146 Management

in International Context(Module 5) 147

M
MBA Fourth Development: Development goals for performance appraisals in the
Peformance
Semester (Global HRM) international environment include:
Vn
MODULE managers in improving their performance and
5 Performance Management
in International Context )
To help
developing
future potential.
commitment
to the company through discussion of
To develop
career
opportunities and career planning with the manager.
5.1. GLOBALPERFORMANCE MANAGEMENT motivate managers via recognition of their efforts.
iüi) To a
iv)
diagnoseindividual
To and organisational problems.
S.1.1. Introduction To identify individual training and development needs.
Performance management is a set of
activities carried-out by regular, ongoing human the nature of the overseas job, the degree of support from and
subordinates to managers and supervisors relative resource Of course, with the
parent company, the nature of the overseas
the achievementenhance and maintain employee to their interaction
environment in which the performance occurs, and the degree of
aimed at
of desired performance performance towards expatriate and family adjustment all impact the ability of any global
objectives. These activities.
can be encouraging optimal employee motivation and
directed toward both individual employees development, oreanisation to achieve these objectives.
given work unit and teams within a
supervised by a manager,
management provides an important Effective
means for performance 51.3. Performance Management Cycle
employee and team working .aligning
behaviours with the organi_ation' individual Perforimance'management cycle can be seen as a constant process
Especially in international business, s goals. fragmented into "foar' different parts which include"five phases as
as an effective human performance manágement can serve depicted in figure.5.1:
resource control mechanism for implementing
MNC strategy and carrying-out important
distance and cultural objectives despite significant
barriers. Thus,
management is a strategic HRM process international
that
performance Performance
evaluate and improve continuously improves the enables the MNE to
Performance Performance Performance
Planning Analysis Appraisal Development
and corporate performance against clearly defined, individual, subsidiary,
that are directly linked to international strategy. pre-set objectives
Performance Management Audit
5.1.2. Purposes of Global Performance Management Figure 5.1: Performance Management Cycle
Organisations develop performance management systems for a number
of reasons, but primarily for evaluation and for development. These Phase 1:
purposes are much the same for domestic and intermational operations. Performance
management is performancePlanning: The first phase in the performance
The major difference is that implementation of these goals is much more expectations and objectives planning. Developing performance
difficult in the global arena: performance for individual and groups is considered as
1) Evaluation: Evaluation goals for performance appraisals in the efforts for the planning and the main focus remains on directing their
internationalenvironment include: accomplishment of the organisational goals.
will know where they mechanism for
1) To provide feedback to managers so they
stand. explains the executing various roles is provided by it and it also
1) To develop valid data for pay,
promotion, and job assignnen
these decisions.
hroughout theactivities which the employees are supposed to perform
appraisal year. This step is started by creating the
decisions, and to provide a means of
communicating
retention Strategic plans and annual goals for the organisation. Next, the
discharge and
iii) To help management in makingof warning employees about performance
upon plan of the
decisions, and to provide a means the job description individual employees is decided depending
unsatisfactory performance.
and important functions with the help of
 various methods like MBAFourth
activity analysis, Semestcr (Global International Context (Module 5)
(KRAs), Key task analysis, Key HRM) VTU
in 149
activity plans, taskPerformance
Management
Areas (KPAs), Performance
Management Audit: The process of regularly
and
standards are determined. target identification, goal-setting
and finally
Result Areas 5:
P e r f o r m a n c e
worthiness of the prevailing
performance management
perfexerormcanceises,
Phase
the
Phase 2:
the sppraising
called performance management audit. The main focus
factors Performance
which Analysis:
contribute Assessment
system i s
on the
internaland external changes in the organisation along
or analysis in the business strategy. It aims at:
unfavourably) for a certain tine and to the performance
of (favourably remains
change
factors for the effective dif erent with
the
A p p r a i s i n g

common practices and principles.

upcoming methods of defining and agreeing to
analysis. period management
are included
in of these
)
2)
D e t e r m i n i n g

