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HRM Challenges at Roger's Tire Experts

Roger owns a tire store that is expanding and will need to hire over 100 new employees. However, Roger does not have any HR practices or department. He makes all hiring decisions himself based on who he likes, often hiring untrained individuals. This has led to many problems, including high turnover, unsafe working conditions, lack of training, and potential legal issues. Roger will need to implement comprehensive HR policies and practices to professionally manage the growing business and ensure employee and customer safety.

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Maham Ijaz
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0% found this document useful (0 votes)
179 views2 pages

HRM Challenges at Roger's Tire Experts

Roger owns a tire store that is expanding and will need to hire over 100 new employees. However, Roger does not have any HR practices or department. He makes all hiring decisions himself based on who he likes, often hiring untrained individuals. This has led to many problems, including high turnover, unsafe working conditions, lack of training, and potential legal issues. Roger will need to implement comprehensive HR policies and practices to professionally manage the growing business and ensure employee and customer safety.

Uploaded by

Maham Ijaz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

HRM Case Study:

Roger was ecstatic. The city administration had just approved his development plan to build a
mega retail store/service garage across the street from his current location. The store would
contain many new product lines, and the service garage would now offer state-of-the-art
computer diagnostic equipment. He had thought of everything: the financing, a marketing
plan, the slick new building, and the grand opening. And now, three months before the grand
opening, he has hired you to see if there are any improvements that he could possibly make to
his HRM practices.

Roger’s Tire Experts has no HR department or manager because Roger insists on making all
HR-related decisions himself. The business currently employs 50 people and would likely
need another 100 or more. The thought of hiring people makes Roger cringe. According to
Roger, employees cost money and they usually didn't have a "customer service" attitude,
especially “the young ones.” Roger's policy had been to hire his staff in a local hotel bar
based on two criteria:

a) They must belong to the men’s club of which his is a member; and
b) They must beat him in an arm wrestling match.

Roger uses the hotel bar to do business regularly. In fact, every Saturday, he buys the boys a
beer after work and tells them what he thinks of their work. He figures that the beer will dull
the impact of the performance review. Last Monday evening, Jimmy, a farmer in the
surrounding area, approached Roger in the bar and asked for a job. He met Roger's stringent
criteria, and Roger happened to have an opening. Roger recently fired the service manager,
Larry, for spending an hour in the only toilet stall that the store had. Although this was the
first incident of this nature in Larry's five years of employment, Roger felt that he had to take
a stand. Because Jimmy had a large family, Roger agreed to pay him what Larry was being
paid when he was dismissed. Tuesday morning, Roger showed Jimmy where the Service
Centre was, introduced him to the 10 mechanics that would be reporting to him, and then left
Jimmy to himself. Jimmy, not knowing what he was supposed to do, groaned as he saw a
number of customers heading his way. As he turned away from the customers, he overheard
the mechanics complaining about the limited possibilities for moving up in the company.

The other day a female mechanic with five years' experience asked Roger for a job in his new
store, but Roger laughed and told her, "Go home where you belong. Women don't belong in a
tire store; it's too dangerous.” In fact, it is dangerous. That very day a junior mechanic
(Nathan, a 14 year old boy) was seriously injured when he tried to change a muffler without
stopping the car's engine and while the car was held up only with a chain tied to the track of
the overhead door. The customer was in a rush, and Roger had insisted that Nathan do the
work quickly (for extra cash under the table). Nathan had never done this type of work before
and didn't really want to do the work (but he knew he would get fired if he didn't). While
doing the work, Nathan tripped over several used tires and knocked himself out on the cans of
house paint that were being stored next to the welding equipment in the garage.

“I just can't get good staff anymore; they either want to join a union, fight over whose getting
paid the most, or leave,” Roger grumbled, “Where has the work ethic gone?” He had
overheard his Sporting Goods manager, Colette, talking to the Hardware staff about joining a
union. Roger noted to himself that he must give Colette an extra poor performance evaluation
next year. Also, Roger planned to tell his staff that, if they continue with this union business,
he would fire them all. However, with an annual turnover rate of 66%, Roger’s store had a
revolving door.

