Engstrom Mirror Plant

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Milestone 2 Engstrom Auto Mirror Plant: Root Cause Case Study Analysis Sharon McClain SNHU 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…show more content…
Many employees felt they were doing all of the work and should get the bonuses, not management. This plan led to the employees feeling as though they were not treated fairly because of the many rate changes. The employees did not have input into the plan and felt management was playing games with the formula. Most of us like to be valued as an employee and a person. This plan did not allow the employees to feel this way. As the morale dropped, so did production and from there, the bonuses dwindled. Instead of looking at themselves for the lack of bonuses, they blamed management. Their lack of understanding on the rate changes did not help the process. According to Maslow’s Hierarchy, the employees’ needs were not met and frustration created tension, which created low to no production. The company faced major decisions and needed this situation to be resolved quickly. The managers faced a crisis and needed a solution before the plant was forced to close its doors and have to lay off the employees. The Scanlon plan created problems within the company and questions had to be formulated and put into place to be addressed before any major decisions could be made. Although the Scanlon plan was a good plan, it was not a “one size” fits all plan. Changes needed to be made and what type of changes had to be addressed. Some of the other difficulties facing the company was, no
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