Treadway Tire Company: Lima Plant Turnover Analysis
This paper analyzes the Treadway Tire Company case study, focusing on the Lima Tire Plant's chronic employee turnover problem and the job dissatisfaction of line foremen. Drawing on Skinner and Beckham's (2008) Harvard Business School case, the paper examines how cost-cutting measures, a shift to twelve-hour production schedules, inadequate foreman training, union interference, and weak management communication combined to undermine workforce morale and operational efficiency. The analysis argues that addressing turnover requires investment in foreman development, improved communication strategies, and a revised employee appraisal system, rather than relying solely on streamlining plant operations.
- Introduction: Lima Plant turnover problem and HR challenge
- Workforce Disparities and Union Dynamics: Union structure undermines foreman authority and discipline
- Training Deficiencies and Foreman Development: Lack of foreman training drives turnover and skill gaps
- Dysfunctional Behaviors and Authority Gaps: Expanding duties without authority creates conflict
- Conclusions and Recommendations: Training, communication, and appraisal reform needed
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What makes this paper effective
- Grounds its argument in specific quantitative details from the case (e.g., 1,120 employees, 970 hourly vs. 150 salaried), giving the analysis concrete anchoring rather than vague generalization.
- Traces a clear causal chain — cost-cutting → shift changes → training cuts → authority erosion → low morale → high turnover — which makes the argument easy to follow.
- Connects HR theory (Armstrong & Taylor, 2014; Jones, 2013) to operational realities at the plant, demonstrating how academic frameworks apply to real management problems.
Key academic technique demonstrated
The paper uses causal analysis to link organizational decisions (shift restructuring, denial of training funding, union contract constraints) to measurable workforce outcomes. Rather than treating turnover as an isolated problem, the author systematically shows how each policy decision compounds the next, demonstrating multi-factor root-cause reasoning common in business case analysis.
Structure breakdown
The paper opens with a contextual introduction establishing the Lima Plant's operational situation and the HR advisor's core challenge. A main analysis section covers workforce composition, union dynamics, training gaps, and dysfunctional authority relationships in successive paragraphs. A conclusion synthesizes findings and proposes actionable recommendations covering training, communication strategy, and appraisal reform. The structure follows a standard problem–analysis–recommendation case format appropriate for undergraduate business courses.
Introduction
This case analysis focuses on Treadway's Lima Tire Plant, paying close attention to the expressed job dissatisfaction of the plant's line foremen, which was leading to a high turnover rate. The company had been faced with significant operational challenges and was forced to implement cost-cutting measures in response to rising business costs. The HR advisor had deemed it necessary to reduce costs by restricting the rising rate of employee turnover in 2007 (Skinner & Beckham, 2008). The Lima plant had all the resources necessary for leveraging the company's recovery plan.
The HR advisor established that the rate of employee turnover had a direct effect on the costs of running operations, and that turnover was causing dysfunction within the company. The move from eight-hour shifts to twelve-hour shifts played a significant role in producing that dysfunction. Operating the manufacturing plant for 24 hours was a viable strategy because it allowed for the reduction of labor costs and the maximizing of plant capacity. The central challenge, however, was how to reduce the rate of employee turnover while simultaneously reducing costs for the company.
Workforce Disparities and Union Dynamics
Streamlining plant operations is not the only solution for cost-cutting, as the Treadway Tires case makes clear. There were crucial workforce disparities that resulted in cost overruns. The company had approximately 1,120 employees at the Lima plant: 970 were paid hourly and 150 were salaried (Skinner & Beckham, 2008). All hourly employees were unionized workers represented by union stewards who handled any grievances raised against the company.
Having a union steward handle all grievances might suggest cordial relations between employees and management. However, this was far from the reality. Most hourly workers did not respect the line foremen, and they would report even minor issues to the union. The union would then send a steward, while the line foremen were not permitted to attend the grievance committee meetings. This arrangement caused a breakdown in communication, and hourly workers were rarely disciplined for their actions. The line foremen effectively had no authority to enforce work standards, given the combination of union interference and the absence of management support.
Training Deficiencies and Foreman Development
According to Skinner and Beckham (2008), the majority of line foremen had been promoted from hourly employee positions and therefore lacked formal college education. The HR advisor identified a significant training gap affecting most foremen and developed a schedule that would have enabled them to gain hands-on experience in payroll and HR functions — experience that would assist them in managing employees more effectively. The training program was never funded, however, as the company was in cost-cutting mode. The lack of requisite skills was a major contributor to the high turnover rate. Without proper training, line foremen were never adequately prepared to move into elevated management positions. The HR advisor had noted this problem and pushed for the hiring of external line foremen who held college degrees.
This gap between responsibility and preparation is well documented in human resource management literature. When organizations promote workers into supervisory roles without providing corresponding development opportunities, the resulting authority vacuum tends to accelerate attrition among the very people expected to retain others.
References
Armstrong, M., & Taylor, S. (2014). Armstrong's handbook of human resource management practice. Philadelphia, PA: Kogan Page Publishers.
Jones, S. (2013). Importance of trust and open communication in working environments. Journal of European Business Management, 3(1), 33–41.
Skinner, W., & Beckham, H. (2008). The Treadway Tire Company: Job dissatisfaction and high turnover at the Lima Tire Plant. Boston, MA: Harvard Business School.
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