...Milestone 2 Engstrom Auto Mirror Plant: Root Cause Case Study Analysis Sharon McClain SNHU The Engstrom Auto Mirror plant is located in Richmond, Indiana and employs around 200 or more people. The plant has been going through some changes over the last few years and has seen a decline in employee motivation. The focus today will be to determine some of the root causes of the problems facing the plant from an organizational view and a human behavior issue. The bottom line is determining how to solve the issues the company is facing and move forward. Some of the questions that will need to be answered is, “why is motivation at an all-time low, is the Scanlon plan benefiting everyone in the company and can the plan be revamped with the employees input?” From the beginning of the Scanlon plan, the employees were happy when production was good and they were receiving the bonuses. When the profits and sales decreased, so did the bonuses which led to disgruntled employees. It seems the employees were agreeable with the plan at the beginning even though they did not fully understand the concept of how the bonuses were calculated. So is it the Scanlon plan the root cause or the employees? As explained earlier, the Scanlon plan was put into place in 1999. It worked for many years then the company started facing issues with productions, profits, bonuses and employees. To answer the questions of the root cause, it is all stakeholders. First, in order to receive a bonus...
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