HRM3183 Car Restoration Business (CRB, Inc.) is interviewing you for a position as its human resources manager part-time: Performance Management at CRB, Inc., UPTM, Malaysia

CASE STUDY 2: Performance Management at CRB, Inc.

Car Restoration Business (CRB, Inc.) is interviewing you for a position as its human resources manager part-time, working 20 hours per week while you complete your degree. You would be the first HR manager they have ever been able to afford to hire, and the husband-and-wife owners (Al and Mary Brown) have been operating the small business for 10 years. In addition to you, they recently hired a part-time janitor. This brought the paid staff to six full-time
employees: a foreman who is responsible for scheduling and overseeing the work, two auto body repair workers, a person who disassembles and reassembles cars, a painter, and a detail person who assists the painter with getting the car ready to paint and sanding and waxing it afterward. AI Brown handles sales, estimates prices, runs errands, chases down parts, and
envisions the future. Mary has been doing the bookkeeping and general paperwork. The owners and employees are very proud of CRB’s reputation for doing high-quality work in restoring old cars as far back as the 1930s.

CRB pays its employees based on “flagged hours,” which are the number of paid hours that were estimated to complete the work (e.g., the estimate may say that it will take three hours to straighten a fender and prepare it for painting. When the auto body repair worker has straightened the fender, he would “flag” completion of three hours, whether it took him two or six hours to complete the work. It is to his benefit to be very fast and very good at what he
does). CRB pays the workers 40% of what it charges the customer for the flagged hours; the other funds are used to pay the employer’s share of the taxes and overhead, with a small margin for profit. The foreman, who does some “flagged hours” auto body repair himself, is also paid a 5% commission on all the labor hours of the other employees after the car is accepted as complete by the customer, and the customer pays for the completed work.
Employees are given feedback by AI, the foreman, and by customers on an infrequent basis. Everything is going well, and the employees are working as a team. The situation was less certain in the past, and some employees had to be fired for poor work. When an employee filed for government-paid unemployment compensation saying that he was out of work through
no fault of his own, CRB challenged the filing and was able to prove that Al had given a memo to the employee requesting improvements in the quality or quantity of work. There has never been a formal planning or appraisal process at CRB.

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