...Case Study: Treadway Tire Company 1 Case Study: Treadway Tire Company Case Study: Treadway Tire Company S. LaDuew GB520: Strategic Human Resource Management Case Study: Treadway Tire Company 2 Treadway Tire Company When Ashley Wall had just finished attending a meeting at work, the plant manager Brandon Bellingham stated “we have a serious problem” (Skinner & Beckham, 2008, p.1). Wall had just presented the figures for the plants projected turnover rates for foremen the year ending in 2007. Bellingham was not happy because they had 50 foremen at their Lima Plant and in 2007 23 of those positions were turned over. When the Treadway plant closed in Greenville, South Carolina in 2006 Ashley Wall was transferred to the plant in Lima where her position was going to be the Director of Human Resources, since she already had over 10 years of work experience in the Human Resource department with Treadway Company. Wall had decided to make it her top priority to do what she could to reduce the foremen turnover rate at the Lima Plant since it had the highest foremen turnover rate out of all of the other Treadway plants in their division. Wall planned...
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...Propose a strategic HR action plan for Ashley Wall with justifications for your recommendations. From the case, the foremen are lack of support, guidance and tools to work with. Also, the company were facing a budget problem that they could not to establish a formal training program (Skinner & Beckham, 2008). Communication is also a severe problem for the company. The foremen seem to have no opportunity to express their ideas and feelings. Based on these problems, the strategic HR action plan is as followed: 1. Introduction of training or mentoring programs Many foremen think that they are not fully prepared for the job. The company did not provide the foremen with necessary support and guidance. Therefore, there is a need to establish an on-job-training. This training program can make the foremen feel more confident when they perform the job. The training program should cover required skills, problem solving and conflicts management. For newly appointed foremen, especially the graduates from college, the training program will help them understand the required skills and routine work. 2. Technological innovation From the case, the duties of foremen includes scheduling hourly workers, approving vacation requests, checking time sheets, and solving payroll issues (Skinner & Beckham, 2008). The introduction of technology will reduce foremen’s efforts and operating cost. 3. Setting common objectives and instituting regular meetings The foremen should set specific and tangible...
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...Case Study Unit 5: The Treadway tire company: Job dissatisfaction and high turnover at the Lima tire plant Strategic Human Resources Management April 20, 2014 Case Study Unit 5: The Treadway tire company: Job dissatisfaction and high turnover at the Lima tire plant Case Study Unit 5: Prepare a case analysis on the topic of Traditional versus Strategic HRM and Its Effectiveness for Organizational Success. Case Analysis Criteria: Your Case Analysis should consist of: * A brief analysis of the situation and pending-decision problem, as presented in the case, and as relevant to your answer. This should be exceptionally brief and you should assume the person reading the Assignment is familiar with the details of the case. * Identification of the major issues surrounding the organization or individuals involved with the organization. * Identification of alternate courses of action to address the issues identified. * The decision or recommendation for action, with the appropriate supporting arguments. * The Case Question is designed to guide the direction of your analysis in the case. Your analysis should address and ultimately answer the question. Analysis: The tire plant in Lima is going through some rough time as its profits and margins are declining due because of the rising cost of raw materials and also due to intense global competition. Not much can be done with the increasing cost of raw materials but to reduce the overall company’s cost,...
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...In this case, there were many problems within the Treadway Tire Lima factory plant. All of the problems were caused by the inefficient system that was in place. Most of the lower level leaders within the company were either under trained or not trained at all. Three things that could have been done to fix the system would be an organized training system within Treadway Tire, less pressure on the foreman and supervisors for immediate results on things that were outside their control, and shorter shifts. If Treadway Tire implements an organized training program, the supervisors and managers won’t have to come up with everything on their own. It will eliminate the sink or swim mentality forced on the foreman and supervisors. The training should have the following important aspects: 1. Plant operations 2. Interactions between Treadway Tire employees and Union Workers 3. Proper disciplinary actions for employees 4. Areas for personal management education and advancement In starting an organized training program, the initial training would have to happen right away for all management from foreman to managers. The initial training would help all of the leaders to be on the same page. After the initial training, it would be important to have a refresher training course every six months to a year so that the leaders would know what they could and couldn’t do. As the training program continued, the foreman and supervisors would be asked for feedback and the training program could...
