GRP 7 PerformanceAppraisal.ppt
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Transcript of GRP 7 PerformanceAppraisal.ppt
Presented by:Presented by:
Ka Wai LiKa Wai Li
Phillip GongPhillip Gong
Ethan HungEthan Hung
Lawrence HuangLawrence Huang
Joanna ChanJoanna Chan
Performance Performance Appraisal of Appraisal of
International International Employees Employees
Today’s AgendaToday’s Agenda Background of performance appraisalBackground of performance appraisal IHRM Vs HRMIHRM Vs HRM Employee characteristics in the United Stated Employee characteristics in the United Stated
and Chinaand China Two types of motivation theories in the U.STwo types of motivation theories in the U.S External Rewards and Internalized motivation in External Rewards and Internalized motivation in
ChinaChina US performance appraisal systemUS performance appraisal system Chinese views of performanceChinese views of performance Research FindingsResearch Findings Recommendations and conclusionRecommendations and conclusion
What is Performance What is Performance AppraisalAppraisal
A communication instrument aimed to A communication instrument aimed to evaluate each individual's contributionevaluate each individual's contribution
To determine ability and achievement To determine ability and achievement with reasonable accuracy and consistency with reasonable accuracy and consistency
To help identify obstacles to top To help identify obstacles to top performance performance
Why Appraise Why Appraise PerformancePerformance
Episodic evaluation helps supervisors acquire a Episodic evaluation helps supervisors acquire a better understanding of each employee's skills better understanding of each employee's skills with the goal to facilitate train and develop with the goal to facilitate train and develop abilities and potencyabilities and potency
A opportunity to assess job progress, encourage A opportunity to assess job progress, encourage interest and improve job performance by pointing out interest and improve job performance by pointing out areas of development and by recognizing productive areas of development and by recognizing productive workwork
A feedback system that might otherwise be overlooked A feedback system that might otherwise be overlooked
IHRM Vs HRMIHRM Vs HRMIHRM has three dimensions:IHRM has three dimensions:
The broad human resource activities of The broad human resource activities of procurement, allocation and utilizationprocurement, allocation and utilization
The national or country categories The national or country categories involved in IHRM activitiesinvolved in IHRM activities
The three categories of employees of an The three categories of employees of an international firminternational firm
IHRM Vs HRMIHRM Vs HRM
HRM has six activities:HRM has six activities:
Human resource planningHuman resource planning Staffing Staffing Performance ManagementPerformance Management Training and DevelopmentTraining and Development Compensation and BenefitsCompensation and Benefits Industrial RelationsIndustrial Relations
Differences between Differences between domestic and IHRMdomestic and IHRM
More HR activitiesMore HR activities The need for a broader perspectiveThe need for a broader perspective More involvement in employees’ More involvement in employees’ personal livespersonal lives Changes in emphasis as the Changes in emphasis as the workforce mix of workforce mix of expatriates and locals variesexpatriates and locals varies Risk exposureRisk exposure Broader external influences Broader external influences
Employee Characteristics in Employee Characteristics in United Stated and ChinaUnited Stated and China
Geographic LocationGeographic Location
North America, North America, bordering both bordering both North Atlantic North Atlantic Ocean and Ocean and North Pacific North Pacific Ocean, Ocean, between between Canada and Canada and Mexico Mexico
Overview of United Stated Overview of United Stated LaborLabor
146 million Labor 146 million Labor Force (2003)Force (2003) Agriculture: 1.4% Agriculture: 1.4% Industry: 26.2% Industry: 26.2% Services: 72.5%Services: 72.5%
Unemployment rate: Unemployment rate: 6% (2003)6% (2003)
Average working Average working hourshours 8 hours/day8 hours/day 5 days/week5 days/week
Agriculture1%
Industry26%
Services73%
Two Type of Motivation Two Type of Motivation TheoriesTheories
Content TheoriesContent Theories Focus on “what,” identifying the factors Focus on “what,” identifying the factors
that cause people to put effort into workthat cause people to put effort into work
Process TheoriesProcess Theories Concern on “how,” the steps an Concern on “how,” the steps an
individual takes in putting forth effortindividual takes in putting forth effort
Example:Example:
Culture withCulture with low Uncertaintylow Uncertainty Avoidance in the Avoidance in the United StatesUnited States
Working Styles - Lesser rules
-Lesser formalities
-More flexible
-More acting on changes
How related?How related?
US valuesUS values FreedomFreedom IndividualIndividual Not a great emphasis on Not a great emphasis on
historyhistory EqualityEquality
US Working attitudesUS Working attitudes Freely give opinionsFreely give opinions Competition is Competition is
encouragedencouraged Present-oriented Present-oriented
cultureculture Having the equal rights Having the equal rights
in the workplacein the workplace
Maslow’s Hierarchy of Maslow’s Hierarchy of NeedsNeeds
Physiological needsPhysiological needs Safety and Security needsSafety and Security needs Affiliation needsAffiliation needs Esteem NeedsEsteem Needs Self-actualizationSelf-actualization
What do we need?
Common BenefitsCommon Benefits Fair working conditionsFair working conditions
private working areaprivate working area clean and warm environmentclean and warm environment
Cafeteria PlanCafeteria Plan Cash (taxable). E.g. Cash (taxable). E.g. dividends dividends Healthcare planHealthcare plan Group term life insuranceGroup term life insurance Disability insurance and accidental death and Disability insurance and accidental death and
dismemberment insurancedismemberment insurance Elective contributions to Elective contributions to 401K401K plan. plan. Elective paid vacation/sick leaves. Elective paid vacation/sick leaves.
How to motivate employees How to motivate employees more effectively?more effectively?
