1. Problem definition
The case mainly illustrates the problem of high turnover rate. Foreman always want to leave the company after a few time work.
2. Principal causes of the problem
The main cause for the high turnover rate is culture. There is no culture in this company. All workers in this company are managed by rigorous rules. For example, with the effective enterprise culture, the foremen’s thoughts will be properly reflected and their problems will be solved timely. With the humanized enterprise culture, foremen will not show little respect to workers when they come late.
3. Analysis
Structure perspective: First, In the Tread Tire, Lima shifted to continuous operations with the additional volumes. The plant operates 24 hours a day, seven days a week. Most employees at Lima worked a 12-hour shift with only two breaks per shift and a half hour for meals. Due to the strenuous nature of long shifts, the scheduled hourly workers often came late to work or called in sick. Although continuous operations allowed Tread Tire to amortize the substantial fixed costs and to reduce headcount, workers cannot enjoy working in such high intensity environment.
Second, foreman needs to meet or exceed the target forecast. If results fall below forecasted levels, the line foreman is subject to a severe tongue lashing and usually threatened with a poor performance review. It is true that organizations exist primarily to accomplish goals, but organizations should create a structure that is most appropriate to its goal, environment, and participants. The punishment for foreman who does not achieve the forecast is out of the way. Foreman in Tread feels pressure and they are unhappy about the reward and penalties system. That is the main reason of high turnover rate among foreman.
These two aspects have strong correlation between each other. Because of the forecast report, foreman requires employees to work longer. The turnover rate is higher in foreman, just because the employee has negative emotions towards foreman for increasing working hours. Organizational problems usually reflect an inappropriate structure and can be resolved through redesign and reorganization. Adjusting working hours and forecast report is imperative.
Also, the organization’s structure should solve the problems arising from internal control and coordination. In the Tread Tire case, foreman who wants to leave the job always trouble with three reasons: they cannot control the workers, they cannot meet the forecast, and they have persistently counterproductive interactions with general supervisors and area managers. It is normal for company to encounter some problems, but it is abnormal for company to ignore the problems. That is the frame reason why most foremen leave the Tread. The human resource director and the operation directors should realize and discuss the problems among workers regularly.
Human resource perspective: First, in the case of Tread, the foreman went ballistic and started screaming at a worker, just because he was arrived late from the break. In foremen’s mind, they assume that all workers are slackers. There is no doubt that workers will not act foreman’s request, because none of three basic needs from Maslow’s hierarchy needs (physiological needs, safety needs and love and belonging needs) are satisfied. There is no enough rest time, no respect, and no positive relationship between foremen and employees. People would not like to stay longer in such condition.
Second, as the case indicates, plant manager tried to introduce occasional social events after work for foreman, other salaried employees and their managers, because the general supervisors and area managers are not accustomed to this style of management or level of social interaction. This is another severe problem prohibits the company become the community. The plant manager should hold more events to encourage communications and interactions between workers and leaders and