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GRP 7 PerformanceAppraisal.ppt


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GRP 7 PerformanceAppraisal.ppt

  1. 1. Presented by: Ka Wai Li Phillip Gong Ethan Hung Lawrence Huang Joanna Chan Performance Appraisal of International Employees
  2. 2. Today’s Agenda <ul><li>Background of performance appraisal </li></ul><ul><li>IHRM Vs HRM </li></ul><ul><li>Employee characteristics in the United Stated and China </li></ul><ul><li>Two types of motivation theories in the U.S </li></ul><ul><li>External Rewards and Internalized motivation in China </li></ul><ul><li>US performance appraisal system </li></ul><ul><li>Chinese views of performance </li></ul><ul><li>Research Findings </li></ul><ul><li>Recommendations and conclusion </li></ul>
  3. 3. What is Performance Appraisal <ul><li>A communication instrument aimed to evaluate each individual's contribution </li></ul><ul><ul><li>To determine ability and achievement with reasonable accuracy and consistency </li></ul></ul><ul><ul><li>To help identify obstacles to top performance </li></ul></ul>
  4. 4. Why Appraise Performance <ul><li>Episodic evaluation helps supervisors acquire a better understanding of each employee's skills with the goal to facilitate train and develop abilities and potency </li></ul><ul><ul><li>A opportunity to assess job progress, encourage interest and improve job performance by pointing out areas of development and by recognizing productive work </li></ul></ul><ul><ul><li>A feedback system that might otherwise be overlooked </li></ul></ul><ul><li>  </li></ul>
  5. 5. IHRM Vs HRM <ul><li>IHRM has three dimensions: </li></ul><ul><li>The broad human resource activities of procurement, allocation and utilization </li></ul><ul><li>The national or country categories involved in IHRM activities </li></ul><ul><li>The three categories of employees of an international firm </li></ul>
  6. 6. IHRM Vs HRM <ul><li>HRM has six activities: </li></ul><ul><li>Human resource planning </li></ul><ul><li>Staffing </li></ul><ul><li>Performance Management </li></ul><ul><li>Training and Development </li></ul><ul><li>Compensation and Benefits </li></ul><ul><li>Industrial Relations </li></ul>
  7. 7. Differences between domestic and IHRM <ul><li>More HR activities </li></ul><ul><li>The need for a broader perspective </li></ul><ul><li>More involvement in employees’ personal lives </li></ul><ul><li>Changes in emphasis as the workforce mix of </li></ul><ul><li>expatriates and locals varies </li></ul><ul><li>Risk exposure </li></ul><ul><li>Broader external influences </li></ul>
  8. 8. <ul><li>Employee Characteristics in </li></ul><ul><li>United Stated and China </li></ul>
  9. 9. Geographic Location <ul><li>North America, bordering both North Atlantic Ocean and North Pacific Ocean, between Canada and Mexico </li></ul>
  10. 10. Overview of United Stated Labor <ul><li>146 million Labor Force (2003) </li></ul><ul><ul><li>Agriculture: 1.4% </li></ul></ul><ul><ul><li>Industry: 26.2% </li></ul></ul><ul><ul><li>Services: 72.5% </li></ul></ul><ul><li>Unemployment rate: 6% (2003) </li></ul><ul><li>Average working hours </li></ul><ul><ul><li>8 hours/day </li></ul></ul><ul><ul><li>5 days/week </li></ul></ul>
  11. 11. Two Type of Motivation Theories <ul><li>Content Theories </li></ul><ul><ul><li>Focus on “what,” identifying the factors that cause people to put effort into work </li></ul></ul><ul><li>Process Theories </li></ul><ul><ul><li>Concern on “how,” the steps an individual takes in putting forth effort </li></ul></ul>
  12. 12. Example: <ul><li>Culture with </li></ul><ul><li>low Uncertainty </li></ul><ul><li>Avoidance in the </li></ul><ul><li>United States </li></ul><ul><li>Working Styles </li></ul><ul><li>- Lesser rules </li></ul><ul><li>-Lesser formalities </li></ul><ul><li>-More flexible </li></ul><ul><li>-More acting on changes </li></ul>
  13. 13. How related? <ul><li>US values </li></ul><ul><li>Freedom </li></ul><ul><li>Individual </li></ul><ul><li>Not a great emphasis on history </li></ul><ul><li>Equality </li></ul><ul><li>US Working attitudes </li></ul><ul><li>Freely give opinions </li></ul><ul><li>Competition is encouraged </li></ul><ul><li>Present-oriented culture </li></ul><ul><li>Having the equal rights in the workplace </li></ul>
  14. 14. Maslow’s Hierarchy of Needs <ul><li>Physiological needs </li></ul><ul><li>Safety and Security needs </li></ul><ul><li>Affiliation needs </li></ul><ul><li>Esteem Needs </li></ul><ul><li>Self-actualization </li></ul>What do we need?
