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Wolfgang's Balancing Act

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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 require some compromising from employees to move forward. Questions or challenges that Wolfgang is facing are communication to other executives on maintaining management competencies set by headquarters? Is a competency-based pay system more flexible or standardization already established?
Healthcare’s goal was to have the same compensation system globally, however compensation is extremely complex. Pay systems must conform to local laws for employee compensation while also fitting into global Healthcare’s policies.

Leadership Competence of the Healthcare Group Competency has been defined demonstrable characteristics of the employee including knowledge, skills, and behaviors (Jahja & Kleiner, 1997). Competencies outlined for Healthcare are as follows:
• Business related competencies include achievement orientation, innovation, and change, and decision making.
• People-related competencies include team leadership, capability development, relationship building, and influence of others.
• Personal competencies include business understanding, analytical thinking, and self-development.
Wolfgang may find some of the competencies easy to implement because it might already be

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