Answer the questions
to the case, “Jack Nelson’s Problem,” at the end of Chapter 1.
Include at least one outside source supporting your answers. Explain your
answers in 200 words. Respond to at least two of your fellow students’ postings
APPLICATION EXERCISES
Case Incident: 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 her machine did. Johnson replied that she really did not know what the
machine was called or what it did. She explained that she had been working
there for only 2 months. She did, however, 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 explained, she had
little time to work with the new employees.
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.
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 was generally regarded as 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 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?




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