various
expectations of individual employees as well as team planning.
This can be seen as the performance various methods of performance.
and a regular monitoringphase in which Formulating
the actual various methods for reviewing performance.
and feedback is done documentation of performance
and is
Developing
employees performance of made
4) connection with compensation (along with analysis of
to the role, according to various
Establishing
5) the available techniques).
accomplishment in
standards establishment
and activities relatedthe and development system in operation with
reasons of good or comparison to these standards, measurement of
training
Developing
6)
reference to performance management.
perform the tasks, bad performance, recognising the understanding
skills required theto
categorising into ascertaining the level of
organisational support performance,
and motivational and finally In normal
course of action, external experts or consultants. are
Phase 3: factors. responsible for conducting this audit so that the information can be
Performance achieved related to various objectives served by the performance
performance managementAppraisal:
process is
The most important phase in
the the management system.
performance of the employee performance
for the previous appraisal. The
evaluated by the manager year
and the employee. It can beis discussed and
the inevitable methods. seen as one of 5.14. Key Components of Performance Management
System (PMS)
Having the written records of the One of the most challenging aspects for a firmn operating internationally
achieving greater performance withperformance of employees and managing the performance of its various international facilities. Since
facilitated by performance appraisal. the help of goal setting are organisations exist to achieve goals, the degree of success that
individual employees have in reaching their individual goals is
This can also be useful in determining the proper important in determining organisational effectiveness.
compensation
the employees. Thus, it can be seen as a systematic of
and objective
technique of determining the comparative value or ability of an The assessment of how successful employees have been at meeting
employee to perform certain job. their individual goals, therefore. becomes a critical part of human
resource management. The evaluation of performance of expatriates
Phase 4: Performance Development: Developing the work-related 1S Very much linked with the performance of subsidiaries, which they
are sent to
skills, experience, and knowledge of an employee can be seen as an manage.
important component of performance management. It can b¡ gure 5.2 illustrates the basic components of international
understood as a process of stimulating an environment of continuous management. It provides a convenient starting point of the performance
the link between
learning and professional development, enhancing job or care multinational's internationalisation strategies, its goals for
related skills, knowledge, and experience, and thus improving
employmen individuals international operations in terms of contribution to global
competence of the employee for having better includes assisting profitability, and individual performance management, whether PCN,
opportunity within the same organisation. It also is able to fulfil TCN, Or
the performance of employee to reach a level which
evaluated HCN. This istoimportant since an individual's performance is
or exceed the expectations of the management. behaviour thataccording expectations of appropriate outcomes and
contribute to organisational goal attainment.
 MBA Fourth Semester (Module 5)
in International Context
151
Multinational's Internationalisation (Global
HRM) VTU
M a n a g e m e n t

pomance
Executive Officer: The CEO (Chief Executive
Strategies and Goals Chief
manager oversees and directs the
officer),
or subsidiary
entire foreign operation.
Subsidiary Goals
Reproducer: He carriers the assignment of building
foreign subsidiary a structure similar to that
S t r u c t u r e

Individual (PCN, TCN, HCN) i) reproducing

in a
or another part of the company. For
which he or she knows from
Job
Job Goals example, he or she could be building a marketing framework,
Analysis implementing an accounting and financial reporting system or
and Standards Performance
Appraisal establishing a product plant.
Figure 5.2: Basic He is the individual whois sent to a foreign
Components of International i)
Trouble Shooter:
problem.
5.1.5. Performance Management snbsidiary to analyse and solvea particular operational
Performance Management of
Operative: He is the individual whose assignment is to perform
Assignees/PMS
The
for Expatriates International functional job tasks in,an existing operational structure, in
performance of
are distinct fron the an expatriate depends on several variables which generally lower level, supervisory positions.
performance of an employee working in his
home country. Performance a Headquarters Support: Home office support is crucial in
of the non-eXpatriate s or her
by job extrinsic factors
(e.g., generally influenced aratriate performance. An assignee has accepted an overseas
and job intrinsic factors working conditions and company 8gnment, no doubt with the objective of making extra money or
(e.g., challenging job, career policy)
expatriate's performance depends on several other prospects). An improving hi_ career prospects; but there are other motives - loyalty
influéncing factors. to the organisation and commitment to make the firm successful. It
Variables affecting expatriates performance are as is these altruistic motives which make assignees agree to work even
1) Compensation Package: Compensation follows: in hostile environments. It is necessary that the home office extends
is one of the key factors süpport and offers moral courage, particularly in times when the
closely associated with expatriate performance. Perceived as a expatriate is passing through a culture shock.
balancing factor for the 'emotional re-location' that the
assignnment demands, compensation, and perquisites are critical The following are some specific support facilities required from the
to the effort expended on the assignment. An expatriate who is headquarters:
well compensated is definitely happier and more productive as ) Organisational support in managing the practical problems of
compared to an assignee who feels he or she did not negotiate his Setting-up home in anew culture is essential for enabling an
or her compensation appropriately. According to Herzberg's expatriate to settle down.
two-factor theory of motivation, pay is a hygiene factor, which )The provision of timely psychological
when adequately provided for removes dissatisfaction, but fails Cxpatriates encountering problems of adjustmentcounselling tror
can contribute
to activate motivation and performance. But with many to their mental health and
individuals, pay acts as remover of dissatisfaction as
well as a iü) The performance.
booster for enhanced performance. Money continues to
remain as families of employees should also be assisted in their
efforts to find their feet
on
one of the most significant motivators for expatriates.
eitne
Though it adds to the cost, the ground in a new culture.
2) Task: An expatriate is sent on an overseas assignment simple expatriate headquarters can arrange ashort visit for the
Chief Executive, system replicator, trouble-shooter or as a up close back to his or her home country so that enmployees can meet-
Whatever the nature of
assignment, task has host kith and kin, refresh, get over depression, and fly again to
operator. performance. Hays Country. More than the
considerable impact on an
identified four such tasks:
individual's
organising
head office a short arranging all required facilities and even
visit to the home Country, a
re-assurance that the
of I
completely
confidence for the assignee
supports the expatriate, can prove to be asource
to adjust and live in the host country.
 5) 153
International Context (Module
in
the buzz' of
Deal: Many IBTs enjoyed
Management

