Performance Management of International Employees
PROJECT DESCRIPTION
Group Project Report: (20%)
In groups (4 to 5 students), interview a HR Manager of a global company to collect the following
information. Collect International HR related data with focus on international staffing methods,
approaches towards training and development of staff for international assignment, performance
management of expatriates, and compensation strategies. Analyze the data and apply relevant
international HR concepts/theories/models discussed in class. Investigate the current
International HR practices to identify the gaps and make appropriate recommendations to
improve the existing practices (Due week 14)
Individual Reflection: (10%)
On the basis of Group Project report, individual reflection based on the questions provided by the
Instructor. The focus will be to evaluate the understanding of the process and concepts applied in
the group project report. (Due week 14)
A. PROJECT OUTLINE
You must conduct an interview and be able to answer the questions:
1: What are the different international staffing methods used to hire employees for
international assignments?
2. What are the different training and development methods used by Global companies, both
pre-departure and on-the-job, to prepare employees for international assignments?
3. How do companies manage the performance of international employees?
4. What are the compensation strategies for international employees?
You will also conduct secondary research on current international HR practices in the
UAE/World. The data will be collected from general sources (internet sites, newspapers, group
work). Your research will also include additional specifics on best HR practices as found in the
academic and industrial journals. These are available in the Library databases. All sources must
be fully referenced in APA format.
Before the interviews you must prepare a list of 18 – 25 questions that will elicit meaningful
answers about international HR practices from the interviewees. Your instructor will review these
questions prior to interview. Your questions should explore the interviewees’ opinions and
experiences about international staffing, training & development, performance management, and
compensation strategies reflecting the current international HR practices, trends and challenges
faced by international HR, and their opinions about the future HR practices.
Higher Colleges of Technology-Dubai
Dubai Men’s Campus
PROJECT OUTLINE
Coversheet BUS4353
2
The above research and interview of HR leaders will be considered as foundation work that will
support the group project report and individual reflection paper.
Procedure:
1. Develop a list of 18 to 25 questions.
2. Have the questionnaire approved by your instructor. (Foundation work for Project)
3. Identify a global HR leader/manager (possibly from your work experience placements or
place of employment) and ask them if you can interview them. Show them the list of
questions ahead of time. Make sure you have their permission for the interview. (Keep a
copy of confirming emails as an appendix). (Foundation work for Project)
4. Summarize your findings, analysing the responses, whilst applying relevant knowledge
collected during class.
5. Propose a plan to improve current international HR practices in alignment with best
international HR practices.
Deliverables:
1. Questionnaire
2. A complete interview transcript (included as an appendix)
3. Interview permission and confirmations
4. Written report of findings and analysis, with application of relevant international HR
theories/ models/knowledge collected during classes. (12 – 15 standard pages, double
spaced, Time New Roman, plus appendices as required)
5. Include the proposal to improve current international HR practices in alignment with best
international HR practices. (2 – 3 standard pages, double spaced, Time New Roman +
appendices as required)
Solution
Introduction
The company we researched is a media corporation named Dubai Media Incorporated
(DMI), which is a governmental organization. The company is a multinational business with a
subsidiary in London, United Kingdom. Goals and objectives of this company are strictly on its
ability to maintain a positive reputation among Arabic nationalities as well as internationally.
Achievements associated with this company include the fact that it has created employment
opportunities to UAE people and offered reliable services to all, including the employees who
receive training. Most importantly, the corporation has been able to keep its systems up to date
by following up on the technological advancements such as social media trends like facebook.
The company was established in 2003 in Dubai, owned, and managed by the government.
DMI offers Television and radio services such as passing information to UAE nationals and
other people in the world. Employees of this company are involved in activities such as
collecting, publishing and reporting international news. The corporation gets income from
various activities including broadcasting and advertisements for other national and international
companies. Information pertaining to the governance of this company is readily available on
electronic media platforms, which makes the process of advertising for new job positions or
hiring employees an easier task. The company has been able to make its subsidiary among the
best media house in most of the UK. The executive body promotes the law of freedom to
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articulate truthful information to national and international viewers by discouraging media
restrictions. In order to be in a position to justify the methods used by the company in the process
of hiring, recruiting, training and compensating employees at a national and international level,
this research was carried out.
