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HRM – 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 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 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?
Lecturer: Thai Thu Thuy - HUST
HRM – Case Study

Source: From Supervision in Action: The Art of Managing Others, 4th


edition, Pearson Education, Inc., Upper Saddle River, New Jersey.

Lecturer: Thai Thu Thuy - HUST

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