THE JORDAN COMPANY Section A - PROS & CONS IN THE CASE

1. THE JORDAN COMPANY Section A - PROS & CONS IN THE CASE GOOD THINGS I SEE IN THIS CASE (Pros) The Jordan Company has been very successful…it has grown from 12 employees to over 475 in just 11 years. Mr. Elliot was hired to be the plant manager. He is knowledgeable about all aspects of production. Line managers and supervisors were trusted/empowered by the Plant Manager to make their own decisions. Mr. Jordan noticed that worker morale was degenerating, and felt that a personnel office should be established. Graham’s insistence that Linda Ralfing couldn’t be fired without a good reason…backed up by Production Manager. SCARY THINGS I SEE IN THIS CASE (Cons) Mr. Jordan hasn’t given much attention to the production and management aspects of the business…he prefers to spend time making sales contacts with big customers and sales agents. Mr. Jordan has never clearly defined the role of the Personnel/HR Office. “The success of the HR office is up to you!” The selection process and criteria used to pick the HR Director were poor…John Graham doesn’t have the right skills. Placement of HR Office in the Production Management section of the firm, with John Graham reporting to Mr. Elliot. Graham’s memo to the supervisors, announcing that he would make all the final hiring & HR decisions in the future. The apparent poor quality of recently-hired workers…which in turn is causing production problems. Attempt to fire Linda Ralfing … without a stated (legitimate) cause. Complaints and resentment by supervisors of their loss of control in the workplace…morale is low. Request by supervisors to disband the HR Department and go back to the former way of hiring/supervising workers. Recommendation by the Production Manager that John Graham be returned to his former position.

2. THE JORDAN COMPANY Section B - PROBLEMS TO BE TREATED NOW PROBLEMS THAT MUST BE TREATED NOW Top management failed to define the HR role…no one knows what HR is supposed to do. (A root issue which caused most of the problems in the case) Selection process and criteria used resulted in a poor HR director choice…John Graham doesn’t have the skills for the job. (A symptom of # 1, lead to the selection of a well-meaning but incompetent HR director) Supervisors resent their loss of authority in hiring and control over their workers…John Graham now claims these responsibilities. (A symptom of # 1 and # 2, John has blundered and now faces the wrath of the supervisors…leads to more symptomatic problems listed below) SYMPTOMATIC PROBLEMS THAT WON’T BE TREATED NOW 4. Low morale & productivity issues (Symptom of # 3, s/b ok if # 3 is properly addressed) Firing of Linda Ralfing…a potential discrimination charge narrowly averted (Another symptom of #3, s/b ok once # 2 and # 3 are properly treated)

3. THE JORDAN COMPANY Section C - CRITERIA DECISION CRITERIA Establish an effective HR department Hire and retain competent workers Define authority relationships within the company Improve morale and staff working relationships Avoid lawsuits and legal vulnerability

4. THE JORDAN COMPANY Section D - ALTERNATIVES 1. Top management failed to define the responsibilities and role of HR Have a meeting where Mr. Jordan defines what he wants HR’s role to be (explained to everyone, including John G. and the supervisors). Hire an HR consultant to organize the department and establish proper HR procedures (which the HR director can follow) Educate John Graham by sending him to get some HR training, then he will be able to organize the HR function properly. Remove John from the HR position, and hire a qualified HR director to replace him. The new HR director will set up the HR department. Disband the HR department…it’s been a miserable failure anyway. Let the supervisors go back to each making their own employment decisions, and hire a consultant to periodically give the supervisors HR advice from time to time.

5. THE JORDAN COMPANY Section D - ALTERNATIVES 2. Selection process has resulted in a poor HR director…what should we do with John Graham? Fire John Graham. Obtain a good job specification for HR director and use it to hire a new, competent HR director. Transfer John back to accounting. Hire a temporary HR director to fill the slot until a permanent director can be hired. Hire an HR consultant to organize the department, write job descriptions and specifications, and to train John in how to properly manage the HR department. Send John off for HR training in the evenings. Eventually he will have the competence needed to correctly fill the position. Eliminate the formal HR position, but hire a consultant to come in and train the supervisors in proper HR techniques at regular intervals.

6. THE JORDAN COMPANY Section D - ALTERNATIVES 3. Supervisors resent their loss of control and authority to hire/fire their workers… Have Mr. Jordan explain to the supervisors why HR has taken over the hiring and firing decisions. Have a group meeting with an HR consultant or attorney to explain the legal reasons why HR needs to be involved in all hiring and firing decisions. Ask John Graham to meet with the supervisors and develop a way to share the decision-making about hiring and firing workers. Replace John Graham with a new HR director. The new director will need to establish clear procedures for hiring and firing workers, and then needs to develop good working relationships with the supervisors to share these responsibilities.

