MICHAEL BEER ELIZABETH COLLINS Engstrom Auto Mirror Plant: Motivating in Good Times and Bad There had been several rough quarters at the Engstrom Auto Mirror plant in Richmond, Indiana, a privately owned business that manufactured mirrors for trucks and automobiles and employed 209 people. For more than a year, plant manager Ron Bent and his assistant, Joe Haley, had focused their Friday meetings on the troubling numbers, but the tenor of their May 14, 2007, meeting was different. Both men
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Problem Statement The Engstrom Auto Mirror plant is a small privately owned business that supplies mirrors for trucks and cars. The plant had suffered several years of downturn before Robert Benton introduced the Scalon plan. The Scalon plan, an employee incentive program, was created to boost employee morale, increase productivity, produce quality inventory and lead the plant to a turn around. Now, the plant manager, Robert Benton, must figure out how to get the plant back on track in order to
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The issues surrounding the production and quality concerns at Engstrom seem to have come about as a direct result of a disconnect between the company's compensation package and the outcome of quality control. Moving forward with the concept of attempting to provide more incentive to workers while also improving the quality of the products being offered by the company may seem counterintuitive. The tendency of upper management, particularly in manufacturing companies, to view more benefits and incentives
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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 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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Engstrom Auto Plant Engstrom Auto Mirror plant has had faced crisis in 2007 which was downturn with performance. In addition, Bent signed authorization with another company a large order. But the problem in cost was a massive, that led to delayed of productivity at the plant. So Bent suggested Although, a Scanlon plan had been good over a seven-year period and sales had fourfold, downturn hit the industry. Because, the plan had outlived it’s usefulness. The employees had become accustomed
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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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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 CASE STUDY REVIEW 1) Other than the Scanlon, what are some common types of employee incentive plans? Provide a brief overview of what they are and how they work. My research found that basically there are four types of programs classified as gainsharing. These include: the Scanlon Plan, the Rucker Plan, Improshare and Custom plans. These gainsharing plans are all similar. The differences appear in the way they calculate
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Abstract The Engstrom Auto Mirrors plant is a small supplier factory based in the state of Indiana who is currently facing a crisis. They are in a drastic downturn in production and finance. The Engstrom plant has been experiencing damaging blows in their sales and morale. Ron Bent, plant manager, had to lay off more than 15% percent of the work force. The productivity was severely hit in a negative way. Employee morale suffered, and the quality of the product was sub-par. Customers of the plant
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