Case 2 from Ali - Running head: The Treadway Tire Company...

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Running head: The Treadway Tire Company 1 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 Problem Statement
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Case 2 – The Treadway Tire Company 2 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. There are also serious morale issues within the company, friction between the management and the linemen labor union, inefficient hiring process and inadequate training. Analysis The Treadway Tire Company (TTC) executives are dealing with extreme conditions in this economic turmoil. TTC manufactures tires and their primary raw material, petroleum, has skyrocketed in price. The price of oil went from below $25/barrel in 2003 to $92/barrel in 2007, roughly an increase in 268 percent in four years. Because this problem cannot be solved directly, the Lima, OH plant could help the situation by reducing turnover. This 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, 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 now is expected to meet more deadlines with higher expectations.
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Case 2 from Ali - Running head: The Treadway Tire Company...

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