Client Memo

To : Ashley Wall, Director of Human Resources

From : Transformation Consultant Representative

Re : The Treadway Tire Company

Date : April 5, 2011

I. Overview :

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. Under these circumstances, an effective plan should be submitted to resolve the issues that are faced in the plant and are impacting the productivity and efficiency of the plant.

II. Analysis :

There are several reasons at fundamental level that have resulted into this high employee turnover:

* Employee dissatisfaction: The approach of management by the line foreman focused on getting the work done by any means resulted in decreasing the morale of employees. Adding to that the line foremen don’t have any authority considering no information sharing to them by employees.

* Job Disengagement of Employees: The employees are only judged based on their target achievements, which in turn causes disengagement of employees and a decrease in the annual incomes and earnings.

* Organization Commitment: The employees were not able to foresee any opportunities for their career growth that only competitive wages don’t support commitment of employees.

* Lack of Industrial knowledge of employees (No Training Policy): More than 85% of our employees are under union contract protection while most of our foremen have little knowledge of such contractual implications. No formal training of new line foremen, and they didn’t have any experience of knowledge how to handle union workers in a proper manner....