Job Dissatisfaction and High Turnover at Lima Tire Plant
JOB DISSATISFACTION AND HIGH TURNOVER AT LIMA TIRE PLANT
Executive Summary:
Currently, the Lime Tire Plant is one of Treadway’s most efficient plants in terms of output due to utilizing new technology but is not performing to its potential due to high employee turnover at the foreman level. In 2007, turnover was 46% for the foreman position and overall morale and dissatisfaction was spreading throughout the company. The overall tire manufacturer industry is experiencing a drastic increase in raw material price and to remain competitive, the company needs to help reduce cost and improve productivity by reducing turnover.
(add references from book from section about why employees leave positions) Our goal is to increase knowledge, skills, abilities and motivation which will lead to not only an increase in productivity, but also reduce the turnover rate by increasing employee’s level of job satisfaction and happiness level. All four of these factors must be improved for this to have an impact on overall company morale and productivity. *see appendix (then have equation)
Our following recommendations are focused on the three problems that we believe have the biggest impact on the turnover. The improvement of these key issues will help boast employees’ moral, and lead to a decrease in turnover. Below are the three key problems that Treadway should focus on:
• A lack of training
• A lack of motivation
• A lack of communication
A Lack of Training
O
ne main contributor to the high turnover rate is the lack of training that the foreman receives. An example of the current lack of training can be exemplified in an observation from one of the personnel managers regarding foremen “The general supervisors expect them to just sink or swim. They don’t know how to manage a dispute, and they know less about their legal rights than the unionized workers do.” Though a formal training program was in the process of being developed and management agreed that more
Executive Summary:
Currently, the Lime Tire Plant is one of Treadway’s most efficient plants in terms of output due to utilizing new technology but is not performing to its potential due to high employee turnover at the foreman level. In 2007, turnover was 46% for the foreman position and overall morale and dissatisfaction was spreading throughout the company. The overall tire manufacturer industry is experiencing a drastic increase in raw material price and to remain competitive, the company needs to help reduce cost and improve productivity by reducing turnover.
(add references from book from section about why employees leave positions) Our goal is to increase knowledge, skills, abilities and motivation which will lead to not only an increase in productivity, but also reduce the turnover rate by increasing employee’s level of job satisfaction and happiness level. All four of these factors must be improved for this to have an impact on overall company morale and productivity. *see appendix (then have equation)
Our following recommendations are focused on the three problems that we believe have the biggest impact on the turnover. The improvement of these key issues will help boast employees’ moral, and lead to a decrease in turnover. Below are the three key problems that Treadway should focus on:
• A lack of training
• A lack of motivation
• A lack of communication
A Lack of Training
O
ne main contributor to the high turnover rate is the lack of training that the foreman receives. An example of the current lack of training can be exemplified in an observation from one of the personnel managers regarding foremen “The general supervisors expect them to just sink or swim. They don’t know how to manage a dispute, and they know less about their legal rights than the unionized workers do.” Though a formal training program was in the process of being developed and management agreed that more