Engstrom Auto Mirror Plant and Work Analysis Case Study Essay

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Kayla Gunby
November 29th, 2015
Southern New Hampshire University
Final Project Submission
Engstrom Auto Mirror Plant and Work Analysis Case Study

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
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Bent saw the low morale and wanted to change it. I feel that he used the supportive model mentioned in our book Organizational behavior: Human behavior at work. According to Newstrom, “Management’s orientation, there, is to support the employee’s job performance rather than simply support employee benefit payments as in the custodial approach.” (Newstrom, 2015. P. 39) I believe that one of Engstrom’s strengths would be the fact they were able to identify the low morale by the employees and correlate it with the low productivity. I actually commend Bent for doing research and finding a program that has proven to work in many other companies. The Scanlon Plan is the oldest organization-wide incentive plan with proven success still in use in the United States. The first Scanlon Plan was developed in the 1930’s by Joseph Scanlon. Scanlon was a cost accountant by training and a steelworkers’ union official at a steel mi facing bankruptcy. (Beer & Collins 2008). The Scanlon Plan reinforced teamwork and cooperation across work groups while they focus attention on cost savings and motivating employees to “work smarter, not harder”. (Beer & Collins 2008). A problem and weakness in the program came when the employees distrusted the bonus calculations. Some employees felt the company was “playing with” numbers when they changed the
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