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Job Dissatisfaction and High Turnover at the Lima Plant

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Case: The Treadway Tire Company: Job Dissatisfaction and High Turnover at the Lima Tire Plant (by Wickham Skinner and Heather Beckham, Harvard Business School case, no. 2189)

Please analyze the case study as follows please include headings in your analysis:

1. Identify the business problems
2. Rank-order the critical issues
3. Propose various solutions
4. Submit recommendations of how you will implement the solutions
5. Identify how you will communicate the solutions

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Job Dissatisfaction and High Turnover

An organization should always handle all the human resource issues with great care and concern. Employees form an important part of the organization and they should be treated with great care. The performance of the company highly depends on the employees and so, an organization should fulfill their needs and desires up to a certain extent (Halloran & Jack, 1998).

Job dissatisfaction and high turnover rate can be critical issues for any organization. In order to become successful in this highly and changing and global environment, human resources are the integral sources to continue the growth of the organization (Hom & Kinicki, 2009). If the employees of the organization are not satisfied with their job and there is high turnover rate of the employees, this would be a very complicated situation for the success of the company (Brewster & Harris, 2004). Job dissatisfaction among the personnel shows the internal weakness of the organizational structure. It is necessary for the company to sort out various reasons behind this issue of job dissatisfaction and high turnover rate (Hom & Kinicki, 2009).

This paper is associated with the case study of job dissatisfaction and high turnover at the Lima plant of Treadway Tire Company. By means of the following paper I am going to summarize various parameters that are associated with the company various problem and critical issues. With the help of this paper, the reader would be able to find various solutions and implementation of these solutions to increase the satisfaction among employees and reduce the rate of turnover.

There are various problems associated with the business of Treadway Tire Company. These problems are mainly related with the productivity of the company and job dissatisfaction among various employees. One of the main problems with the company's Lima plant is the high turnover rate of the foremen. In the 2007, there were 23 foremen had turned over out of 50 foremen (From the case study). Another problem with the company is the increase in the cost of raw material to produce tire such as petroleum derivatives, crude oil, etc. (From the case study). High raw material cost leads the organization to implement the strategy of cost cutting, which ultimately increases dissatisfaction among the foremen.

High work stress among the employees to work continuously for 12 hours s also one of the main problem with the low productivity level of the organization. The job of a foreman is very challenging and there responsibility involves mainly in four areas production, maintenance, material control and quality control. The compensation and benefits plan for the foremen are also not appropriate as per their responsibilities and tasks (From case study).

There is no definite and formal procedure for the training and development of the foremen, so that they can perform their task in an effective manner. The promotion and appraisal program of the facility are also not very effective. Due this, the morale among the employees is not very high, which eventually leads job dissatisfaction among all of them (From the case study).

Rank-Order the Critical Issues

1. Lack of job satisfaction: In the present scenario, satisfaction and mental peace matters more than money in the life of a person. An employee needs mental satisfaction to live life in a peaceful manner. The corporation should put in its best efforts to satisfy its employees. Lack of motivational tool and low morale leads job dissatisfaction among all the employees, which is a serious issue for the future success and productivity of the company. This dissatisfaction also guide employee to leave the job and find some other ways to get enough compensation for their talent and skills.

2. High Turnover rate: When the turnover increases, the real, as well as, opportunity cost of the organization increases. 'Real cost' includes the time that is required for recruiting and selecting a new person in place of the lost employee; and 'Opportunity cost' is the productivity loss that the company has to accrue. Approximately, 150 percent of the package of employee remuneration is the costs of turnover for the organizations that work for profit. This turnover involves two types of cost, 'Direct' and 'Indirect costs'. Replacement costs, leaving costs and transition costs form part of the 'direct cost'. Reduction in performance levels, unnecessary overtime, low morale and loss of production form part of the 'indirect costs' of turnover (Zahorsky, 2009). Thus, it ultimately ...

Solution Summary

This solution discusses job dissatisfaction and high turnover rates at the Lima Plant.