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

Institute of Management Technology, Nagpur

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Organizational Behavior – I: Dr. Saleena Khan

Case Study 2:

The Treadway Tire Company:

Job Dissatisfaction and High Turnover

at the Lima Tire Plant

Submitted by: Group 4

Ankush Agrawal | Akshar Anu | Anant Sahay | Arpan Sharma | Aashima Gupta | Aditya Jaiswal | Abhishek Shaw

Introduction

* Protagonist: Ashley Wall:

Initially she worked at Greenville plant of Treadway.

Currently she holds the position of Director, Human Resources, Lima Plant Treadway Tire Company with 10 years of seasoned experience.

* About the Company:

* Treadway Tire Company; Major supplier of tires to the original equipment manufacturer and replacement tire markets

* Main brands: Treadway Primo; Treadway Performance and private tire brands

* 9000 hourly and salaried staff in North America

* The Lima tire plant was one of the eight manufacturing plants operated by the company

* Turnover rate was higher at Lima plant

History:

* It is the major supplier to the market leaders like Ford, General Motors and Chrysler.

* The company is facing a variety of challenges for several years, which includes steep rise in the cost of raw material and an intense global competition. Raw material represents the cost of about 55% to produce a tire, and petroleum derivatives are important gradients. The price of crude oil climbed from $25/barrel to $92/barrel.

* Lima Tire Plant produce 25000 passenger and light truck tire per day. Treadway’s plant in Lima, Ohio is spread over 1.5 million square feet and situated on 128 acres of land. There 1120 people were employed in which 970 were hourly employees and 150 were salaried employees.

* Treadway’s Lima Plant has undergone $100 million expansion and modernization in 2000, which enabled the plant to increase capacity and utilize new manufacturing technology. Due this it becomes one of the top...