152 Aormance the

MBA Fourth Semester of cicumstances.
4) Host Environment: (Global Thrill
well in challenging
Environment wields considerable | HRM) VTU
on performance, particularly
p e r f o r m i n g

was an element of glamour

linked to
IBTS felt there
of the
environment is hostile, expatriates are expatriate.
under constantlf the hosinfluence Lifestyle:

frequent
top hotels
traveller (such as, staying in international
and
and often, there is a threat to being a class) and some IBTs felt that
their life itself.
ownership of the subsidiary is important too. The pressure
form of flying
business
alifestyle which addictive.
is
can become
For example, it may be A number of self-development
travel

owned subsidiary than inrelatively

Development:
easier to the nature of the IBT jobs:
a joint venture perform in a wholly were provided by
P e r s o n a l

with a iv) cultures.

enterprise in China. Conflicting goals other
between state-owned
o p p o r t u n i t i e s

the parent Working with people from

companies are a common problem within stressful
situations,
ventures and can make the international
expatriate's job more difficulk joint b) Coping with
that would not normally be encountered.
Similarly, the stage of the international Handling problems
the success of the business will influence factors of international
Perceived negative
expatriate. An assignee overseeing the
establishment of a new facility in a foreign Negative
Factors:
country, especially in 2) husiness travellers are as follows:
a developing market,
will face family relationships of IBTs
constraints than one who is posted intodifferent challenges and Family Separation: The effect on birthdays and family events
a mature operation. was a key negative factor. Missed the children can cause
5) Cultural Adjustment: The ability to and -missing-out on quality
time with
culture -is essential for the success of live comfortably in an alien
an expatriate. Multi-cultural tension and frustration. Welch and
Worm suggest that many
created more family
adjustability refers to being sensitive to the host culture, the short trips thát followed one upon the other
absences.
expatriate's multi-cultural sensitivity, language ability, diplomacy, problems than more infrequent yet longer
adaptability, positive attitude, emotional stability, and maturity. It is ) Travel Stress: Travelling can be very
stressful and the stress is
not enough if the expatriate alone acquires cross-cultural and
exacerbated by tight airline connections, delayed flights
adjustability. The trailing spouse too needs to acquire the ability to meetings and
live in the host culture. Failure of the trailing spouse to adjust is long flights, hectic schedules of business
problems with hotels. A further problem was the expectation
often amajor reason behind expatriate failure. that the IBT Would not require time-off work in order to recover
from travel stress when back in the domestic situation:
5.1.6. Performance Management of Non-Expatriates
Non-expatriates or International Business Travellers(IBT) or .im-Health Issues: In addition to the risk of contracting infectious
frequent flyers are those employees whose work involves diseases, the evidence suggests that constant travelling has
international travel to foreign markets, subsidiary units, international negative consequences including poor diet, lack of physical
projects and the like. exercise, and weight gain.
because they are not ) Safety Concerns: Physical safety has become an increasing concen
They are not considered international assignees Tor IBTs. Concerns about terroist activity, kidnapping, and
country. Non-expatriates are the persons for whom a
relocated to another visits. assment yere growing in a number of countries and regions.
international
large proportion of their role involves constant ) Incessant
Work Demands: Modern technology can increase
the performance management Ol
There are various factors that affect Pressure of work by bringing home office issues to the
non-expatriates:
attention of the manager working in the foreign market and
positive factors of internation can also erode
1) Positive Factors: Perceived private time. Also, often insufficient time is
business travel are as follows: allowed for the IBT catch-up with a backlog of work when
Variety/Novelty of the Job: IBTs often
enjoyed the variety they return home andto this negatively impact on the time
i)
of tasks and destinations
people ro
and enjoyed meeting available to spend with the may
family.
many countries.
154
5.1.7. Issues and MBA Fourth Context
(Module 5)
155