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...Case Analysis The Treadway Tire Company: Job Dissatisfaction and High Turnover at the Lima Tire Plan April 10, 2012 Summary The case study is talk about job dissatisfaction and high turnover rate at the Lima Tire Plant, which is one of the 8 manufacturing units operated by the Treadway Tire Company. In 2007, more than half of the foremen at the Lima facility had turn over. The turnover rate is the highest one over the past 10 years at Treadway, and also the high foremen turnover rate is the major concern for Ashley Walls who is the Director of Human Resources in the Lima Plant. Her major objectives are cost cutting, increase productivity, and reducing turnover. The next I will directly show some problems which the Lima Tire Plant had from the case. And then I give the corresponding suggestions and solutions for them, Main Problems From the case we could know the exact job dissatisfaction and high turnover situation at Lima Tire Plant. In order to logical analyze these I would discuss from the individual (foremen) to the integration (company). The foremen: First of all, I think the daily production evaluations of the Lima Tire Plant were too strict. Some of the variations in the production quantity and quality were not under the foreman’s control, specifically as it relates to machines breaking down. But the executive leaders just focus on daily production. Such as the plant manager Bellinghan...
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...Transcript of Case study 2: The Treadway Tire Company Case Study 2 The Treadway Tire Company: Job Dissatisfaction and High Turnover at the Lima Tire Plant -The IT company in this movie has a terrible employee organization, as well as over pressured managers who tend to hassle lower employees, which causes main Character Peter Gibbons to be highly unsatisfied with his job and sabotage the company -Retail and Restaurant industry has some of the highest turnover rates. But the retail stores and restaurants that fully train their employees, are flexible and institute a culture that fosters loyalty are the ones that most overcome job dissatisfaction - Balance hiring policy by adhering to 60% internal hires, 30%college graduates & 10% company transfers - Implement rotating 8 hour shifts instead of 12 hour shifts - Re-institure the month long rotational training program for foremen - As they learn new task they gain higher pay so this month long training doesn't cost company too much - Start an internship program that brings in potential employees without having to pay them unless they are offered a full-time job -Assign area managers as formal mentors to expose foremen to the key processes in the plant as well as inform them on authority and Union issues -Then routinely assess job satisfaction and be ready to change plan when necessary Works Cited How to Keep Your Best Employees: Developing an Effective Retention Policy [and Executive Commentary] Terence R. Mitchell, Brooks...
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...During 2007 the Treadway Tire Company had produced approximately 25,000 passenger and light truck tires per day. About 1,120 people were employed at the Lima, Ohio location; 970 hourly and 150 were salary. The Lima Plant undergone $100 million dollar expansion and modernization which enabled the plant to increase capacity and utilize new manufacturing technology. Due to the modernization Lima had become one of the company top plants for productivity and quality ratings. In 2006 Treadway closed its Greensville, South Carolina plant, which were plagued by outdated equipment, and move all its volume to the Lima location. As a result Lima shifted to 24 hours a day, seven days a week, with four rotating shifts. Most employees work 12 hour shifts. The hourly production employees were supervised by 50 salaried line foreman. The foreman role was the largest at Lima; they were involved in the three phases of rubber component preparation, tire assembly, and curing/final finish. Line foreman also had to manage union and administration procedures. They documented employee disciplinary action and negotiated work standards with union reps. At the end of their shifts foreman spent time scheduling hourly employees, approving vacation requests, checking time sheets and solving payroll issues. Morale was a problem at the Lima Plant. Out of 50 line foreman 23 had turnover in 2007 at the Lima Plant. An employee satisfaction survey was conducted in 2007 and exit interviews of departing...
