Bandag Automotive Case Study Human Resources Management

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MGMT 315 - Human Resources Management

Bandag Automotive
Automotive Parts Distributor to improve Human Resources function

Introduction/ Executive summary
Customer name: Bandag Automotive
Location: Illinois, United States
Industry: Automotive supplies – distribution and retail
Employees and Customers
* 300 employees
* 5 retail stores
* Service stations
* Repair shops
Organization chart

Customer Profile
Bandag Automotive is a family owned company based in Illinois that employs 300 people. The company’s sole business is automotive parts distribution through two divisions: business supply and retail stores.

Business Situation
Recently, Jim Bandag took over the company from his father, who founded Bandag Automotive. Jim’s focus is unlike his father’s family approach—his is more concerned with improving the company’s financial performance. As Bandag’s sales and profits have increased, so have its negative human resources and equal employment issues. Our client, Jim’s father, fears that these problems may affect the future income and the well-being of the company. In our opinion Jim changed the employer-employee relationship to one that requires a better HR management system, where his father’s paternal approach did not.

Situation
The current HR system is outsourced and consists of standard forms purchased from an HR supply company. Bandag Automotive uses application forms, appraisal performance forms, and honesty tests from this company. Compensation is handled by a payroll service, and yearly raises do not amount to more than a cost of living increase. Benefits, such as retirement plans, are also handled by an external company.

The HR organization and functions are managed by Jim, and his executive assistant. Recruiting and screening is performed by an employment agency. Firing is executed by an employee’s direct manager under Jim’s approval. There are no standard procedures in place to counsel difficult employees, nor is there any employee advocacy.

Current HR Issues with Recommendations
The following are our recommendations for the current HR issues that need immediate attention. They include an irate employee fired for his bad behavior, a Family and Medical Leave Act (FMLA) claim, a discharge where the employee claims pregnancy discrimination, and a disability discrimination claim. These recommendations must be executed under the current HR system, with our client’s aid, because of his positive relationships with employees. These solutions will serve as justification to improve the company’s HR system, which we will recommend in the second part of our study.

The first HR problem that the company is facing comes from the firing of Henry Jacques. Henry’s manager reported that while he was doing the technical part of his job well, he had serious problems interacting with his coworkers and was making his store poisonous. Jim approved Henry’s dismissal. Though Henry’s manager had heard that he has a mental illness, he did not take that into account when evaluating Henry. Henry also never brought it to his management’s attention if he indeed has a mental illness. In that case Henry does not have a legitimate claim against Bandag Automotive. He was warned in his performance appraisals that he had problems working in a team environment, and he never brought up the fact that he has a disability. According to the Americans with Disabilities Act, the employee must establish he has a covered disability [ (Dessler and Varkkey 47) ]. Also, we do not have enough information on Henry’s claim to know if this is his defense. We believe he was fired appropriately; however, the right thing to do in this situation was to first transfer Henry to another position and to give him a final warning. In this position, most of his work should not be on a team. If he continues to be problematic when working on his own, a discharge would be more appropriate.

The second issue involves...
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