The Importance Of Being A Manager During Times Of Success And Struggle

1028 Words Oct 20th, 2016 5 Pages

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…

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