Workplace Analysis
Marion E. Nelson
Southern New Hampshire University
OL 500-X2049: Human Behavior Organization
Dr. D. Giannoni
January 24, 2021
Case Study Analysis: Engstrom Auto Mirror Plant
Introduction
Engstrom Auto Mirror Plant is a privately owned business, employing 209 people in
Richmond Indiana. The small production business manufactures mirrors for distribution to
various automobile plants. In May of 2007, Rob Bent, the plant manager, started to notice a
drastic decline in sales. From the weekly issues in productivity and quality control, Bent was also
concerned with employee morale being connected to the decline in the company's ability to meet
their turn around times and poor performance. The plant had several key business relationships it
was at risk of losing if it could not find a solution to its problems. This was not the first time the
company has been faced with a crisis under Rob Bent's management. "Back in 1998 he had
faced a similar crisis, marked by low employee morale" (Beer & Collins, 2008 p. 2)
The successful seven-year period was due in part to the implementation of the Scanlon
incentive program that is giving employees a more valued position within the company when it
comes to decision making to help increase production and lower labor costs. In 2006 during a 7-
month time span in which the plant was struggling to meet productivity demands and dealing
with employee layoffs, no bonuses were issued, leading to a deteriorating working environment
and employees' mistrust in management. Although the plan was put in place to motivate
employees to exceed the set performance mark, overtime it planted the seed as if was no longer a
reward, but a standard that employees felt was owed to them and trusting that management was
miscalculating the numbers.
The Scanlon plan is no longer working as the company is on the verge of another crisis
The employees, seemingly only motivated by the incentive money, are now fed up and getting
more hostile as time goes on. Bent must come up with a plan to not only motivate the employees.
but also build trust and create clear lines of communication. Monetary value cannot be the basis
for getting the company back on track. "Work motivation is the result of a set of internal and
external forces that cause an employee to choose an appropriate course of action and engage in
certain behaviors" (Newstrom, 2015 p. 116). When Bent made layoffs at the plant, he failed to
communicate to his employees or give any explanation of what led up to it and any plans to
prevent this in the future. Management must make this right and acknowledge how important it
is to communicate these types of impactful changes in the future. This is critical as it may result
in a loss of confidence to his credibility as a leader. "Communication credibility is based on three
factors: trustworthiness, expertise and dynamism" (Newstrom 2015, p. 63)
The company is going through a rough patch. Employees need to feel valued and