the teardway tire company. job dissatisfaction and high turnover at the lima tire plant

1. THE TREADWAY TIRE COMPANY:
JOB DISSATISFACTION AND HIGH
TURNOVER AT THE LIMA TIRE
PLANT
VIKASH KUMAR
PNR NO_MBA17H52
MBA-2

2. BACKGROUND
 The Treadway Tire Co. is a supplier of tires to
passenger and light truk .
 They have almost 9,000 employees in North America
 Treadway Tire Company only has one current
operating manufacturing plant in North America
 Located in Lima, Ohio
 There was a second plant in Greenville,
SC which closed in 2006 due to
financial reasons

3. THE PROBLEM
High Turnover
 Out of a total of 50 foreman, 23 had turn over in
2007
 Turnover rate was higher at the Lima plant than any
other plant in the division
 Rising cost of raw materials
 Price of oil went from $25/barrel in 2003 to $92 in
2007
 Raw materials represent 55% of the cost to
produce a tire

4. TAKING ACTION
 Transferred Ashley Wall, Director of human
Resources to the Lima plant.2006
 Lima plant could be Treadway’s #1 plant in
productivity and low cost producer in North
America

5. UNDERLYING CAUSE
Morale issues
 Job dissatisfaction
 Lack of communication
 Lack of management’s support
 Lack of authority
 Tongue lashing

6. SPECIFIC ISSUES AT THE PLANT
 Work overload
 Working 12 hours shifts with 2 breaks per shift and
30 min. for meals
 Too much on foremen’s plate
 Foremen do not get along with the hourly employees
 Poor training
 No social interaction

7. EVLN MODEL
The EVLN model identifies four ways that
employees respond to dissatisfaction
 Exit the dissatisfying situation
 Change rather than escape the dissatisfying
situation
 Patiently wait for the dissatisfying situation to
get resolved
 Disregard work and reduce work effort

8. STRESS
 “Sink or swim” attitude toward new foremen
 “…let them know who is boss”
 Strenuous 12 hour shifts
 Various responsibilities and duties

9. ORGANIZATIONAL COMMITMENT
 Employees are identified, involved, and
engaged with the organization.
 Emotional attachment starts to settle in.
 “Feeling of Loyalty”

10. EMOTIONAL INTELLIGENCE
 Emotion has an important effect at work.
 Can significantly improve effectiveness.
 Self-awareness and Self-management.
 Foremen need emotional intelligence while
talking to their workers.

11. IMPROVE EMOTIONAL INTELLIGENCE
 Part of emotional intelligence is genetic.
 Company sometimes apply training programs.
 Personal coaching, monitoring programs, and
current feedback.
 “Us” versus “Them”

12. SOLUTIONS TO THE CASE
1. Shift Changes
 Changing work shifts from 12 hours to 8 hours
2. New training program for Foreman
 Help foreman be adequately trained for the skills
necessary for the job
3. Plant Advisory Board
 Would include hourly wage workers, foreman, and
executives
4. Put more responsibilities on upper level managers
 Unnecessary paperwork
 Health and Safety regulations
 Negotiations with the Union