Interview permissions and confirmation
We called the company to request an appointment to speak to the Human Resource
Manager concerning the international HRM practices in the company. We enquired on the
availability of the HR Manager so that we could interview him for the purpose of our school
report. The receptionist granted us an appointment on 10 th March at 10.00 am at the DMI
headquarters. We confirmed that we would show up for the interview session and on time.
Questionnaire
1. Does Dubai Media Incorporated have branches in other countries?
2. Does the company employ foreign employees in the branches?
3. What criteria does the company use in employment of foreign employees?
4. Does the company advertise job positions available at international levels?
5. Are there any training and recruitment strategies in the subsidiary?
6. What methods are used to evaluate the performance of international employees?
7. What compensation plans does the company implement in relation to foreign employees?
List of interview questions
1. What does Dubai Media Incorporated entail?
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2. What are the goals of the company?
3. Does the company have subsidiaries? If so, where are they located?
4. What achievements have been made by the company in the subsidiary?
5. Is DMI a multinational company?
6. How does the company advertise such positions?
7. What methods are used during the training and interviews for new employees in the
subsidiary?
8. Who is in charge of recruiting and training new employees?
9. Have there been any achievements in terms of developing careers of local and foreign
employees?
10. Is the performance evaluation of London and Emiratis employees similar?
11. What factors affect the performance of foreign employees?
12. How does the company deal with cultural shock among foreign employees?
13. How does cultural diversity affect performance?
14. How does the company structure the compensation for international employees?
15. What benefits does the company give to international employees?
16. What types of hardships do foreign employees get while adapting to the new
environment?
17. Does the company give hardship allowances to foreign employees?
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18. How do the IHRM methods used in DMI differ from other global companies?
Findings of the research
International Staffing Methods
Our research revealed that the DMI has positions for all job seekers both at local and
international levels especially the subsidiary in UK. Mr. Ahmed, the HR manager informed us
that the company has designed training and recruitment strategies in which international job
seekers can get knowledge on what is expected of them by the company. Interviews are held
online for Emirati people who are to be transferred to London. For the company to advertise new
job posts various websites such as “LinkedIn” are used to keep job seekers informed in case an
opening arises, hence the opportunity is viewed globally. The subsidiary promotes career
development for all members of staff and future employees by establishing the code of conduct
that governs media freedom, thus improving the role of media internationally.
The requirements or needs for the positions in the DMI in the subsidiary are made known
to the general public, informing international job seekers they could get opportunities. The
marketing or promotional activities used by DMI help in informing the subsidiary in London
about the changing trends and preferences in new labor markets such as expected salaries. The
company’s subsidiary showcases its capabilities to the outside world giving room for variety in
numbers of employees to expect. The task of interviewing and recruiting new employees and
interns is taken up by the senior management bringing about uniformity for the subsidiary and
the mother company. The aspect of talent promotion has been highlighted in the company as
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broad categories of people with different skills and talents are hired at a global level and this has
been the case even for the subsidiary in London. Freedom of journalists from UAE to review and
report the cases they deem important however challenging they could be to the government is
guaranteed (Ratna, 2012, p. 460-461).
Training and Development Methods
According to Mr. Ahmed, DMI has an initiative that allows online registration and
subscription to training services in relation to media activities both in the parent company and
the subsidiary. International employees in the marketing department are given the opportunity to
improve their talent and skills by designing marketing tools and strategies to be used. The
company holds top managers responsible for the activities they or the subordinates conduct for
the subsidiary. Innovative ideas generated by both subordinates and top managers are considered
as a development tool, including the plans for future achievements of the subsidiary and the
headquarters. Managers are given the rights to major in specific fields and in analyzing the future
changes expected including safeguarding the career opportunities that could be at risk through
ruined reputation of the company through the subsidiary.
Performance Management of International Employees
Performance management involves assessing, supervising and building the human
resource means in a company. Mr. Ahmed disclosed that the performance assessment of local
and foreign employees followed different criteria; national and international criteria respectively.
