Engstrom Auto Mirror Plant and Work Analysis Case Study Essay

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

“While Mangers complain about lack of motivation in their workers, they might as well consider the possibility that the reward systems they’ve installed are paying off for the opposite”.

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.

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

In this portion of my case analysis, I will be showing ways for suggested solutions in order to help improve the situation at the Engstrom Auto Mirror Plant. I will be showing ways in which organizational improvement outcomes can directly help remedy some of the issues and recommend strategic actions that would lead the organization in a proactive production workforce. The recommendations are creating committees, rework how the Scanlon Plan bonus works, create or use their marketing and sales department to the full capacity, and to help empower the workforce work to achieve Corporate Social Responsibility. (CSR)

In May 2007, the Engstrom Auto Mirrors plant was facing the crisis. The business was doing badly and the sales had started to decline in 2005. Thus, there was a steep reduction in plant productivity and employee morale was all time low. The company used Scanlon Plan as an incentive for staff. The core element or foundation of the plan was concept of participative management, where management and staff together will decide the bonuses based on revenues for that year.

Behavioral Management Theory is the understanding and response of employee needs to enforce motivation. This theory guides management in a better understanding of the human aspect. It involves management to treat employees as important resources in the workforce. The goal is to raise productivity and to do this by motivating employees. Motivating employees can involve incentives like employee bonuses, promotions, and the collection and redeeming of points for rewards. As the management takes interest in employees, it makes them feel like an important part of the puzzle, and in turn motivates employees to work harder. Like in most cases, if the employees are satisfied and working conditions are good, productivity raises automatically. A theorist by the name of Mayo Hawthorne devised an experiment that allowed a group of telephone line workers to be separated and observed in a private room. The controlled group of employees increased greatly in productivity. This brought the human relations movement that involved management spending time, showing interest, and rewarding employees to increase productivity. Employees felt management was

Nearly every business experiences ups and downs sooner or later along the way, and only those who can find the pattern and answer from the crises can survive and thrive. The Leadership of the Engstrom Auto Mirror Plant encountered some road blocks and troubled by issues such as productivity in the business.

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

Lastly, employees like every other person seek recognition and appreciation. Therefore, they should be appreciated when they perform exuberantly in their jobs. One needs to clearly convey how an employee’s performance contributed to organizational results. By appreciating them, you are motivating them to do better. Monetary rewards in the form of year-end bonuses are also always a great way to improve the morale of the employees. I believe, that Mr.Hussey after considering the above motivational factors, should then take the final decision, as to how the work could be performed in the best possible manner.

My review of the Engstrom Auto Mirror Plant: Motivating in Good Times and Bad case study allows me to identify certain organizational issues within the company.

What intrinsic and extrinsic rewards could management provide to motivate and increase productivity in ES employees?

Scientific management uses incentives to motivate workers. This idea comes from Henry Gantt who introduced the bonus system, which motivated workers to complete their daily tasks by

The studies failed to prove any positive correlations between workplace conditions and productivity. The results of the studies demonstrated that innate forces of human behavior may have a greater influence on organizations than do mechanistic incentive systems. The legacy of the Hawthorne studies and other organizational research efforts of that period began to emphasize the importance of individual and group interaction, humanistic management skills, and social relationships in the workplace.

Human Resources is dependent on the success, happiness, and contentment of employees that keep the business on course. Motivation is one of the best ways to push employees forward while making sure everyone is in a comfortable position in their job. Motivational theories just attempt to explain what motivates or makes people act the way that they do. The goal of understanding these theories and their outcomes is to ensure a better performance from each employee, and to give each of those employees the best situation they can have in the workplace. Visionaries such as Abraham Maslow, Frederick Herzberg, and Henry A. Landsberger also brought forward new ways of management and ways to handle internal situations that changed the landscape of human resources as a whole. Motivational theories instituted in the workplace have a commonly positive effect on both employees and management, showing that it is important to strive for proven motivational practices.