Proposing Processes of

Global Performance Management:

An Analysis of the Literature
Peter J. Dowling, La Trobe University, Australia
Allen D. Engle, Sr., Eastern Kentucky University, USA
Marion Festing, ESCP-Europe, Berlin, Germany
Cordula Barzantny, Groupe ESC Toulouse Business School, France

IFSAM 2010, Paris Track G7 International Management
Introduction
Ongoing and growing interest in Global Performance Management:

Macro Demand
Global economic discontinuities
Consolidating labour markets
Talent translated into MNE competitiveness

Micro Demand
Sophisticated global strategies
Mature markets
Results and accountability focii

Supply
Technical developments in global decision support systems
Global internet platforms
Individual level information and access

Three sources of GPM literature:
Expatriate
Cross cultural and comparative
Strategic international human resource

Introduction
The proposed GPM model

Captures various research streams (broad)
Has a thorough analytical template (systematic)
Leads to faster identification of patterns
in empirical research
Determines areas that lack
oempirical evidence
orobust conceptual approaches
Introduction
Introduction
Overview of this presentation:
Review of 3 approaches to performance
management


Recent empirical and conceptual literature
is mapped to the 4 stages

Concluding observations and suggestions
for further research
Review
A 4-stage GPM model
Concluding observations and suggestions
Processes and systems
French (1982) distinguishes between:

Human processes such as social comparison,
envy, the definition and value of fairness,
interest in stability or achievement at work

Organizational systems HR systems
designed to harness and direct these
processes toward organizationally relevant
ends
Review
Processes and systems
Applied to GPM:
What human processes must a GPM model be
able to accommodate?
Imagery of the airliner
More sophisticated, complete and firm-
specific set of design parameters
GPM systems designed and operated across
diverse process locations
Review
Processes and systems
Silvermans five stage model (1989):

Preface - Issues/elements, forms, focus (traits, behaviors,
results), actors, conflict resolution

1. Clarify employees major responsibilities
2. Develop performance standards
3. Give periodic feedback
4. Diagnose and coach
5. Review overall performance
Review
Processes and systems
Cascios (2006) three part process:

Define performance focus on goals, measures
and assessment

Facilitate performance eliminate roadblocks,
provide resources, select employees capable of
success in the position

Encourage performance sufficient rewards, a
connection between performance and rewards,
an assurance of voice and fairness

Review
Processes and systems
Cascios seven key issues:

1. Systems objective
2. Actors (assessors and assessed)
3. Assessors authority
4. Roles and leadership of the process (style)
5. Frequency of formal meetings
6. Form of feedback (critical/supportive, direct/oblique)
7. Form of praise and motivation (money, loyalty,
promotion)
Review
Processes and systems
Caligiuris (2006) strategic linkages:

Strategic context:
Global, multidomestic and transnational strategies


Assignment context:
Technical assignments
(low developmental intent/low cultural sensitivity needs)

Developmental assignments
(High developmental intent/unknown cultural sensitivity needs)

Strategic assignments
(high development intent/high cultural sensitivity needs)

Functional assignments
(low developmental goals/high cultural sensitivity requirements)

Review
Processes and systems
Caligiuris (2006) challenges:

1. Select performance constructs

2. Create conceptual equivalence
for performance dimensions

3. Determine performance measurement method
Review
Processes and systems
Caligiuris (2006) methods:
How explicit & objective, vs. open & informal
Who appropriateness of
supervisors, peers, subordinates

Conceptual equivalence (challenge 2) as bridge
between globally standardized performance
constructs (challenge 1) and locally tailored
methods and training (challenge 3)

Review
Proposing a 4-stage process model of GPM
1: GPM systems context
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2: GPM systems design
3: GPM systems operation
4: GPM systems evaluation
Systems
Context
Systems
Design
Systems
Operations
Systems
Evaluation
Macro strategy
Strategic interest:
- multidomestic
- global
- transnational
Heritage Origin
Scope of the system
Actors
Roles
Information sources
Purpose of the system
Development, rewards
Clarify major
responsibilities
Develop performance
standards
Select performance
constructs
Create
conceptual equivalence
Determine method of
measurement
Decide how to assess
Define measures
Define performance
Give
periodic feedback

Dialogue & coach

Facilitate
performance:
Eliminate
roadblocks
Provide resources,
ongoing basis

Evaluate individual
formal
performance:
- Review overall
performance
- Encourage
performance

Aggregate unit
performance
profiles

Evaluate
- Validity
- Acceptance
of the GPM system
in process
(Reaction)
Design parameters >>
Frequency
Formalization
Feedback capability
Explicit Implicit
Focus:
- traits
- behaviors
- outcomes
Train systems users >>
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Stage 1: Systems context
Strategic intent
Heritage- origins
Scope of system
Design parameters (moving to systems design
stage)
Frequency of formal feedback
Formalized vs. normative emphasis
Actor feedback capabilities
Explicit/implicit, quantitative/qualitative, additive vs.
gestalt
Focus on traits, behaviors and/or outcomes

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Stage 2: Systems design
Clarifying major responsibilities
Developing performance standards
Selecting performance constructs
Creating conceptual equivalence
Determining measurement methods
Methods to assess
Defining performance
Training systems users (moving into systems
operations stage)

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Stage 3: Systems operation
Giving periodic feedback
Dialog and coach
Facilitate performance
Eliminate roadblocks
Provide resources on an ongoing basis

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Stage 4: Systems evaluation
Individual formal performance meeting
Review overall performance
Encourage performance
Aggregated unit performance profiles
Evaluation of the validity and acceptance of the
GPM system-in-process (reaction)

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Concluding observations & recommendations
Granted a U.S. bias, the framework can be adjusted as warranted by
empirical results
cultural context warrants
A call for mechanisms (journals, academic institutes, interest groups
in academic associations, etc.) to track developments in this area

Search for systematic cross cultural patterns in the degree of
divergence between system
as envisioned in earlier stages

as opposed to

used in/by the local social process at later stages in the model
(Bjorkman et al., 2009)
Examples of empirical research were found
associated with every area of the 4-stage GPM
model, but remarkably little empirical
research found on how MNEs evaluate and
use the results of GPM for their various
potential purposes (stage four and how stage
four issues loop back into stage one)
Concluding observations & recommendations
Design GPM for robust use over a variety of
potential operating conditions
Design GPM:
Realize it will operate as a system in a variety
of potentially very different social process
contexts around the world
Return to aircraft imagery
Concluding observations & recommendations
Thank you for your attention

Comments or questions?
IFSAM 2010, Paris Track G7 International Management
Concluding observations & recommendations