HUMAN CAPITAL MANAGEMENT

(MBA ODL)

MBOC7053

ANUTHASAN A/L RATHAKRISHNA

21020157

1. Given Bandag Automotive’s size, and anything else you know about it, should we
reorganize the human resource management function, and if so, why and how?
 As we know that, Bandag Automotive which owned by family business and the
leadership conceded from the company founder to his son, Jim Bandag. Jim’s father has built
special pledge with the subordinates and this leadership style has create a good relationship
oriented in the company. It is opposite to Jim where is he focus on job done in his terms of
task focused on leadership style. This each leadership has its own advantage as well as
inadequacy as Bandag Automotive own antiquity shows. Throughout the two leadership
which Jim focus on lower cost has increase the profitability in the company and his is not
generous in reward and give reimbursements to the employees as his father focus on
employee’s recital. This led to deprived morale, lower communication between leadership
and employees. This cause high incomings rate employee and increased legal cost due to
employee’s lawsuits. Thorough the father time he gives more priority on employee’s
advantage and there is close connective between the employees. Besides that, the employees
are faithful, stay and satisfied with the company long time even though the cost-effectiveness
was lower than the present. Bandag Automotive todays confronted with numerous possible
charges by the employees who each claim employment discernment which this created when
Jim makes all Human Resource (HR) related decision by himself, mostly on instinctive
sensation and deprived of an appropriate investigation in to their possible lawful insinuations.
Due to this which Jim taking fully decision on the company and now faced with few key
issues connected to its administration style, operations and organizational structure. Besides
that, the deficiency of a functional HR section to view the full HR roles and management
systems is necessary to the company is a growing worry as legal complications endure to
pedestal Bandag Automotive.

Through out the issue above Jim should be recommend for a new separate Human
Resources unit will enthusiastic to the Bandag’s new strategy. Why we to recommend HR
within the company where we can see that, there is no edifice human resource department
within Bandag to coordinate, and manage their HR roles and the issues. Due to lack of
internal HR structure, the company is restraining the number of value additional resources
obtainable to increase company revenues, the value additional resources such as managing
employee schedules, morals support, employee reimbursement and more. Form here, the
hiring of a trained and qualified HR Manager able to guide and help the development of the
strong company policy in the line of legal necessity. In this case, Jim will no extensively have
through tasks with the employees and it handle by the new HR with new organization chart.
The new Hr manager will help to create business strategies and policies and identify
workforce requirements. Moreover, the new HR manager with Jim’s father who as a lot of
experience with company and has shaped and outstanding connection with the employees and
with his help the HR manager can inspection the present employees to get know them better
and prepare the job analysis.

Therefore, the Hr manager will have these task where he will be pulled from the
Department of Labor’s from here will oblige between organization and employees by conduct
enquiries, understanding thus administering dissimilarities to selection resolution labor linked
complications. Below are the phases that the new HR manager can manage the company
through the complications in the system in Bandag automotive:

i. Need to investigation and adjust reimbursement and profits procedures to begin viable
programs and confirm obedience plans then confirm amenability thru lawful
necessities.
ii. Recommend manager on administrative procedure matters on equal employment
prospect, sexual harassment and advise if there are any changes needed in the
organizational.
iii. Need to accomplish problematic employment duties in the company due to commerce
with less workers in the company, umpiring arguments, dismissal workers and
controlling disciplinary procedures.
iv. From here, thru the organization goal or objectives need to strategy and conduct new
employee orientation to adoptive optimistic attitude.
v. Recognize workers opening and beginner, interview and select interviewees.
vi. Proposal, direct, administer and organize job actions of subordinates and work
connecting recompense and worker connection.
vii. An organization need to plan, well coordinate and rheostat the staffs training or w
activities of workers connection in the organization.
viii. Thus, there is manage reimbursement, system of performance management and
benefit and also restoration and safety programmes.
2. What, if anything, would you do change and /or improve upon the current HR
systems, forms and practises that we now use?

