case 2 comments - The Treadway Tire Company: Job...

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The Treadway Tire Company: Job Dissatisfaction and High Turnover at the Lima Tire Plant Ali Brown, Paulo De Souza, and Emigdio Niquet Utah Valley University – MGMT 3000
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Problem Statement The main problems facing the Lima, OH branch of The Treadway Tire Company are the increasing costs of raw materials and a high rate of turnover of line foremen. Morale issues due to friction between the management and the linemen labor union, inefficient hiring process, and inadequate training affect the performance of the company. Analysis The Treadway Tire Company (TTC) executives are struggling with extreme conditions in economic turmoil. TTC manufactures’ primary raw material, petroleum, has skyrocketed in price. The price of oil went from below $25/barrel in 2003 to $92/barrel in 2007, which represents an increase in costs of 268 percent in four years. Because this problem cannot be solved directly, the Lima, OH plant could help the situation by reducing turnover. This reduction would cut overall costs and improve productivity. The root causes of high turnover are explained and analyzed in the following subsections. Each is a major contributor to the high turnover of line foremen. Morale The main causes of the morale problems at Treadway are a long work day, unrealistic expectations, and intense pressure from upper management. Greenville plant in South Caroline was shut down and the volume was transferred to “the more efficient Lima Plant” (Case 2). As a result, employees are working 12 hours a day instead of the regular 8 hours in order to reduce head count. The company must meet more deadlines with higher expectations. Foremen are submitted under higher pressure to perform. When they do not perform to the managers expectations, they receive a “tongue lash” from the upper management.
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This note was uploaded on 12/13/2011 for the course MGMT 330R taught by Professor Eugeneseeley during the Spring '11 term at Utah Valley University.

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case 2 comments - The Treadway Tire Company: Job...

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