The Treadway Tire Company: Job Dissatisfaction and High Turnover at the Lima Plant

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The Treadway Tire Company: Job Dissatisfaction and High Turnover at the Lima Plant University of Houston Victoria Management 6351, Spring 2013 Doctor Barjinder Singh March 20, 2013 Case # 1: Treadway Tire Company: Job Dissatisfaction and High Turnover at the Lima Plant 1. Give a brief overview of the situation at Treadway Tires. Treadway Tire Company was a company which supplied tires to original equipment manufacturers (OEMs) such as Ford, General Motors and Chrysler. The company also sold tires under the Treadway Primo and Treadway Performance brands. At one time, the company had a total of eight (8) manufacturing plants and employed approximately 9,000 hourly and salaried personnel throughout North America. The manufacturing plant located in Lima, Ohio was Treadway’s top production and quality rated plant. The Lima plant underwent a $100 million expansion and modernization overhaul in 2000 and had approximately 1,120 employees. Ashley Wall was the new Director of Human Resources at the Lima plant. She transferred from the Greenville, South Carolina plant when it closed in 2006 and had over 10 years of experience with Treadway Tire Company. Ashley had a huge challenge in her new position; she needed to figure out why the Lima plant had a huge foremen turnover rate. After meeting with the plant’s manager, she was informed out of 50 foremen, nearly 50% had left the company in 2007. There was a serious morale issue with foreman and it seemed their discontent was spreading throughout the plant. The high turnover was another large cost for the company which was already dealing with the rising cost of its raw material. Some additional facts about the plant:  Out of the 1,120 plant employees, 970 were hourly, unionized employees and 150 were non-union, salaried. According to the plant’s organizational chart (Exhibit 2), the

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