  15. 15. Common Benefits <ul><li>Fair working conditions </li></ul><ul><ul><li>private working area </li></ul></ul><ul><ul><li>clean and warm environment </li></ul></ul><ul><li>Cafeteria Plan </li></ul><ul><ul><li>Cash (taxable). E.g. dividends </li></ul></ul><ul><ul><li>Healthcare plan </li></ul></ul><ul><ul><li>Group term life insurance </li></ul></ul><ul><ul><li>Disability insurance and accidental death and dismemberment insurance </li></ul></ul><ul><ul><li>Elective contributions to 401K plan. </li></ul></ul><ul><ul><li>Elective paid vacation/sick leaves. </li></ul></ul>
  16. 16. How to motivate employees more effectively? <ul><li>Praising their works </li></ul><ul><ul><li>Internal job promotion </li></ul></ul><ul><li>Fulfilling their affiliation needs </li></ul><ul><ul><li>Incentive Travel </li></ul></ul><ul><ul><li>Company Parties/Activities </li></ul></ul>
  17. 17. Geographic Location <ul><li>Eastern Asia, bordering the East China Sea, Korea Bay, Yellow Sea, and South China Sea, between North Korea and Vietnam. </li></ul>
  18. 18. Overview of Chinese Labor <ul><li>778 million Labor Force (2003) </li></ul><ul><ul><li>Agriculture 50% </li></ul></ul><ul><ul><li>Industry 22% </li></ul></ul><ul><ul><li>Services 28% </li></ul></ul><ul><li>Unemployment rate: 10% (2003) </li></ul><ul><li>Average working hours </li></ul><ul><ul><li>10 hours/day </li></ul></ul><ul><ul><li>6 days/week </li></ul></ul>
  19. 19. Chinese workers Characteristics <ul><li>Focus on moralistic </li></ul><ul><li>Maslow’s Hierarchy of Needs </li></ul><ul><ul><li>External Rewards </li></ul></ul><ul><ul><ul><li>Physiological Needs </li></ul></ul></ul><ul><ul><li>Internalized Motivation </li></ul></ul><ul><ul><ul><li>Self-actualization needs </li></ul></ul></ul>
  20. 20. Example of “External Rewards” <ul><li>Material incentives use to stimulate performance </li></ul><ul><li>Money as a motivator for employees </li></ul><ul><li>Bonuses have exist in China since 1978 </li></ul><ul><li>Pay system is based on individual performance </li></ul><ul><li>Reflect a strongly collectivist culture </li></ul><ul><li>Pay differentials based in length of service </li></ul><ul><li>Wage structures based on subsidies, bonuses & allowances </li></ul><ul><li>Performance is short-term, loyalty & belongingness are long-term </li></ul>
  21. 21. Example of “Internalized motivation” <ul><li>Political Campaigning </li></ul><ul><ul><li>Emulation Campaign </li></ul></ul><ul><ul><li>Tiananmen Square in 1989 </li></ul></ul><ul><li>Japanese Companies in China </li></ul><ul><ul><li>Send Chinese employees to Japan to learn in order to expose a foreign culture. </li></ul></ul><ul><li>Build on a sense of belongingness & loyalty </li></ul>
  22. 22. Difficulties for Managers <ul><li>Definition of Performance varies in different culture </li></ul><ul><li>No cross-cultural studies concentrate on performance appraisal </li></ul><ul><ul><li>How is performance defined </li></ul></ul><ul><ul><li>Why is performance evaluated </li></ul></ul><ul><ul><li>How is it measured </li></ul></ul>
  23. 23. Perspectives on Performance Appraisal <ul><li>Tool of organizational control </li></ul><ul><li>Cognitive aspects of managers’ evaluation of performance </li></ul>
  24. 24. US Performance Appraisal System <ul><li>To build up employee performance plan </li></ul><ul><li>Discuss performance plan </li></ul><ul><li>Evaluating </li></ul><ul><li>Rewarding </li></ul><ul><li>Provide assistant </li></ul><ul><li>Repositioning or removing </li></ul><ul><li>Identifying </li></ul>
  25. 25. American Views of Performance <ul><li>Objective: To help achieve organizational objectives </li></ul><ul><li>Productivity and Quality </li></ul><ul><li>Achievement </li></ul><ul><ul><li>Individual, group or organizational objectives </li></ul></ul><ul><li>“ rate the performance, not the person” </li></ul><ul><ul><li>Concentrate upon performance items </li></ul></ul>
  26. 26. Chinese views of Performance <ul><li>Objectives: Maintain family control of business </li></ul><ul><ul><li>Performance appraisals favor workers that are loyal to the family </li></ul></ul><ul><li>Emphasis upon “moral” characteristics </li></ul>
  27. 27. Characteristics that affect Chinese Performance appraisal <ul><li>Fatalism </li></ul><ul><ul><li>Adapting oneself to the world </li></ul></ul><ul><li>Confucianism </li></ul><ul><ul><li>Moral character is the most important </li></ul></ul><ul><li>Face </li></ul><ul><ul><li>Blame external factors to keep the face </li></ul></ul>
  28. 28. Research Findings <ul><li>Survey by HR consulting firm Development Dimensions International (DDI) </li></ul><ul><li>Participants </li></ul><ul><ul><li>Local Chinese and foreign invested companies </li></ul></ul>
  29. 29. Results <ul><li>95.8% use a company-sanctioned performance management system </li></ul><ul><li>79.2% use the system for all employees and some of the organization </li></ul><ul><li>12.6% use their performance management system for only 60% or fewer of their employees </li></ul>
  30. 30. Results (cont’) <ul><li>Areas that are effective: </li></ul><ul><ul><li>Structuring specific performance plans </li></ul></ul><ul><ul><li>Reviewing performance with employees at least once a year </li></ul></ul><ul><ul><li>Linking performance to pay </li></ul></ul><ul><ul><li>Holding supervisors accountable </li></ul></ul>
  31. 31. Results (cont’) <ul><li>Areas that need improvement: </li></ul><ul><ul><li>Developing the skills of appraisers </li></ul></ul><ul><ul><li>Evaluating performance in a fair manner </li></ul></ul><ul><ul><li>Reviewing approaches to differentiate the performance of employees </li></ul></ul><ul><ul><li>Increasing employees’ involvement in the performance management process </li></ul></ul>
  32. 32. Recommendations and conclusion <ul><li>Continual feedback </li></ul><ul><li>Communication skills </li></ul><ul><li>Equity, fairness, transparency </li></ul><ul><li>Forward-looking approach </li></ul><ul><li>HR as overseer </li></ul>
  33. 33. Thank You!