The report analyses how the Dubai Media Incorporated evaluates the performance of employees
in the company’s branch in London. Company operates on multinational standards and requires
that all foreign employees(UAE nationals in London) perform adequately to meet the company’s
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business objectives in service delivery. The performance analysis of foreign employees aims at
finding out if employees fit the operational and commercial perspective of the company. DMI
structures its human resource team to give the best possible employee performance as explained
by Mr. Ahmed. Dubai Media Incorporated provides different structures of performance
management for departments catering to domestic employees and foreign employees. When the
company employs a foreign employee, it informs the employee on the standards and objective of
the company (Society for Human Resource Management, 2016). Subsidiary offices in London
configure their employee evaluation means to help proper evaluation considering factors that
may affect performance in foreign countries. Among these factors are the job experiences of
workers in London and barriers Emirati people go through when transferred to foreign countries.
The Emirati employees may have trouble adjusting to the new job standards; DMI caters for
these changes by making the performance assessment different from that of local employees. The
company aims at familiarizing the foreign employee in London with the company’s goals to
incline their performance to achieve these demands. The policy on performance assessment at
the company require that the department manager tailors the job expectations to the individual to
cater for varying performance standards, difference in cultural aspects and productivity
standards.
Cultural diversity
Cultural diversity arises where there is a significant difference between cultures of two countries.
DMI establishments in London are foreign to the locals and locals have to fit into the operational
structure of the foreign company. Emirati employees may have problems adapting to such
changes and may record poor performance. Bad performances recorded due to such changes are
not true reflections of the employee’s ability. Well performing employees may be unable to
adapt better than poorly performing employees. The strategy employed by DMI factors in such
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dynamics. DMI prefers using foreign nationals in foreign branches, as they are conversant with
the information, business policies, and laws in that country and they are accustomed to the
country’s culture. Countries further away like in Europe tend to have a larger cultural distance,
(Gong, 2003, p. 792).
Performance Assessment
The evaluation of an employee’s performance is tested against the performance expected of him.
The assessment aims at finding out the capabilities of the employ to perform the tasks given to
him and the level of the employee’s consistency in his work. Standardizing these tasks is
necessary to prevent situations where the task is described in the headquarters in the UAE and
performance is required by London employees. Coordination is necessary to ensure guidance and
support to the foreign employees. The Dubai media incorporated applies a method that combines
both the international standards and local company standards. The assessment also considers the
difference in cultural background and business environment (Markovic & Rakocevic, 2014, p.
814).
Compensation Strategies for International Employees
The Dubai media incorporated (DMI) compensation structure combines both the international-
citizen view and the nation-citizen view. The company considers where the employee is
operating from in the structuring of his compensation. However, these considerations go as far as
determining the basic salary. Foreign employees are awarded more benefits than the nationals
are. The national-citizen view is based on the national scale, that is, in the UAE. The basic salary
of international employees operating in the London is dependent on their roles in the company.
Employees in London paid on an international scale regardless of whether they are UAE
nationals or expatriate nationals.
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The company offers holiday packages to foreign employees. Further benefits include, housing
allowances, commuter allowances, medical allowances, language tutoring for Emiratis who
experience language barriers in new environments. The international approach helps align DMI
compensation strategies to fit needs of its employees in London. Both Emiratis and London local
employed in London are catered for appropriately. Some environments may be hard for Emiratis
employees in London to adapt to due to climate change and other environmental and cultural
shift, the company offers a substantial amount to compensate for such hardship.
Analysis of the findings
On International Staffing Methods
Online interviews are held for the sake of improving career choices in the international
level, whereby the company learns the various choices of specialization and talents of
candidates. Through carrying out online interviews, the company aims at saving an enormous
amount of time as the managers get to conduct other lesser involving tasks, such as being
available at their offices for the purpose of employee morale. Finances are also saved for the job
seekers abroad, within the UAE and the company as it plans to host the interview meetings.
However, this causes a disadvantage in terms of lacking direct personal contact with job seekers
which may lead to problems such as people giving fake identities.