The delinquent that facing the company are the lack of a dedicated HR staff and Jim
himself don’t have proper investigate on the employee issue. Therefore, he took the decision
by his own guts. His thought is how to gain profit in his way by minimum the cost by shut
one eyes into his employee’s problems. Form here, for the company profit Jim policies are
not but he implied in wrong way. If this goes on even, he gains some profitability in the
company will lead to enduring problems and there is huge gap between the employees and
employer. In conclusion poor HR management will give Bandag Automotive a depraved
repute and will lead toward globule in eminence, forfeiture of clienteles then lower revenue.
Based on Ramesh & Chanthujan (2015), they mentioned in their case study is when there is
HR related issue has collapsed even though they had a good capital investment and
aggregated resources the organization Small business (SM) in Sri Lanka.

The new HR will entirely detached Bandag from the outside agencies and cancelled
all acquaintances as HR staff the company now does not have proficient. Besides that, the
new HR will have organized and developed the Human Resources polices which work on the
company’s new strategy. This step after evolving an enthusiastic HR partition and staff would
change robust Human resources rules and technique. Due this new strategy required all the
form will be inside generated. In addition, the manger will be hired two assistants to assist the
proof of confirm independence form the HR agencies. It’s easy to manage and update when
there are two assistants, one will be accountable on the employing, orientin and training for
new employee and remain employee. The second assistant will take the accountability on the
appraising present staff, tracing preferments, appropriate counselling and dismissal of staff
and enhance training on new policies to present staff. Besides that, currently the company and
Jim facing a lot of issue on the legal part will now be the accountability of the HR manger to
manage it through the HR policies. Through this process of new policies and HR
management Jim and his father with the HR manager will appraise the consequence of the
new unit on Bandag Automotive and the problems. Due to this matter, based on Priyanath
(2010) mentioned in his article that research find government that’s is lack of development in
small industrial subdivision and also the utmost industrialists do not have ay kind of clear
idea of the HR management. Besides that, Schuler & Jackson (1987) mentioned with in their
article that, the potential of human resources planning with the stratagems, elements and
policies in the system will ease the growth and operation of organization resources and over-
all capabilities so it will profit the maintainable competitive benefit of a specific company.
Furthermore, a present-day management perfect with the best practice’s principles of
arrangement and the positive strategy accomplishment mentioned by Kaplan & Nortan
(2006).

3. Do you think that the employee whom 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?

Jim fired Henry Jacques because his manager compliant that he doing the technical
part of his job fine while he had worst issue interacting with co-workers and was making his
supply venomous. Based on Henry Jacques manager which is no proper investigates on it and
no discussion Jim accepted Henry’s discharge. Through his case the manager know that
Henry has mental illness and its never take accountability on evaluating Henry. Besides, this
issue never appears in the management attention that he has a mental illness.

In my opinion, that is a legitimate claim since no such indication in the circumstance

that Henry made the entire poisonous. Jim claim that Henry has serious problem cooperating
with his co-workers and further he keeps on arguing about working condition to the manager.
In addition, I would say Henry did a great task by complaining about working condition
because there is no proper Human Resources department to bring up to HR employees to
handle the issue and how would working condition be qualitative. Besides that, before Henry
been fired the ring should to first is with the condition should give final warning or alteration
Henry to other position. if he continues to be difficult when employed as individual, a
discharge would be suitable.

In addition, in first thing Henry has been noticed possibly mental illness and the
Bandag’s ignore the possibilities and dismiss Henry without proper act. The company would
regulate if the employee’s illness would be well-thought-out under the Americans with
Disabilities Act (ADA). Jim should have resolute if they could judiciously accommodate the
disability and there is the possibility that the company would not be able to sensibly
accommodate the staff’s infirmity if it did result the exploitation of co-workers. Moreover,
due to this behaviour to endure if it disturbs the work pointedly careful an undue adversity. If
the company where is Jim should be more consider and prudently gauged the condition
before dismissing the staffs the company could be have reduced the opportunity of the
retentive taking lawful action.

4. Is it true that we really had to put Gavin 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?

In the HR policy of companies should have Sick under Malaysia Employment Act
1995 (Part XII- Rest Days, Hours of Work, Holidays and other Conditions of Services) 60 F-
Sick Leave. In these issues, in the legally mentioned that an employee be entitled to paid sick
leave. Jim should no eliminated his position as per legally since Gavin give proper reason for
his medical leave and Jim approved it. Therefore, Gavin is the lengthiest working years with
the company and he got the managerial post due to his hard work and also his experienced in
the company since Jim father was management of the company. This poor HR management
that Jim had where he eliminated Gavin position and give him nonmanagerial position in the
new store where Jim decided to open the new store and appointed a new manager when
Gavin in medical leave.

