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.