Engstrom Auto Mirror Plant Essays About Education

CASE STUDY ANALYSIS Case Study Analysis Engstrom Auto Mirror Plant: Motivating in Good Times and Bad I. Introduction Explanation of the Organization Issues Engstrom Auto Mirror [henceforth refereed as “Engstrom”] is a plant that employs over 200 employees. Due to recent employee terminations, managerial attitude, and the halting of a monthly bonus plan called the “Scanlon Bonus Plan” (Beer, 2008), employee morale and overall motivation has severely decreased. With such, Engstrom faces low employee productivity, low profit margins, and a risk to a company shutdown. There are several organizational issues within Engstrom that needs to be immediately addressed so as to salvage the company. The top three organizational issues that need to be addressed first and foremost are as follows: employers need to once again take employee suggestions seriously, assuring employees feel integral to the system, and fix the Scanlon Bonus Plan; the last task is the most important. In regards to employee suggestions, the Engstrom employee suggestion rate dropped to dismal 50 per year, an all-time low number for the company; the true meaning for this is that employees no longer feel as though providing feedback to their company is important, especially if it is just going to be ignored by management. If employees feel as though they are not being received, then they will not contribute to the success of the company; which is very harmful in the long run. Engstrom ignoring employee suggestions is an example of “psychological distance” (Newsome, 2015) put up between management; regardless of how unintentional, this unproductive barrier between employee and employers contributes greatly to the issue on hand. 2

Engstrom Auto Mirror Plant and Work Analysis Case Study Essay

3074 WordsJul 4th, 201613 Pages

Kayla Gunby
November 29th, 2015
Southern New Hampshire University
Final Project Submission
Engstrom Auto Mirror Plant and Work Analysis Case Study

During May 2007, the Engstrom Auto Mirror Plant faces a low employee morale issue. The newly appointed manager, Ron Bent, sees a decline in work place productivity and culture throughout his recent years of working at the plant. When Bent joined the company, it was facing a similar issue of low morale. He then decided to introduce the Scalon Plan, an incentive program for the employees, to raise morale. The program was successful when it was first introduced but ran into problems time after. Bent was faced with many challenges with the Scalon Plan that caused him to ask many…show more content…

Bent saw the low morale and wanted to change it. I feel that he used the supportive model mentioned in our book Organizational behavior: Human behavior at work. According to Newstrom, “Management’s orientation, there, is to support the employee’s job performance rather than simply support employee benefit payments as in the custodial approach.” (Newstrom, 2015. P. 39) I believe that one of Engstrom’s strengths would be the fact they were able to identify the low morale by the employees and correlate it with the low productivity. I actually commend Bent for doing research and finding a program that has proven to work in many other companies. The Scanlon Plan is the oldest organization-wide incentive plan with proven success still in use in the United States. The first Scanlon Plan was developed in the 1930’s by Joseph Scanlon. Scanlon was a cost accountant by training and a steelworkers’ union official at a steel mi facing bankruptcy. (Beer & Collins 2008). The Scanlon Plan reinforced teamwork and cooperation across work groups while they focus attention on cost savings and motivating employees to “work smarter, not harder”. (Beer & Collins 2008). A problem and weakness in the program came when the employees distrusted the bonus calculations. Some employees felt the company was “playing with” numbers when they changed the

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