Based on The Malaysia Employment Act 1995 under Sick Leave, it requires that
employees be reappearance to the same or comparable position. The status of this this case
not only back to same position but also will the same with pay and benefits and also the
similar terms and conditions of employment. Normally, this has been understanding to
comprise the respect or the employment position even though the salary is significant but
other mechanisms of the job should be the same as well such compensation or pay plans. The
compensation is important to know that keeping quality employees and employer should not
ignore the compensation because it is contracts with the significances the most employees
need. Gavin need it due to his loyal to company for 10 years with Jim father. Besides that,
Jim father’s know Gavin value and his quality to the company. He more experienced into the
business that Jim running. So, for my opinion, Gavin should get more benefit through the
company for an example retirement benefit with Fair Labor Standards Act (FLSA) since the
issue originated with Jim poor decision that he took. If Gavin get the right compensation
plans leads to stronger job satisfaction. Besides that, if only Gavin should get the benefit due,
he is a productive employee where Jim’s father knows how to handle the employees feeling
by valued them will increase in motivation and loyalty to the company. In conclusion the
company does know exactly what motivates every employee but there is always a way by
given to people option so that both employees and employer will gain benefit and the
employees empowered to work.

5. Miriam, the controller, is basically claiming that the company is retaliating against
her for being pregnant, and 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?

Miriam with the Bandag Automotive company for six years. Under Family Medical
Leave Act (FMLA) Miriam apply and have to go pregnancy leave for twelve weeks and extra
three weeks under Bandag’s extended illness days program. Therefore, after the leave,
Miriam got request arrange to work fewer hours per week and request work from home oner
week per day and Jim refused. After two months later Jim fired Mariam due to the month has
several days late and he got proof on the forged document on the lateness. Therefore, Jim
though that is valid reason and its safe to defending the company for his action. In my
opinion, in the case has notice that Mariam don’t have issue problem in working place and
don’t have any history of performance complications. If Mariam fight the case under Equal
Employment Opportunity Commission (EEOC) and likely strong enough and more to agree
with her to argue about Miriam has been terminated due to she asks for flexible working hour
and not any warning about her performance. Moreover, to defense against this claim, the
company Bandag’s should be ready with solid proof with documentation on the performance
deficiencies that led her termination. In order to defend the company against future claims it
is significant to create and follow liberal disciplinary system.

Besides that, according EEOC would approve issue with Miriam due to Pregnancy
Act if an employee is temporally unable to perform her job because of her pregnancy and in
the act stated that employer would treat her the same as any other temporarily disable. For an
example. If the employer in the company allows temporarily disabled employees to adapt
tasks, accomplish other task or even take leave without pay due to disability leave and this
must allow to pregnancy also because same as temporarily disable. Besides that, pregnant
employees able to perform their job be allowable to work as long they are. If related to
pregnancy matters and recovers if the employee is absent due to this condition, employer may
not necessitate the employees to continue on leave till the baby is birth. Employers must
embrace exposed a job for pregnancy linked absence the similar dimension of time job are
detained open for worker sick or incapacity connected absence. An employer also does not
have the rule to forbids an employee from returning work for a prearranged length of time
after childbirth.

Bandag’s Company should create disciplinary action system because in workplace

any response to misbehaviour or rule breaking in work. This policy is significant to generate
clear strategies for predictable behaviour of the employees and the consequences they can
assume if the guidelines are insolvent. Why it important to the company is protect the
company from accusations of illegal termination. Besides that, this policy also creates and
ensure treatment of all employees of rules are not being followed and the outlines how
employees can report the incidents or complaints. This policy will identities non prolific or
problematic workers and guide to improve employee presentation by classifying deprived
behaviours. In Bandag’s Automotive need this kind of management and policy of disciplinary
action to help avoid any misleading and confusion on possible legal act that might be taken
by the employee appealing their behaviour was not specifically forbidden. This authorization
disciplinary action at work for an example, catastrophe of their job performance and function,
pestering or vehement toward co-workers, Misconduct, dishonesty attendance issues and
illegal behaviour and also dress code desecrations.

