People Management: Challenges, Theories, and Implementation in Globals

This report delves into the multifaceted challenges that global organizations encounter in managing their workforce, particularly in the realm of performance management. It identifies key issues such as environmental and time variations, cultural adjustments, host environment factors, rater bias, and the validity of performance criteria. The report then explores how various leadership, motivation, and change management theories can be effectively applied to address these challenges. It highlights the relevance of contingency and transactional leadership theories, Herzberg's two-factor theory and Vroom's expectancy theory of motivation, and Lewin's and Kotter's models of change management. By applying these theories, the report suggests that global organizations can mitigate performance management challenges, foster employee motivation, and enhance overall operational effectiveness. The report emphasizes the importance of adapting strategies to address the unique circumstances of diverse global environments, promoting fair and unbiased employee appraisals, and encouraging positive cultural adjustments.

people management
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Introduction
The main objective of the international strategy must be to manage the great differences which
might occur at the borders of the markets. The executives do not succeed in order to explore the
market and the discrepancies of the production; they mainly focus on the functions among the
localization and the standardization. The global organizations face such challenges because of
the inappropriate program of the performance management. Further, managing the global
organizations has become the biggest challenge for the companies in order to expand their
operations and achieve the sustainable competitive advantage by maximizing the profitability
and improve the image of the brand. Moreover, the assignment will discuss the various
challenges which are being faced by the organizations in operating the performance management
program. Then the various theories will be given to leadership, change management, etc. along
with the effective implementation in the international context. Further, the ethical and
professional approach to the organizations will be encouraged.
The Challenges faced by Global Organizations
Below are the major challenges which the global organizations are facing in operating the
program of the performance management across the operations of the company (Birkinshaw, J.
M., & Morrison, A. J. 2005).
 Environmental variations
The environmental variations persuade through the subsidiaries along with the distinct growth
rates of the performance of the employees, environment across the various subsidiaries that
might not be measured by utilizing the invariant scale and criteria of performance management
and the appraisal. Further, the factors of the environment became vibrant soon after the
globalization phase which established drift towards the corrosion of the national culture and also

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the formation of the culture globally, creation of WTO, European Union and its currency,
maximized mobility of the personnel, revolution of the information technology, outsourcing at
the larger scale, the strategy of the glocalization, etc. (Bradley, L. M., & Ashkanasy, N. M.
2001). Therefore, every country has different factors of the environment which somehow
impacts the businesses of the global organizations in order to operate effectively and maximize
the profitability by attracting a great number of customers and achieving a sustainable
competitive advantage. The variations in the environment are the biggest challenges for the
global organizations in order to operate the program of the performance management effectively
and efficiently.
 Distance and time variations
The performance of the various activities of the global companies is complex around the distance
and the distinct time zones among the subsidiaries and the parent country. The dimension of the
employee’s performance who are working in the global companies is very challenging in
comparison to the employees who are working in the domestic organizations because they have
an opportunity in order to interact with their colleagues directly whereas, the employees of the
global organizations have a restricted choice in order to do this. Further, the advanced
technology has helped in reducing the problems of interaction to a great extent who are working
in other countries like e-mails, video conferencing, etc. Therefore, the time and distance is the
greatest challenge for the global organizations in order to operate the program of the
performance management because it is very complicated to measure the performance of the
employees of the parent and the home country on the same criteria.
 Cultural adjustments

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Some of the employees are not able to adjust to the culture of the organization of the parent
country, and this impacts their performance adversely. And, even they are not able to adjust to
the culture of that country. The families of the employee suffer a lot because of the cultural
differences and further the pressure from the family influences the performance of the
employees. Most of the global organizations do not consider this fact while evaluating the
performance of the employees (Chiang, F. F., & Birtch, T. A. 2010). Further, it has been
observed that it is very complicated in order to measure the performance of the parent country
nationals and the home country nationals who are performing in the headquarters, also face
cultural problems while barreling with the foreign delegates. Therefore, the cultural adjustment is
one of the biggest challenges which the global organizations are facing in order to operate the
program of the performance management efficiently to motivate the employees so that they can
perform much better than before.
 Host environment
The internal environment such as the structure of the company of host country, the pattern of
the ownership influences the performance of the expatriates. The maximum ownership by the
PCN upon the joint venture enables the parent country national in order to work more
productively in the parent country. The employees are not able to adjust with the parent
company environment, and they are not able to give their 100 percent to the given task, and
as a result, their performance declines. Further, the cultural environment such as the cultural
and the social issues, economic and the political issues impacts the performance of the
employees. And if the employees don't get other facilities like medical, educational, etc. then
they are not able to do their work appropriately, and this makes difficult for the global
organizations in order to operate the program of the performance management effectively.

