Lima Tire

Background

The Lima Tire Plant is one of eight manufacturing plants operated by the Treadway Tire Company. Treadway has faced several issues over the past few years, including skyrocketing raw materials costs and increased competition. Given these issues, it is vital that the Lima plant focus on internal functions in order to offset industry conditions and maximize return on investment. Treadway is experiencing turnover at a high rate. Digging deeper into the issue, one can see the factors leading to this problem. Lima, recognized as one of Treadway’s top plants for productivity and quality, has failed to recognize the impact of neglecting their human capital. Foremen are bearing the brunt of this problem, as long shifts have contributed to lower morale among hourly employees. Foremen have been given many responsibilities without the ability to resolve them. They are caught between their subordinates and management. Additionally, grievance processes fail to include foremen, as the union takes over during these circumstances.

Expectations for foremen are high, with hopes to meet or exceed targets. Despite these requirements, they often feel powerless. To complicate matters, foremen do not undergo proper training and are placed into roles requiring a high degree of effort, while receiving little guidance or concern from their managers. Finally, with, there is little incentive for foremen to continue under these conditions with little hope of promotion within the company.

Problem Definition

The Lima plant is suffering from high turnover, low morale, inadequate training, and little promotion potential from foremen to general supervisor. Management has failed to recognize the reasons behind these issues, which threaten the company’s future prospects.

Relevant Theories and Models

One apparent problem at the Lima plant is a lack of psychological empowerment for its foremen. While they are given numerous duties, they are not empowered to effectively...