Key Aspects of Effective Performance Management of Expatriates

Key Aspects of Effective Performance Management of Expatriates: the case of __________

 

In a positivistic point of view, performance management is often intended as a total approach on how to manage people and their performance ( 2005;  2002). It involves setting out of performance aims and expectations for the organization level, for each business or operating unit, and for work groups, and for individual employees ( 2004). It also covers the following managerial tasks and areas: performance planning; performance measurement; performance appraisal and feedback; training and development; managing the organisations reward system, and in particular employee remuneration; employee discipline and termination; and health and safety. Performance management framework is currently and generally regarded as essential to the success of any system of performance planning and review. In performance management, significant factors are considered and make up the evaluation criteria.

 

Rewards and Incentives: a HR Perspective

            According to(2004:26), when organizations value and reward people, those people are committed to performing well. As a result, the organization accomplishes more and it can then reward employees more and attracts and retain more talented employees. This leads to even higher organizational performance. It also involves developing a variety of HRM practices that motivate people to peak performance with accompanying rewards. Staffs, in turn, are more committed to the organization and more responsible for their own behaviors (contribution, learning, development, etc.).

HRM practices can also influence levels of motivation through the use of performance appraisals, pay-for-performance incentives, and internal promotions systems based on merit ( 2003:). HRM practices can also influence the design of work so that highly motivated and skilled employees can use what they know in performing their jobs ( 2002: ). Giving incentives on a favorable performance appraisal is an example of a positive reinforcement that will impact the attitudes and behavior of employees. This mechanism falls under performance management functions handled by HR managers.

            However, there are some positive and negative consequences in giving incentives. Incentives work as a positive reinforcement when used as a motivational factor and reward system ( 2001:). It motivates employee to work for a common goal. On the other hand, rewards and incentives insinuate competition among employees, thus, breaking the perspective of teamwork ( 2004:). A compensation system that only rewards individual performance is not consistent with sustaining teamwork ( 1995:) because the compensation system tells employees which behaviors will be rewarded and which will be punished (2004: ). If the system strictly reinforces individualistic behavior, without any consideration for collaboration or collective goals, then teamwork behaviors will be inhibited.

In relation to the traditional system of incentives and incentives based on customer satisfaction in a variety of industry, the both possess similar operations. There is no significant difference in performance management except to the fact that they involve two different workforces but still working on one objective – company growth. The potential solution to a balance incentives or rewards management lies in the hand of an effective HR manager and efficient HR function.

Details of conditions of service are often more important than the basics ( 2002:). Hence, financial and other motivations must constantly be evaluated and improved to ensure employee satisfaction.

            According to the expectancy theory, employees expect and need to be rewarded according to the work they do, and will help them to develop their capability, help them to work up to a higher level so that they can be better rewarded ( 2002:). Employees expect organizations to have compensation systems that they perceive as being fair and commensurate with their skills and expectations. The compensation may, in some cases, act as employee motivators. These compensations that employees receive may be value-added compensation including direct compensation, such as salary, incentives and commissions; and indirect compensation, such as insurance benefits, employee recognition programs, flexible work hours, and vacation benefits. To improve performance, the system theory assumes a synchronized work environment. To synchronize the parts of the organization, it is necessary for the productivity of the company is ensuring the effectiveness of the organization. According to  (2002:), an organization needs constantly to take stock of its workforce and to assess its performance in existing jobs for three reasons:

•           To improve organizational performance via improving the performance of individual contributors. 

 

•           To identify potential, i.e. to recognize existing talent and to use that to fill vacancies higher in the organization or to transfer individuals into jobs where better use can be made of their abilities or developing skills.

 

•           To provide an equitable method of linking payment to performance where there are no numerical criteria.

 

Remuneration Management: Against All the Odds

Researches by  (1995: ),  (1995: ),  (1996: ), and others has demonstrated significant relationships between HR practices and organizational performance. Treating the employees as champions and as a significant aspect of the organization naturally results to other positive outcomes. This could be shown in implementing a fairly and satisfactorily designed remuneration system for the employees. A number of empirical studies have concluded that HRM practices have a significant effect on the organization, which leads to high performance ( 1996: ;  1999:  2000:).

Organizational performance is achieved through HRM functions like appropriate, fair, and balance remuneration system. This will mold the employees as significant contributors to the individual productivity and organizational performance. Having the appropriate HR skills particularly in remuneration aspects that are honed to the maximum level, employees will then lead to the attainment of various goals of the organization. From this relationship, it is then appropriate to wrap up that the function of the HR in the remuneration system a firm is very significant. However, a lot of organizations began to significantly switch their people-managing policies and systematize them in new directions ( 2001).

 

 

 

Hong Kong

International Human Resources Management

2500 words – 10 pages

What are the key aspects of effective performance management of expatriates?

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