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 Rater’s bias
The issue through the subjective dimension have the highest chances for the bias. Further, it
includes the halo effect like the raters might have the tendency in order to rely excessively on the
rating of individual consideration of the behavior rather than carrying out the balanced
performance appraisal of the all the aspects of the behavior or traits of the employees. It also
includes the error of the central propensity, the rater uses the policy in order to rate the
employees at the rating scale mid -point in spite of the actual performance of the employees.
Further, personal prejudice, if the rater has personal issues with an individual or doesn’t like him
then he rate the employee at the lower end, and this might impact the employee's career
adversely (Cascio, F. W. 2003). Then the regency impact, the rater only remembers the negative
actions of the employee most of the time and avoids their overall performance in order to operate
the program of performance management effectively.
 Validity of performance criteria
The multinational companies use distinct criteria in order to manage the performance which
relies on the end contribution to the organization and some of these relies on the traits of the
employees. Earlier it included return on investment, productivity, profits, cash flows, etc. But
now it includes decisiveness, judgment, dynamism, initiative, etc. Further, the criteria might not
be coherent for local context of the subsidiary. Moreover, the social and the cultural
environment, the system of the economy and the set-up of the institutions, the structure of the
ideology of the politics that persuades the business and the manager’s performance which differs
from the home country to the parent country (Claus, L., & Briscoe, D. 2009). Further, the criteria
for the performance management which is coherent in the parent country might not be coherent
in the host country. Therefore, the global organizations face various issues in validating the

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criteria for performance in order to operate the program of the performance management
effectively.
Challenges can be addressed by evaluating various Theories
The challenges which the global organization faces in order to operate the program of
performance management adequately can be addressed and resolved by effectively using the
various theories in the international context. The theories are as follows (George et al., 2006):
 Theories of leadership
 Contingency theory: The global organizations can operate the program of the
performance management effectively by using the contingency theory of leadership. As it
has been observed that there are various variations in the environment and the employees,
react accordingly when they are working in parent country or the home country. And the
rater does not consider those factors of the variations. Further, if the global organizations
will follow this theory, then those variations can be taken into consideration because the
theory focuses on the specific variables which are in relation to the environment and this
will help in determining the leadership style which will be required in order to perform a
particular task. Therefore, this will help the global organizations to resolve the challenges
which they are facing in operating the program of performance management.
 Transactional theory: The global organization can successfully operate the performance
management program by using another theory of leadership i.e. transactional theory.
Further, by using this theory, the global organizations will be able to focus on the
supervision's role like whether the rater is measuring the performance of the employees
on the basis of bias and other factors or not. As a result, the employee will be able to get
their performance measured on the similar criteria, and this will help them to remain

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motivated. By using this theory, the global organizations will encourage in building a
positive relation among the rater and the employees without any bias, personal prejudice,
etc. Therefore, the global organizations will be able to operate the program of the
performance management appropriately, and the employees will be appraised fairly by
relying on the performance only. Also, the performance of the employees in the parent
country national and the home country national will be improved.
 Theories of motivation
 Herzberg's two-factor theory: The global organization should use this theory of
motivation in order to motivate the employees so that they get adjusted to the
environment of the parent country and improve their performance rather than getting
adversely impacted by the organizational culture and the environment of the parent
country. According to the two-factor theory, the attributes of the job are in relation to the
satisfaction which the employees get from the job. The objective of the theory is to
eradicate the factors which cause dissatisfaction and develop the various conditions
which will provide the job satisfaction. The global organizations should use this theory of
motivation in order to increase the morale of the employees, and as a result, their
performance will get improved whether they will work in the home country and the
parent country.
 Theory of Victor Vroom’s expectancy: The global organizations should use this theory
of motivation as this will help in developing a connection among the rewards and the
expected performance results of the employees. This motivational theory will be used
along with transactional theory of leadership. This theory will help the global
organizations in identifying that how much efforts they put in order to reach the desired

