JackNelson+Problem+ch+1+case.docx
Jack Nelsons Problem
As a new member of the board of directors for a local bank, Jack
Nelson was being introduced to all the employees in the home
office. When he was introduced to Ruth Johnson, he was curious
about her work and asked her what the machine she was using did.
Johnson replied that she really did not know what the machine was
called or what it did. She explained that she had only been working
there for 2 months. However, she did know precisely how to operate
the machine. According to her supervisor, she was an excellent
employee.At one of the branch offices, the supervisor in charge
spoke to Nelson confidentially, telling him that something was
wrong, but she didnt know what. For one thing, she explained,
employee turnover was too high, and no sooner had one employee been
up on the job than another one resigned. With customers to see and
loans to be made, she continued, she had little time to work with
the new employees as they came and went.All branch supervisors
hired their own employees without communication with the home
office or other branches. When an opening developed, the supervisor
tried to find a suitable employee to replace the worker who had
quit.After touring the 22 branches and finding similar problems in
many of them, Nelson wondered what the home office should do or
what action he should take. The banking firm generally was regarded
as being a well-run institution that had grown from 27 to 191
employees during the past 8 years. The more he thought about the
matter, the more puzzled Nelson became. He couldnt quite put his
finger on the problem, and he didnt know whether to report his
findings to the president.
Questions:1. What do you think is causing some of the problems
in the banks home office and branches?Since employee turnover is
high, there definitely has to be a problem in the employees
dissatisfaction with their work. The reasons for this
dissatisfaction can range from a low salary to a bad work
environment. Furthermore, In one of the branch offices, the
supervisor stated that with customers to see and loans to be made,
she had little time to work with the new employees as they came and
went. This means that training is inadequate, and the employees are
less equipped with the knowledge and expertise needed to be
successful, which can lead to poor performance. Since the employees
seem to have the skills needed (Johnson precisely knew how to
operate the machine, but did not know the name of machine), the
problem here comes from the administrations inability to help train
the employees - not so much the employees lack of human
capital.
2. Do you think setting up an HR unit in the main office would
help?Setting up an HR unit in the main office would definitely
help. First of all, it can create a company-wide set of standards
for employees that would fulfill the needs of the firm. In the
passage, it was stated that employees are hired without
communication with the home office or other branches. This means
that the lacks a universal definition of what is required from an
employee - this disorganization is detrimental to the company as a
whole. With an HR unit standardizing the job description and the
qualifications needed from an employee, it could find better
candidates, thus lowering the turnover rate. The passage also
states that supervisors did not have time to work with new
employees, and they mainly focused on replacing workers who quit.
Having the HR unit could also help retain the employees, and it
would work to be that support system that would give the employees
the attention they need.
3. What specific functions should an HR unit carry out? What HR
functions would then be carried out by supervisors and other line
managers? What role should the internet play in the new HR
organization?The HR unit could be in charge of recruiting and lead
the initial screening process. It could screen through the resumes
and even phone interviews. By upholding a standardized set of
required qualifications, it could weed out the employees that would
not be a good fit for the company. The candidates that make the
first cut would then be given to the supervisors and line managers
to choose from through a second-round interview. This helps the
supervisors because they seem to be very busy (judging from the
passage), and it would be more time-efficient with a smaller pool
of candidates to choose from. Another specific function the HR unit
can carry out is a well-organized training procedure or
orientation, that works to inform the newly hired employees of
company knowledge and insight of the company from a bigger picture.
After the training, lines managers can then fill the employees in
on their specific roles. Here, the training serves to set a strong
foundation for the needed expertise. In terms of the role of the
internet, it can be that link that connects the different branches
and universalizes employee standards. This includes web pages on
what is expected of an employee such as moral conduct, company
policies, and even overall knowledge of the company. The internet
also can be used as an outlet for training - online streaming or
even teleconferencing would helpful ways to serve as a medium for
training. The internet can finally be used to find prospective
candidates with the emergence of social media, and HR can use it to
gain maximum exposure to good prospects.
