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.

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,...
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