Muffler Magic

Case Study
12/19/2009
Human Resource Management
Shahmeer Qasim
Company Introduction
This particular case is about an automobile service centers which was located in Nevada. The owner was
Ronald Brown who started with a single store 20 years ago for repairing mufflers. Which eventually grew
into a chain of repair shops and expended their services from muffler replacement to oil changes bra!e
"obs and engine repairs.
rgani!ational Structure
#rgani$ationally %uffler %agic employees about &00 people total and Ron runs his company
with eighth managers including %R. Brown as president a controller a purchasing director a
mar!eting director and the human resource manager.
'e also has three regional managers to whom the eighth or nine service center managers in each
area of Nevada report.
Case "nalysis
Problem & Challenges
Being a service oriented company( the shop owner was basically dependent upon the )uality of
the service people he or she hires or retain.
*uality was a persistent problem as well. +rewor!,
-roblems li!e replacement was diminishing the profitability of the company and same reputed
many times over have the potential for ruining %uffler %agic.s word of mouth reputation.
The company had only the most basic 'R system in place and used only an application form that
the 'R manger modified from one that was downloaded from the web and other forms purchased
from a human resource management supply house.
The technicians they hired to do "obs li!e rotating tires fixing bra!e pads and replacing mufflers
were untrained and inexperienced.
/ow standards screening and compensation issues.
0mployee safety was also a problem( they were dealing with sharp tools greasy floors and tools
extremely hot temperatures and fast moving engine parts including fan blades.
'R manager scheduled a meeting with himself Ron Brown and a professor of business who
teaches compensation management at a local university. The professor was as!ed to spend about a
wee! loo!ing at each of the service centers analy$ing the situation and coming up with a
compensation plan that will address %uffler %agic )uality and productivity problems. 1he came
up with the following recommendations.
2. -resenteeism
2. 1!ill 3for3 pay plan
&. 1etting up a labor efficiency goals
Questions # "ns$ers
2. Write out a one page summary outline listing & or 4 recommendations you would ma!e with
respect to each 'R function +recruiting selection training and so on, that you thin! Ron Brown
should addressing with his 'R manager now.
Recruiting & Selection
5se custom made and proper application forms and formats.
They need to develop a interview )uestionnaire form for all type of "ob categories separately.
+structured interview,
They should re consider their selection and screening process.
o Bac!ground investigation
o Reference chec!ing
Training
-roper orientation should be given
0mployees should be made aware of the company.s strategic goals
This type of service need on3"ob training
2. 6evelop a 20 7 )uestions structured interview form Ron Brown.s service center managers can use
to interview experienced technicians.
8nswer9 Being a practical and service oriented "ob the interview will re)uire situational and
behavioral )uestions because this will determine whether the person is capable and can satisfy
the customer. 1ome of the )uestions are given below.
2. Why did you choose this career:
2. 'ow would you describe yourself:
&. Why do you want to change positions:
4. What did you li!e;disli!e about your last position:
<. =n what ways are you )ualified for this position:
>. 6escribe your most important strengths and wea!nesses.
?. 'ow would you handle a dissatisfied customer:
@. Why do we hire you:
A. What will you do if BBBBBBBBBBBBBBB happens:
20. 6o you speciali$e in a certain area of auto mechanics:
&. =f you were Ron Brown would you implement the professor.s recommendation addressing the
presenteeism problem in other words start paying for sic! days: why or why not:
8nswer9 yes = would because company was incurring losses even when employees were not
wor!ing the whole day they were paid for the whole day also sic! employees will ma!e the other
healthy employees sic! too but = will do some modifications in his recommendation. = will give
paid sic! leaves but the employee will get only half day pay as in case they were being paid for
full day even if they were not wor!ing the whole day. This will benefit the company in two ways(
one that the company will save half of their employee wages and second sic! employees will not
ma!e other employees sic!.
4. =f you were advising Ron Brown would you recommend that he implement the professor s!ill3
based pay and incentive pay plans as is: Why: Would you implement it with modifications
should be and why:
8nswer9 Ces = would because this will encourage the experienced technician with a turnover of
more the &00D it is really getting hard to retain the experienced technician. 8s per modification is
concerned = don.t thin! so there is any need for modification.