Performance Management and Organizational Effectiveness

Human Resources -- Performance Management and Organizational Effectiveness

The LAMP framework developed by John W. Boudreau is ideal for the development, implementation and evaluation of a performance management system in a China-based U.S.-China joint venture whose employees are predominantly Chinese nationals. Focusing on impact, effectiveness and efficiency, the LAMP method of "decision science" uses the tools of Logic, Analytics, Measures and Process to gauge talentship, and focuses on the most effective ROI. In conjunction with this method, special leadership and feedback would be necessary in establishing this American-Chinese venture due to marked differences between Western and Chinese culture.

Body: Critical issues that need to be addressed in developing, implementing, and evaluating a performance management system in a China-based U.S.-China joint venture whose employees are predominantly Chinese nationals.

Development, implementation and evaluation of a performance management system in a China-based U.S.-China joint venture whose employees are predominantly Chinese nationals would greatly benefit from using the "decision science" of LAMP (Logic, Analytics, Measures and Process) framework espoused by John Boudreau (Boudreau, 2006) in order to gauge "talentship" -- the hidden and obvious talent of current and potential employees (Boudreau, 2006). Logic focuses on Return on Investment by measuring: the inflow of returns on an investment; the outflow of resources for the investment; how the inflows and outflows will occur in future periods; and how greatly the inflows/outflows should be "discounted" for business risk and inflation (Boudreau, 2006). Boudreau uses logic to assess "impact, effectiveness, and efficiency" (Boudreau, 2006), the key "anchors" of Human Resources (Boudreau, 2006). Regarding Asian culture, an assessment of impact, for example, would focus on the culturally different impact of couriers and dispatchers on business success: experts have found that talent traditionally deemed low on the totem pole of Western culture can be highly impactful in Asian Culture (Boudreau, 2006); furthermore, the increasing importance of wages and bonuses within the Chinese culture should be taken into account (Magana & Stai, 2011). Effectiveness focuses on Human Resources decisions'/processes' effect on the talent's capacity and actions; therefore, for example, the Asian cultural aversion to saying "no" to customers, would be acknowledged and honored, essentially evolving "no" into a highly successful request to wait for more service delivery; yet another example would be the Chinese importance of "saving face," which should also be honored in Human Resources decisions (Magana & Stai, 2011). Efficiency would ask about the extent of Human Resources program/process activity for investments in programs, practices and functions (Boudreau, 2006); therefore, using the example of the importance of couriers and dispatchers in Asian culture, Human Resources may strategically decide to shift more investment toward hiring greater numbers of highly competent Chinese national couriers and dispatchers; yet another example is the possibility of adjusting hours/workdays/workforce size to accommodate Chinese culture and holidays such as Boxing Day (Anonymous, 2011). Leadership for this aspect could be exercised by Chinese nationals and/or Americans who are identified as leaders well-suited for effective global mobility (Schwartz & Liakopoulos, 2010), conversant with both cultures, possibly through a team of experts (Pulakos, 2004, p. 9). In addition, feedback on logic could be obtained through these individuals/teams, as well as through culturally sensitive means such as surveys and rating narratives (Pulakos, 2004, pp. 14-15) and/or self-assessments completed by management, employees and customers as appropriate (Brocato, 2003). In these ways, an impact analysis involving a China-based venture with predominantly Chinese national employees would honor and effectively use Asian cultural differences.

Analysis is concerned with asking the right questions to gather appropriate data, gathering that data, analyzing the data for relevant insights, and then using those insights to effectively make Human Resources decisions (Boudreau, 2006). Here, again being mindful of the key components of "impact, effectiveness, and efficiency," Human Resources would focus on industry issues relevant to Chinese culture, gather the data regarding the product, employees and customers within that culture, and review the data to gain valuable insights about providing the product/service within that culture and making Human Resources decisions based on that data to maximize the company's effectiveness within Chinese culture. Leadership for analysis could be exercised by knowledgeable American and/or Chinese nationals identified as having potential for effective global mobility (Schwartz & Liakopoulos, 2010) and/or a multinational team of experts in surveys and/or rating narratives and/or self-assessments (Brocato, 2003), data collection and analysis (Pulakos, 2004, pp. 9, 15). In addition, feedback would certainly be gained by the individuals/team, management, employees and customers via the data collected and analyzed in order to make the greatest return on investment within the Chinese culture.

Measures involve quantifying criteria like "timeliness, completeness, reliability and consistency" (Boudreau, 2006) in areas having the greatest consequence for the company. Here, with constant mindfulness about "impact, effectiveness, and efficiency," the company would measure those criteria within the context of Chinese culture in areas such as wages and bonuses -- which are taking on greater importance in ever-modernizing Chinese society (Magana & Stai, 2011), market value and employee turnover for the greatest return on investment. Leadership for measures can be exercised by knowledgeable Americans and/or Chinese nationals who are identified as having effective potential for global mobility (Schwartz & Liakopoulos, 2010) and/or a multinational team of experts (Pulakos, 2004, pp. 9-10) and feedback can be obtained by these individuals / team members, as well as by management, employees and customers.

Process involves managing knowledge and making changes within the organization based on "social structures, knowledge frameworks, and organizational cultural norms" (Boudreau, 2006) for the greatest return on investment. Here, still focusing on "impact, effectiveness, and efficiency," Human Resources must attentively make its decisions based on Chinese culture in the form of its social structures, frameworks and cultural norms in areas such as wages and bonuses (Magana & Stai, 2011), the talent pool, cost reduction and turnover rates to achieve the greatest return on investment (Boudreau, 2006). Leadership for process can be exercised by appropriate Americans and/or Chinese nationals who are identified as having high potential for global mobility (Schwartz & Liakopoulos, 2010) and/or by a multinational team of experts (Pulakos, 2004, pp. 9-10) and feedback could be obtained from these individuals/team members, management, employees and customers.