JACK NELSON S 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 didn’t t know what. For one thing, she explained, employee
turnover was too high, and no sooner had one employee been put
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 couldn’t t quite
put his finger on the problem, and he didn’t t know whether to
report his findings to the president.

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Student name: Amira Omar Okasha

Questions:

1. What do you think is causing some of the problems in the bank’s

home office and branches?
High employee turnover rate: The turnover rate in the bank is too high,
indicating that employees are leaving their jobs frequently. This could be
due to several reasons, such as poor working conditions, lack of career
growth opportunities, low pay, or inadequate training.

Decentralized hiring: Branch supervisors hire their own employees without

communication with the home office or other branches. This decentralized
approach to hiring may lead to inconsistencies in the hiring process and
result in the selection of unsuitable candidates.

Inadequate training: New employees may not receive sufficient training,

as supervisors have limited time to work with them. This lack of training
may affect the quality of their work and could lead to errors and
inefficiencies.

Lack of communication and information sharing: There may be a lack of

communication and information sharing among employees about their roles
and responsibilities. This could lead to confusion and inefficiencies in the
workplace.

2. Do you think setting up an HR unit in the main office would help?

Yes, setting up an HR (human resources) unit in the main office could

potentially help to address some of the problems in the bank's home office
and branches. An HR unit could provide centralized recruitment and hiring
processes, which would ensure consistency and fairness in the selection of
suitable candidates for various roles.

Moreover, an HR unit could also provide comprehensive training programs

for new employees to ensure that they are adequately prepared for their
roles. This could improve the quality of work and reduce errors and
inefficiencies caused by a lack of training.

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In addition, an HR unit could also monitor employee satisfaction and
address any concerns they have to improve working conditions, career
growth opportunities, and pay, which could help to reduce employee
turnover rates.

Overall, setting up an HR unit in the main office could bring a more

structured and coordinated approach to recruitment, training, and employee
retention, which could help to address some of the problems in the bank's
home office and branches.

3. What specific functions should an HR unit carry out?

An HR (human resources) unit typically carries out several functions related

to managing employees in an organization. Here are some of the specific
functions that an HR unit should carry out in the context of a bank:

Recruitment and Selection: HR should develop recruitment and selection

strategies and ensure that hiring is done based on objective criteria, which
include qualifications, experience, and skills. They should also ensure that
hiring practices are free from discrimination and bias.

Training and Development: HR should provide comprehensive training

programs for new employees, which cover the bank's policies, procedures,
and products. They should also offer ongoing training and development
opportunities to ensure employees have the skills and knowledge required to
perform their jobs effectively.

Performance Management: HR should develop performance management

systems to ensure that employees are regularly evaluated and provided with
constructive feedback on their work. The HR unit should also be responsible
for developing and implementing performance improvement plans for
underperforming employees.

Compensation and Benefits: HR should develop compensation and

benefits packages that are competitive with other banks in the industry. They
should also ensure that pay is equitable and based on objective criteria such
as experience, skills, and performance.

Employee Relations: HR should be responsible for managing employee

relations by addressing any issues or concerns that employees may have.
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They should also be responsible for resolving conflicts and promoting a
positive work environment.

Compliance: HR should ensure that the bank is in compliance with all

relevant labor laws and regulations. They should also ensure that the bank's
policies and procedures are up to date and aligned with regulatory
requirements.

Overall, an HR unit should play a critical role in managing employees in a

bank by ensuring that they are recruited, trained, and managed in a manner
that promotes their productivity, satisfaction, and well-being.

What HR functions would then be carried out by supervisors and other

line managers?

While an HR (human resources) unit would be responsible for carrying out

several functions related to managing employees, line managers and
supervisors also have a significant role to play in managing their teams. Here
are some of the HR functions that would be carried out by supervisors and
line managers:

Recruitment: Line managers and supervisors are typically responsible for

identifying the need for new hires within their teams and for participating in
the hiring process by conducting interviews and selecting the most suitable
candidate.

Training and Development: Line managers and supervisors should ensure

that their team members are adequately trained and developed to perform
their roles effectively. They should provide on-the-job training and coaching
to their team members and identify areas where additional training is
required.

Performance Management: Line managers and supervisors should be

responsible for managing the performance of their team members by setting
goals, providing feedback, and conducting performance evaluations.

Employee Relations: Line managers and supervisors should develop positive

working relationships with their team members and be responsive to their
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concerns and needs. They should also ensure that employees are treated
fairly and equitably and that their rights are protected.

Discipline and Grievance Handling: Line managers and supervisors

should be responsible for handling disciplinary issues and grievances within
their teams. They should be familiar with the bank's policies and procedures
related to disciplinary issues and grievances and ensure that they are
followed correctly.

Health and Safety: Line managers and supervisors should be responsible

for ensuring that their teams work in a safe and healthy environment. They
should identify potential hazards and take steps to eliminate or reduce them.

Overall, while an HR unit would be responsible for several HR functions,

line managers and supervisors also have a significant role to play in
managing their teams. They should work closely with the HR unit to ensure
that their team members are managed effectively and that the bank's HR
policies and procedures are followed correctly.

What role should the Internet play in the new HR organization?

The Internet can play a significant role in the new HR organization by

providing a platform for the delivery of HR services and communication
between HR, employees, and managers. Here are some specific roles that the
Internet can play in the new HR organization:

Recruitment: The Internet can be used to advertise job vacancies and

receive online applications from potential candidates. Online recruitment can
save time and reduce recruitment costs, making it an attractive option for
many organizations.

Training and Development: The Internet can be used to deliver online

training courses and e-learning programs to employees. This approach can
be particularly useful for geographically dispersed teams and can save travel
costs associated with in-person training.

Performance Management: The Internet can be used to track and monitor

employee performance and provide feedback to employees and managers.
This approach can help to streamline the performance management process
and provide a more objective basis for performance evaluations.
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Employee Self-Service: The Internet can provide a platform for employees
to access their personal records, update their personal information, request
time off, and view their pay and benefits information. Employee self-service
can reduce administrative burdens on HR staff and improve employee
satisfaction by providing employees with greater control over their HR-
related information.

Communication: The Internet can be used to facilitate communication

between HR, employees, and managers. HR can use email, instant
messaging, and video conferencing to communicate with employees and
managers, answer their questions, and provide support.

Overall, the Internet can play a critical role in the new HR organization by
providing a platform for delivering HR services, communication, and
support to employees and managers. However, it is important to ensure that
the security and privacy of employee information are protected, and that HR
staff are adequately trained to use these technologies effectively.