Human Resource Management

Case study

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 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 couldn’t quite put his finger on the problem, and he didn’t know whether to report his findings
to the president.

Questions:
1. What do you think is causing some of the problems in the bank’s home office and branches?
2. Do you think setting up an HR unit in the main office would help?
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?
Solution
Q.1 what do you think is causing some of the problems in the bank's home office and branches?
Ans: There are some problems in bank's home office and branches. These problems have some
cause. I noticed from the case above, there are mainly three problems that caused the problem in
the bank’s home office and branches.
I. Firstly, the home office does not provide any training for employees. That’s why when Jack
Nelson was introduced to the entire employee in the home office; he was introduced to Ruth
Johnson. Ruth Johnson working for two months but she does not know about the machine that she
was using. But she operates the machine properly. Organization did not oriented and trained her
properly. If organization trained her well Johnson will clear about her job and responsibility.
II. Secondly, there are lack of communication among the branches between supervisor and
employees. The main issue in this case is employee turnover was high during past eight years, as
a result supervisor tried to find a suitable employee to replace the worker who had quit. There was
no standardization of recruitment process in organization. They had also lack of communication
process. Because all branch office hired employee without communicate whit their home office.
III. Lastly, the bank home office does not have Human Resources Department. Most of the problem
that appeared in the case is related to employees’ issue. Therefore, having a HR department can
reduce the issue regarding employees among the branches and home office.

Q.2 Do you think setting up an HR unit in the main office would help?
Ans: HR unit would help main office in many ways. Setting up an HR department could help a lot
in the main office because the main purposes of this department are:-
1) Better recruitment and evaluation process of employees
2) Better management and motivation of employees
3) Training and Reward program

Q.3 What specific functions should it 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?
HR Unit:
Job analyses
Planning labor needs and recruiting
Providing advising and training in the selection process
Orientation of new employees
Managing wage and salary administration
Managing incentives and benefits
Providing and managing the performance appraisal process
Organization-wide communications
Providing training & developing services
Supervisors and Other Line Managers:
Interviewing and selection of job candidates, training new employees, appraising, performance,
departmental & personal communications, and training & development.

Internet and HR:

Technology helps the companies in various areas like communication, advertising, marketing and
competition. HR also uses the technology to reach candidates and communicate with them. HR
can use internet to create and use an up to date employee’s database, measures the employee
abilities, contact with them, train them and monitor them. HR can also provide rapidly
communication between bank’s home and branches through internet.