Performance Management given the

International

Semester (Global Managemerti n

Tssues and
follows: challenges of
Challenges in InternationalHRM) VTH nAnce c o n s i s t e n c y

industry
globally. Thi_
practices
and
is a ch¡llenge
marketconditions in the
organisation exists.
intermational performance
e n s u r e

different where the

Results: The performance-reward
c o u n t r i e s

Issues and
challenges in International management are
different

results, not just

f O r g a n i s a t i o n a l

Inclusion of organisational
on
Performance Management scheme
must
emphasise
It is common
practice in MNCs to link
Cultural Implications on performance.

revenue/profits/growth
generated.
PMS to the
i n d i v i d u a l

the
r e w a r d s

Performance Appraisal and Salary

Managing Underperformance Rewarding Performance Globally between

a global culture focused

on
order to encourage
Linkage

organisations to link promotions

i) In
c o m m o n in
Increase:

it is
Virtual Assignments meritocracy,

to the PMS. This de-links salary increases,

salary hikes
Subsidiary Performance and entitlement'.

the form of is
is meaningful to employees and
1) taking
Cultural Implications on that the
contributions. Itis oommpon
System
PMS): Culture has significant Performance
ensures

Management System It with their efforts and

PMS in different cultures. impact on designing commensurate

established and openly communicated

and implementing in MNCs to use clearly
distance and individualismHofstede's
percentage.
twO cultural dimensions - rating to a hike in
[Link] linkaperformance
the purpose of bringing-out versus collectivisi ate considered herepowerfor common practice in MNCs
tÛ provide for
the interface betwen;culture
Collectivist versus individualistic and the PMS. i) Merit Awards:It is awards. These could be separate for the
culture differs in the way. goals are
designed and assigned. In a collectivist annual performance globally assessed and awarded
society, it- [Link] work unit'subsidiary level or could be
practice to assign group goals and involve groups in deciding goals. On encourage a global culture.
in global forums to
the other hand, in an individualistic society, it is common to assign PMS must also be used to detect
goals to individuals, assess individual performance and reward ) Managing Underperformance: development needs,
individual achievement of goals. deficiencies or inadequacies and ascertain staff management
both individual and collective. The performance
There are three ways in which cultural differences impact underperformer nomally includes three clearly
process for 'an
performance management: defined stages, as follows:
i) Goal commitment and participation in organisations, Stage 1: Setting Expectations & Monitoring Performance: Clear
ii) Feedback - performance relationship, and cOmmunications of the non-performance parameters are shared with
iii) Feedback seeking behaviour. he employee, quoting incidents and evidence of underperformance.
While the challenge for a PMS design is to be
standardised across Stage 2: Discussing and Documenting Problem Performance:
units in different cultures, it would require: Areas of under- performance and are acceptable to the employee as
level in collectivist cultures, and cton itemns. Ensure that the ways to improve are identified and
1) A stronger focus on group supervisor in the PM process should be ascussed, indicating support to be provided and guidance/
1) That the role of the Supervision expected.
adapted to cultural specifics guidelines.
The critical success
factors P : Establishing and Implementing Consequences to Poor
2) Rewarding Performance
Globally:
to the
compensation system
Performance:
continues
This last stage occurs when problem performance
that link performance appraisal even
after one or more performance discussions have been
as follows: clarity
from the conducted, The
which case the performance may then be rated as unsatisfactory", in
There needs to be criteria o
i) Fairness and Consistency: The employee is placed on probation for a period of 1-2
beginning, about
reward elements.
to months, after being provided with a written notification of specific
areas in which
well-communicated.

Very established and

be he or she is required to improve.
rewarding must
156
If the probation MBA Fourth
either terminated is not
or askedsatisfactorily
Semester (Global Management
in International Context (Module 5) 157
notice pay and to resign. completed,
Normally, he theor HRM) VTU Administrative reforms in China have long been centered on structural
Performance
Reforms and Restructuring
Organisations outplacement counselling employeein
she
identifying have clearly identified
and managing
could
policies
also be
is
entile d as proven by
the six rounds of large-scale
re-organisation
4) Virtual Assignments: underperformers.
Virtual that
provipro
devded
changes,
fo
c a m p a i g n s

