Monday, October 31, 2016

Carter Cleaning Company

A main theme of this book is that human resource management ac­tivities like recruiting, selecting, training, and rewarding employees is not just the job of a central HR group but rather a job in which every manager must engage. Perhaps nowhere is this more apparent than in the typical small service business. Here the owner/manager usually has no HR staff to rely on. However, the success of his or her enterprise (not to mention his or her family's peace of mind) often depends largely on the effectiveness through which workers are recruited, hired, trained, evaluated, and rewarded. Therefore, to help illustrate and emphasize the front-line manager's HR role, throughout this book we will use a continuing case based on an actual small business in the southeastern United States. Each chapter's segment of the case will illustrate how the case's main player—owner/manager Jennifer Carter—confronts and solves personnel problems each day at work by applying the con­cepts and techniques of that particular chapter. Here is background information that you will need to answer questions that arise in sub­sequent chapters. (We also present a second, unrelated "application case" case incident in each chapter.)
Jennifer Carter graduated from State University in June 2005, and, after considering several job offers, decided to do what she always planned to do—go into business with her father, Jack Carter.
Jack Carter opened his first laundromat in 1995 and his second in 1998. The main attraction of these coin laundry businesses for him was that they were capital- rather than labor-intensive. Thus, once the investment in machinery was made, the stores could be run with just one unskilled attendant and none of the labor problems one normally expects from being in the retail service business.
The attractiveness of operating with virtually no skilled labor not­withstanding, Jack had decided by 1999 to expand the services in each of his stores to include the dry cleaning and pressing of clothes. He embarked, in other words, on a strategy of "related diversification" by adding new services that were related to and consistent with his existing coin laundry activities. He added these for several reasons. He wanted to better utilize the unused space in the rather large stores he currently had under lease. Furthermore, he was, as he put it, "tired of sending out the dry cleaning and pressing work that came in from our coin laundry clients to a dry cleaner 5 miles away, who then took most of what should have been our profits." To reflect the new, expanded line of services, he renamed each of his two stores Carter Cleaning Centers and was sufficiently satisfied with their performance to open four more of the same type of stores over the next 5 years. Each store had its own on-site manager and, on average, about seven employees and annual revenues of about $500,000. It was this six-store chain that Jennifer joined after graduating.
Her understanding with her father was that she would serve as a troubleshooter/consultant to the elder Carter with the aim of both learn­ing the business and bringing to it modern management concepts and techniques for solving the business's problems and facilitating its growth.
1-23. Make a list of five specific HR problems you think Carter Cleaning will have to grapple with.

1-24. What would you do first if you were Jennifer?

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