The Treadway 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 Team 4 Eric Gomez, Rokas Cepulis, Damien Brenard, Clayton Lassiter, Tania Sepulveda

2. Background • The Treadway Tire Co. is a supplier of tires to major car companies like Ford, GM, Chrysler. • 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 • Main priority was lower the high turnover rate and job dissatisfaction • 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. General Adaptation Syndrome

10. Organizational Commitment • Employees are identified, involved, and engaged with the organization. • Emotional attachment starts to settle in. • “Feeling of Loyalty”

11. Building Organizational Commitment • Justice and Support • Ex. Holding management accountable • Employee Involvement

12. 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.

13. Improve emotional intelligence • Part of emotional intelligence is genetic. • Company sometimes apply training programs. • Personal coaching, monitoring programs, and current feedback. • “Us” versus “Them”

14. Solutions to the Case • Shift Changes • Changing work shifts from 12 hours to 8 hours • New training program for Foreman • Help 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 regulations • Negotiations with the Union

15. “…it’s a jungle in here.”

16. Bibliography • David G. Myers. Image exploring psychology 7thedition page 398 • Michael O’Malley 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