Highlights
Questions to be answered:
What are the problem areas in Muffler Magic, in each of the following areas, and why?
(a) Labour Productivity
(b) Meticulous attention to quality of work
(c) Difficulty to obtain quality service people
Explain in Max.2 sentences for each, as you understand from this case
Write a Summary Outline, listing recommendations you would make, with respect to each HR function areas–
(a) Recruitment & Selection
(b) Training and
(c) Pay & Incentive, that you think Ron Brown should be addressing with his HR manager.(Restrict to Max.2 recommendations for each of (a), (b) and (c).
If you were Ron Brown, would you implement the professor’s recommendation addressing the ‘presenteeism problem’ - in other words – Will you start paying for sick days?
Why or why not? Explain your reasons whether your answer may be YES or NO If you were advising Ron Brown, Would you recommend that he may implement the Professor’s skill-based pay and incentive pay plan as it is given? Answer YES OR NO – IF YES, What are the advantages you see in implementing it as it is OR IF Your Answer is NO, Would you implement it with modifications?Then please be specific, about what those modifications should be, and why you want each of the modifications.
Muffler Magic Service Centres
Muffler Magic is a fast-growing chain of 25 automobile service centres in Nevada. Originally started 20 years ago as a muffler repair shop by Ronald Brown, the chain expanded rapidly to new locations, and as it did so Muffler Magic also expanded the services it provided, from muffler replacement to oil changes, brake jobs, and engine repair. Today, one can bring an automobile to a Muffler Magic shop for basically any type of service, from tyres to mufflers to engine repair.
Auto service is a tough business. The shop owner is basically dependent upon the quality of the service people he or she hires and retains, and the most qualified mechanics find it easy to pick up and leave for a job paying a bit more at a competitor down the road. It is also a business in which productivity is very important. The single largest expense is usually the cost of labour.
Auto service dealers generally don’t just make up the prices that they charge customers for various repairs; instead, they charge based on Standardised industry rates for jobs like changing spark plugs or repairing a leaky radiator. Therefore, if someone brings a car in for a new alternator and the standard number of hours for changing the alternator is an hour, but it takes the mechanic 2 hours, the service centre’s owner may end up making less profit on the transaction.
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