Summary Of Engstrom Auto Mirror Plant

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.

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

Alliston then introduced an incentive plan in an agreement with the union management for exchange in job security. The individual performance pay bonus system was implemented in addition to normal pay employees received a fixed sum for each piece produced over the 2012 levels. Pay at the firm was already above average, and the benefit package, which increases with seniority, is very good, with a compensation package of 25 percent of total compensation. Comparable alternative employment opportunities in the area are quite scarce. Employees did not receive bonuses for unsatisfactory quality pieces, however there are no set standards for quality, and each supervisory seems to set different standards. This causes the union production workers to make more money than supervisors. Alliston also used a long-linked technology that divides the total tasks into many small sequential steps, with each step performed by different employees, such as on an automobile assembly line.

Production line workers are the employees who are usually doing their work by hand or in this day and age, running the machine or equipment to make the products. In this particular case, Canada Chemicals Corporation utilizes their production employees by producing industrial chemicals. These production worker’s jobs are a lot more complete then other production level workers employees as they usually have plenty of skill, knowledge and experience, and have high educational background. In order to reverse recent challenges with production and sales, I have composed a compensation package for these employees that will motivate them intrinsically, and focus on rewards that are extrinsic.

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

Henderson printing is a mid-level company. The company operates some compensation models for its personnel. Through these models, the employees receive rewards for the labour they render to the enterprise. Henderson printing pays its employees by giving them regular salaries for their services. These are direct payments for the work they do in this company. Secondly, the employees are given pay raises even though this depends on the employee’s initiative to ask for a pay rise from the owner (Davis, 2013). Lastly, the employees are also accorded some merit bonuses every Christmas time. The merit bonuses are based on their contribution to

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)

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.

b. The overall profit would be a function of the customer’s satisfaction level. Hence a profit

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.

Individual productivity calculator can be devised to reward those who work more in order to keep the parity issues from creeping in and at the same time providing growth and recognition to the employees as mentioned in the Herzberg two factor model (Newstrom, 2015). This model can be interpreted as a pioneering technique to motivate the team.

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

In the sales department it is all about one thing, sales of vehicles. For the employees of this department two things are important, profit made on a sold car and customer satisfaction (already described). We can make a distinction between five different bonus plans. First the Salesmen and the assistant sales manager they earn respectively 20% and 7% of the gross profit of every deal. It is good that this measure focus on gross profit and not on how many cars sold. Due this reason there is no behavioral displacement, there are no side effects that will deliver extra indirect costs. When they for example should give a fixed bonus for each car sold, sales man will do everything to sell a vehicle and lower the prices in the

Recommendations to Holly would include a review of the current incentive program in place at Mitron. The technicians have a right to obtain job skill knowledge without losing pay. An individual incentive for production should be implemented in place of the team based bonus. Technicians should receive rewards for exceeding the production goals of the firm. The incentive would encourage other employees to increase job performance and gain rewards for work goals completed. Individual incentives would not increase cost. The funds allotted for team bonuses could be moved to individual incentive costs which balances out the

Our task for the Engstrom Auto Mirror Plant case analysis was to identify the main problems of the company as well as it’s managers’ decisions and to find reasonable solutions by taking into account roots from where they have been appearing. This case is extremely relevant because it looks at organizational behavior everyday problems and analyses issues of building relationships with employees. All our assumption will be based on Organizational Behavior theoretical background in order to find solutions and alternatives for the particular company’s case. The main aim was to figure out how to increase company’s productivity, employees’ motivation and management strategy.