Performance Appraisal Research on Expatriates of Multinational Enterprises Case Analysis of Nokia
Hong Kong Baptist University
Performance Appraisal Research on Expatriates of Multinational Enterprises Introduction
Nowadays, the competition of global business practices is becoming more and more intense, thus having an effective expatriate management system is urgent for every multinational enterprise. In this project I mainly studied the importance and value of good performance appraisal of expatriate. To have a comprehensive understanding of the importance of generating good performance appraisal of expatriates for those multinational enterprises, I use Nokia as an example. Having good performance appraisal system of expatriates is crucial because sending expatriates has become an important coordinate and control mechanism of expanding business worldwide for multinational enterprises. Meanwhile, assigning tasks abroad is also a method to cultivate future leaders for the corporation (Morrison et al., 1992). To gain more profit from the investment of international human resource, the corporation should develop a better expatriate performance appraisal system to guarantee the strategic objectives can be achieved around the world. Research Findings
The Meaning of Expatriate Performance Appraisal
For multinational corporations, performance appraisal of expatriates helps achieve worldwide strategic goals and gain competition advantages. Meanwhile, the result of the appraisal not only supports every decision of expatriate management, i.e., promotion, payroll, dismissal, but also helps the recognition and cultivation of future leaders of the corporation (Mendenhall, 1985). For expatriates, performance appraisal helps them have a better understanding of the goals and expectations of the company. Through the result, it’s easy to identify the shortfalls in performance and the expatriates will improve and perfect their work with the motivation of the company. Moreover, performance appraisal can provide expatriates more opportunities for future career development since it’s a great method to improve expatriates’ working abilities and adaptive capacities. Case Analysis of Expatriates’ Performance Appraisal of Nokia Background information. Nokia Telecommunications is a Finland company providing telecommunication services. Nokia obtains 15-years experience of expatriate management and it has the largest number of expatriates than any other Finland companies (about 1200 people). Nokia has already established a standardized global performance management system, so it means the company evaluates its employees based on some similar standards. But some performance appraisal practices are implemented differently from the standard, especially on the condition that Nokia separates its expatriates into 5 segments. The 5 segments are assigned by the nature of the job, including: top management, middle management, business establisher, operational staff and research staff (Kloeg, 2007). The same method of performance management for these five types of people is helping them understand the expectation of the company and the opportunity of working abroad can cultivate new skills for their future career path. However, there are also distinctive differences between the performance management of these 5 segments and the differences can be concluded in 3 aspects. First, whether performance goals should be set, how to set and set by whom. Second, how to and who should appraise the performance of the expatriates. Third, what is the relationship between the performance and salary of expatriates (Meriden, 2001)? The features of expatriate performance appraisal of 5 segments in Nokia Top management. Goals setting: most people of the top management set their own goals, they made important decisions together with the boss and then they set more specific goals for the...
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