Case Analysis - Final Paper
Engstrom Auto Mirror Plant: Motivating in Good Times or Bad
Tasha Houston
Southern New Hampshire University
November 12, 2020
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Abstract
In this paper, I will explain how human behavior can affect the direction of an organization. I
will further explain what were the reasons that caused the negative behaviors and give solutions
to reversing those negative behaviors. In this paper I will analyze the case study of Engstrom
Auto Mirror Plant, I will focus on how the company has existed for years and faced numerous
organizational issues due to a lack of knowledge of the human behavior of motivation. Then I
will analyze my personal work experience as it relates to organizational issues-particularly lack
of motivation. I will offer up solutions to correct the organizational issues for Engstrom and my
workplace experience. It is important to comprehend the importance of human behavior as a
driving force behind the improvement of employee motivation, that's why both case studies were
analyzed in this paper.
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I. Introduction
Engstrom Auto Mirror Plant is a privately owned manufacturing company based in Richmond,
Indiana that specializes in creating mirrors for automobiles. Engstrom experienced numerous
organizational issues throughout the years in business, but this specific year they were heading
towards a crisis. The organizational issues looming at Engstrom were productivity problems,
product quality issues, distrust between employees and upper management, and low employee
morale (Beer 2008). Engstrom had implemented The Scanlon family Incentive Plan some years
prior due to a similar crisis, which caused employee low morale. This incentive plan was created
to reward employees with paid bonuses for increased productivity (Beer 2008).
This plan was an end to Engstrom's productivity issues and employee low morale or so
management thought. The Scanlon Plan which was a 1930's concept, the heart of this concept
was to increase participative management (Beer 2008). The three key plan components were; the
submission of suggestions for improvement by employees at all levels, the structure of the
company committees that evaluate the suggestions, and the sharing of the fruits of increased
productivity through monthly bonuses (Beer 2008). With the Scanlon Plan implemented, the
intended goals were reached. Morale at the plant was high, employee productivity increased and
the quality of the products was in great shape. This winning streak only lasted for so long. Then a
downturn hit the industry, Bent was forced to lay off twenty percent of the workforce. Employees
who remained haven't received bonuses in seven months. The workers had been accustomed to
the plan's substantial bonuses, but when the bonuses stop coming, employees responded with
anger and suspicion, as if something that rightfully belonged to them had been taken away (Beer
2018). Now the employees felt under-rewarded for their efforts and realized other privileges
were taken away. The reaction of the employees exhibits them being blindsided about the end of
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