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...Gaining a Deeper Understanding of the Problem – Evelyn Sanders 1 In the video Ashley and John identified the issues at Treadway Tire Company as being low morale among workers, the rising cost of raw materials and line foremen turnover rate. I did identify the same issues as Ashley and John did in the Treadway case, however, I did identify to other issues not identified by Ashley and John. One organization issue is that one plant manager is not enough personnel to properly oversee a plant of 9000 hourly workers. I also see a 12 hour shift and the calling in sick by workers as an indication of burnout by workers. It was a mistake not to identify the long worker hours of employees as a possible issue. Ashley is on track with identifying the three main issues at Treadway. These are obvious and stated issues (Howard Business Review 2008). Ashley is also on the right track because she had done some research using Good to Great as a bases for ideas on confronting the issues before her. She is also confronting the brutal facts about the issues Treadway is facing no matter how difficult they are to face. The key aspects of the situation at Treadway have been included in Ashley’s conversation with John, with additional thoughts about what other data needs to be gathered to help analyze the issues she is facing. To analyze the key issues at Treadway, and come up with an action plan, Ashley should use employee exit interviews as a data collection means, face-to-face employee...
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...Title Case analysis question: What are the strategies used by U.S. companies today to keep them union-free and why is it critical to the success of an organization in meeting its goals and mission? Introduction: This week case analysis, Treadway Tire Company’s presents a great topic of discussion for everyone and a possible open channel to further study unions and the cause and effect within the work force. As we review in-depth the case of Treadway Tire Company, it provides an opportunity for the reader to ask several key important questions like what are the strategies used by U.S. companies today to keep them union-free and why is it critical to the success of any organization in meeting its goals and mission? Clearly this paper focuses on those issues and show how the Treadway Tire Company’s efforts to curtail the rising cost of doing business in the tire manufacturing industry suffered, while having to deal with multiple growing union and employee issues, that cripple and destroy the organization ultimately failing its goals. Look pass Treadway Tire: In order to better understand the problem we need to step back and take a better in-depth look at the overall picture. First and foremost, why were unions created, previously I prepared a paper about the labor movement in the United States and how it gained its humble beginnings in 1768. How it fought and struck a good blow for the worker by protesting wage reduction. Since then, the fight for fair wages and decent...
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...BECKHAM op yo The Treadway Tire Company: Job Dissatisfaction and High Turnover at the Lima Tire Plant tC “We have a serious problem.” The words of Brandon Bellingham, the plant manager at Treadway’s Lima, Ohio, Tire Plant, rang in Ashley Wall’s ears. She had just attended a tense meeting where she had presented the projected year-end turnover figures for the plant. Out of a total of 50 foremen at the Lima facility, 23 of these positions had turned over in 2007. Ashley Wall had transferred to the Lima Plant as Director of Human Resources when Treadway’s plant in Greenville, South Carolina, had closed down in 2006. She was a seasoned human resources professional with over 10 years of experience at Treadway. Wall knew the turnover rate of foremen was higher at Lima than at other plants in the division; reversing this trend was her top priority. It was now November 28, 2007—approximately one month before Christmas. The plant would be closed from Christmas to New Year’s for retooling and annual maintenance. By the time the plant reopened in January 2008, Wall intended to complete a thorough analysis of the problem and a plan of action to correct it. The Treadway Tire Company employed almost 9,000 hourly and salaried staff in North America. The company was a major supplier of tires to the original equipment manufacturer1 and replacement tire markets, selling Treadway Primo, Treadway Performance, and private tire brands. The Lima Tire Plant was one of eight...
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...The Treadway Tire Company Case Study Introduction The Treadway Tire Company in Lima, Ohio is faced with rather difficult times. These difficulties however are not due to lack of work with a down recession, or even too much demand and not enough capacity to fill it. These issues are deep within the company and effect the organization very seriously every day. Every company of course has issues but in the case of The Treadway Tire Company these are problems that have been haunting them and continuously increasing their turnover rate for consecutive years. Dissatisfaction from one key position in the company is taking a serious toll on the daily operations of the company and causing performance and output to suffer because of it .If the Treadway Tire Company does not begin to make some changes and get a grasp on these major issues then they will begin to see the effects of these problems on their bottom line. In order to make these changes Treadway must first identify what the key issues are and develop an action plan on how to fix these and prevent them from happening in the future. The two major problems that seem to be continuously occurring are 1.) The lack in overall communication throughout all levels of the organization and 2.) The delegation of power and discipline within the company. Finding solutions to these issues is the next major concern for this company and will help them get the plant back...
