Recognizing the Issues with Bandag Automotive's HR Management System
According to the case study, the "Human Resource Management" system of Bandag automotive needs to be recognized in every aspect. It has been observed that the company has no structured "Human Resource Department". This becomes a negative area of the organization that has created major problems in the functions of the HR management system in this competitive world. Employee satisfaction, motivation, and engagement are the key areas of an organization where Bandag Automotive was lacking. In order to mitigate those issues, the organization is required to focus on its competitive management strategies and HR development strategies (Piwowar, 2021). With a structured and systematic way, the HR department can be improved and this can help the organization to mitigate its internal issues. In terms of restructuring their HR department, Bandag is required to separate the roles of the assigning HR departments. With specific duties and roles, the organization can run well. In this aspect, Bandag should hire some HR specialists to specify the roles of every individual.
Jim should not have the responsibility of directing HR with their employees. It is necessary to handle the organization with proper HR management rules and regulations. In this aspect, the new manager of HR can formulate some extraordinary business policies and strategies in order to identify the requirements of this workplace (Furusawa & Brewster, 2019). A sustainable and good relationship was made by the father of Jim and he can be assumed as an HR manager in this organization for better management. According to this new manager, there are plenty of tasks are required to manage these conflicts and maintain sustainable relationships with employees.
- The new manager is required to create new rules for the employees and organization. These new rules help to set up a great bonding between employees and management in terms of managing work-related issues, administrating and interpreting contracts, and handling questions (Alketbi et al.2022).
- Modify and analyze benefits and compensation policies in order to ensure compliance and establish a competitive program with all legal requirements.
- Providing advice to the organizational managers in terms of maintaining such policies and creating equal opportunities for everyone to mitigate the issues like sexual harassment, pregnancy-related issues, and relationship issues in the work environment.
- Hr managers are required to perform critical duties like understanding the situation and dealing with them, firing employees, refereeing disputes, etc.
- Conduct and plan for orientation of new employees with a positive attitude for organizational benefit.
- Identifying recruiting and vacancies of staff, selecting participants, and interviews (Mathur, 2019).
- Coordinating, supervising, directing, and planning new work activities for staff and subordinates to maintain employee relations, labor relations, compensations, and employment.
- Coordinating, directing, organizing, and planning with the personal training of laborers are required for the organization.
- Representing the company at personnel-related investigations and hearings.
- Increasing recreation and safety programs.
- Managing performance and benefits with administrative compensations (Longoni et al.2019).
- Jim’s father can help new, managers of HR in order to create a survey analysis among all employees in order to know them in a better way to create a perfect job analysis.
HR practices that are lacking today
Regardless of the size of any company, there is a need to have a proper HR management system. Otherwise, there would be a chaotic situation at the workplace. That is happening at Bandag Automotive. After reading the case study, it can be observed that there is a communication issue between the employees and the HR management team. Communication in business is one of the most important factors that play a crucial role to make a company successful. However, there are other issues that HR practices are lacking nowadays. Some of them are highlighted below.
Lack of safe and healthy workplace environment: Past researchers regarding the same topic highlight that a large number of companies are facing several challenges in their workplace due to the lack of a safe and healthy workplace environment (Bennet, 2019). The case of Bandag is also similar. In terms of boosting revenue generation, the owner of this company is neglecting the importance of a happy workplace.
Solutions for Improving HR Practices
Issues regarding management style: Without a safe and happy workplace environment, it is not possible to run the HR management system properly. This scenario is present in the workplace of Bandag Automotive. Sharing information about clients, sales, contracts, employee data, and management objectives are the key factors ensuring the workforce's enthusiastic nature (Inoyatova, 2019). Nowadays, this concept is lacking lately in many business organizations worldwide.
Lack of fair evaluation system: Past studies highlight most of the performance evaluation matrix is biased nowadays. That is a serious HR practice lacking in the present scenario. Every company has its performance evaluation matrix, collecting feedback is one of them (Anderson, 2021). However, feedback can be biased. HR should only rely on employee feedback for the evaluation process.
Area for improvements
Reviewing existing process: The management of a company might find it difficult to improve its existing HR management process. However, one should identify new opportunities to create and automate process efficiencies. One company can review its existing HR management and the working process by focusing on various areas such as offboarding, onboarding, applicant and recruitment tracking, training, attendance, time, employee performance monitoring, and many more (Oliver, 2018).
Payroll and HR merger: Past reports suggest merging payroll and HR management systems. Managing HR and payroll differently can lead to chaotic situations that could eventually lead to the chance of various errors. Therefore, merging the HR and payroll systems can mitigate these issues once and for all. When one company merges HR and Payroll, there would be a lesser chance of having an erroneous employee paycheck.