conducted in 1982, 1988, 1993, 1998, 2003 and 2008, all of

initiated by the central authority and implemented in atop-
becoming a assignments are increasinghy were
advantages. collaborating tool assisting down manner. Restructuring has strengthened key regulatory agencies,
which
competitive Collaborative work is criticalMNCs in
advantage. It is a known fact in achieving achieving
although local management on important accountability and control
such as auditing, continues to be a problem.
acircumstances, nurturing a global functions,
that
difficult feat. Conflict, a spirit of teamwork even in the dibeststinc,of Human Resources Management
and perspectives poor
are just a few communication,
among co-workersi Anew civil seervice system was introduced in 1993, which promoted a
rift among of different
team members. the myriad issues that canatitd ion resource management that encourages selection based on merit and
nance. The old system was focused on central
cause
These difficulties planning, non
where team increase in the world of the utionalised performance appraisals and
alone the members often do not even share virtual workfore ivil service system rewards performance position-based
and the
pay. The new
same viewpoint.
information technologies Advances the same content. let oromotion has provided a powerful incentive for officials' drive for
boosting China's
teams to have enabled in' telecommunication and performance management regime. In
5)
even the most complex [Link], to assign worldwide Dublic sector unit (PSU) forms a China, performance-related pay in the
cluster of public service providers
Subsidiary operating alongside core govermment.
performancePerformance:
management There is another but performance plans, China has When it comes to pay-for
subsidiary itself. Assessing assessing. the related dimension
performançe.
to mentioning: the status/qualificationssome particularities that are worth
probably more important the of the (family, education) of the
than effectiveness of a subsidiary is are very-important in evaluating performance, individual
individual assessing almost and
rating or challengeemployees
never,
Subsidiary isexpatriates. Assessment of the [Link]çe ofa
contest aperformance rarely to
following: compounded by several onstrains performance'of
which include the
The "Objective Responsibility a manager.
i) Balancing Emergingfirst at local System'"
ii) Attention toHÌand host unit performance, Responsibility System" government
(ORS) level, China's
external forces, subordinate involved setting objectives"Objective
for their government units and holding individual
iii) Vagaries of
iv) Significancethe international environment, for
v) Variable level
of time and
of [Link], and
objectives"fulfillment. Following the
(MBO), the ORS also
leaders responsible
principles of "management by
o0jectives and involved
5.2. Mn local targets down to [Link] setting and cascading
PMS IN SIX
LEADING ECONOMIES institutionalizegovernments.,
the ORStheascentral After
authorities have years of practiçe
5.2.1. PMS in China governmental
by the performance. an
important toolrecently
for
started to
center is Shaanxi An example of local
The fact that authorities, initiatives improving
countries
large
China
worldwide
examplepopulation and
is rapidly
emerging
is no longer as one of the most powerful
a secret. Besides its trading power, achievementssuch as audit Province,
project, of
China the local
offices,
which relies on
that have interest in
taken over
monitoring local
of good Gross Domestic Product (GDP), China is also an in leadership group. At different
focused, inflating
CiMeasurement
tizen , performance turn, on each of the following: stages
the
administration. From at least when
has
practice it comes to its governmental of this
implemented
complexity and a
performance
sophistication.
themid-1980s, the Chinese government
An Participation
example managgement and strategic performance
planning.
management system that has grownin assessmnent of a in Performance
 (Module 5) 159
in International Context
158 Management
MBA
Fourth Semester
Performance
becomes meaningless in cases where the job fit is
appraisal
Nanjing. In the latter city, public (Global officer, and where there are frequent transfers.
government work 'style, integrity assessment covered three HRM)Vn, while posting an
P e r f o m a n c e
and clean
ignored
affected when reporting officers write ACRs
main areas: is seriously
drafted on the results obtained from
the campaign government.
Information
quality
4) The large number of employees, some of whom they may not even
designing future directions and was
Over the past 15 years, China's objectives incremental
for governmental of a
personallyrecognize.
in a civil
public system shares only an adverse grading,
quickly, and the focus seems to have sector performance has
moved from a
institutions,
evolved 5)
Since
the present
remains unaware
about how he/she is rated in his/her work.
growth to social and. public functions,
administrative law and hum¡n development sustainable rapideconomic servant
t h e r e is no
incentive for good performance.
needs. developmet, Hence