7. THE JORDAN COMPANY Section D – BUILD DECISION GRID Legit HR Keep Wkrs Est Auth Imp Morale No Lawsuit 1. Failure to define the responsibilities of HR Dept 1A Jordan clarifies his view of HR role ??? ??? Yes? No? ??? 1B Hire consultant to organize HR YES Yes? YES ??? YES 1C Send John for training; he can org HR Yes? Yes? ??? No? Yes? 1D Remove John + hire new HR dir to do it YES No? Yes? Yes? Yes? 1E Disband HR, consultant can teach superv NO No? Yes? Yes? No? 2. Poor HR Director hired…What to do about John? 2A Fire J, get HR spec + hire new HR dir YES NO Yes? YES Yes? 2B Transf J, get temp HR dir, seek perm HR Yes? Yes? ??? Yes? YES 2C Hire consultant to organize HR + train J YES Yes? ??? ??? YES 2D Send John for training; he can org HR Yes? Yes? ??? No? Yes? 2E Eliminate HR, consultant teach superv No? No? Yes? Yes? No? 3. Supervisors resent loss of control + authority 3A Jordan explains to superv why HR invol Yes? Yes? Yes? ??? ??? 3B Consult/atty explains why HR involved YES Yes? YES Yes? YES 3C John meets to share DMg with superv Yes? Yes? YES ??? Yes? 3D Replace John, new HR dir work w super YES No? YES YES Yes?

8. THE JORDAN COMPANY SECTION E - RECOMMENDATIONS Failure to define the responsibilities of HR Dept 1B) Hire a consultant to organize HR and establish procedures Explain why this alternative is the best choice…why superior to 1A, 1C, + 1D? Selection process has resulted in a poor HR director…What should we do with John Graham? 2A) Remove John, get HR specifications, and hire new HR DirectorExplain why this alternative is the best one of the bunch! Supervisors have lost control and no longer have the authority to hire/fire their workers… 3B) Get consultant/atty to explain to supervisors why HR involved 3D) Replace John + hire new HR director to work with supervisors Explain why this combination of alternatives is the best choice!

9. Legit HR Keep WkrsEst Auth Imp Morale No Lawsuit 1. Failure to define the responsibilities of HR Dept 1A Jordan defines his view of HR role ??? ??? Yes? No? ??? 1B Hire consultant to organize HR YES Yes? YES ??? YES 1C Send John for training; he can org HR Yes? Yes? ??? No? Yes? 1D Remove John + hire qualified HR dir YES No? Yes? Yes? Yes? 1E Disband HR, consultant teaches superv NO No? Yes? Yes? No? 2. Poor HR Director hired…What to do about John? 2A Fire J, get HR spec + hire new HR dir YES NO yes? YES Yes? 2B Transf J, get temp HR dir, seek perm HR Yes? Yes? ??? Yes? YES 2C Hire consultant to organize HR + train J YES Yes? ??? ??? YES 2D Send John for training; he can org HR Yes? Yes? ??? No? Yes? 2E Eliminate HR, consultant teach superv No? No? Yes? Yes? No? 3. Supervisors resent loss of control + authority 3A Jordan explains to superv why HR invol Yes? Yes? Yes? ??? ??? 3B Consult/atty explains why HR involved YES Yes? YES Yes? YES 3C John meets to share DMg with superv Yes? Yes? YES ??? Yes? 3D Replace John, new HR dir work w super YES No? YES YESYes? NOTE THAT THE COMBINATION OF SOLUTIONS MAKES PROGRESS TOWARD ALL FIVE CRITERIA (Yes)! THE JORDAN COMPANY SECTION E - RECOMMENDATIONS Legit HR Keep WkrsEst Auth Imp Morale No Lawsuit 1. Failure to define the responsibilities of HR Dept 1A Jordan defines his view of HR role ??? ??? Yes? No? ??? 1B Hire consultant to organize HR YES Yes? YES ??? YES 1C Send John for training; he can org HR Yes? Yes? ??? No? Yes? 1D Remove John + hire qualified HR dir YES No? Yes? Yes? Yes? 1E Disband HR, consultant teaches superv NO No? Yes? Yes? No? 2. Poor HR Director hired…What to do about John? 2A Fire J, get HR spec + hire new HR dir YES NO yes? YES Yes? 2B Transf J, get temp HR dir, seek perm HR Yes? Yes? ??? Yes? YES 2C Hire consultant to organize HR + train J YES Yes? ??? ??? YES 2D Send John for training; he can org HR Yes? Yes? ??? No? Yes? 2E Eliminate HR, consultant teach superv No? No? Yes? Yes? No? 3A Jordan explains to superv why HR invol Yes? Yes? Yes? ??? ??? 3B Consult/atty explains why HR involved YES Yes? YES Yes? YES 3C John meets to share DMg with superv Yes? Yes? YES ??? Yes? 3D Replace John, new HR dir work w super YES No? YES YESYes? NOTE THAT THE COMBINATION OF SOLUTIONS MAKES PROGRESS TOWARD ALL FIVE CRITERIA (Yes)!