Review the Ames Hardware case study (shown below). What are the long-term projects you would like to tackle to ensure Ames is a high performing organization? What is the company already doing well? What can it improve or create to become even better? How will the HR team support these ideas?

**Case Study **

Ames Hardware (Ames) is a progressive, family-owned, local hardware company with corporate headquarters located in Bloomington, MN. It has been in existence since 1954 and currently employs 114 people in four locations: Payne Hardware is on the Eastside of St. Paul, Lexington Hardware is in West Bloomington, Bryant Hardware is in South Minneapolis Corporate headquarters has recently moved to West Bloomington The three store locations function as neighborhood hardware stores selling typical products and they also provide a variety of in-store services. In-store services at Ames Hardware Ames hardware is dedicated to providing the service that you cant always get at a big box store. Their services include: Sharpening services: scissors, knives, cutters, lawn trimmers, mower blades, saw blades, hedge shears, etc. Power equipment repairs: small engines, snow throwers, wed trimmers, contractor equipment, lawn mowers, chain saws, garden tractors, generators, etc. Window services: glass replacement, screens repaired and pet proofed, aluminum frames and parts, custom cut shades, etc. Electronic services: TV, VCRs and stereos, etc. Other services: fax machine, copies, UPS drop-off site, key cutting, pipe cutting and threading, welding, custom mixed paints, etc. In addition, Bryant Hardware in South Minneapolis has been providing services to local homeowners consistent with the products and services they offer in the store. So for the last two years they have had two "handymen" available to provide in-home services such as lock installation and repair, window and screen replacement, light fixture installation, etc. Ames is planning for major expansion in the next few years. They plan to open or acquire two new stores in the Twin Cities metropolitan area. They are also investigating the possibility of expanding their in-home services to all of the stores. In addition, they currently have two large government contracts with state agencies and are exploring more leads in this area. The President, Bill Ames, decided that it was critical to get the HRM house in order before any expansion is undertaken and last year he hired the companys first Human Resource Manager, Tanya Belton. Ames Case Study 2 However, Bill believes that people are a critical resource for the company and promotes the philosophy that all managers are human resource managers. That is to say that Bill holds all managers accountable for designing, developing and implementing good HRM policies and practices and they cannot push HR management responsibilities off on the HR manager or the HR department. He expects a full partnership between HR and the line managers. Top Management Team Consistent with the emphasis on future growth, Bill has hired a new operations manager to oversee all the stores and work with Bill on opening the new stores. So at this time the top management team reporting to the president includes: Bill Ames, president and CEO Jessica Young, finance and administrative manager Tanya Belton, human resource manager Joel Manz, operations manager all store managers report to Joel Joyce Miller, store manager, Payne Hardware Roger Jackson, store manager, Lexington Hardware Glen Rainbolt, store manager, Bryant Hardware Last year Ames Hardware adopted the following mission, vision and values statements and five-year goals: Ames Hardware Mission The mission of Ames Hardware (AH) is to be a profitable, growing company dedicated to providing the highest quality products and services to all of our customers. Ames Hardware Vision and Values To facilitate our growth in the 21st Century, AH will focus on employee empowerment and development, community responsibility, and sound financial business management. AH will serve the community and will be known in the community as an outstanding, committed citizen. For over 44 years, AH has recognized the value of a company culture that encourages a feeling of "family." We will continue to support that culture and to remember that the AH family includes many stakeholders including employees, customers, suppliers, vendors, investors, and the communities we serve. At Ames Hardware we are dedicated to treating each employee fairly and with dignity and respect. We value differences and strive to maximize the contributions of all employees. We will strive to ensure all employees work together to accomplish company goals and share in the success of our organization. Ames Hardware Goals 1. Become more cost competitive. Ames Case Study 3 Expand into new markets. Develop and implement strategic and competitive Human Resource Management programs. Partnership Model of Human Resource Management Shortly after adopting the organizational mission and goals, the management team started to draft HRM goals that would support their company mission and goals. The HRM goals need to be finalized and recommended to the president. The HRM goals are the company's statements to current and prospective employees about what values and beliefs will guide human resource practices at AH. It is still the company philosophy that all functional managers and the HR department will work in partnership to ensure the most effective and efficient management of human resources at AH. Human Resource Management Goals The following three year goals support AH mission, vision and values: Provide quality training and development opportunities to enhance employee skills and maximize employee contributions to AH. Provide opportunities for employee empowerment and involvement at AH. Ensure that employees understand their role in contributing to the organizations mission, vision, values and goals at AH. Increase workforce diversity. Increase employee engagement. Current Status of HRM Up to this time, the company has handled human resource practices on an informal basis and most are performed by the line managers. Staffing. When hiring new employees the managers do their own recruiting and hiring with assistance from the HR manager when they request help. Most jobs are filled through word of mouth, an ad in the local paper or a posting on job websites. Turnover has increased a bit in the last year or so. Store managers give references for former employees. EEO/AA/Diversity. Managers have been trained in EEO/AA issues and know the basic legal requirements for nondiscrimination in hiring, training, pay and benefits. Tom Belton is currently developing an affirmative action plan and is thinking about introducing the concept of diversity management. Employee Training and Development. Most training for managers and employees has been informal, on-the-job training although the managers have gone to a few outside training workshops on management issues including interviewing and conflict management. Performance Appraisal. There is no formal performance appraisal system although managers are encouraged to give frequent informal feedback to employees. Pay Practices. Pay is decided informally as people are hired and is reviewed after 3 months on the job and then annually thereafter. The company gets an annual salary survey from the Employers Ames Case Study 4 Association and also gets salary data from the State of Minnesota to give them some guidelines for pay levels. All managers have access to this information and they informally check with the other managers to ensure that there is some fairness across the organization. At this time there is no incentive pay program in the company. Employee Benefits. The company has a very basic employee benefits package which includes health insurance, vacation and sick leave for full-time employees. The company also provides all legally required benefits. Labor Relations. There is currently no union representing any AH employees. Employee Relations. Employee involvement and participation in decision-making is a concern of Bills but there has been no discussion of this topic by the management team. Tanya Belton thinks there is a need to look at the area of employee safety. Making assumptions about AH As with any case, this is just a summary of basic information about AH and may not contain as much detail as you would like to have for your management decision-making. You should assume that the company has been making reasonable profits for the past years. You should make any assumptions necessary to make HRM decisions and then state those assumptions in your discussions and papers. Request from the President Bill has asked the top management team to recommend policies for selected HRM areas that both he and they consider critical to the future growth and success of this organization. He has made it clear that if the management team identifies other critical HRM issues, they need to make recommendations in those areas also.