Engston Auto Mirrors Plant

1668 Words7 Pages
Nicole Ferrin
October 13, 2008
BUSA 305

Case Analysis
Engstrom Auto Mirror Plant:
Motivating in Good Times and Bad

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,
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When the plan no longer was enough to motivate the employees, Bent knew the plan needed to be revised. He had said, “A Scanlon program won’t perpetuate itself. You have to give it a shot in the arm every so often—whenever the work force needs it” (Beer and Collins, p. 6). To revise the plan, Bent needed to listen to the employee’s complaints. Part of the Scanlon plan was to listen to suggestions of the employees, so the complaints should have been just as important to listen to and evaluate. The employee complaints were about the distrust of bonus calculations and questions of fairness. Bent and his management team should have seen the complaints as a suggestion for improving the bonus plan. Another alternative would be to change the organizational factors of the company. Bent could do this by using the Job Characteristics Model. Due to the Scanlon Plan, the company had already met the fifth characteristic of feedback, but Bent could also look at ways to improve the autonomy, task significance, task identity, and skill variety of his company. By improving those characteristics, it could help the Scanlon Plan to further motivate employees. Lastly, Bent could

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