In addition, Jim should investigate about Miriam case and proceed by the workplace
discipline policy that state which is there are three mains available for employers are liberal
castigation, reassignment or deferral, performance improvement plans (PIP) and
requalification. There few steps on progressive discipline policy:

1. Verbal warning- it is for employee for his or her first break rule of behaviour was
wrong.
2. Writing Warning – this step the warn should be signed by their manager, a witness to
be store in employee file to have clear picture what is the issue, how the employee can
fix their problem and the consequence will appear one they never fix it.
3. Final Warning- if there is no improvement of the behaviour after the written warning
obviously it is termination.
4. Suspension /probation -this the final step before termination. This step to give chance
to the employee improve behaviour. This can do by ratify nearer supervision.
 5. Termination – this is the last step where will be reviewing all the documentation of all
the issues, warnings, trainings and if the issues not be solved the employee will be
terminated.

In addition, before Jim take his decision on Miriam issue, he should consult with
human resources department which resource are valuable in helping advance a
compressive policy handling appeals. Bandag’s HR system is a failure due to job
explanation and agreement could have propose exact working hours, where Miriam
would have to bear by. Besides that, Bandag can arrange fewer hours per week until she
retrieval to solve specific issue. If he rebuffed to do so and ablaze her, court may go in
contradiction of them for not following law and order of state.

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

As we know that Jim approach to the management create massive issue and due that
the employment complaint increasing. Besides that, when Jim’s father in the management he
quite no issue with the employees because Jim father is too attached to the staff even, he
involved in staff issue by helping resolve it example helping the staff with sporadic loan and
existence generous to the employees. This occur, as a return the employees being loyal, able
to finish the task on time, and there is no problematic employee have been happening in the
companies. On the other hand, Jim be disposed to be further unexpected and does not enjoy
the same warm relationship with the staff as his father. Jim aim in the company is to gain
profit and focus on financial performance. In this decision make Jim focus on the cutting cost
like fewer days off rather more, fewer the employee benefit than before, it also become less
flexible for the employee when they need it. Due of the reason the employee does not
satisfied with Bandag’s decision and the management it cause such complaint amplified
intensely throughout period.

To solve this, Bandag should define specific HR related policies to address such issue.
Therefore, the company don’t have proper guideline on management on human resources and
create a massive misunderstanding between employee and employer. Therefore. There is
must such communication between the staff and the employer to unity and realize the purpose
of the organizational. There are process where are is made on the interaction between the
elements of the admirative structure or division, posts and distinct person. Thus, it is
necessary for Bandag companies to rearrange the human resources management and should
understand of the procedures to perform all the variations incompliance within the present
regulation. In the case that Jim firing all the employees is not legal because there is no a
proper investigation or action for them. Therefore, it is essential investigation of the labour
filling and the requirement skills of its workers.

Advantage of having human resources in the Bandag’s company for the successful
activity of Bandag’s Company. Thus, each employee has their own course of service which
bring an important in success of failure of the business. The precision of the actions of HR
managers action will be direct success to the company.

I. Human Resources Management services in appointment and training the

employees. Its is important HR managers take the accountability devise hiring
strategies for setup the right employee in the organization. Thus, job
description will be prepared for the employees which is suite for the role in the
company and there is well laid out training and development plan for the
employee.
II. Human Resource will take responsibility on keeping employee feel motivated
in their working environment so that helps employee to improve their skills.
III. HR will create a good encouraging working environment and safe and clean
work culture helps in bringing up best of employee and generates
sophisticated job satisfaction.
IV. Human Resource department will take the accountability as a role of consult to
sort issues in an effective manner which conflict happening between employee
and employer. The HR will take appropriate act so that effects does not go out
of hands.
V. Through HR department will establishing cordial relations lies for developing
good relations. Besides that, HR role also lends a helping hand in the
recruiting and advertising plans for the company.
 The HR management function in Bandag’s company should do the right things which
strategically integrated with the company policy. In order to keep labour potential of the
company HR manager Bandag’s company should provide it’s a necessary quantity break a
during working hour, possibility for renewal services after the work done in uncommon
circumstances in physical and emotive acceptance and another task. Therefore, Jim that fired
the employees can be do in correct way by the HR department with their consent. Besides
that, it is necessary for Bandag ‘s company any of the changes can create instable atmosphere
in cooperative, will reduce an overall performance and lead to rise up om staff turnover. In
addition, the reorganization will happen only if there are changes in economically lucrative
for the company business in a extended period vision.
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