The Engstrom Auto Mirror plant employs over 200 people at its Indiana location. In May 2007‚ the Engstrom Auto Mirrors plant‚ a relatively small supplier based in Indiana‚ faces a crisis. The business was in the second year of a downturn. Sales had started declining since 2005; a year later‚ plant manager Ron Bent had been forced to lay off more than 20 percent of the work force. Plant productivity was dropping‚ employee morale was low‚ and product-quality issues had begun to surface. Relationships
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The Engstrom Auto Mirror plant is a private-owned business that consists of over 200 workers in Richmond‚ Indiana. It is known for manufacturing trucks and automobile mirrors. The business started an incentive plan known as The Scanlon Plan in 1999‚ which allowed employees to earn bonuses. This was a fundamental to each person’s performance and paid rate of all work savings each month. After introducing the incentive plan‚ workers became motivated; as a result‚ it increased productivity‚ thus‚ saved
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Now that the Engstrom Auto Mirrors Plant case study has been analyzed‚ I would recommend taking account employees suggestions while ensuring that employees are valued and equality is maintained‚ and modifying the Scanlon plan to maintain employee motivation and enthusiasm. To start it is important to modify the Scanlon Plan first foremost to resolve inequality and motivation & enthusiasm issues at the Engstrom Auto Mirrors Plant. Therefore‚ Engstrom should create a modified Scanlon Plan that would
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Engstrom Auto Mirror plant‚ as a privately owned business‚ it manufactured mirrors for trucks and automobiles. The managers aimed to increase productivity for sustainable development of the company. Back in 1998‚ to pursue highly productivity‚ the plant was redesigning its production lines to incorporate new technology‚ however‚ the transition was not smooth‚ some problems had emerged‚ such as the staffs’ moral and efficiency declining and the internal contradictions being intensified between the
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Engstrom Auto Mirror Plant: Motivating in Good Times and Bad 4-1 Final Project Milestone 2: Root Cause Case Study Analysis Turbulence at the Plant: Engstrom found itself in a distress situation which resonated with the pattern similar to organizations which are knee deep in crisis. The descent of Engstrom was not attributed to a single event but a chain of interrelated events which led to the downfall of the plant. The Plant suffered setbacks on various fronts such as delivery schedules‚ customer
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Introduction Our task for the Engstrom Auto Mirror Plant case analysis was to identify the main problems of the company as well as it’s managers’ decisions and to find reasonable solutions by taking into account roots from where they have been appearing. This case is extremely relevant because it looks at organizational behavior everyday problems and analyses issues of building relationships with employees. All our assumption will be based on Organizational Behavior theoretical background in order
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The problems at Engstrom Auto Mirror have become highly detrimental to the performance of the organization and are threatening its viability. The employee performance issues can be attributed to a lack of motivation and a perceived lack of fairness that has caused distrust in management. Another reason for the decrease in the quality of employee production is the dissatisfaction with the Scanlon Plan that has outlived its usefulness and should be redesigned. The result of low productivity and poor
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Nicole Ferrin October 13‚ 2008 BUSA 305 Case Analysis Engstrom Auto Mirror Plant: Motivating in Good Times and Bad Engstrom Auto Mirror Plant is facing the problem of not being able to keep their employees motivated in both good and bad times. Before the problem occurred‚ Ron Bent‚ the plant manager‚ had adopted the Scanlon Plan. The Scanlon Plan was an incentive plan used to motivate employees and to drive changes in their behavior and attitudes. The plan consisted of monthly
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Introduction The Engstrom Auto Mirror plant employs over 200 people at its Indiana location. Since 1999‚ workers at the plant have received bonuses based on the Scanlon Bonus Plan‚ which paid a percentage of all labor savings each month. Workers were motivated by the bonuses to increase their productivity‚ thus saving the plant from its unprofitable state during the 1990s. However‚ in 2007‚ the plant once again faced issues of unproductivity and low profits. The plant manager‚ Ron Bent‚ had to
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Issue The main issue with the Engstrom Auto Mirror Plant was how to improve quality and performance of its assembly line workers. The plant manager determined the best way to do this was to implement the Scanlon plan‚ which focuses on employee participation to identify ways to increase productivity. When the plan was proposed‚ it was widely accepted by employees (81% voted for it.) In the beginning‚ employees had many suggestions to improve productivity (305) and management accepted almost
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