ABSTRACT
Managing employee performance is always a big and challenging task. For companies doing business internationally, however, the difficulty is compounded by having employees scattered all around the world. In part, this is because many of these employees embrace different cultural values and localized practices for performance management. Performance evaluation is more costly, complex, and time-consuming for those who manage an international workforce— in some cases by a significant margin. This chapter summarizes the benefits and drawbacks associated with home- and host-country professionals who conduct performance evaluations of expatriates. At least three important features about the context of the assignment should be kept in mind when evaluating expatriate performance: the environment in which the job is done, the task or tasks themselves, and the personal characteristics of the expatriate. Once evaluated, compensation/rewards are often doled out. Several methods of compensation exist, including the ad hoc and localization approaches. The balance sheet method remains the most popular.
