Expatriate Performance Management and its Effect on Work Adjustment
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School of Business |
Master's thesis
Ask about the availability of the thesis by sending email to the Aalto University Learning Centre oppimiskeskus@aalto.fi
Authors
Date
2016
Department
Major/Subject
Mcode
Degree programme
Management and International Business (MIB)
Language
en
Pages
93
Series
Abstract
In this master’s thesis expatriate performance management and its effect on work adjustment is investigated. The aim was to find how expatriate performance management activities should be designed so that they best support work adjustment. As expatriates are an important human resource for MNCs, their adjustment to the new roles and responsibilities is considered to be critical. This research focuses on Finnish expatriates and their adjustment, therefore the results are discussed with the cultural framework to provide a culture-specific explanation for the issue. The thesis considers three main performance management activities, namely goal setting, performance appraisal and training, and relates these to work adjustment. This thesis followed qualitative research design. This was seen to be the most appropriate as the study focuses on expatriates and their own perceptions of adjustment. In total eight semi-structured interviews were conducted with Finnish expatriates working around the world. Due to a long distance between the researcher and participants, interviews were decided to be conducted via Skype and e-mail. The data were analysed based on thematic analysis, and Atlas.ti was used to provide more in-depth analysis. The results show that expatriates overall consider their performance management to be too narrow. Organisational support is limited, and expatriates wish the MNCs to take into consideration the unique characteristics of their assignments. This leads to a need for tailored and modified expatriate performance management elements. Moreover, continuous feedback and communication between headquarters and subsidiaries are highlighted. The most common challenges faced by expatriates include different organisational culture, language barriers and organisation of practical issues. These are also challenges for which expatriates wish organisational support and help. Based on the results found in this thesis, MNCs should pay attention to tailored EPM activities. For instance, goals and performance appraisal should include different types of criteria so that the fairness of the system can be increased. Moreover, expatriates value both pre-departure and post-arrival training, therefore for example language courses and cross-cultural training activities should be provided. Finally, organisational support should be provided especially in the beginning of the assignment as this has an impact on feelings of isolation and on the length of the time required to adjust.Description
Thesis advisor
Koveshnikov, AlexeiKeywords
expatriate, expatriate performance management, work adjustment, MNC