Engstrom Auto Mirrors

In order to appropriately recommend an incentive plan, one must first identify the main issues with operation at Howe 2 ski. Howe 2 Ski has experience increased competition resulting in a decreased market share. Smaller market share increases the negative impact a lack of productivity and customer dissatisfaction has on Howe 2 Ski’s profits. The decreased production of both the molders and Sales-Persons result in increased inventory and higher cost of production. Furthermore, Howe has attempted to establish an incentive pay program that has served to be ineffective and has fostered low morale within the organization.

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 to find solutions and alternatives for the particular company’s case. The main aim was to figure out how to increase company’s productivity, employees’ motivation and management strategy.

Q.1 – Briefly describe the dilemma presented in this case study. Who are the key players and what are some of the antecedents that have led to the present problem? Ans. When the best manager, takes certain actions which go against the core values of the company, it becomes really difficult for the management to make a fair judgement. They are stuck in a dilemma of what would be a better judgement. As a leader, it is very important to be fair and impartial to your team members. And so is the dilemma presented in the case, Bob’s Meltdown, Nicholas G. Carr. The key players in this case are1. Annette Innella 2. Robert Dunn 3. Jay Nguyen Annette Innella is the Vice President, Knowledge Management at Concord Machines. She was recently hired by

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

Engstrom Auto Mirror Plant is experiencing productivity and quality problems arising from the organizational effects of the Scanlon Plan, an incentive plan that is tied to individual performance. As a consequence of the highly economic-centered nature of the Scanlon Plan, employees have already adapted to the custodial model of organizational behavior where the main basis is the use of economic resources, and the managerial orientation predominantly relies on money to improve performance. Consequently, employees are oriented around security and benefits which developed their dependence on the organization for their financial welfare. Though the Scanlon Plan has supportive model dimensions because as a form of upward communication, employees

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 production rate in terms of bonuses. The plan can be redrawn and a slight change can be made by making the entire plan revolve around the concept of productivity. When productivity assumes a prime position in the plan, employees will strive hard

Engstrom Auto Mirror, a successful privately owned plant since 1948 in Richmond, Indiana, reached one of their biggest productivity setbacks in May 2007. In their near 60 years of business this was the company’s second cross with unprofitability since the 90’s, when technology was surfacing and causing tension between the company and their customers. The manager at the time was unable to adjust, deciding to resign in 1998. Nearing the end of the 90’s, Ron Bent was hired as plant manager. Leading into the new millennium, his plan was to implement an employee incentive plan to increase productivity with the employees using bonuses to allow their business to continue to thrive. That was the introduction of The Scanlon Plan, it reinforced

Alliston then introduced an incentive plan in an agreement with the union management for exchange in job security. The individual performance pay bonus system was implemented in addition to normal pay employees received a fixed sum for each piece produced over the 2012 levels. Pay at the firm was already above average, and the benefit package, which increases with seniority, is very good, with a compensation package of 25 percent of total compensation. Comparable alternative employment opportunities in the area are quite scarce. Employees did not receive bonuses for unsatisfactory quality pieces, however there are no set standards for quality, and each supervisory seems to set different standards. This causes the union production workers to make more money than supervisors. Alliston also used a long-linked technology that divides the total tasks into many small sequential steps, with each step performed by different employees, such as on an automobile assembly line.

Engstrom should provide a space in which workforce can communicate by having managers listen to them and asking them questions. People generally know the right answers if they have the opportunity to produce them. For Engstrom creating teams and committees with members from each production department to management is important. A committee can help improve the line workers morale with ideas such as improvement for production, and meeting delivery deadlines. A committee of managers from each department within the plant who will work with plant line workers to make suggestions and improvements for employee morale and improvement. The teams formed should be from all functions and staffed with members whose talents match team tasks. Committees are

During May 2007, the Engstrom Auto Mirror Plant faces a low employee morale issue. The newly appointed manager, Ron Bent, sees a decline in work place productivity and culture throughout his recent years of working at the plant. When Bent joined the company, it was facing a similar issue of low morale. He then decided to introduce the Scalon Plan, an incentive program for the employees, to raise morale. The program was successful when it was first introduced but ran into problems time after. Bent was faced with many challenges with the Scalon Plan that caused him to ask many

The next reason is Ron believes by laying off employees will help generate more profit for the company. That is not the cases though, He made things worse for the fact he only treated the symptoms. Observing this case at a human behavioral point of view. The company sales were declining. Because of the issues, the manager had to cut the work force in production. When that happened, the remaining employees became alarmed that their jobs were no longer stable. Affecting the employee’s ability in production. This can also lead to poor quality products, which could cost the loss of clientele. Ultimately by letting go of employee’s and getting rid of the Scanlon plan, he negatively impacted the employee’s production quality. Without reinforcement of good work behavior and the idea of an insecure job, the social behavior of the workforce is affected. (Newstrom 2016). This then

One of the valued but demanding customer, who had considered Engstrom as a certified supplier, was requesting a large order but Engstrom was unable to deliver on time due to the low productivity problem. The plant manager along with his assistant were already dealing with the troubling numbers when this happened. While the task was a tough bone and not easy to tackle, and there were a lot of factors needed to be taken in to consideration. The leadership started to analyze and break down the main causations other than the overall economic trend that dragged the company into the turmoil, as it turned out, it was the low, frustrated employee morale and diminished work satisfaction.

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 improved working conditions. Employees were satisfied with their jobs and motivated to be productive. Over time,

Engstrom Auto Mirror Plant is facing an internal crisis which primarily is a motivational problem. Ron Bent, the manager, and Joe Haley the assistant has seen workplace culture and productivity decline over the years. Ron joined the company when it was going through a similar issue in the past. He came and implemented an employee incentive program which is general across the United States. The incentive program called Scanlon Plan was originally very effective in employee motivation and increasing productivity at Engstrom, but it is now failing.

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 managers and employees. As the result of it, the previous manger resigned in 1998. After that, the new manager, Ron Bent believed in the power of worker incentive programs and wanted to establish one at Engstrom. Eventually, the plant adopted the