Case Study Engstrom Auto Mirror

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The Engstrom Auto Mirror Plant relatively small supplier based in Indiana is as yet confronting issues with efficiency, and benefit misfortune. Creation laborers have turned out to be troubled and lost trust in the Scanlon reward design. Engstrom Auto Mirror Plant is encountering a broken impact in their social framework. Workers have an absence of intrigue and trust for the organization due to the fizzled motivating force design in movement. Workers feel the estimation of the Scanlon design isn't reasonable in view of the measure of rewards that is disseminated and reasonableness. Employees morale and overall motivation has severely decreased. With such, Engstrom faces low employee productivity, low profit margins, and a risk …show more content…


In 2007, the floor manager of Engstorm auto mirror and his assistant realised that the previous rough quarters that the company went through were due to a lack of motivation coming from the workers. As if having a bad productivity wasn’t enough, the quality of the products offered by the company started declining. The employees started to get really angry because they weren’t paid a bonus each month as they were used to, they started to delay the deliveries, putting the company in a bad situation, they began to see that there’s no point into participating, they stopped taking interest in the company. Therefore, when the bonuses stopped, the workers responded with anger and suspicion, as if something that rightfully belonged to them had been taken away. Let’s go back to the late 1990’s when Ron Bent was hired by Engstorm Auto Mirror, succeeding to a manager who resigned on working for the company. Straight away, he decided that he would try to install a Scanlon Plan within the company, to boost its performance by offering bonuses to the

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