The Treadway Tire Company case study was different from other case studies I read. Most Harvard Business Review case studies I read focused on successes of companies and different approaches they used to better the company. In this case study the focus is on unsuccessful business operations that resulted in a company being in a serious problem. The article is very easy to read and allows reader to easily identify the problems facing the management of Treadway Tire Company (TTC).
TTC is a company that makes tires and is a major supplier of tires to the original equipment manufacturer and replacement tire markets. The company operates eight plants across the nation. The plant read about is in Lima, Ohio. The article lists several issues TTC has been faced with in recent years such as: increased prices of raw materials, competition, high turnover, low job satisfaction of employees and higher crude oil prices. These challenges are real; however, the company has failed to address these challenges by looking for an external cause. The managers at the plants across country do not effectively communicate to other managers, supervisors and employees. They are focused on bonuses and increasing output of the production. The managers fail to recognize the need for establishing the system where engagement, innovation, training and well being of employees are the priority. Giving employees high wage especially line foreman will not result in better job satisfaction and better performance. The employees need to be provided with the training which will in turn raise employee satisfaction. Employees will not be happy if they do not know what they are doing. Providing appropriate training and information will make employees feel more valuable and will result in better job satisfaction. Constant pressure from manager to perform better creates this high turnover. One cannot expect employees to perform without knowing what to do and why they are doing it. Also the company has decided to close one plant and has extended production operating to 24 hours. Closing of the plant signals problems and bring insecurities to workers. By offering high wage, high expectations, pressure from the management TTC hoped it was on the road to successes. Instead the company failed miserably. TTC has to implement new training classes not only for line foremen but also for the managers. It is evident that managers are not doing their job. The managers have a responsibility towards their employees and that is to create happy, engaging environment, offer training and inform employees about company’s successes. Without appropriate culture change and training TTC is certain to fail.
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