Bandag Automotive- Case Study
Submitted ByAnamika Sachan
This case study talks about the Bandag`s Automotive which is based in Illinois and employs 300 people and distributes auto supplies ( replacement, mufflers, bulbs, engine parts etc.) through two divisions, one that supplies service stations and repair shops and the second that sells retail auto supplies through 5 Bandag’s Automotive auto supplies stores.
Jim Bandag who took over his family`s business in 2005 which was earlier handled by his father. Company outsources most HR activities through employment agencies that do the recruitment and screening. And a benefit firm that administers their 401 (K) plan, a payroll service that handles their paychecks.
Jim`s father took a fairly paternal approach to the business. He spent time dealing with the problems faced by employees and giving them solutions to their problems. Moreover, he used to give occasional loans to the employees when he used to discover that one of their children was sick or they needed money for house loan. On the other hand, Jim was very practical in his approach. He didn’t share the same warm relationship with the employees as his father did. He is very focused on improving Bandag`s financial performance and so all his decisions , including HR related decisions generally comes down to cutting costs. Its therefore perhaps not surprising that over past few years Bandag`s sales and profits have increases markedly, but the firm has found itself increasingly enmeshed in HR/ equal employment type issues.
There have been many cases of EEO type issues in recent 4-5 years. Jim`s father who is semi-retired is troubled with this sudden uptick in the frequency of such EEO type issues troubled him, particularly after so many years of Labor peace. He is not sure what to do about it. He is afraid that these issues are going to drain a great deal of Jim`s time and resources and they would hamper the image of Bandag Auto. We, known to deal with Human Resource Management have answered the questions that were asked by Jim`s Father.
Q.1. Given Bandag Auto`s size, and anything else you know about it, should we reorganize the human resource management function, and if so why and how?
Ans. Yes, Human resource management should definitely be reorganized as the current approach is based on increasing the financial performance and it focuses on cutting costs. It does not focus on employee needs and demands. Reorganizing Human Resource management function will not only be growth oriented step but also ensure the maximum utilization of human resources. It will also help in increasing productivity, improving quality, improving organizational climate and ensuring personnel growth etc.
It will help in adopting a proactive approach for managing people and will focus on employee development and delight. It will also help in hiring the right talent, providing the ample opportunities for career growth and creating job satisfaction.
Q.2.What, if anything, would you do to change and / or improve upon the current HR systems, forms, and practices that we use now?
Ans. Your company has remarkably improved in terms of sales and profits but on the same time it has found itself increasingly enmeshed in HR/ equal employment type issues. To cope in today`s turbulent times, it has become increasingly important for both company and employees to better re-address employees problems and needs. The end result should be career resilient workforce. It is necessary to have employee growth programs to increase employee productivity, prevent job burnout and obsolescence, and improve the quality of employee`s work lives.
Q.3. Do you think that the employee that Jim fired for creating what the manager called a poisonous relationship has legitimate claim against us, and If so why and what should we do about it?
Ans . Jim fired an employee who was supposed to be...
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