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Presented by:

Tat on Lo

Caroline Wong

Ki Ming Chan

Victor Le

Byron Maldonado

Performance Appraisal of

International Employees

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Todays Content

Tat On -- Introduce the topic and explain the importance of the topic toIHRM.

Caroline -- Present the theoretical framework and existing HRM andIHRM concepts and systems.

Ki Ming -- Present a full profile of the target country and show howdifferent the cultures are between U.S. and China.

Victor -- Present on the practical issues and IHRM questions dealing withChina and U.S.

Byron -- Present the research findings and results of data analysis andexplain how it is linked to what we have studied through the course andconclude our presentation and provide suggestions for the class.

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Why Appraise Performance

Periodic evaluation helps mangers to have a better understandingof each employee's skills with the goal to facilitate, train anddevelop abilities and power to their employees

A chase to assess job development, encourage interest andenhance job performance by pointing out the development andrecognizing productive work

A feedback system that might otherwise be overlooked

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Importance of IHRM

Increased focus on internationalcompanies and on the human resourceissues, functions, policies and practices

that result from the strategic activitiesof these

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HRM in China

HRM not considered strategicallyimportant in their globalization process.

Globalization increasing more attentiongiven towards subject.

Shortage of experienced HR Managers inChina or HRM materials in Chinese.

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Performance Appraisal

performance appraisal, if it is to succeed,

required listening, giving and receivingfeedback, and counseling and dealing with

emotions. Ironically, although smoothinterpersonal relations are emphasized inthe Chinese culture they tend to be

reluctant to pursue two-waycommunications or provide counseling.

(International Journal of Manpower)

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Cultural Issues

HofstedePower Distance

Harmony

Saving Face

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Comparison

Reward system USA: A wide variety of rewards are used in the

incentive system.

PRC Range of wage and salary is narrow; bonus isnot based on individual performance; pay is moremotivating than in the USA.

Performance appraisal USA: Two-way communication and counseling are

widely used in the performance appraisal process. PRC: Superiors have absolute authority to evaluate

subordinates; standards of performance are vagueand generic.

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Participative management

USA: Participative management is welcome andencouraged, even if it is not prevalent yet.

PRC: Collective leadership is widely used but theparticipation of workers in major decisions issuperficial and symbolic.

(International Journal of Manpower)

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Employee Characteristicsin China

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ChinaGeographic Location

Eastern Asia,

bordering the East

China Sea, KoreaBay, Yellow Sea,

and South China

Sea, betweenNorth Korea and

Vietnam.

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Overview of Chinese Labor

About 800 million Labor

Force (2004)

Agriculture 50%

Industry 22% Services 28%

Unemployment rate: 12%

(2004)

Average working hours 10-12 hours/day

6 days/week

50%

22%

28%

Agriculture Industry Services

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Chinese workers Characteristics

Focus on moralistic duty

Maslows Hierarchy of Needs:

External Rewards

Physiological Needs

Internalized Motivation

Self-actualization needs

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Example of External Rewards

Material: incentives use to stimulate performance

Money: a motivator for employees

Bonuses: exist in China since 1978

Pay system: individual performance

Culture: strongly collectivist culture

Pay differentials: based in length of service

Wage structures: subsidies, bonuses & allowances

Performance: short-term, loyalty

Belongingness: long-term

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Example of Internalized motivation

Political Campaigning

emulation campaigns

in communist China

labor heroes: Tiananmen Square

Japanese Companies in China

Chinese employees: send to Japan

learn and expose a foreign culture.

Build on a sense of belongingness & loyalty

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Practical Issues In IHRM

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East Meets West

Different does not equal wrong

Must adapt to culture change

Flag-planting does not always work

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U.S. Management

Individualism

Low power distance

Self-actualization needs

Short-term view

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Chinese Management

Collectivism

Silent Achievers

Need for Affiliation

Need for Status

High power distance

Long-term view

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Example

Less motivated when Individualperformance and short-term goal isemphasized.

Would actually purposely slide back intothe group where he/she feels comfortable

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Chinese Motivation Hierarchy

Social acceptance

Work ethics and life goal priority

Safety within group harmony and family support

Social awareness

Self actualization to the service of collectivity

Social altruism

Leader fitness for multi-dimensional development

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Future Outlook

South China Morning Post (Hong Kong)

And the survey says: The long term outlook for ChinasHR problem is bright but the short term is pessimistic.

I have come the the conclusion that you can becomerapidly obsolete as a China expert.

- Rick A. Swaak

Senior ConsultantFrank E. Allen & Associates

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Guanxi

Relationships Chinese practice of developing and nurturing intricate

networks of personal relationships, sometimes givingthem priority over bottom-line performance.

Makes hiring of Chinese nationals difficult

Struggle with Western Practices Instead of an emphasis on process and integration

across the business, for example, they are moreaccustomed to compartmentalization and diligentadherence to taking orders from above

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Steps Toward a Solution

Whilst the local manager is more cost effective thanan expatriate, the western manager is perceived tobe a more sophisticated and efficient businessmanwith solid proven international business know-

how. Fiducia Management ConsultingBeijing, Shanghai, Hong Kong

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Steps Toward a Solution

China adopts IPMA-HR certificationprogram IPMA-HR: International Public Managers

Association for Human Recourses.

Chinese Training CenterSAFEA: State Administration of Foreign Expert

Affairs

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Motorola

In the early 1980s Motorola was asked Will you provide us with a place to live?

Apartments were built and loans offered

Free multi-course lunches Free transportation to work

Special training for new hires

37% of Chinese students earn engineeringdegrees compared to 6% in the U.S. Lack of emphasis on Management

Motorola University in Beijing

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Motorola

When I was there(in the late 1990s) I hired a guyfrom a Chinese university and I tripled the pay hewas gettingnow that made him very happy.

Greg Wang- former Human RecoursesManager, Associate Director of the WorkforceDevelopment Campus, James Madison University