MANAGEMENT PRINCIPLES &

ORGANIZATIONAL BEHAVIOR

Assignment – 3

SUBMITTED TO, SUBMITTED BY,

DR. PC BAHUGUNA SHARON.K.R
MBA- AVIATION MANAGEMENT
SAP ID – 500081760
Answer 1
The Lima Tire Plant is one of the top plants among the eight assembling
ventures inside the Treadway Tire Company. It is located in Lima, Ohio. They
have a work force of about 9000 in North America. They supply tires to light
trucks. The second plant which was located in Greenville was closed due to
financial reasons.
The company faced several issues of high turnover and job dissatisfaction
which affected the production and the morality within the company. 46 percent
of line foremen left the job in 2007 due to job dissatisfaction.
To examine the root cause and to provide a solution plan and increase the
productivity, Ashley Wall was appointed as Human Resource Manager to the
Lima Power plant.
The senior management refused the action plan made by Ashley plan like
change in Hiring process, starting of training program due to financial issues.
The foremen were given less authority and there was a lack of communication
between the foremen and the senior management level. The foremen possessed
low morale.
The cause of dissatisfaction was due to the conflicts, lack of authority,
demotivation, and poor career opportunities.
At the Lima power plant to overcome these problems the action plan made by
Ashley Wall will help reduce the turnover and job dissatisfaction.

Answer 2
Antecedents- 100 million dollars was spent by the company in 2000 in
upgrading the plant. The Lima plant was the number 1 plant in productivity in
North America for Treadway. The upgrade brought increased productivity and
efficiency.
In 2006 they were forced to close the plant located in Greenville due to financial
reasons.
50 foremen were hired to supervise the daily wage workers and the foremen
worked 12 hours a day. The plant was operating 24/7 in 4 rotating shifts.
Consequences- The company had to face issues with high raw materials prices,
increasing crude oil prices.
Out of 50 foremen who were hired initially, 23 of them left the company which
resulted in high employee turnover.
Job dissatisfaction arises due to the conflicts with the senior management and
poor communication.
The foremen were facing work overload and had to work 12 hours with 2 breaks
and 30mins for lunch.
There was no social interaction and strict daily production target was imposed.

Answer 3
 Introduce a new recruitment strategy/process.

 All employees must be enrolled to a training and mentoring program.

 Reduced the work hours of the employee

 There must be a performance target for foremen.

 To motivate the employee, monetary bonus can be introduced.

 Foremen must be given the authority he demands.

 Proper communication channels must be established.

Challenges- training will incur more cost.

It will take some time for the senior management persons to get socially
interacted with the employees.
Managers will feel the loss of power if foremen were given the authority and
this might initiate new problems.