This presentation is submitted by Mandira Adhiakri and Sailendra Adhikari as assignment in ACE institutement of Management during pair work of Performance Management. (HR Specialization)

1. PERFORMANCE
MANAGEMENT
IN
CROSS CULTURAL
CONTEXT
Presentation By:
Mandira Adhikari
Sailendra Adhikari

2. Introduction
• Culture
• complex whole
• Includes knowledge, belief, art, morals, laws,
customs and other capabilities and habits
acquired by an individual as a member of a
society

3. Introduction
• Cross-culture
• Phenomenon born due to market globalization
• Culture is different by its contents and forms, such
as language, behavior, food, dressing, beliefs,
values, and ways of thinking
• International companies are a good example of
cross-culture

4. Introduction
• International Companies do business
internationally
• Enter into a new country
• Cross-culture environment/situation is created.
• International companies are a good example of
cross-culture

5. Cross - Cultural
Management
• Process of achieving established organizational
goals
• By effective planning, organizing, directing,
coordinating, and controlling
• Use of organizational owned resources in a
cross-cultural environment

6. Cross - Cultural
Management
• Management differs in different environments
• Manager should clearly understand
• Differences and similarities of his/her home culture and
the host country’s culture
• Can overcome the conflicts generated from culture
differences
• Manager also needs to learn and promote the
way of management

7. PERFORMANCE
MANAGEMENT
• “Performance Management is a process for
establishing a shared understanding about what is to
be achieved and how it is to be achieved, and an
approach to managing people that increases the
probability of achieving success”
- Weiss and Hartle (1997)

8. PERFORMANCE
MANAGEMENT
• Brings together many people management
practices including learning and development
• Contributes to the effective management of
individuals and teams
• Helps to achieve improved levels
• individual performance and development
• organizational performance and development

9. PERFORMANCE
MANAGEMENT
• Establishes a culture
• individuals and teams take responsibility
• continuous improvement
• Delivery of service using their own skills,
behavior, and contributions

10. PERFORMANCE
MANAGEMENT
• Strategic process
• Long term in nature
• Aimed at the development of an appropriate
culture linking people management, service
issues, and long-term goals
• It is not a once off quick fix process

11. PERFORMANCE
MANAGEMENT
• Difficult to know the 100% right path
• It is required to
•Review
•Make corrections
•Stay focused

12. PERFORMANCE
MANAGEMENT
• Requires the disciplined management
• Need to Consider various activities in order to
•Properly define
•Monitor
•Measure
•Respond to the appropriate indicators

13. OBJECTIVES OF PM
• To build a high performance culture for both
the individuals and the teams
• Outcomes
•Jointly take the responsibility of improving the
business processes on a continuous basis
•Raise the competence bar by upgrading their own
skills

14. OBJECTIVES OF PM
• To enable the employees towards achievement of
superior standards of work performance
• To help the employees in identifying the knowledge
and skills required for performing the job efficiently
• To drive their focus towards performing the right task
in the right way

15. OBJECTIVES OF PM
• To boost the performance of the employees
•By encouraging employee empowerment
•Motivation
•Implementation of an effective reward mechanism
• To promote a two-way system of communication
between the supervisors and the employees

16. OBJECTIVES OF PM
• To identify the barriers to effective performance
• To resolve those barriers through
•Constant monitoring
•Coaching
•Development interventions

17. OBJECTIVES OF PM
• To create a basis for several administrative
decisions
•Strategic planning
•Succession planning
•Promotions
•Performance based payment

18. OBJECTIVES OF PM
• To promote personal growth and advancement in the
career of the employees by
•helping them in acquiring the desired knowledge
and skills

19. PM CYCLE/PROCESS

20. PM IN CROSS CULTURAL
CONTEXT
• Competitive global business environment
• Organizations need to aggressively compete for new
markets, products, services, and human talent within
the global arena
• Of the various resources organizations must manage
globally
• Multinational/International companies have their
subsidiaries in various countries

21. PM IN CROSS CULTURAL
CONTEXT
• Transnational organizations must achieve a dynamic
balance between
•Need to be centralized, or tightly controlled by
headquarters, and
•Need to be decentralized, or operating differently
across diverse locations

22. PM IN CROSS CULTURAL
CONTEXT
• Extreme centralization can provide an organization
•Number of competitive benefits such as economies
of scale, improved value chain linkages
•Product/service standardization
•Global branding

23. PM IN CROSS CULTURAL
CONTEXT
• Extreme decentralization can also be
• Highly strategic
• Enabling a firm to modify products or servicesRespond to
local competition
• Remain compliant with various governments' regulations in
different countries of operation
• Readily attract local employees
• Penetrate local business networks

24. PM IN CROSS CULTURAL
CONTEXT
• Each diverse business strategy implies a different
approach to managing HR
• Global strategy
• face strong pressure for worldwide integration but face
weak pressure for local responsiveness

25. PM IN CROSS CULTURAL
CONTEXT
• Multi-domestic strategy
• face strong pressures for local responsiveness and weak
pressures for worldwide integration
• Transnational strategy
• face strong pressures for both worldwide integration and
local responsiveness

26. HOFSTEDE’s FIVE CULTURE
DIMENSIONS
• Power Distance
• Individualism vs. Collectivism
• Uncertainty Avoidance
• Feminine vs. Masculinity
• Long-Term vs. Short-Term
Orientation

27. CHALLENGES
• Difficult to over-simplify national cultures
• Constructing cross-cultural comparative
analysis based on exaggerated cultural
stereotypes
• Difficult to distinguish clearly between cultural
values and institutional arrangements

28. CHALLENGES
• Definition of Performance varies in different
culture
• Confusing on which activities of an employee
•To consider as disciplinary action
•Which to take as culture driven activities

29. CHALLENGES
• Difficult to manage employees in organizations
with culture of high uncertainty avoidance
• Rewarding for better performances becomes
difficult as well in cross-cultural context
• Determining hours of work is also difficult

30. CONCLUSION
• Managing across cultures is an increasingly
important skill for business leaders in this
globalizing world
• Cross-cultural management in the expatriate
context deserve careful consideration
• The manager should ensure that there is better
communication system in the organization

31. CONCLUSION
• It will ensure better working environment and
motivated employees
• Better performances and productivity
• Should be managed tactfully with in depth
research and considering consequences of
each steps

32. References
• http://hrweb.berkeley.edu/guides/managing-hr/managing-successfully/performance-
management/concepts
• http://www.ap-institute.com/Performance%20Management.html
• http://anthro.palomar.edu/culture/culture_1.htm
• http://www.managementstudyguide.com/objectives-of-performance-management.htm
• http://hr.commerce.gov/Practitioners/CompensationAndLeave/DEV01_006178
• https://www.opm.gov/policy-data-oversight/performance-management/performance-management-
cycle/developing/understanding-performance-management-process-and-practices/
• Performance Management (Putting Research into Action), A book by James W. Smither and Manuel
London
• Performance Management (A roadmap for developing, implementing and evaluating
performance management systems), A book by Elaine D. Pulakos