Who Performs the Evaluation?
Companies must also consider who will be responsible for the process: the host-country management or the parent-country management. Although local managers would generally be considered a more accurate gauge, they typically evaluate expatriates from their own cultural perspectives and expectations, which may not reflect those of the parent country. For example, a participatory style of management is acceptable in some countries, and in others hierarchical values make it a disgrace to ask employees for ideas. Criteria evaluating customer service that includes smiling or maintaining eye contact may not be appropriate in cultures that may view sustained eye contact and smiling as strange or inappropriate. The way a performance appraisal form is constructed may also need to be adjusted. Research indicates that managers from Asian cultures are more likely to use midpoints in rating scales, whereas Americans are more likely to use either extreme on the scale. Confusion may arise if forms used in the home country are not adequately adapted to the language and cultural sensitivities of the host country. Also, home-office management may be so remote that it may not be fully informed about what is going on in an overseas office.
Home-office managements often measure performance by quantitative measures, such as profits, market shares, or gross sales. However, “simple” numbers are often quite complex in their calculations, and data are not always comparable. For example, local import tariffs can distort pricing schedules, which alter gross sales figures, a statistic often used when evaluating performance. Other performance measures may also be distorted. For example, factory productivity levels in Mexico may be below those of similar plants in the United States, but American-owned plant productivity in Mexico may be above that of similar Mexican-owned plants, making comparison difficult.