Bandag Automotive Case

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Bandag Automotive is a family owned company based in Illinois that employs 300 people. The company's business is automotive parts distribution through two divisions: supplies service, repare stations and retail stores. Business Situation Recently, Jim Bandag took over the company from his father, who founded Bandag Automotive. Jim's focus is unlike his father's family approach his is more concerned with improving the company's financial performance. As Bandag's sales and profits have increased, so have its negative human resources and equal employment issues. Our client, Jim's father, fears that these problems may affect the future income and the well-being of the company. As Jim changed the employer-employee relationship to one that requires a better HR management system, where his father's paternal approach did not. The current HR system is outsourced and consists of standard forms purchased from an HR supply company. Bandag Automotive uses application forms, appraisal performance forms, and honesty tests from this company. Compensation is handled by a payroll service, and yearly raises do not amount to more than a cost of living increase. Benefits, such as retirement plans, are also handled by an external company. The HR organization and functions are managed by Jim, and his executive assistant. Recruiting and screening is performed by an employment agency. Firing is executed by an employee's direct manager under Jim's approval. The main concern that there are no standard procedures and absence of the affirmative action program in Bandag Automotive which cause difficulty to have fairness at workplaces, inappropriate way of implementation of company’s strategy, lack of communication between managers and employees, complaints from employees about working conditions, failure to comply with obligations (EEOC, FMLA, ADEA, Pregnancy Discrimination Act)

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