High performance work systems
— Linked
to all areas of HRM
— Systems
Focus
— Universalist
versus Contingency Configurations
— Benefits
¡ Improved
efficiency
¡ Cost
reduction
¡ Cooperation
¡ Communication
¡ Retention
— Evidence:
HPWS more effective than individual measures (see textbook)
— Transferability
and Measurement
Criticisms of HPWS
— Argued
to be based on a US model
— Impact
of culture, NBS etc.
— Questions
over claims to ‘mutuality’
¡ Work
intensification
¡ Control
¡ Peer
pressure
¡ Redundancy
¡ Deskilling
Global PM
— USA
— UK
— China
— India
— Expatriate Performance Appraisal
USA
— Individualistic
Culture
— Focus
on administrative processes rather than development
— Results
orientation
— Legalistic
– linked to strong legal framework
— General
lack of acceptance of PA
UK
— Developmental
orientation (to a degree)
— Issues
of cost/benefit
— Focus
on highly skilled and talented employees
— Increasing
relationship between performance and
reward
— Problems
with bias and WLB
China
— Collectivist
— Growing
since 1980s
— Issues
of ‘face’, harmony and hierarchy
— Group
orientation
— Behavioural
focus
— Formal
yet subjective
India
— Impact
of MNCs
— Shift
from collectivist to individualist orientation
— Link
to reward
— Possible
bias due to paternalism
— Diversity
Example
Performance Management at Shenhua Guohua Electric Power
Gong Yaping and Yang Weiguo (2012)
Hayton et al Global Human Resource Management Casebook
Background
— State
owned
— Formerly
Huaneng Fine Coal Co. Ltd.
— Restructuring
of power industry led to merger and creation of the new company
— Redundancy
and retirement costs
— Despite
reforms – no link between individual contribution and wages
— Profitable,
but no means of distinguishing between good and poor performance
— Poor
motivation
Performance Management
— Performance
system based on KPI’s and compensation management
— Annual
business goals and objectives – devolved to subsidiaries
— Divide
into monthly and departmental objectives
— Departmental
performance index defined by PM committee
— Further
division into teams and individuals
— Peer
comparison basis of promotion
— Middle
managers evaluated in relation to departmental performance
Organization of PM
— Leadership
team – senior managers
¡ Develop
performance objectives, reviews, reports, compensation plans
— Appraisal
team – functional leaders
¡ Organize performance evaluation, submit performance
reports to leadership team, implement improvement targets
— Appraisal
of plants and subsidiaries
— Individual
and departmental evaluation within plants
Forced Normal Distribution
— Law
of the vital few’
— S:
Excellent
— A:
Good
— B:
Satisfactory
— C:
Need to improve
— C
classification subject to discussion of improvement opportunities
Compensation System
— Executive
compensation
¡ Annual
fixed salary plus performance-based rewards and long-term incentives
¡ Linked
to economic results of the business
¡ Salary
system linked to plant size and staffing, safety, profitability, productivity, contribution to capita
¡ Designed to encourage achievement of
operational objectives
¡ Increased weight of variable
component based on performance
¡ Expanded pay differentials between
key and general positions
Appraising the Expatriates Performance
— Host
National Management’s Perceptions of Actual Job Performance
¡ Local
managers’ cultural frame of reference
¡ i.e.
American expatriate manager used a
participative decision-making style in India. Was viewed as incompetent by
local workers
¡ Indian
managers viewed as the experts
¡ Issues
of class
¡ Negative
local appraisal led to denial of promotion on return because local managers
appraisal seen as most accurate
— Home
Office Management’s Perceptions of Actual Job Performance
¡ Geographic
distance can lead to lack of awareness
¡ Use
different set of performance criteria
¡ I.e.
US manager averted a strike in Chile. However, only concern for home managers
was profit.
¡ Profit
erroded due to exchange rates
¡ Manager
viewed as mediocre
¡ Headquarters
often fail to understand situation of expatriates
— Management
ethnocentricity
— The
communication gap
— Lack
of international experience
¡ More
than 2/3 of upper management in corporation lack international experience
— Actual
job performance
¡ Technical
know-how
Adjustment to new culture
This overview offers a comprehensive analysis of how performance management varies globally. The case of Shenhua Guohua Electric Power and the insights into cultural influence are especially enlightening. It shows how success in global HR management depends on adapting to local contexts while maintaining global standards—much like nurturing indoor plants in Dubai, where the right care and environment determine growth and sustainability. The section on expatriate performance appraisal also underscores the need for cultural awareness and strong communication across borders.
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