Performance Appraisal of HCN Employee1

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The key takeaways are that performance appraisal is a systematic process of evaluating an employee's performance and potential over a period of time in order to provide feedback and identify training needs. It helps analyze achievements and evaluate contribution towards organizational goals.

The objectives of performance appraisal are to review performance over time, identify gaps, exercise organizational control, strengthen relationships, diagnose strengths and weaknesses to identify training needs, and provide feedback.

Hiring HCNs can present challenges as they may not understand the parent company's culture as well as international employees would. There are also legal issues around which country's laws apply.

Performance Appraisal of HCN Employees

Appraisal: an assessment or estimation of the worth, value, or quality of a person or thing See
also performance appraisal

Performance appraisal: is the process of obtaining, analyzing and recording information


about the relative worth of an employee. The focus of the performance appraisal is
measuring and improving the actual performance of the employee and also the future
potential of the employee. Its aim is to measure what an employee does.

According to Flippo, a prominent personality in the field of Human resources,


"performance appraisal is the systematic, periodic and an impartial rating of an
employee’s excellence in the matters pertaining to his present job and his potential for a
better job." Performance appraisal is a systematic way of reviewing and assessing the
performance of an employee during a given period of time and planning for his future.

It is a powerful tool to calibrate, refine and reward the performance of the employee. It
helps to analyze his achievements and evaluate his contribution towards the
achievements of the overall organizational goals.

By focusing the attention on performance, performance appraisal goes to the heart


of personnel management and reflects the management's interest in the progress of the
employees.

Objectives Of Performance appraisal:

 To review the performance of the employees over a given period of time.

 To judge the gap between the actual and the desired performance.

 To help the management in exercising organizational control.

 Helps to strengthen the relationship and communication between superior –


subordinates and management – employees.
 To diagnose the strengths and weaknesses of the individuals so as to identify the
training and development needs of the future.

 To provide feedback to the employees regarding their past performance.

 Provide information to assist in the other personal decisions in the organization.

 Provide clarity of the expectations and responsibilities of the functions to be


performed by the employees.

 To judge the effectiveness of the other human resource functions of the


organization such as recruitment, selection, training and development.

 To reduce the grievances of the employees.

Meaning of hcn

A host-country national (HCN) is an employee who is a citizen of a country in which an organization's


branch or plant is located, but the organization is headquartered in another country. An impediment to
hiring HCNs is that such employees may not understand the parent company’s culture. To deal with
this issue, companies may base hiring decisions on certain criteria that serve to increase identification
with the company and its values.

Many countries have national localization policies that require firms to hire locals rather than
international employees when at all feasible. Some of the legal issues that arise in connection with
employment of HCNs include determining which country's labor laws and tax laws are applicable.

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