reporting officers pay litttle attention to distinguish
between
officials end up
5.2.2. PMS in India 6) Many and average workers. So, most Government
good
good/outstanding grading which
is considered "good
The Second Administrative Reforms very performers.
Commission says the followine on getting
no motivation for real
the conventional petformance management for promotion" and there is representations against adverse entries
system in government: The system of deciding on adverse entry.
officers avoid giving an
"Traditionally governance structures in Indi£ £re characterized'by rule. takes so long that reporting reporting
against an employee, the
based abproaches. The focus of the civil services in India is on process. Often, for want of evidence justify the
position and thus unable to
officer is in a defensive
regulatibn: With such focus on processes, systems in government are
adverse remarks. In fact it will
not be inappropriate to say that we
oriented towards input usage - how much resources; staff and facilitie: rarely punish and never reward in the
present system.
that are deployed in ascheme, program or pYöjet 'and Whèther such controlling authorities, members
of
deployment is in accordance with rules and regulations. The main 8) Due to a plurality of cadre Ministry may be appraised
different Services working in the same
performance measure thus is the amount of money spent; rand the irrational.
using different formats, which is
success of the schemnes, programs and projects is therefore generaly his/her
evaluated in terms of the inputs consumed." the 'individual' rather than
in India Ihe current practice is to appraise almost personality oriented and
Thus the conventional performance management system pertormance', making the assessment
than the measürement 0f mechanism to link the
Tocuses on the input-output aspects, rather not function related. In the absence of a
goals and achievements,
impacts or outcomes of policies and programs. Inaividual performance with the organisational
in the larger context of
die appraisals are reduced to a narrow focus
Performance Management at Individual Level Jevel,it performance management.
at individuak only
While analysing the management of performance government
systems in measurerment of
1s important to understand that the current Systemic Issues in Individual Performance Management
The performance
adaition to the inabilit of ACRs to act as an effective issues which
performance.
Report)
'appraise' and not really 'manage' Confidential.
certain systemic
gaps that management
(Annual
performance is based on ACR
the several mechanism, there are
it has
system. While it is a well-entrenched
system,
tool.
Effectiveness
fsSly affect the ability of civil servants to be good performers. Some
appraisal vof of these
limit its utility as an effective performance the philosophy issues are discussed below:
is based on
and credibility of the ACR system thatand viewed negatively. the Absence of Enabling Conditions: While speaking about performance
environnent
of civil limitations of the
control and secrecy has been questioned servants, We need to consider the position is
of an individual in a given
identified
Commission has (other they operate in. The performance
well as factors like an
India
The Second Administrative Reforms of civil servants in can s y s t e m
determined by his/her individual attributes as In theIndian
institutional environment.
deficiencies in the system of appraisal gaps in the present encouraging and resultat all
Set up, civil servants oriented
levels are hamstrung by lack of flexibility in
than the All India Services). Some of the agaainst
program design, choice in formation of teams
frequent transfers, lack of
evaluation
be listed as follows: and
targets
1) It lacks in quantification of consultative and budgetary limitations etc.
achievement of targets. way
Scope for a two standards.
2) The ACR system does not give
performance
about
process and there is a lack of clarity
2) Risk MBA
Aversion
answerable to a numberamnong Civil Fourth SSemestcr (Global in International Context(Module 5)
of agenciesServants:
161
Some of these and Civil HRM) trmance.
V T U
Management
an interactive method of evaluation involving both
are entrusted
agencies
with the
like the
tend to focus on formtask of finding gaps
CAG, institutions
statutøry of Servants
he
s u g g e s t s
officer and the appraisee in fixing realistic
coutry. the
a p p r a i s i n g
excesses of the executive.
and
procedure, andin the system el commiSSIons and
professional
targets and work plan for the year.
Specific performance appraisal formats specifically
turn, hasperceived
Droblem of risk aversion This. in job
hey i ) It has to the individual tasks as well as the organisational goals.
and demoralization \ apses
3) Cross Cutting
government and the
Nature of Operations:
compounded
among civil
servant s,
the
ox
linked
focus still continues to be on ratings and evaluation
nature of
The functions Though
the
on comprehensive performance management, the
multidimensional
of [Link] a large
its
numberdevelopmental
of agencies tasks a
ather
progressive

