Treadway Tire Company Hbr Case
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
Objective
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
Briefing
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
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
Objective
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
Briefing
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
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.