Case Summary Bandag Automotive

Case Summary

Bandag Automotive was established in 19 years ago. Before 2005 it was managed by Jim’s father and after that he (Jim Bandag) took over the business.

Number of employees                         300

Bandag Automotive distributes          replacement mufflers, bulbs, engine parts, engine parts etc)

Division                                                           Supplies service stations and repair shops, Bandag Automotive auto supply stores

HR activities that Bandag outsource are:       employment agency that does Bandag recruiting     and screening, payroll service, application forms, performance appraisals, and honesty test

Main problem in the case:                   lack of HR department to oversee the HR function and administer all HR specific issues and problems. Violation of the EEOC (Equal Employment Opportunity Commission) and Pregnancy Discrimination Act

Consequences of the problems:          firing of Henry Jaques, demotion of Gavin and elimination of his position from the organization, discharging Miriam for pregnancy issues, and turning down of Bandag truck maintenance service people who applied for the driving job.

                                                           

1.      Given Bandag Auto’s size, and anything else you know about it, should we reorganize the human resource management functions, and if so why and how?

Yes, Bandag should reorganize the human resource management functions because there is no structured human resource department in the Bandag to coordinate and manage human resource functions and issues. In today’s competitive world of business, employee’s management, motivations and satisfactions are keys to success. Therefore, to be more competitive and to retain and satisfy the human resources in the organization, they should have systematic and structured human resource management department so that they can manage human issues in the organization.

To restructure the human resource department Bandag can open new separate department and assign HR specific roles and duties to perform. They can hire HR specialist to lead the department.

2.      What, if anything would you do to change and/ or improve upon the current HR systems, forms, and practices that we now use?

The main thing I would change and improve the existing systems is to established new functional areas within the organization specifically for human resources and carries all the people related functions, issues and problems from that functional area. The major thing I would do is recruit/ hire a HR specialist to manage the HR issues. In addition to this, I would make sure that the organization is following all the US labor Act’s like EEOC (Equal Employment Opportunity Commission) and Pregnancy Discrimination Act etc.

3.      Do you think that the employees that Jim fired for creating what the manager called a poisonous relationship has a legitimate claim against us, and if so why and what should we do about it?

I don’t think that it is a legitimate claim because there is no such evidence in the case that Henry made the whole place poisonous. Jim argues that Henry has serious problems interacting with his coworkers and further adds that he was continually arguing with his coworkers a complaining to the store manager about working condition. But I would say good job to Henry for complaining for working condition because if there is no HR department and HR personnel to handle HR related issues then how could their working condition be qualitative.

4.      Is it true that we really had to put Gavin back into an equivalent position, or was it adequate to just bring him back into a job at the same salary, bonuses, and benefits as he had before his leave?

Yes! Gavin worked for Bandag for 10 years, the last two as manager of one of the company’s five stores so priority should be given to him. Bandag should offer him an equivalent position. Same salary, benefits, and bonuses are not enough to retain him. He is one of the experienced and valuable employees of the Bandag. So Bandag should retain him by offering him same level of position not only in terms of salary and remuneration but also in terms of authority and responsibility.

5.      Miriam, the controller, is basically claiming that the company is retaliating against her for being pregnant, and that the fact that we raised performance issues was just a smokescreen. Do you think the EEOC and/or courts would agree with her, and, in any case, what should we do now?

In my opinion, the EEOC and/or courts would agree with her because according to the Pregnancy Act If an employee is temporarily unable to perform her job because of her pregnancy, the employer must treat her the same as any other temporarily disabled employee. For example, if the employer allows temporarily disabled employees to modify tasks, perform alternative assignments, or take disability leave or leave without pay, the employer also must allow an employee who is temporarily disabled because of pregnancy to do the same.

Pregnant employees must be permitted to work as long as they are able to perform their jobs. If an employee has been absent from work as a result of a pregnancy-related condition and recovers, her employer may not require her to remain on leave until the baby's birth. An employer also may not have a rule that prohibits an employee from returning to work for a predetermined length of time after childbirth.

To solve these particular issues, Bandag can arrange fewer hours per week for her until her recovery. If Bandag refused to do so and fired her, court may go against them for not following law and order of the state.

6.      An employee who is deaf has asked us to be one of our delivery people and we turned him down. He’s now threatening to sue. What should I do, and why?

I think, Bandag should allow him to be driver for the delivery truck. It is against the EEOC (Equal Employment Opportunity Commission) to discriminate against someone to be the driver just because he/she is deaf. Rather than turning him down company can provide him special earphone if needed. Not giving the driving job to someone just because he/she is deaf is fully discrimination. Therefore, Bandag should avoid such discrimination.

7.      In the previous 10 years we only had one equal employment complaint, and now in the last few years we had four or five. What should I do about it? Why?

I think the main reason behind increasing equal employment complaint is Jim himself. We know that Jim’s father was quite involved in the employee’s problem like finding out what their problem is and even helping them out with an occasional loan and being quite liberal when employees face some sort of problem like when their children were sick. On the other hand, Jim tends to be more abrupt and does not enjoy the same warm relationship with the employees as did his father.

Jim is very focused on improving Bandag’s financial performance, and so all his decisions, including his HR- related decisions, generally come down to cutting costs like fewer days off rather than more, fewer benefits to employees rather than more, and less flexible with the employees even when employees need it. Therefore, in overall, the employees of Bandag are quite dissatisfied with the overall management of the Bandag. And such complaint increased dramatically during a decade or so.

I think, to solve this problem, Bandag should define specific HR related policies to address such issues. There is no HR department; no HR specific rules and policies to guide and manage the HR related problems and issues. So the company is facing a lot of people related problems in past 10 years.