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...Introduction: - Based out of Lima, OH, and Treadway Tire Company operates a plant which supplies tires to leading tire manufacturers. Background: - The organization with a total of 1,120 employees had 970 hourly based and 150 salary based employees. As Lima Plant is the top rated among Treadway’s tire plants with modern equipments, the management closed out the Greenville plant as the equipment was outdate and moved the volume to Lima plant. Problem: - Management implemented cost cuttings by bring down no. of shifts from three to two by running them for 12hrs. Because of long working hours the employee’s turn in rate for everyday was alarmingly increasing. There are two reasons why many line foreman ended up leaving the company: 1) They didn’t have the proper training to do their job right, 2) There was tension between the line foreman and their superiors. Opportunities: - Given the recent expansions and up-gradation of the equipment and $100 million expansion recently took place at Lima Plant, the organization have a good chance of improving the production, if they were able to solve the Line foreman turnover issue. Recommendations: - The program should heavily concentrate on the a) Plant operations being carried out, and provide training, b) Interaction between employee’s and hourly workers, c) Not exerting more pressure on employee’s, d) Switching the no. of shifts from two to three with each running for 8hrs, e) Reorganization should be there and as well as appreciation...
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...HBS: The Treadway Tire Company: Job Dissatisfaction and High Turnover at the Lima Tire Plant by Wickham Skinner and Heather Beckham In the above case written by Skinner and Beckham the high turnover rates of the Treadway Tire Company Lima Plant’s Line Foreman have become a problem for a plant that had the potential per the article to be one of Treadway’s top producers. Ashley Wall, the Lima plant’s human resource manager believed, “once the turnover problem was solved, Lima could become Treadway’s number one plant for productivity and its lowest cost producer in North America.” This article was truly interesting as it is a great example of what can go wrong even in the most modern and technologically savvy business environments; essentially Treadway spent tons of money on making its building nice, but did not invest enough in its people. The Line Foremen found themselves in non-union positions, responsible for ever-growing production quotas, untrained managers responsible for personnel issues, and administrative tasks. They held most of the responsibility and had little authority; as personnel issues with their crews of hourly workers were handled by the unions. Treadway did little to train the people in this position to deal the high stress environment and found itself faced with high turnover numbers in this pivotal position- a clear hindrance to the modernized Lima plant taking a number slot in productivity. Additionally, the line foremen found themselves without support...
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...Case Analysis Dustin Dabney The Treadway Tire Company Job Dissatisfaction and High Turnover at Lima Tire Plant 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...
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...utilizes a program called, Works Councils (Finkin, & Kochan, 2014). This program allows employees to share their work to reduce working hours rather than allow management to lay off employees at the company. On the other hand, Southwest Airlines, and Kaiser Permanente tailored programs specific to fit their individual company needs (Finkin, & Kochan, 2014). Lima Tire Company, a subsidiary of Treadway Tire Company was having issues with high operational cost and high turnover among foremen. Although the programs that were designed to control labor relations for the company; they were not effective as the company hoped. The company still faced the issue of a dysfunctional organization (Skinner, & Beckham, 2008). So, what are some of the strategies utilized by U.S. union free organizations today and why is it critical to the success of an organization to meet its goals and mission? This paper presents a summary of Lima Tire Company, a non-unionized organization, provides an alternative to handling its major problems, and provides a recommendation to help with the major issues. Brief Case Overview By the opening of the Lima Tire Plant in January 2008, Ashley Wall, the current Director of Human Resources has to devise plans that will correct several serious problems the company faced. Currently the HR Director saw an increased turnover rate among foremen, lack of training, skyrocketing raw material cost, global competition, productivity...
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