Team 4
Eric Gomez, Rokas Cepulis, Damien Brenard,
Clayton Lassiter, Tania Sepulveda
Background
• The Treadway Tire Co. is a supplier of tires to
major car companies like Ford, GM, Chrysler.
• They have almost 9,000 employees in North
America
• Treadway Tire Company only has one current
operating manufacturing plant in North
America
• Located in Lima, Ohio
• There was a second plant in Greenville, SC
which closed in 2006 due to financial reasons
The Problem
High Turnover
• Out of a total of 50 foreman, 23 had turn over in
2007
• Turnover rate was higher at the Lima plant than
any other plant in the division
• Rising cost of raw materials
• Price of oil went from $25/barrel in 2003 to $92 in
2007
• Raw materials represent 55% of the cost to
produce a tire
Taking Action
• Transferred Ashley Wall, Director of
human Resources to the Lima plant
• Main priority was lower the high
turnover rate and job dissatisfaction
• Lima plant could be Treadway’s #1 plant
in productivity and low cost producer in
North America
Underlying Cause
Morale issues
•Job dissatisfaction
•Lack of communication
•Lack of management’s support
•Lack of authority
•Tongue lashing
Specific Issues at the Plant
• Work overload
• Working 12 hours shifts with 2 breaks per shift
and 30 min. for meals
• Too much on foremen’s plate
• Foremen do not get along with the hourly
employees
• Poor training
• No social interaction
EVLN Model
The EVLN model identifies four ways that
employees respond to dissatisfaction
• Exit the dissatisfying situation
• Change rather than escape the dissatisfying
situation
• Patiently wait for the dissatisfying
situation to get resolved
• Disregard work and reduce work effort
Stress
Sink or swim” attitude toward new
foremen
“
“…let them know who is boss”
Strenuous 12 hour shifts
Various responsibilities and duties
General Adaptation Syndrome
Organizational Commitment
• Employees are identified, involved, and
engaged with the organization.
• Emotional attachment starts to settle in.
• “Feeling of Loyalty”
Building Organizational Commitment
• Justice and Support
• Ex. Holding management accountable
• Employee Involvement
Emotional intelligence
• Emotion has an important effect at work.
• Can significantly improve effectiveness.
• Self-awareness and Self-management.
• Foremen need emotional intelligence while
talking to their workers.
Improve emotional intelligence
• Part of emotional intelligence is genetic.
• Company sometimes apply training programs.
• Personal coaching, monitoring programs, and
current feedback.
• “Us” versus “Them”
Solutions to the Case
1.
Shift Changes
•
2.
Changing work shifts from 12 hours to 8 hours
New training program for Foreman
•
3.
•
4.
•
•
•
Help foreman be adequately trained for the skills
necessary for the job
Plant Advisory Board
Would include hourly wage workers, foreman,
and executives
Put more responsibilities on upper level managers
Unnecessary paperwork
Health and Safety regulations
Negotiations with the Union
“…it’s a jungle in here.”
Bibliography
• David G. Myers. Image exploring psychology 7th edition page 398
• Michael O’Malley Ph.D. Creating Commitment: How to Attract and Retain
Talented Employees by Building Relationships that Last.
• Skinner, Wickham and Beckham, Heather. The Treadway Tire Company: Job
Dissatisfaction and High Turnover at the Lima Tire Plant.
• L. McShane, Steve and Von Glinow, Mary Ann. Organizational Behavior.
2nd edition