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”

1.

2.

3.

4.

Solutions to the Case

• Shift Changes Changing work shifts from 12 hours to 8 hours • New training program for Foreman 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 7 th 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. 2 nd edition