Wolfgang's Balancing Act
Wolfgang Hansen, a newly hired human resource manager to Healthcare, one of the largest European pharmaceuticals based in Germany in charge of global compensations and tasked with reviewing existing policies and practices, and making recommendations for a global pay system. Wolfgang was provided six folders that contained the following:
• Healthcare Group
• Personnel Structure
• Leadership Competence
• Corporate Human Resource
• Global Performance
• Overview of Corporate and HRM Strategy
Using current knowledge and best practices from other companies each of these folders can be resolved and still maintain the upward profit margin for the company. It would ...view middle of the document...
How do we sell these competencies to our diverse international partners in a way they can understand? The first step is to do some research of our international partners and learn more about their culture, norms, and political interest. For example Japanese communication style prefers indirect verbal and nonverbal communications whereas North Americans prefer a more direct verbal and nonverbal communication (Deresky, 2011, p. 140). Japanese mixes business and social communications whereas their American counterparts tend to separate business and social (Deresky, 2011, p. 141).
HR manager Wolfgang would need to spend some time with all partners to get to know them and tailor the competencies to existing culture, norms, and political interest. He would need to do some serious negotiations in person and win managers trust by understanding his own difference from them and tailor himself to a figure the international partner can relate to.
Another aspect to look at is cultural dimensions they are as follows from the GLOBE Research Project:
• Assertiveness – The highest ranked is Germany (former east), medium France, and lowest Kuwait.
• Future orientation – The highest ranking Singapore, medium India, and lowest Kuwait.
• Performance orientation – The highest is Singapore, medium Japan, and lowest is Italy.
(Deresky, 2011, p. 98)
By following the GLOBE reasearch project, we can have a better understanding of our partners and concentrate harder on the dimensions they are at their weakest. Paying for competence is complex but, many companies are turning to this solution to build a cadre of highly skilled, competent, and professional workforce(Armstrong & Brown, 1998).
Local Customization vs. Global Standardization
The purpose of standardization is to instill principals and objectives shared at headquarters. This also would bring at a level plane of fiarness to all employees in regard to compensation, health benefits, and promotions. The problems with standardization is that globalization is not widely accepted by all cultures and not applicable to all locations. Some cultures are eerie of openly globalized institutions because of ethnocentric side effects from parent country.
In Wolfgang balancing act he needs to find the right combination of corporate and local culture when implementing global compensation policy, Wolfgang must research best HR practices and standardize those processes, while maintaining core values of the company. And while the local culture may not match the corporate culture, it should be complimentary (Dicke, Holwerda, & Kontakos, 2006).
A typical approach is to identify ‘‘core’’ competencies important for all employees, and the company (Marrelli, Tondora, & Hoge, 2005). To set up a workable competency model Wolfgang would need to follow several steps, they are as follows:
• Defining the Objectives – need to be clear and specific with definitive goals attainable as...