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In order for an employee to help the organization achieve strategic success through his or her performance, he/she must work at optimal levels towards very clear and specific objectives. In other words, the organization must design and implement a performance management system (PMS) that empowers employees and allows them to work at optimal levels. However, a review of the related research shows but when it comes to expatriates, most organisations do not develop dedicated PMSs – instead, it seems that most organizations evaluate and manage expatriates on an ad-hoc basis, often leading to dissatisfaction with the outcomes and conduct of the PMS, and subsequent dip in performance levels and quality. In this chapter, we briefly trace the history of PMSs, with particular emphasis to PMSs related to expatriates, and discuss some recent PMS models. We further discuss additional contextual variables that should be incorporated into effective PMSs, and conclude by offering guidelines for designing an effective PMS for expatriates.
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