Case Study Engstrom Auto Mirror Plant: Motivating in Good Times and Bad Engstrom Auto Mirror Plant, in Richmond, Indiana, a privately owned company that has been in existence since 1948. Engstrom was largely successful until the late 1990’s at which time the plant struggled to make a profit. During this period the plant was updating its production lines by adding new technology. This change did not go smoothly which caused delays in production resulting in a loss of customers. The plant manager did
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Introduction Engstrom Auto Mirror plant is a privately owned business that manufactures mirrors for trucks and automobiles in Richmond Indiana. In May of 2007 the managers were experiencing a crisis at the plant. The most pressing issue at the time was the slow pace of productivity. Low productivity was increasing costs in other areas. Not only was Engstrom having productivity issues but they were having product-quality and moral problems as well. In order to explain the source of these problems
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Engstrom Auto Mirror Plant: Motivating in Good Times and Bad Milestone 3: Solutions Development Solution The Scanlon Plan can be used as a major catalyst to turnaround the plant by emphasizing more on productivity. The more they work the faster they roll towards their bonuses; this magical spell is a win-win situation for both the employees and the management. The management can cruise steadily over the wave of bonus motivated productivity and the employees can reap the benefits from the high
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This case study deals with a privately owned company, Engstrom Auto Mirror Plant, which manufactures mirror for automobiles and trucks. The company was managed by Ron Bent and his assistant John Hayley. Engstrom quickly became a certified supplier for Toyota under Bent’s management. Brent brought a system to Engstrom he had been part of at his former job. He modeled that system once he came to Engstrom, that model put in place was known as the Scanlon Plan, a company-wide employee incentive program
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2 STATEMENT OF THE PROBLEM Ron Bent, the plant manager, is ultimately responsible for solving the problem of declining employee motivation at Engstrom Auto Mirror Plant. Over the past two years, productivity, employee morale, quality of work, and sales have all declined. These are the results of the larger issues of employee motivation and communication within an organization. Things like productivity, quality of work, and sales are relatively short-term problems. Up until two years ago, they
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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
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Engstrom Auto Mirror Plant Case Motivating in Good Times and Bad Prepared by: Lily Yuan, Vicky Pan, James Xu, Kate Li, Issakson Wang, Ariel Cao, Vivian Fu 9 November 2013 Contents Introduction to Engstrom Scanlon Plan Scanlon Adoption Plan at Engstrom Problems and Solutions? 2 Introduction to Engstrom (I) A privately owned business manufacturing mirrors for trucks and automobiles Located in Richmond, Indiana 209 employees Use Scanlon Plan as an incentive for staff
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Discussion: 14746 Re: Case Memo #1: Engstrom Auto Mirror Plant Issues: Though the Scanlon plan was effective when it was implemented, there are now several potential issues existing in Engstrom. The employees are no longer seeing the benefits of the incentive plan that originally showed them bounty. They do not trust the system of bonuses, or the methods by which they are calculated, and by extension are beginning to distrust management entirely. They are starting to observe a lack of fairness
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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 bonuses for employee productivity, communication meetings, a committee to encourage and evaluate employee’s suggestions, and overall
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Engstrom Auto Mirror is facing one of its most difficult periods of its history, driven by a variety of factors. After enjoying several years of prosperity, particularly due to an effective implementation of a Scanlon Plan, the company is facing problems associated with productivity and product quality. These issues have transcended to other areas of the company including its employees, who have been complaining for some time about the company’s policies and its current situation, and have been underperforming
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