Jack Nelson was a new member of the board of directors for a local bank, when a problem of a high employee turnover was introduced to him by a branch supervisor. Also, every branch hired employees by their own without communicating with the home office.
Questions: 1. What do you think was causing some of the problems in the bank home office and branches? There’s a communication problems among the firm’s branches and the head office, and no employee commitment, which is mainly caused by the lack of existence of HR unit in the main office.
2. Do you think setting up a HR unit in the main office would help? Yes, I do believe that setting a HR unit would be very helpful to the firm financially because High turnover ratio could be very costly. Also, a HR unit will help manage and train employees to be both suitable and helpful to the firm.
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, selecting job candidates, training new employees, managing wages and salaries, providing incentives and benefits, appraising performance, communicating, training & developing managers and building employee commitment.
Supervisors and Other Line Managers: placing the right person on the right job, training employees for the job, controlling labor costs, creating and maintaining department morale, protecting employees’ health and physical condition and improving the job performance of each person.
Internet and HR: use online services to help in faster communication between branches and home office.