Besides, the subject of this report turns on that specific issue that we will try to deepen with the help of this case: Engstrom Auto Mirror Plant: Motivating in good and bad times, by Michael Beer and Elizabeth Collins. Situation analysis Case about Engstrom Auto Mirror Plant mostly talks about the crisis at the. Remove and attempt another strategy? Business environments are often complex and require holistic solutions. Words: 564 - Pages: 3. The Scanlon Plan is the oldest organization-wide incentive plan with proven success still in use in the United States. Time line also provides an insight into the progressive challenges the company is facing in the case study. Therefore, Engstrom Auto Mirror plant was too small which makes it easier to accommodate the complexity of multiple plans.
Plant productivity was dropping, worker morale was low, and product-quality issues had begun to surface. Kaplan, Reckers and Reynolds 1986 notes these are outcomes, in relation to the efforts they put in, inputs, and then compare with others. 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 managers and employees. Remove Scanlon and try another plan? Therefore, this chapter will overview some of the theories which would apply to the case of Engstrom Auto Mirror Plant. Introduction Engstrom Auto Mirror Plant is a privately owned business that manufactures mirrors for trucks and automobiles in Richmond, Indiana.
Workers were motivated by the bonuses to increase their productivity, thus saving the plant from its unprofitable state during the 1990s. A rewritten version of an earlier case. The Scanlon plan is designed to combat many of the issues that are now facing Engstrom — that is, providing meaningful motivation for employees by allowing them to be a part of the company as a community and see more value in group success than their individual payment. 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. 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.
By knowing the thoughts of the narrator, it allows a person to not only understand but to also feel the emotions portrayed within the story. She has to resign her job of lecturer due to her marriage, which in fact is her loss of self-sense. It worked for many years then the company started facing issues with productions, profits, bonuses and employees. Ron Bent who is the plant manager. Hypothesis 1: Plant manager before Bent could not adapt to use of new technology.
This same concept applies to research and development projects in the modern day industry. In the current situation, in the midst of this far-reaching industrial downturn, it is becoming much more difficult as a means of incentive. 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. It is key to continue to revisit and evolve an action plan as the company grows, changes or evolves. In your responses, you must use the previous sections materials in analyzing the article. Employees would immediately wonder if they would be laid off. I actually commend Bent for doing research and finding a program that has proven to work in many other companies.
Employees expressed doubt about bonus calculations and Assistant Manager Joe Haley conducted inventory reports and conversations with employees which indicated possible stealing of inventory. Lisa feels jealous as Steve decided to go again her suggestion to hand over half of her workload to the youngest team member, Leanne. Based on the symptoms in this case, organizational justice perceptions influence job satisfaction and the Scanlon Incentive plan became the result of unmotivated employees at Engstrom Auto Mirror Plant. As weird as it might sound, I find that a mirror would best represent this time in my life. The business was in the second year of a downturn. The 3 factor theory states that employees want to work. The company was initially able to improve performance by instituting the use of the Scanlon plan, but the improvements were temporary and the company has continued to decline since.
The business was in the second year of a downturn. Although Bent strived to create a turnaround, he put too much emphasis on extrinsic rewards to validate employee appraisal verses instilling and identifying a culture that fosters it. At this time employee moral was extremely low and productivity was at 40% of expectations. The mirror represents truth and is not intended to hurt or be cruel. In May 2007, a relatively small supplier based in Indiana, the Engstrom Automobile Mirrors plant, faced a disaster. Therefore, when the bonuses stopped, the workers responded with anger and suspicion, as if something that rightfully belonged to them had been taken away Beer et. Finally Ron and Joe should understand the downturn that hit the industry , thus it.
Downturns were not new at Engstrom. But the bonuses had stopped in 2006, and now Ron Bent must determine how to get the plant back on track. He then decided to introduce the Scalon Plan, an incentive program for the employees, to raise morale. For several subsequent years, Engstrom workers had received regular Scanlon pay bonuses. Job security came into question when the industry downturn occurred.
In May 2007, a comparatively small provider based in Indiana, Engstrom Vehicle Mirrors plant, faced a disaster. Introduction Engstrom Auto Mirror plant is a privately owned business that manufactures mirrors for trucks and automobiles in Richmond Indiana. Class: You will be using the Engstrom Auto Mirror Plant: Motivating in Good Times and Bad Article for this assignment. As explained earlier, the Scanlon plan was put into place in 1999. Bent and top management need to come up with a clear and direct communication strategy to address the question of fairness and management distrust that originated prior to the industry downturn of the Scanlon Plan. It's the easiest of the gainsharing plans to…. This paper will examine the use of Scanlon Plan as an incentive program for staff to motivate them in good and bad time.
After that, the new manager, Ron Bent believed in the power of worker incentive programs and wanted to establish one at Engstrom. Words: 4479 - Pages: 18. Regular changes should have been done for adjusting the Scanlon plan as employees were becoming less and less satisfied and enthusiastic. Auto Works is about to conclude its second year as a business. He had to reevaluate, giving himself 3 options to sustain productivity and product quality until the downturn was over: modify Scanlon, get rid of it, or look for alternative solutions. Employees were satisfied with their jobs and motivated to be productive.