Case Study Of Engstrom Auto Mirror Plant

The organization of Engstrom Auto Mirror Plant takes place in Richmond, Indiana. Engstrom is a privately owned business that manufactures mirrors for trucks and cars. In fact, the plant manager, Ron Bent, took over the business back in 1998, successfully running the business for 6 consecutive years. Bent success came from a cost-saving productivity-incentive plan, known as the Scanlon plan, which unfortunately took a turn for the worse in 2005. In fact, 7 months ago, 46 employees were laid off and only 209 employees remain. Since then, the company has declined and the employees have lost their incentives to work causing depletion in the overall sales production