Job Dissatisfaction and High Turnover at Lima Tire Plant

Topics: Motivation, Employment, Management Pages: 6 (2006 words) Published: October 11, 2010
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
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 training would benefit, the enacted budget cuts in 2007 prevented the program from being executed. Recommendations

To improve the training of foremen without the investment of a developing and implementing a formal lengthy training program, our team proposes having several foreman from each process unit help train new foreman and also focus on providing job feedback to help to improve the lowest performing foreman. These lead foremen would each have an area of expertise to help reduce the amount of job responsibilities that each individual foreman is accountable for. Currently, foreman are responsible for not only conflict resolution and meeting production goals, but also union relations, performing administrative procedures, and a variety of human resource tasks. By selecting a few foremen to specialize in the previously listed areas, foreman will have fewer tasks that they need to focus on learning to begin with and a higher level of efficiency may be reached due to increased job specification. Each individual foreman would continue to be responsible for all interline conflict resolution and communication to the individual line members.

Cost-benefit analysis
The selection of a few foremen to not only specialize in an area of expertise but also help training new and existing underperforming employees is a more cost efficient method of training than a month long formal training program that was previously presented to management. These selected lead foremen, would provide training to new and underperforming lines on one of the days that there prospective individual lines are not scheduled to work on. This would allow for minimal line disruption and the leaders could focus on observing and training of other lines and foremen. This proposed arrangement would allow for structured and continual on the job training. Our team believes that continual on the job training would be most beneficial because it would allow foreman to receive an increased amount...
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