Posting job opportunities in websites is a relevant method for ensuring that the company
is comprised of people from different origins which should in turn facilitate to its competitive
advantage. The company achieves its goal of creating more awareness of its existence to other
nations and the UAE and also establishing ties between it and other companies that facilitate in
the marketing process. The fact that managers are the main figure in the interviewing process
means that the international staffing standards are upheld as the managers are accountable for
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their actions. However, the rigidity that is expressed in this practice closes up the opportunities
for other internationally competitive job seekers, as they lack space in the time scheduled by
managers.
General advertisement of internships opportunities and job qualifications is made
possible by the company by keeping up-to-date technological methods whereby new
improvements are likely to be recognized in good time. A disadvantage however is the fact that
the company could be spending a large amount of money trying to make its clients aware and
end up losing it without enough feedback as to how much gain has been accrued. Determination
on how much salary to pay employees at both national and international levels is carried out.
Discrepancies relating to the salaries are a major concern in that international employees are
usually underpaid based on the costs related to exchange rates between different countries.
On Training and Development
Registration of globally competitive employees is done to ensure that qualified
employees who can withstand possible challenges in London as a foreign country are hired. The
training carried out internationally is to ensuring uniformity at a global level because media
stations carry out their activities such as news reporting in a global perspective. Knowledge
gained by the trainees on the standards of media practices involves the rules and regulations of
working in the global environment. This helps in establishing and facilitating proper
maintenance of good reputation by the company and its subsidiary.
The strategy used by the company to hold the managers accountable for the activities
they and their subordinates perform is an international strategy which helps in the development
of a responsible society. The company’s subsidiary meets its purpose of enhancing talent and
skills of the present and future employees through online registration and subscription of work
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related training. The major drawback for this technique is the possibility of international
employees being very rigid and having impaired decision-making ability. The chances of the
subsidiary making financial losses or reputational challenges are limited since the training
carried out enhances the working skills of international employees and general knowledge on
what they are expected to be like. Training in advance and after employment keeps international
employees equipped for present and future purposes as it adds to their experiences. At a global
level, it improves the value of the subsidiary through the promotional advantage gained.
On Performance Management
The performance analysis of DMI is effective in its operation. It is considers the faults and
challenges employees may go through in initial stages but, trains them to overcome these and
meet the company’s objectives. This system allows the company to assess the individual
employee strengths and weakness in relation to the assignment given to him; recommendations
to better his performance help to direct the employee in performing his tasks. The company is
also able to see which employees are most beneficial to the company. It gives a formal structure
to assess foreign employees deserving of bonuses or promotions and which employees are
redundant.
Theories of Performance Assessment
The common theories applied in performance assessment are the goal-setting theory and
expectancy theory (Atkinson & Shaw 2006. P. 178). Goal-setting theory explains that an
employee performs to meet certain set goals. The expectation theory suggests that employees’
motivation to perform is driven by the feeling of satisfaction and fulfillment achieved when they
do something. The DMI company leans on the first case theory, structuring of evaluation is
based on whether the expatriate employee achieved what is required of him. Problems that may
arise in such stringent forms of evaluation regard difference in behavior, mind-set,
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communication skills, and perspective of foreign employees. Such factors may reflect poorly in
their assessment if they differ or are unprofessional in regards to the company at hand.
Employees are also under a lot of pressure to pass the technical demands of the job, which may
be formed in UAE and differ from standards in London.
On Compensation Strategies
The international approach to the compensation system is more wholesome and relatively more
effective in relation to foreign employees. It allows them to adjust well to new environment that
can be cumbersome. The financial shift is less stringent on their lifestyle as they are already
accustomed to it. However, the company may favor national approach in the employees’ basic
salary as it gives a more standardized view. Foreign employees are paid directly by the parent
company in similar terms to those of employees in UAE. Although all the employees receive the
same pay in the basic salary category, the Emirati employees are well taken care of in terms of
any problems they may face in adjusting to the culture in London. Benefits accruing from the
company’s compensation plan include stability and a favorable opportunity for employees.