Employee self-service: There is a need to quench the need and queries of every employee working within an organization. However, instead of having an HR team Answer several employee questions, “employee self-service” can be helpful to do this job. Self-service gives the HR management team to focus on critical company issues (Rana et al. 2021). This also allows employees to access the information they are looking for to improve their working style or productivity.
Monitoring workforce performance: Without monitoring the workflow and productivity of the employees, one organization and its HR management system might face several issues and challenges. Tracking and monitoring employees and their performance help an organization to focus on areas of improvement (Mahadevan, & Schmitz, 2020). Tracking HR metrics for a longer period would help an organization to focus on money and time-saving automation tools for HRs.
- According to the report of the manager of Henry Jacques, he had some serious problems with his Coworkers. He also misbehaved with them at the time he was doing his job. Along with that, the manager also reported that Henry has some serious brain problems and making the work atmosphere very poisonous. After hearing all concerns and focusing on their mental illness Henry Jim has decided to fire him from the company. After analyzing all situations of the organization and the scenario Jim has made this decision because if this case goes into court then it can create a problem for them, as Henry is not mentally stable and have a problem working with others or in a team environment. For this kind of people, ether should be a specific place that was not present, and to hide that issue, Jim has fired that employee from the organization.
- This is not a legitimate claim as there is no such evidence are present against Henry, that he made the working atmosphere very poisonous. On the other hand, Henry did not entertain his manager about his problems of mental illness so there is a clear view that Jim wanted to throw him out of the organization.
According to a justified point of HR, it is totally unethical, and unnecessary scenarios have been created by the manager. In an organization, HR plays a crucial role to manage organizations and their internal matters also. In this case, the HR department should get involved in this to figure out the situation (Baranov et al. 2018). If this could happen then Henry must not be fired from the company.
- There are many options are present rather than fighting Henry from the organization. According to the Disability act of America, an employee needs to establish that he had some mental disability. In this aspect, Jim can take this matter gently and politely. As an alternative option, Jim can transfer Henry and should give him the last warning on this. As a manager, Jim cannot directly fire an employee without judging him so this can be an alternative option rather than firing him from the organization.
- Jim has done unprofessional behavior toward Henry. In this aspect, if Henry files a case against the company, then it creates a minimalist problem for them because an employer cannot fire an employee before judging them. According to the “Employment Act, 1955 (revised 2012)” an employee cannot be fired instantly without judging (Grennfelt et al.2020). In this case, the company can win the case as they have much living evidence (employees) and they can manipulate them to stand against Henry to save the organization. Psychologically this is possible because most of the employees want to save the company rather than support an individual. The manager and employees can work as a defender for the company against the case which Henry has claimed against them.
- This would be tough for Henry to win this case because he has no evidence against the manager and company. The law always works on evidence. Without any evidence, the company should not face any legal problems in this aspect. According to the "Employment Rights Act, 1966" employees' situations can be unfair; they can take maternity leave, dismissal, and redundancy (Aneja & Avenancio, 2019). In this aspect, the company can make charges to Henry for creating a positions relationship that is not under this law, and the scenario in which the company has represented Henry shows that he had gone against the law. Apart from that, Henry has done a great job in taking this matter legally because it is necessary to change the organizational structure of Bandag automotive.
- The presented case study highlights Gavin was put back under a different job position with the same benefit. However, the "Occupational Safety and Health Act 1994, OSHA" imposed by the Malaysian government does not encourage this kind of workplace practice (Aziz, & Osman, 2019). This law highlights the welfare, health, and safety of every employee within an organization. On the other hand, the "Health and Safety at Work, etc Act 1974" imposed by the UK government also covers the safety and health of employees in Great Britain (Nie et al.2018). Abiding by this law, Bandag Automotive had done an unethical and unlawful business practice. Therefore, option a of the given two options applies under Malaysian and UK labor law.
- As per the Malaysian and UK labor laws, both two given options cannot exist at the same time within Bandag Automotive. Past researches also highlight there should be a fair business practice when an employee has to take medical leave for themselves or their nearest family members. Therefore, after improving the HR management system, the CEO of Bandag Automotive and members of the company board of directors must add “option a. put him back into an equivalent position” within the company's human resource management policy.
- The status quo simply highlights that Bandag Automotive must maintain the same working hours, wages, and terms and conditions of the employment agreement. This law is applicable when an employee joins this company until the retirement of that specific employee. In this case study, the employee is Gavin. On the other hand, the Malaysian "National Labor Relations Act" barred any organization from practicing any kind of discrimination policies within the working environment (Murugasu et al. 2019). Bandag Automotive had offered different job posts to Gavin when he came back to work after his leave. Therefore, as per the Malaysian "Occupational Safety and Health Act 1994" and "National Labor Relations Act", Gavin's status quo must be the same as he has been working here for the last 10 years.
