The Treadway Tire Company: Job Dissatisfaction and High Turnover at the Lima Tire Plant

Team 4Eric Gomez, Rokas Cepulis, Damien Brenard, Clayton Lassiter, Tania SepulvedaThe Treadway Tire Company: Job Dissatisfaction and High Turnover at the Lima Tire Plant

Clayton1The Treadway Tire Co. is a supplier of tires to major car companies like Ford, GM, Chrysler. They have almost 9,000 employees in North AmericaTreadway Tire Company only has one current operating manufacturing plant in North America Located in Lima, OhioThere was a second plant in Greenville, SC which closed in 2006 due to financial reasonsBackgroundClayton2High TurnoverOut of a total of 50 foreman, 23 had turn over in 2007Turnover rate was higher at the Lima plant than any other plant in the divisionRising cost of raw materialsPrice of oil went from $25/barrel in 2003 to $92 in 2007Raw materials represent 55% of the cost to produce a tire

The ProblemDamien 3Transferred Ashley Wall, Director of human Resources to the Lima plantMain priority was lower the high turnover rate and job dissatisfactionLima plant could be Treadways #1 plant in productivity and low cost producer in North AmericaTaking ActionEric4Morale issuesJob dissatisfaction Lack of communicationLack of managements supportLack of authority Tongue lashing

Underlying CauseRokas5Work overloadWorking 12 hours shifts with 2 breaks per shift and 30 min. for meals Too much on foremens plateForemen do not get along with the hourly employees Poor training No social interaction

Specific Issues at the Plant Tania6The EVLN model identifies four ways that employees respond to dissatisfactionExit the dissatisfying situationChange rather than escape the dissatisfying situationPatiently wait for the dissatisfying situation to get resolvedDisregard work and reduce work effortEVLN ModelTania7Sink or swim attitude toward new foremenlet them know who is bossStrenuous 12 hour shifts Various responsibilities and duties

StressAccording to personnel manager Robert Henry They let new foremen to either sink or swim They dont know how to manage a dispute/ know less legal rights than the unionized workers

According to GS Herb AdamsLet them know who is boss

Various responsibilities and duties Scramble for last-minute substitute workers and assign them spontaneously to appropriate tasks In charge of maintaining strict safety and health standards Investigating any violationsManage union and administrative proceduresAt the end of each shift foremen complete various administrative duties, including scheduling hourly workers, approving vacation requests, checking time sheets, and solving payroll issues

CONTRADICTION: Foremen are being told to be the boss but not told HOW TO. This creates stress and confusion when huge workloads are presented8

General Adaptation Syndrome Coping options: flight or fightFight Job dissatisfaction, lower organizational commitment, poor decision making, aggressive behaviorFlight absenteeism and leaving the job (turnover)

Job dissatisfaction increases with high levels of stress thus making it hard to stay committed to the company 9Employees are identified, involved, and engaged with the organization.Emotional attachment starts to settle in.Feeling of Loyalty Organizational CommitmentEric10Justice and SupportEx. Holding management accountableEmployee Involvement

Building Organizational CommitmentEric11Emotion has an important effect at work.Can significantly improve effectiveness.Self-awareness and Self-management.Foremen need emotional intelligence while talking to their workers.Emotional intelligencePart of emotional intelligence is genetic.Company sometimes apply training programs.Personal coaching, monitoring programs, and current feedback.Us versus Them

Improve emotional intelligenceShift Changes Changing work shifts from 12 hours to 8 hoursNew training program for ForemanHelp foreman be adequately trained for the skills necessary for the job Plant Advisory Board Would include hourly wage workers, foreman, and executives Put more responsibilities on upper level managers Unnecessary paperwork Health and Safety regulationsNegotiations with the Union Solutions to the CaseClayton14its a jungle in here.Rokas15David G. Myers. Image exploring psychology 7th edition page 398Michael OMalley Ph.D. Creating Commitment: How to Attract and Retain Talented Employees by Building Relationships that Last. Skinner, Wickham and Beckham, Heather. The Treadway Tire Company: Job Dissatisfaction and High Turnover at the Lima Tire Plant.L. McShane, Steve and Von Glinow, Mary Ann. Organizational Behavior. 2nd edition

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