Introduction:
The following Case Analysis details the many aspects of being a manager during times of success and struggle. Ron Bent, a plant manager at Engstrom Auto Mirror plant in Indiana, implements a bonus incentive plan in order to raise morale and productivity in his company. The following analysis will demonstrate how at its inception, the plan is successful in its goals, but eventually starts to decline when a downturn hit the industry. In this paper, several recommendations will be made on whether or not the Scanlon plan should be abandoned, and strategies Ron Bent can take to increase performance at the Engstrom Auto Mirror Plant.
Analysis: The Scanlon plan was introduced in the 1930’s by Joseph Scanlon, an accountant and member of the Steelworkers union (2). The Scanlon plan that Engstrom used focused on cost saving and higher production, which would then increase labor savings. Adapting the plan is a long process, and Bent made sure 75% of employees were on board. Engstroms version encouraged suggestions at all levels, and encouraged input to help productivity. The plan focused on transparency of financial and business data to all ranks of the organization (2). With transparency, allowing suggestions, and an encouragement of new ideas, Bent believed that the plan would provide a source of intrinsic motivation to employees of Engstrom. As stated earlier, Bent ensured that at least 75% of his workforce agreed to the plan. By doing so, he was examining the
In order to appropriately recommend an incentive plan, one must first identify the main issues with operation at Howe 2 ski. Howe 2 Ski has experience increased competition resulting in a decreased market share. Smaller market share increases the negative impact a lack of productivity and customer dissatisfaction has on Howe 2 Ski’s profits. The decreased production of both the molders and Sales-Persons result in increased inventory and higher cost of production. Furthermore, Howe has attempted to establish an incentive pay program that has served to be ineffective and has fostered low morale within the organization.
As a Naval Officer I had the opportunity to experience both leadership and management. Today's Navy operates with fewer people and resources than before. Therefore, leadership and management are more important than ever. Very early in my career I was taught leadership and as I advanced through the ranks I experienced management.
Throughout this assignment a discussion will take place into the theories of leadership, whilst examining the role of managers within the context of the early years. A series of management competences will be evaluated, whilst investigating the notions of leadership and collaboration.
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.
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
The Scanlon Plan can be used as a major catalyst to turnaround the plant by emphasizing more on productivity. The more they work the faster they roll towards their bonuses; this magical spell is a win-win situation for both the employees and the management. The management can cruise steadily over the wave of bonus motivated productivity and the employees can reap the benefits from the high production rate in terms of bonuses. The plan can be redrawn and a slight change can be made by making the entire plan revolve around the concept of productivity. When productivity assumes a prime position in the plan, employees will strive hard
Within this assignment I will describe my understanding of the links between management and leadership, the skills and styles of management and leadership, the application of management and leadership theories in an organisational context and planning for the development of management and leadership skills.
The Scanlon Plan was brought into place in 1998 because of the initial inadequacy in employee drive. The Scanlon incentive increased the productivity of the workers for nearly 5 years, but motivation with capital cannot be sustained without a strong foundation of work determination. Workers were being given a dividend just to do what they were originally hired to do. The reward to influence the employees to work was greater than the actual act of communicating necessary responsibilities for the workers without an incentive. Bent trusted too heavily on the Scanlon plan to repair the work ethic rather than reiterating the psychological and economic contract.
One Minute Manager is a short story written by Kenneth Blanchard and Spencer Johnson. The story is about a young man who is in search of an effective manager because not only did he want to work for one but he is also wanted to become one. His search for this ideal manager took him to many places and made him interact with a lot of different individuals. He wasn’t pleased with what he encountered and he began to notice that most of the people he interviewed would fall into two categories: those who were interested in results and those were interested in people meaning their employees. He continued his search until he began to hear amazing stories about a manager that lived nearby. The young man met with this
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
Successful organizations have strong leaders and managers that develop, support and encourage employee longevity within a company. There is a significant difference between leadership and management however both skills have to be used collectively and both are important to a profitable organization. Leadership is a notion of communicating an organization’s vision, whereas management is more of the implementation of the organization’s vision. The manager typically carries out the responsibilities written by the organization and has a good team underneath them to carry out the duties and meet the goals. Most companies have a mission statement that mirrors and supports a company’s vision. When referring leadership and management, the two
In this topic we talk about many different forms of leadership and how it can affect relations between the corporate leadership entities and union leadership. Most often we see or read about in the news the break down between negotiations between the corporate leaders and the union leaders causing production to come to a halt while items are being negotiated.
Within each organization there should be effective leaders who should be able to maintain an organization’s vision and mission. These leaders are part of the management that can effectively lead a growing organization to succeed. There are various tools such as character traits, influence, persuasion, and change which can help an effective leader manage. A manger/leader should be prepared to persuade and influence others by using their character traits. Theories of leadership, management, and influence and change will be a major topic in this paper. This paper will discuss each of the elements of leadership and management, and how influence, persuasion, and change can affect the outcome.
Management skills can be sub-divided into numerous skills, the combination of which would lead to efficient management of an organization and faithful development of true management and leadership skills. The chart below provides an overview of these various skills:
Management in business is the coordination of people to accomplish set goals efficiently and effectively. It comprises of planning, organising, staffing, leading, and controlling an organisation. Management itself is also an academic discipline, a social science whose object of study is social organisation in order to accomplish a mutual goal.