In a World of Pay: Human Resource Management

Topics: Recruitment, Employment, Human resource management Pages: 11 (3320 words) Published: April 8, 2008
Pay rates have always been an important issue when it comes to hiring workersespecially when dealing with professionals whose talent and experience are highly soughtin the job market. In our case study, we will be discussing the difficulties and challenges of hiring expatriates which in this case will be revolving around pay. The case is about theproblems that arose at a German software Company (Typware) when the managementdecided to hire Anne Prevost whom they consider to be an 'intelligent careful strategist.'Anne is generally agreed to be the perfect match for the job but the rate which Anna isrequesting for the job is causing controversy at Typware because some other workerssuch as Jurgen Mehr (Head of Typware European Marketing) feel threatened by theamount the new hire will be receiving.

Case DescriptionThis case illustrates a german software company's inability to effectively compile afair compensation package for the hire of an american ex-pat. Renate Schmidt, the headof human resources at typware, is faced with a dilemma of how much to offer AnnePrevost. Thomas Gutschein, the CEO of typware, has made it clear that Anne is a neces-sary strategic acquisition. Many managers, including the European head of marketingJurgen Mehr, have expressed discomfort and/or threatened by the high salary proposedfor Prevost. Schmidt has no reference in determining a fair ex-pat package as this is therst time in Typware's history that they hire an outsider to work at HQ. Schmidt facesproblematic issues, one being that Typware does not use a uniform pay scale and overthe past decade many executives have received up to 30 percent extra salary based ongeographical circumstances. Having researched the employee salary les and not ndingany help from them, Schmidt calls in a favor from Rainer Barth. Barth, her contact at aconsulting rm, helps her compile a list of questions that need to be asked in order to geta more accurate idea of how Prevost's salary will be determined. Finally, the last issueneeded to be stressed is that Prevost has another offer on the table and Typware needsto act fast if they are to successfully lock in this asset.

Case Study: In a World of Pay2Section 2Problem Statement:Stafng and Job Analysis:Typware's recruitment and selection process does not have a clear job assessmentsystem evidenced through the hiring efforts of Anne Prevost.

HR Activity in Theory:Stafng and Job Analysis:"A World of Pay," the article discussing Typware's employment methods, focusedtoo much on Prevost's strengths as a candidate. Though she may have been a great as-set to the company she previously worked for, the duties she would have if she chose togo with Typware were not clearly specied. When hiring, the characteristics of a vacancyneed to be dened in order to recruit a suitable employee. Typeware's assessment sys-tem focused m ore on keeping Prevost away from the competitors rather than paying at-tention to the job analysis.

Obtaining more organizational effectiveness within the company, with regard tostafng and assessment systems requires recruiting and selecting more strongly basedon job analysis rather than the general qualications of an applicant alone. A clear jobanalysis addresses the job description and recruitment methods of a hiring company, re-sulting in a more structured approach to hiring international employees.

First, Typware must clarify its job descriptions to improve human resource planningwithin the company. By facilitating more detailed job analyses, the efciency of ndingpotential candidates for vacant posts will be raised substantially. Wages and salary ad-ministration can be restructured because payment can be more strongly based on thefulllment of employee duties rather than trying to compete with wages on the interna-tional job market. The fact that Renate Schmidt needed to call Prevost a second time foranother line of questioning indicates the poor job description and HR information, be-cause such...
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