- One organization should compensate employees when an employee is adequately meeting their job role and requirements. This can be helpful to boost employee enthusiasm and morale to work better in the near future. Furthermore, they also feel motivated to come to work every single day without any sudden leave. Employee compensation is highly required to increase their job satisfaction level. Highly motivated and satisfied employees are less likely to search for better opportunities (Kurdi et al.2020). This can also help an organization focus on the concept of employee retention. Bandag Automotive can also add employee compensation practices in their working process.
- During tough times like the Covid-19 pandemic, and an employee medical emergency, the best possible compensation policy might be in the form of incentives and salaries. However, in the case of Gavin, the best possible incentive could be offering him the benefits of paid leave.
The Importance of a Fair Evaluation System and Employee Self-Service
Mariam works for the organization for six years. Under the “Illness-day-program” of Bandag Mariam had taken an extra leave. As that pregnant lady has taken that leave Bandag has fired that woman. Jim had made an excuse that Mariam is being turning her budget and might be forged a few documents. If this issue is valid, still then Jim cannot fire Mariam from the organization.
In order to maintain this situation, some ethical HR practice is also required and need to impede the diversity management of the workforce. "EEOC and/or courts" can agree with Mariam on this statement because according to the "Pregnancy Discrimination Act" an employee is not liable to perform their job in this situation. In this sensitive stage, their working hours must be disabled (Gay, 2018). As an example, in the case of pregnancy, an employee must take leave and the organization needs to temporarily disable her working areas. Along with that, an effective HR practice is also required (Van, 2021). In this stage, a woman should take maternity leave for at least 12 weeks and a maximum of 26 weeks. HR management of Bandag should have applied this policy in this case so that Mariam can take rest which is necessary for her in this condition.
As this is a serious issue so Bandag can defend itself with many false statements. The company can state the employee performance report is very poor; they can also separate that Mariam is very irregular to the office and for that reason, they have warned her. Along with that company can create statements where the image of Mariam can be monitored as very rude in the organization. Also, the company can state that they have tried to contact Mariam but were unable to reach her and they have provided her position to a new employee who is interred on her post for a time being. All of these can work against Mariam and these clues can save the company from this claim.
Bandag automotive should improve their “Disciplinary Action System” where they should implement four different stages. Initially, they need to provide a verbal warning, if that works then well and well. If not work, then they should go for written earning, and after that final warning. If all of these stages cannot meet the requirements then Bandag can dismiss an employee from their organization. These are the steps that the company needs to follow (Sadurski, 2021). In addition, this action system can help the organization manage employees and employees also get serious after knowing the exact rules accordingly.
- As per the given case study, the main issue with Jim was his excessive avaricious nature towards his employees. This is the reason employees like Henry Jaques, Gavin, and Miriam had to face several discriminations and respect issues at Bandag Automotive. Furthermore, Jim was not one percent supportive of his employees like his father was. Jim's negative attitude is increasing the number of complaints in his company. In other words, Jim lacks the quality of being a supportive and true leader.
- There is always a need to have a proper HR management program within a company irrespective of its size or the number of employees. In the early stages, most companies rely on HR outsourcing. However, having appropriate HR plans can make an organization more successful than its present scenario. Some of the benefits of having an HR plan for Jim and his company are highlighted below.
Improving the Disciplinary Action System and Preventing Pregnancy Discrimination
Employee recruitment: Without having an HR planning employee recruitment process becomes much tougher. HR management always looks for skilled employees and qualified professionals. Therefore, HR managers conduct all the employee recruitment procedures of an organization (Fisher, & Connelly, 2020). This could eventually lead to enhanced employee productivity subsequently leading Jim’s company to boost its revenue generation.
Enhance company effectiveness: HR management significantly improves the morale and productivity of every employee within an organization. This could eventually lead to the overall profitability of Bandag Automotive. Furthermore, effective HR management always monitors and ensures that all the resources are properly allocated or not.
Dispute and queries handling: It is very common to have disputes and queries within an organization. The scenario of Bandag Automotive is not very dissimilar. Therefore, having an impactful HR management team can smoothly handle these issues by solving all the queries and disputes. That would also boost employee motivation.
3. Firstly, there is a need to have separate human resource management within this company, completely dedicated to new business strategy. As per the given case study this company currently does not have any rigid business development strategy. Furthermore, Bandag must revoke all connections with all the external HR firms. Therefore, the new and separate HR team can develop proper business growth and marketing strategy for Jim and his company. The new job role of the separate HR team will be focused on developing business strategy, employee hire and retention, maintaining a proper workplace environment, and motivating all the employees. This could gradually lead this company to boost its productivity and enhance revenue generation. Similarly, the HR team would coordinate all the work activities and allocate the required resources to specific employees. On the other hand, the new HR would modify and analyze benefits and compensation policies within Bandag. It is hoped that this could benefit this organization to avoid the negative cases that Miriam, Henry, and Gavin had to face.
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