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 other hand locally adapting variable pay can actually lead to complications, such as supervisor biases or unfair performance measures. As such it is proposed that Wolfgang Hansen should rather concentrate upon “rates of return” by employee (performance + time spent at company) instead of locally adapting variable pay. Further it will be vital for the HR manager to clarify existing pay elements. A problem that could arise is the feeling of inequity if a group, division or unit receives similar financial rewards. As such it is proposed to also develop individual incentive rewards in order to reinforce individual performance levels and create a spirit of competition. 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