Recommendations
Recommendations to Improve HR and Training Practices
More specialized training would be an important consideration as the employees will be
in a position to better their skills and experiences. Emphasis on the role of the new technology
such as the advent of social media especially in the subsidiary may be a more affordable platform
yet less efficient. For example, the online interviewing process is cost effective but not efficient
on its own hence the need for face to face interview whereby the true character of a future
international employee will be examined. Universally accepted methods of hiring employees are
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required to govern the practices of the company and ensure more uniformity based on gender,
religion and other crucial aspects.
Giving top management greater rights than those of the subordinates may reduce staff
morale in the subsidiary thus this should be done at the branch level. A rigid management where
subordinates are not part of the interviewing body has challenges such as the new employees
having challenges adapting with the new environment. A change is therefore necessary in
making the subordinates a part of the decision making board so that they can contribute directly
to the requirements of their working stations in the subsidiary. Higher salaries to international
staff members to act as a motivation factor and improve the mobility of the global market would
also be a consideration towards improving performance. International employees would
appreciate outdoor paid activities for developing their career opportunities and help them to
release the tension in the foreign environment. In the same aspect, the employees and
international candidates would be motivated to work more towards the attainment of the specific
goals of the business.
Recommendations on Performance Management
Evaluations under international standards give expatriate employees a better chance of
performing well in assessment. An ideal system for operation in DMI would be one based on
international standards that allow employees from all nationalities and backgrounds equal
chances. The foreign employees need to have a policy that enhances open communication
channels to and from the managers and create a comfortable working area for them. The
assessment system needs to be well illustrated and easily understood by all employees
(Haile, 2002, p. 14).
Recommendations for Compensation Strategies for International Employees
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The large scale on which DMI operates creates varied opportunities for it to get experienced
global employees in technical, managerial, and other sensitive department. Its compensation plan
has to cater to the expatriate employees as well as the financial plan on the company to create a
balanced operational field for maximum performance and profits. DMI’s compensation system
can be adjusted to suit the individual need of every employee’s. The employ should have a
chance to negotiate on the terms they want for their compensations. This will enable the
employee to adapt better to the new job. This is very important especially where the employ has
been outsourced from a country. The international approach may also help the employee get a
better chance at having a more equitable compensation policy for his employment. The company
can introduce a saving plan that help its expatriate savings program that sets a calculated amount
of money apart in a separate account than that meant for expenses. The amount is calculated
based on the amount the employee earns in a month. This amount is deducted from the
employee’s salary before reaching the expenses account. The program will ensure that
employees are well covered no matter the area where they are sent to work. An expatriate
savings program is similar to a savings program in the parent company in the UAE.
Conclusion
The research showed that the strategies used by DMI human resource management in the
London subsidiary, are effective in its operations. The size of the company allows it to operate
on a large scale and use professionals in foreign branches all over that world. The methods they
use to employ foreign employs provide a very standard platform to choose the best in London by
incorporating locals in London and Emiratis is management and specialized positions. The
company’s forms of services also give it a wide base to interact with foreigners of different areas
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of specialty. The training methods are effective in enabling foreign employees to adjust to the
organization’s professional requirements and the policies applied in the company’s headquarters
and policies in London. They create an open forum for employees in training to interact with
other current employees to give them advise and knowledge required to handle the job. The
company employs a global approach to evaluation of employees’ performance this allows them
to have better scores in such unfamiliar environments. The company provides monetary and
professional help needed to all its new employees to help them adjust to the cultural difference,
language barriers and difference in professional standards. However, the company can improve
on its method. The report outlines several areas that will be helpful to improve the standards of
employees incorporated into the London branch, their level of performance, and their quality of
life.
Appendix
Interview Transcript
Interviewer: What does Dubai Media Incorporated entail?
Mr. Ahmed: DMI is a media company that deals with conveying local and international news
Interviewer: What are the goals of the company?
Mr. Ahmed: DMI aims at being the most reliable media company in the local and international
setting
Interviewer: Does DMI have subsidiaries? If so, where are they located?
Mr. Ahmed: DMI has a subsidiary in United Kingdom, London.
Interviewer: What achievements have been made by the company in the subsidiary?