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outcome and while measuring the performance their attempt will not get wasted. Further,
this will encourage the employee to adjust to the culture and the environment of the
parent country, and this will also help in maximizing their productivity. Therefore, the
global organizations will be able to operate the program of the performance management
effectively.
 Theories of change management
 Lewin’s model of change: The global organizations should use this theory of change
management as the theory comprises of three stages i.e. unfreeze, change and the
refreeze. By using this theory, the global organizations will be able to learn how to expect
uncertainty as they have to barrel with the employees who works in the parent country.
The organizations will be able to accept the change which is required in order to operate
the program of performance management effectively. By using this theory, the global
organizations will be able to handle issues of the uncertainty, and they will be able to
resolve it, and also the global organizations will be able to find such ways which will
help the employees of the parent company to cope up with the issues which they are
facing. Moreover, the organization will learn that how to acknowledge the efforts of the
employees who positively adapts the variations in the environment.
 Kotter’s model of change: The global organizations should use this model of the change
management theory as this will help the organizations in order to take the immediate
actions to operate the program of performance management effectively. According to this
model, the organizations will be able to implement the actionable process of some steps.
The organizations will be able to create a sense of urgency in order to help the employees
who will discuss some issues while working in the parent country. The organizations will

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be able to create a transformed vision in order to help the employees in improving their
performance in the parent country. Moreover, the global organizations will be able to
incorporate the transformations into the culture in order to develop the connections
between the employees of the parent company and the changes which they face in the
culture of the organization and the country.
 Theories of managing diversity
 Institutional theory: The global organizations can use this theory of managing diversity
as this will help the organizations in order to determine the structure of the organization
which cannot be separated from the social environment. This theory will help the
employees who are working in the parent country in order to understand the culture of the
environment. Further, the employees will be able to improve their performance. The
organizations will make the employees comfortable in their companies so that they cope
up with the working environment and get adjusted to it. Further, if the organizations
follow this theory then there will be great interference of the government, and if the
company indulges in some false activities in relation to employees, then they will be
forced to answer the government as they will not be allowed to violate the law at any
cost.
 Resource-based theory: The global organizations should use this theory of managing
diversity as this will help the organizations in order to operate the program of the
performance management more appropriately. According to the theory, the global
organizations will be able to identify that the resources of the organizations impact the
performance of the employees who are working in the parent country. Moreover, the
global organizations will be able to help the employees in order to cope up the challenges

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which they are facing and as a result the employees will be able to improve their
performance effectively and the global organizations will be able to operate the program
of the performance management more precisely.
Ethical and Professional Approach to Organizations
For the effective and fair program of the performance management in order to be acceptable, it
should be ethical. The main objective of the global organizations as per the professional and the
ethical approach it should offer a fair assessment of the employee’s performance who are
working in the home and the parent country (Aguinis, H., & Pierce, C. A. 2008). As it is being
observed that some of the supervisors or the raters are competent enough while reviewing the
performance of the employees, the evidence shows that when the organization goes global then
there are more chances of the inconsistency in the professional and the ethical approach of the
organization which might cause the employees in order to become more cynical, frustrated and
the withdrawn. Further, the culture plays the great role in the establishment of the artefacts of the
ethics in the global organizations and this becomes the greatest reason for the distinctiveness. It
has been observed that the programs of the performance management are among the serious
considerations of the ethics of the managers of the human resource in the global organizations.
The climate of the organizations doesn’t enhance the employees in order to think according to
the professional and the ethical considerations due to the locus of the bottom line (Bernardin, H.
J., & Beatty, R. W. 2009). The pressure which is being created from the parent country national
influences the managers in order to act unethically to fulfil the unrealistic objectives of the
performance. Moreover, in the setting of the cross culture, the managers should take some
precautions in order to make sure the program of the performance management in order to
maintain the equity, equality and the justice. Therefore, the global organizations should clearly

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communicate their strategy of the performance management to the employees of the home and
the parent country in an ethical and the professional manner. And this will help the employee to
improve their performance.
Conclusion
The assignment help in clearly understanding that how the global organizations face challenges
in order to operate the program of the performance management and the organizations can
improve their system and the performance of the employees by effectively using the various
theories of leadership, change management, managing diversity and the motivation. Further, the
report helps in understanding that how the organizations can implement these theories for the
benefit of the employees of the home country and the parent country in a professional and the
ethical manner.

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Bradley, L. M., & Ashkanasy, N. M. (2001). Formal performance appraisal interviews: Can they
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