Treadway Tire Company Essay

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Introduction to Problem statement The Treadway Tire company’s Lima plant at Ohio has faced a huge turnover rate in the year 2007. Per Skinner & Beckham (2008) “Out of a total of 50 foremen at the Lima facility, 23 of these positions had turned over in 2007” (pg. 1). As Treadway, had closed its plant at Greensville, South Carolina and hence the volume of work at Lima plant had increased drastically as it was reequipped with advanced tools for better productivity. Line foremen were the salaried, non-unionized and floor-level managers who mostly looked after the most of the process in the tire production like the preparation of rubber component, assembly of tire and final finishes. The foremen were dissatisfied with their job which lead to the high turnover at the Lima plant. According to Naikwadi (2017): The main reasons for the turnover rate are the dissatisfaction of the job among the line foremen due to: 1. Overstress on them to keep up with the daily production goals, and unforeseen technical events or with the hourly employees, which are not taken into consideration by the supervisors. 2. A sense of threatening from their superior, of a negative impact on their appraisals if goals are not met. 3. Management’s indifferent …show more content…

First, reducing the turnover rate increases the productivity of the Lima plant. As the Lima plant, had restructured its shift working timings to 12 hours, it could reduce the headcount and thus achieve cost savings. With that model, a high turnover rate would decrease the productivity of the plant as it takes some time for the new employee to get accustomed to the new environment. Meanwhile, in this entire process of hiring a new employee, the productivity of the plant would slow down which affected the revenue. Thus, reducing turnover will save on the cost incurred in recruiting new hire as well as increase productivity of the plant

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