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Mr. Ahmed: The Company has been able to establish other printing presses and employed a
large number of employees both in the parent and the subsidiary.
Interviewer: Is DMI a multinational company?
Mr. Ahmed: Yes, DMI operates at an international level; hence foreigners can also be
employed.
Interviewer: How does the company advertise such positions?
Mr. Ahmed: Most of the job opportunities are advertised through the internet, mainly the social
media.
Interviewer: What methods are used during the training and interviews for new international
employees in the subsidiary?
Mr. Ahmed: Online training sessions are some of the most convenient methods that are used by
DMI.
Interviewer: Who is in charge of recruiting and training new international employees?
Mr. Ahmed: The top managers of all departments are responsible for the training and
recruitment.
Interviewer: Have there been any achievements in terms of developing careers of local and
foreign employees?
Mr. Ahmed: Yes, employees specialize in specific fields hence they perfect in what they do
every day.
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Interviewer: What techniques are used to ensure employees are accountable in their career
development?
Mr. Ahmed: Employees and their supervisors are responsible for their working stations so as to
prevent any losses in the information they need.
Interviewer: Is the performance evaluation of London and Emiratis employees similar?
Mr. Ahmed: No, local employees are evaluated on local criteria while international employees
are evaluated on international criteria.
Interviewer: What factors affect the performance of foreign employees?
Mr. Ahmed: performance of foreign employees can be affected by cultural shock, changes in
standards in parent and subsidiary companies and difficulty adjusting to new
environments for Emiratis employed in London.
Interviewer: How does the company deal with cultural shock among foreign employees?
Mr. Ahmed: DMI prefers using foreign employees in foreign branches, as they will be less
affected by environmental and social changes.
Interviewer: How does cultural diversity affect performance assessment?
Mr. Ahmed: the employees may show poor performance in the assessment, not because they are
generally poor in their work but they are having difficulty in adjusting to the new
environments and foreign standards.
Interviewer: How does the company structure the compensation for international employees?
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Mr. Ahmed: Compensation for international employees is similar to local employees on the part
of basic salary. Employees in similar positions are paid similar salaries. Benefits however
differ according to the type of employee.
Interviewer: What benefits does the company give to international employees?
Mr. Ahmed: There are hardship allowances, medical allowances, commuter allowances and
language tutoring for those who have problems with the common languages at work.
Interviewer: What types of hardships do foreign employees get while adapting to the new
environment?
Mr. Ahmed: foreign employs often find it difficult to adapt to environmental changes, the
difference in culture and economical changes.
Interviewer: Does the company give hardship allowances to foreign employees?
Mr. Ahmed: Yes
Interviewer: How do the IHRM methods used in DMI differ from other global companies?
Mr. Ahmed: The company employs some similar methods to other global companies, however,
at DMI; we try to structure our HRM policies to suit the companies’ goals and purposes
of every foreign branch.
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References
Atkinson, C., & Shaw, S. (2006) Management in an International Context, London: CIPD.
Chapter 8 Managing Performance. Retrieved from
http://www.cipd.co.uk/nr/rdonlyres/d328e151-e1d2-4f74-b8d1-
3cc6aec5bf0e/0/1843981092sc.pdf
Gong, Y. (2003) subsidiary staffing in multinational enterprises: Agency, resources, and
performance. Retrieved from
http://www.jstor.org/stable/30040664?seq=1#page_scan_tab_contents
Haile, S. (2002). Challenges in International Benefits and Compensation Systems of
Multinational Corporation. The African Economic and Business Review, 3(1), 14.
Retrieved from http://www.theaebr.com/v3n1Haille.pdf
Markovic, A., & Rakocevic, S. B. (2014). Proceedings of the XIV International Symposium
Smorg 2014: New Business Models and Sustainable Competitiveness Symposium
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Ratna, V. (2012). Knowledge-based development and knowledge-based economy–a case study
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Society for Human Resource Management. (2016). International Assignment: Performance
Management: How can a company manage an expatriate employee’s performance?
Retrieved from
https://www.shrm.org/templatestools/hrqa/pages/expatriateperformance.aspx
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