than
of the new system need to be recognized and
aspects
This leads to in other Central | Services and organisations.
individual accountability blurring of the th e proCe S S
to
inaction on others by as the departments can passorganithesational
extended
Services Bill
2007: Government has taken a step forward
decision-making [Link] that they had no sole control blame isx introduction of a performance management system by making
Public
Public Services Bill that the government
obtaining finance clearanceLine departments over
t o w a r d s
th e the proposed
at also face the problem provision in
System for Public Service
every stage of their work. a establish a Performance Management
4) Disjonted setup for shall twelve months from coming into force of this Act. It
the fact that
Performance Management: We employees
within
individual performance collectively, cannot ignore would lay emphasis on setting targets and priorities in line with
organisational performance and the performane ot contributes
thoo to the government's plans performance and available resources, and preparation and
turn contributes to the performance of
yganisation
periodicalIreview of
indicators of each employee.
by the organization. But, currently there prograis/ projects
are no robust implementcdn Proposal for Performance Related Incentives (PRIS): IM
mechanisnk
place to assess the individual's performance in Context of Ahmedabad has conducted a series of studies for the Sixth Central Pay
the
performance of an institution or program. Commission on the feasibility of introducing Performance Related
Incentives (PRIS) in govermment. A model that would link the
Towards a Comprehensive Performance Management System enployee perfornance to tangible rewards through a pay structure
The need to shift from ACR based appro¡ch to a more progressive having both fixed and variable components has been suggested. The
Performance Management System suited tò the requirehents of iodeth sudy ecommends implementation of the model including the
govemment has been felt at all levels. The initiatives of the govermmnt in provision of an annual bonus of up to 20% to employees whose
this regard include the introduction of a modified PA system for AIS oficers achievements exceed certain targets. The Department of Science and
formulating the Public Service Bill 2007, the Sixth pay Commission rpt Technology (DST) has already initiated the implementation of this
on Performance Related Incentives' in government departments am hodel by suggesting a performance-related incentive scheme for
constitution of the Second Administrative Reforms Commission which escarch organisations on a voluntary basis.
focused on Refurbishing The Personnel Administration'. 23. PMS in
e Japan
1) major
The Modified Performance Appraisal (PA) system: Recognizing the tiJapanese
recommendations on these issues are given below. performance
n employment initiallywhich
here, wassystem,
practicesappraisal introduced in important
plays an the 1920s
importance System, from
Managementof shifting the Government Performanv930s,
ACR to moreofprogressive
India has modifieo the modelled appraisal
SA. Performance after a system
in Japanese
that wasorganisations
gaining widerneeds
use into the
be
estood in the
appraisal system for All India
Service Officers in accordance mu
the recommendations of the Surinder Nath Committee (2002) wibagement styles. context
AppraisalsofareZen
so integrated into andorganisational
philosophy life
the Japanese
the
1) following salient features:
It has a transparent approach to isolate
as the appraisal report is d i s e n i s e The appraisal of individualdifficult
about appraisal
and talk performance systems and
is underplayed in
yanese
to the officer appraised. Organisations
At the and group work and organisational identity are
same time, human needs are well attended through a
162
MBA Fourth
variety of Semester Context(Module 5) 163
employees practices like life-long
employment, (Global
International
tin
need not
bother much about the that
Management
Iowest level, while Grade 1 is the highest
career
economic needs and focus the
psychological
their attention on performance.
individua
aIANCe
Grade
9 is Above Grade 1, there are two more levels such
levels and both of these levels are
service.
oa,
minister
Describing the Zen
civil
y
see each philosophy, Pascale and elin
thedeputy
appointments. There are
and
two different types of individual-1evel
individual as having economic, Athos remark the in the Korean government:
m i n i s t e r
management systems
spiritual needs, much as we do social, Japaney general
when psycho-logical officials and
appraisal
But Japanese executives we step back and for higher-level
assume that a omance agreement
1).
it is their th ink for middle- and lower-level officials (see table
more of the whole of the
person, and not
task to attend abou' ormancé.mtancé
appraisal
institutions (such as government, leave so to moch
believe it is only when the
fanmily, or religious much to othe: Appraisal Systems in the Korean Central
subculture of a individuals' needs are wellones). And hey 51:
Performance
corporation that they can met within Appraisal Systems
work that is in larger part outstanding. largely be freed for productive
Targeting Grade Levels*
b o e r m m e n t
members Performance Agreernent System
including
andi above
ade 4 (SCS)
The Japanese accept ambiguity, dhe Senior Civil Service
General Performance Appraisal
more of a given in uncertainty,
organisational life
and
imperfection as muh rode 5 and below (Middle- and
each other in entirely and this System
different ways. As aresults
officials)
in dealing with LOwer-level
defensiveness result, egoism
are likely
smooth and indirect, the
to be much less. Performance feedbackandis Note: The target groups of the performance agreement are government
Japanese see themselves as far more cials who are director-level (Grade 4), director-general-level (Grade
nteraependent. They are prepared to make far greater inveot bye The target groups of the general performance appraisal
people and in the skills necessary to be effective with
others' sem are government officials who are deputy-director-level (Grade 5)
below.
5.2.4. PMSin South Korea
The performance appraisal system has been relatively wel , the performance agreement system applies to civil servants above
institutionalized in the Korean government. The legal foundations of pie 4(managers) and equivalent grade levels including members of
this performance appraisal system include: the National Civil Service kSenior Civil Service (SCS). This performance agreement system is
Act (articles 40 and 51); and (2) the Decree on the Civil Servan evaluation system based on a performance agreement in relation to
Performance Appraisals and Related Matters. Article 5lof the National Momance goals and indices, made between the head of the agency
Civil Service Act requires that the head of each government agehoysot departments and bureaus. Evaluation items could include:
should evaluate
objective the performance
and fair of hissuch
way and reflect or herresults
employees regularty
in public n hisher position
personnel evel performance,
as a managerorganisational-level performance
(i.e., in terms of citizen based
satisfaction on
management records. Article 40 also indicates that promotion shouldbe
t ice delivery, citizen
syonse, satisfaction on major public policies, telephone
based onperformance appraisal and other forms of
evaluation.
ities knowledge management deregulation, etc.), and/or job-related
Civil Service was originally promulgated in
(competency, ethical integrity, etc.).
Act times since then, Detailed issues o s system evaluates a manager's performance relevant to the
and National
The it has been revised several
performance appraisal are written in the performance appras lomano agreement', and then the results can be applied to
in
passed
was originally Decree on ANORnel
decree. The performance appraisal decree The current Nandlor management including the provision of performance-related
Anding promotion. The nature
times. was
1961 and it has been renamed Several and Related
Matters
of the performance agreement varies
upon the
Civil Servant Performance Appraisals
responsible
expanded in for
[Link] the central
or revising.
Currently,
personnel
public personnel po
authority is
idual ly y-specific
anisaional
type and task
goals Inperformance
of the ministry. This is
agiven organisation. For example, based on an
the policy-
kiled agreement along with strategic
including performance appraisal systems. INery-depar
relatedtmdepartments
ents have more
have
qualitative targets, while the service
more quantitative targets.
 (Module 5) 165
164 in International Context
MBA Fourth Management

