HRM
      • HRM has six activities:
      • Human resource planning
      • Staffing
      • Performance Management
      • Training and Development
      • Compensation and Benefits
      • Industrial Relations
    • 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
      • Employee Characteristics in
      • United Stated and China
    • Geographic Location
      • North America, bordering both North Atlantic Ocean and North Pacific Ocean, between Canada and Mexico
    • 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
      • 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:
      • 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
    • Maslow’s Hierarchy of Needs
      • Physiological needs
      • Safety and Security needs
      • Affiliation needs
      • Esteem Needs
      • Self-actualization
      What do we need?
    • 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?
      • Praising their works
        • Internal job promotion
      • Fulfilling their affiliation needs
        • Incentive Travel
        • Company Parties/Activities
    • 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
      • 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
      • Focus on moralistic
      • Maslow’s Hierarchy of Needs
        • External Rewards
          • Physiological Needs
        • Internalized Motivation
          • Self-actualization needs
    • 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”
      • 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
      • 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
      • Tool of organizational control
      • Cognitive aspects of managers’ evaluation of performance
    • 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
      • 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
      • 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
      • Fatalism
        • Adapting oneself to the world
      • Confucianism
        • Moral character is the most important
      • Face
        • Blame external factors to keep the face
    • Research Findings
      • Survey by HR consulting firm Development Dimensions International (DDI)
      • Participants
        • Local Chinese and foreign invested companies
    • 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’)
      • 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 (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
      • Continual feedback
      • Communication skills
      • Equity, fairness, transparency
      • Forward-looking approach
      • HR as overseer
    • Thank You!