International Human Resource Management-MJ Version

12 International Compensation and

Performance Management

Marilyn Fenwick

1 Introduction 307
2 International compensation 308
3 Performance management of international staff 317
4 Virtual international assignments 325
5 Conclusion 327
6 Discussion questions 328
7 Further reading 328
References 329

1 INTRODUCTION

This chapter deals with the compensation and performance management of
staff in multinational companies (MNCs). The first section, on international
compensation, outlines the definition and purposes of international compen-
sation; the variables influencing international compensation strategy; options
for compensating those on international transfer within MNCs; and problems
and enduring issues with international compensation.
The second major part of the chapter examines the performance manage-
ment of MNC staff. Performance management is defined and its dual purpose
outlined within the context of MNCs. Then, performance appraisal, the core
human resource management (HRM) activity of performance management, is

CHAPTER CONTENTS