Second, a general performance appraisal Semester (Global Artormance

PMS in UK
servants below grade 5 and equivalent system is
grade levels. applied
HRM Management System (PMS) has a long history in United
is conducted by superiors to their followed in most the organisations in UK.
S 2 . 5 .

subordinates This form of PMS is

Rertomance

individual performance. The

typical
to
evaluate evalhis uain Some
PMSs in the United Kingdom are'mature', with the
performance approråsabe
Kingdom.

system is based on a check list or rating to Sparrow, the country's socioeconomic, political., and
scale that could to changes in
A c c o r d i n g

key features of PMS followed in UK:

adjust
two major areas: be to Here are
some of the
1)Job performance in major based agal ability
Develöpmental aspect of the performance management is more
pertormance goals or major taske
settings.

of job difficulties, completeness, compared to the PMS

in US
2) Job-fulfilling abilities (core and timeliness: and l eL in UK as is constantly emphasised.
competencies such as Planni Cost effectiveness
oritical
communication, cooperative team work, execution, innovaio PMSs must be able to
talent management,"
wh the new focus on individuals.
customer-orientation, etc. (these items can be 3) recognise and reward "high talent"
job nature of each agency). differentiated by te focus on total rewards management, which
There is a renewed
has
4) creation of performance management systems
resulted in the
In addition, job-performing attitude can also be selected individual achievement in both
(PMSS) that analyse and reward
criterion, but most government agencies do not includeas itan dueevaluattoion non-monetary categories.
monetary and prejudice, and
possibility of making potential evaluation erors. However,
concerns like as work-life balance, rater
5) addressed.
diversity must continue to be
The result of each individual's performance appraisal could be used fr
various public personnel management purposes including promoia 52.6. PMS in USA
compensation, capacity building (raining and cducain), grding to Pulakos et al., in their comprehensive sumnaryoPM
placement. Each person should be inforned of his or her intiviáate wast of USA and its specificand
individualistic culture has signiticantly
performance management practices
appraisal result and there is an appeals process if someone is dissatisid affect the working environment
with the outcome. in USA. Individual performance, responsibility, and performance
incentives are thus essential components of the performance
a certain degree of autonomy in terms of selectins related practically every type and size of
Each agency has designedAgement process. Given that
performance appraisal is the authors suggest that
appraisal items and the individual elements and scores b p a n y operates in the United
States,
to decide the American system is impossible.
to allow each ministry Identifying aparticular PMS as the
depending upon the nature ot i 1owever, an review of PMSS in the United States reveals certain
considering the details of each case
distinct themes as follows:
job of each agency.
performance ) MSs are widely utilised for administrative objectives, such as
managemen

form ofte minimal

Poviding merit raises and guiding promotion choices, with
"organisational-level"
In addition, there is an the
and public bodies in
system in the Korean
government assessael
Usage of PMSs for developmental purposes.
management

performance evaluation
the
or'organisational performunt 2) There is a significant emphasis on results; hence, showing the
organisational ha
The term
govermments,

for public organisations. and local tequired behaviours or attributes willnot suffice.
3) The legal system is well-versed in organisational difficulties, and
Performact
central
evaluation,' specifically targeting
the Basic Act on
Government
a generd conducted
there have beeen several reports of individuals filing legal challenges
officially been in use since Office
the Cabinet 3ainst judgments related to performance.
Evaluation in 2001, when 9 The
Se of technology in PMSs is continuing to be emphasised,
government organisations. pertor
evaluation on a general
ince

evaluation
is which
govermnen
S) allowing for quick access to and exchange of performance data.
The organisational
performance performance,
PMSS continue to a poor level of acceptance and trust,
with
evaluation system of
o r g a n i s a t i o n a l - l e v e

local
l

institutes,
governments ,
both managers andhave
employees expressing unhappiness with the
evaluation of central
government,
research
process and its
the goovernment-supported
consequences.
invested enterprises,
executive agencies.