Treadway Tire Company Hbr Case

Topics: Household income in the United States, Management, Employment Pages: 6 (1098 words) Published: August 2, 2010
Case Analysis

The Treadway Tire Company

Job Dissatisfaction and High Turnover at Lima Tire Plant

July 26th, 2010

Submitted By (Group 3):

Abhinav Gogia – 2010005

Aakash Tyagi -2010002

Aditya Gaurav – 2010017

Aditya Kalani – 2010018

Animesh Jain - 2010030


Ashley Wall, Director Human Resources for one of the plants of The Treadway Tire Company situated in Lima has to submit an effective plan to resolve the issues that are faced in the plant and are impacting the productivity and efficiency of the plant.

The major issues to focus here are:

➢ Increase in Employee Turnover resulting into High Cost of Production

➢ No Induction pathway/ plan

Case Analysis


The tire plant at Lima is passing through a tough situation as margins and profits have abruptly decreased due to skyrocketing raw material cost and intense global competition. Although there is nothing much that can be done of increasing raw material costs, however the overall costs can be definitely reduced by reducing the employee turnover. As per the facts there are major morale issues in the line-foreman and hourly workers segment and this disease spreading in the entire plant.

Now, there are several reasons at fundamental level that have resulted into this high employee turnover:

➢ Employee un-satisfaction

The tried and tested approach of management by the line foreman focussed on getting the work done by the workers by hook or by crook. This resulted in decreasing morale of the workers because of unfavourable working environment. The line foreman was not having any authority over the workers, as all issues were being resolved by grievance cell without any information being shared with the line foremen; which made them feel powerless and they were losing respect for the work they did.

➢ Job disengagement of employees

The workers and foreman were ill treated, they were only being judged based on their target achievement and had nowhere to go due to which they were not feeling left out of the organization. The organization goals were not in sync with the goals of the workers. Thus employee disengagement was further decreasing the annual incomes and earnings.

➢ Organization commitment

Though the employees were given competitive wages but there was no affective commitment and normative commitment of employees for their organization. The workers were not able to foresee any opportunities for their career growth within the organization.

➢ Lack of industrial knowledge of employees (no trainings provided)

There was no formal training plan for the new line foremen, which made them get into a fight for survival kind of a situation, this was made worse by the fact that they were also not much aware about the practices to be used so as to handle union workers in a proper manner, this created major hurdles for them while handling hourly workers. The only mentoring they got was a small chat with the supervisor, which was also not the case always.

Lack of communication

There was no hierarchy of communication among various levels in the organization, due to which the targets set were un-realistic. Also, there was no proper channel for addressing the problems encountered by foremen.

Despite of all these problems, all eyes were thereon this plant as there were huge investments done on this plant; therefore the senior management has great expectations from this plant.


➢ Agile(360 degree) Appraisal and Feedback System

This solution will help in resolving problem related to job dissatisfaction.

The human resource department should take frequent feedback of the employees so as to understand that how satisfied the employees are. The feedback should be taken from employees at all levels. Also quarterly reviews and appraisal mechanism should be introduced, which should include all the stakeholders in the process and provide them an opportunity to...

References: The case is analyzed and the solutions are provided after doing research from the following resources:
• GJ Balu, Journal of Management, Winter 1986, Pg 577-584
• Towers Perrin Survey of 90,000 employees – refer Harvard Business Review June 2010
Facts produced in the survey
Companies with low levels of employee engagement have 33% annual decline in annual income and 11% earning income. Those with high levels have 19% increase in operating income and 28% growth in earning share.
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