Research has also increasingly highlighted the role of international assignees as knowledge agents between their home and host units. Here, there are two key benefits to organisations:
• Assignees acquire an understanding of the company’s global organisation and the corporate culture at the HQ, factual knowledge about the assignment culture, and culture-specific repertoires and can deliver value to the organisation through these;
• Assignees share relevant knowledge that helps to streamline cross-unit processes, creates common corporate practices and routines, and/or increases the chances of subsidiary survival, for example, through the provision of local acquisition experience or product development know-how.
On the whole, the benefits associated with using international assignees such as those listed above are primarily non-financial in the sense that it is potentially very difficult to place an exact figure on their expected financial return. Turning to specific individual assignment objectives,
here there is the opportunity for organisations to set financial targets for their international assignees which can be clearly measured. These might include, for example, sales targets or percentage increases in subsidiary profits. However, many international roles are not specifically linked to financial returns. As we can see it is difficult to measure both financial
and non-financial gains to fulfil this side of the ROI equation. And at this point we have not even tried to link the data to assignee performance.
COSTS & LOSSES Turning to the costs and losses side of the ROI equation, organisations do typically run cost projections to determine the financial costs of the assignment packages being offered. These include issues that go beyond salary to include other items in the allowances and benefits package (housing and children’s education support, cost of living payments, relocation costs, family support expenses, tax equalisation, visa fees, and so on). Going beyond the remuneration package, the costs/
losses associated with assignment planning, assignee selection, training, programme administration, PM, repatriation and post-assignment retention should also be included to gain a fuller picture. Once again we face the problem of identifying and
measuring losses that cannot be directly identified and/ or valued financially. For example, assignees typically undergo culture shock during the early stages of their assignments. This can result in lowered productivity which will impact on their performance and potentially also on that of their direct reports and perhaps even more widely within their work group or department. Placing a value on this is extremely difficult. The inability of the family to adjust and settle in can have a negative effect on assignees’ performance even if they themselves have settled relatively well.
18 Once again this leads us to question, given the
difficulty in identifying and valuing losses in the ROI equation, whether we can attempt to measure these and relate them to PM or whether there is greater merit in assessing performance against expectations as to what constitutes assignment success. Either way, we need to establish a framework for understanding PM.
PERFORMANCE MANAGEMENT (PM) PM is a strategic and integrated approach that aims to deliver sustained organisational success. Its strategic focus is represented by linking the improvement of the capabilities and performance of individuals and teams to longer-term organisational goals set within the context of the internal and external business environment. PM should be both vertically and horizontally
integrated within the organisation. Vertical integration links business, individual and team objectives. Horizontal or functional integration links different parts of the organisation. Integration also links organisational and individual and team development and may also include reward, aiming to achieve a coherent approach to people management and development. Integration of individual and organisational needs is also addressed by PM.
COVERAGE OF PM PM is concerned with performance improvement – both what is achieved and how this takes place. Its function is to achieve organisational, individual and team effectiveness. In particular, PM is concerned with people development. PM involves planning for future success. This involves defining expectations within business plans and individual and team objectives. PM addresses outputs (achieving results), outcomes
(impact on performance), processes (how results and competencies are achieved), and inputs (the competencies of individuals and teams). To achieve these, there has to be monitoring, review and measurement so that there is a basis for action to progress towards stated objectives. PM involves continuous development and improvement and the creation of a learning culture
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