Summary of the case “Wolfgang`s balancing act”
Wolfgang Hansen, Healthcare`s new HR manager, is required to revise existing HR policies and strategies as well as the company`s global payment system. Within recent years Healthcare has been undergoing a great level of expansion, meaning that HR strategies need to be revised and adapted accordingly. Originally business processes were locally oriented though nowadays the company is aiming to develop a more transnational strategy by globally integrating operations while leaving room for local responsibilities. One of Wolfgang Hansen`s current tasks is to decide which HR practices to globally standardise and which HR practices to locally customise, such as in the case of remuneration. Healthcare`s new HR manager has realised for example that variable pay is not appreciated by every country in the same way (USA vs. Japan) and as such existing pay elements need to be revised. On the ...view middle of the document...
Lastly fringe benefits should not only be locally adapted though rather on an international basis. As outlined within Maslow`s hierarchy of needs once basic needs, such as money, are satisfied, employees are striving for nonfinancial rewards, such as achievement or self-esteem. We can see the percentages of the existing elements of the pay system. To some extent, it will cause the conflict from the employees because this is not the optimizing choice for them to earn. Thus, it is necessary to change the proportion. Compared to the job-based and competency-based compensation, with the three main competencies, the firm needs to communicate with the managers in all subsidiaries with the face-toface at conference. When realizing to choose the competency-based pay system, the firm should analyze the level of flexibility so that can determine to make decisions. Especially we can refer to the examples of America and Japan and recognize the differences from different areas. Standardization of job description is important for global consistency. The three required competencies for the development of behavior indicators are business-related competencies, peoplerelated competencies and personal competencies. Based on points allocated to these competencies, !
1.different standards of performance could be distinguished like low, average and high performers. However, in different regions different points might be allocated to different competencies, according to what competence that cultures values the most. Conclusion All changes should be implemented slowly and gradually to leave time for reflection and to have time for the HR department to be able to explain everything to the different business units. It is also important for Wolfgang to communicate with local HR managers before and after the implementation of changes. As locally adapting variable pay can lead to complications, Wolfgang should rather concentrate upon “rates of return” by employee instead of locally adapting variable pay. However, some aspects of the performance evaluation system like the measurement of behavior indicators could be locally customized.