You are now contemplating the situation at Roger’s Tire Experts. As an experienced HR
consultant you have come across this type of situation many times. It’s typical for managers
who are less interested in the people side of their operation to ignore it or experience
difficulties. In your report to Roger, answer the following questions:
(1) What are all the HRM problems that exist?
(2) What are the current and potential consequences of each of these problems?
(3) What might be the financial cost to Roger’s Tire if Roger continued to use the same HR
practices?
(4) Besides Roger himself, what is the root cause of the problems?
(5) What are the more immediate problems that need to be addressed now?
(6) What are the options that exist for addressing all the problems? What are the advantages
and disadvantages of each option?
(7) What key solutions will you recommend to Roger and why? In what order should he
implement them?

Common questions

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The root causes of HRM problems at Roger's Tire Experts include Roger's centralized decision-making and reliance on informal, biased practices. Solutions involve decentralizing HR functions by creating an HR department to develop structured policies for hiring, training, and evaluation. Introducing standardized procedures for safety and employee development, and fostering an inclusive culture are essential. These changes would address discrimination, improve safety, enhance employee relations, and reduce turnover .

Roger's HR practices present several legal and ethical concerns, including discriminatory hiring practices based on gender and arbitrary firing decisions. Roger's refusal to hire women for certain positions and firing of employees without due cause, especially firing someone over a minor incident after years of loyal service, may violate employment discrimination laws. Additionally, the employment of underage workers in hazardous conditions without adequate safety measures raises significant legality and ethics issues .

The informal and discriminatory hiring practices, lack of training, inadequate safety measures, and poor employee relations likely contribute to high turnover. Employees are selected based on arbitrary criteria unrelated to their job performance or capabilities. Moreover, unsafe working conditions and an unfriendly attitude towards unionization create an unsupportive work environment, prompting employees to leave the company .

Key HRM problems at Roger's Tire Experts include the lack of formal recruitment and selection processes, discriminatory hiring practices, inadequate training, and poor employee relations. These issues lead to high turnover, low morale, safety hazards, and potential legal consequences. Discriminatory practices, like not hiring women for dangerous jobs, could lead to lawsuits and damage to reputation. The lack of training and poor safety protocols, seen in Nathan's injury, directly threaten employee well-being and operational efficiency .

If current HR practices persist, financial implications could include increased costs from high turnover, such as recruitment, onboarding, and training expenses. Poor safety and discriminatory practices may lead to fines, legal fees, and settlements, alongside productivity losses from workplace injuries. Moreover, a damaged reputation could lead to reduced sales and customer loyalty, compounded by potential unionization disputes and increased wage demands .

The absence of adequate safety protocols played a crucial role in Nathan's incident, highlighting significant negligence in workplace safety at Roger's Tire Experts. Without clear safety guidelines and proper training, employees are at higher risk of injury, as evidenced by Nathan's unsafe task execution. Implementing comprehensive safety protocols can prevent accidents, reduce liability, and promote a safer work culture, crucial for operational efficiency and employee well-being .

Roger's negative attitude towards unions, exemplified by his intention to provide poor evaluations and threaten terminations, creates a hostile work environment. This approach undermines trust and leads to fear among employees. It stifles open communication and discourages collective bargaining initiatives, which could otherwise lead to improved work conditions and fair pay. Consequently, this attitude exacerbates employee dissatisfaction and exacerbates turnover rates .

A new recruitment strategy should involve developing clear job descriptions and advertisements highlighting required skills and responsibilities. Implement an open application process across various platforms to reach a diverse candidate pool. Implement structured interviews and assessments to ensure candidates are selected based on relevant skills and experience, not informal or biased criteria. This approach will help eliminate current discriminatory practices and attract qualified candidates .

Roger's evaluation process, which involves informal beer-fueled performance reviews, fosters a work culture that lacks professionalism. It trivializes feedback and does not encourage meaningful performance improvements. This approach can lead to resentment, misunderstandings, and a lack of motivation among employees, as it fails to provide constructive criticism or recognition. Also, the ad hoc criticism based on union activities suggests a culture of fear, rather than one of support and development .

Immediate actions should include establishing a formal HR department or hiring an HR manager to introduce structured recruitment, training, and safety programs. Addressing discriminatory practices and implementing a fair performance evaluation process are also critical. Prioritizing these actions will help improve employee satisfaction, reduce turnover, and enhance workplace safety, thereby mitigating operational disruptions .

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