Praising their worksPraising their works Internal job promotionInternal job promotion
Fulfilling their affiliation needsFulfilling their affiliation needs Incentive TravelIncentive Travel Company Parties/ActivitiesCompany Parties/Activities
Geographic Geographic LocationLocation
Eastern Asia, Eastern Asia, bordering the bordering the East China East China Sea, Korea Sea, Korea Bay, Yellow Bay, Yellow Sea, and Sea, and South China South China Sea, between Sea, between North Korea North Korea and Vietnam.and Vietnam.
Overview of Chinese LaborOverview of Chinese Labor
778 million Labor 778 million Labor Force (2003)Force (2003) Agriculture 50%Agriculture 50% Industry 22%Industry 22% Services 28% Services 28%
Unemployment rate: Unemployment rate: 10% (2003)10% (2003)
Average working Average working hourshours 10 hours/day10 hours/day 6 days/week6 days/week
Industry22%
Services28%
Agriculture
50%
Chinese workers Chinese workers CharacteristicsCharacteristics
Focus on moralisticFocus on moralistic Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs
External RewardsExternal Rewards Physiological Needs Physiological Needs
Internalized MotivationInternalized Motivation Self-actualization needsSelf-actualization needs
Example of “External Example of “External Rewards” Rewards”
Material incentives use to stimulate performanceMaterial incentives use to stimulate performance Money as a motivator for employeesMoney as a motivator for employees Bonuses have exist in China since 1978Bonuses have exist in China since 1978 Pay system is based on individual performancePay system is based on individual performance Reflect a strongly collectivist cultureReflect a strongly collectivist culture Pay differentials based in length of servicePay differentials based in length of service Wage structures based on subsidies, bonuses & Wage structures based on subsidies, bonuses &
allowancesallowances Performance is short-term, loyalty & belongingness Performance is short-term, loyalty & belongingness
are long-termare long-term
Example of “Internalized Example of “Internalized motivation” motivation”
Political CampaigningPolitical Campaigning Emulation CampaignEmulation Campaign Tiananmen Square in 1989Tiananmen Square in 1989
Japanese Companies in ChinaJapanese Companies in China Send Chinese employees to Japan to learn in order Send Chinese employees to Japan to learn in order
to expose a foreign culture.to expose a foreign culture. Build on a sense of belongingness & loyaltyBuild on a sense of belongingness & loyalty
Difficulties for Difficulties for Managers Managers
Definition of Performance varies in Definition of Performance varies in different culturedifferent culture
No cross-cultural studies concentrate No cross-cultural studies concentrate on performance appraisalon performance appraisal
How is performance defined How is performance defined Why is performance evaluatedWhy is performance evaluated How is it measuredHow is it measured
Perspectives on Perspectives on Performance AppraisalPerformance Appraisal
Tool of organizational controlTool of organizational control
Cognitive aspects of managers’ Cognitive aspects of managers’ evaluation of performanceevaluation of performance
US Performance US Performance Appraisal SystemAppraisal System
To build up employee performance To build up employee performance planplan
Discuss performance plan Discuss performance plan EvaluatingEvaluating RewardingRewarding Provide assistant Provide assistant Repositioning or removingRepositioning or removing Identifying Identifying
American Views of American Views of PerformancePerformance
Objective: To help achieve Objective: To help achieve organizational objectivesorganizational objectives
Productivity and QualityProductivity and Quality AchievementAchievement
Individual, group or organizational Individual, group or organizational objectivesobjectives
““rate the performance, not the rate the performance, not the person”person” Concentrate upon performance itemsConcentrate upon performance items
Chinese views of Chinese views of PerformancePerformance
Objectives: Maintain family control Objectives: Maintain family control of businessof business Performance appraisals favor workers Performance appraisals favor workers
that are loyal to the familythat are loyal to the family
Emphasis upon “moral” Emphasis upon “moral” characteristicscharacteristics
Characteristics that affect Characteristics that affect Chinese Performance Chinese Performance
appraisal appraisal FatalismFatalism
Adapting oneself to the worldAdapting oneself to the world ConfucianismConfucianism
Moral character is the most importantMoral character is the most important FaceFace
Blame external factors to keep the faceBlame external factors to keep the face
Research FindingsResearch Findings
Survey by HR consulting firm Survey by HR consulting firm Development Dimensions Development Dimensions International (DDI)International (DDI)
ParticipantsParticipants Local Chinese and foreign invested Local Chinese and foreign invested
companiescompanies
ResultsResults
95.8% use a company-sanctioned 95.8% use a company-sanctioned performance management systemperformance management system
79.2% use the system for all employees 79.2% use the system for all employees and some of the organizationand some of the organization
12.6% use their performance 12.6% use their performance management system for only 60% or management system for only 60% or fewer of their employeesfewer of their employees
Results (cont’)Results (cont’)
Areas that are effective:Areas that are effective:
1.1. Structuring specific performance Structuring specific performance plansplans
2.2. Reviewing performance with Reviewing performance with employees at least once a yearemployees at least once a year
3.3. Linking performance to payLinking performance to pay
4.4. Holding supervisors accountableHolding supervisors accountable
Results (cont’)Results (cont’)
Areas that need improvement:Areas that need improvement:
1.1. Developing the skills of appraisersDeveloping the skills of appraisers
2.2. Evaluating performance in a fair Evaluating performance in a fair mannermanner
3.3. Reviewing approaches to differentiate Reviewing approaches to differentiate the performance of employeesthe performance of employees
4.4. Increasing employees’ involvement in Increasing employees’ involvement in the performance management the performance management processprocess
Recommendations and Recommendations and conclusionconclusion
Continual feedbackContinual feedback Communication skillsCommunication skills Equity, fairness, transparencyEquity, fairness, transparency Forward-looking approachForward-looking approach HR as overseerHR as overseer
Thank You!Thank You!