Performance Management Systems And Compensation - 855 Words

Executive Summary Indian organizations are increasingly going global. Also multinational corporations (MNCs) continue to proliferate in India. These forces have given rise to the increased use of expatriates for inbound and outbound assignments. As such, new ways of determining performance and compensation have been developed. Performance management systems are now commonplace in Indian organizations and MNCs operating in India. The most frequently used system is the Target Based Evaluation/MBO. Most organizations are now also linking performance to rewards. Compensation and compensation plans vary widely throughout India. However, expatriates cost generally three times more than a local, with middle managers’ packages averaging almost $300,000. The most commonly used compensation approach for expatriates is the home country based balance sheet approach. These systems and plans evolved quickly in recent decades. However, there continues to be room for improvement. Introduction In this paper, we will discuss performance management systems and compensation in India with regards to expatriates. In terms of performance management, we will bifurcate 分å â€°the analysis of systems between Indian organizations and multinational corporations with operations in India. Next, we will explore expatriate compensation. We will start with a general survey of compensation in the country and then dive specifically into expatriate compensation and highlight approaches toShow MoreRelatedThe Importance of an Organizations Performance Management System1538 Words   |  7 Pagesevaluate the performance of its employees. This evaluation, if it is to be effective or of substantial value to the organization, it needs to be systematic and purposeful. 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