Case Study Analysis (Final Milestone Project):
Engstrom Auto Mirror Plant: Motivating in Good Times and Bad
Root Cause Study Analysis
Angela McVey
Southern New Hampshire University
Root Cause Study Analysis
From our case study of Engstrom Auto Mirror Plant, we can be able to identify, depict
and analyze the root causes of the various organizational issues that are evident within tha
particular organization. The following is the analysis of the root cause of the various
organizational issues as presented in the case study; decreased productivity, low employee
morale and distrust of management. If Engstrom Auto Mirror plant is to have any chance of
making a turn around, these issues must be addressed.
From the case study, we know that the downturn that hit the industry in 2005 led to
decreased productivity from the employees of Engstrom Auto Mirror Plant. What was once a
thriving company had suddenly lost its "social equilibrium." As stated from Newstrom, a system
is said to be in social equilibrium when its interdependent parts are in dynamic working balance
(Newstrom 2015). After the downturn, the company had not made the proper adjustments to
retain the system's once flourishing working balance. Employees were laid off which lead to an
added workload to the remaining employees. Due to the decrease in productivity, the company
was in financial distress which had hindered the distribution of bonuses for several months
Employees were working harder but were not reaping any benefits as before. The decline in
productivity had created a dysfunctional effect. Employees were accustomed to receiving
bonuses consistently. An organization that seemed to model the collegial model of behavior in
terms of team work had turned to the autocratic model in the sense of the employees being
penalized for not meeting production.
"Low productivity and loss of competiveness are outcomes of low morale and low
motivation and may lead to further undesired symptoms such as absenteeism and sabotage"
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(Shaban, Al-Zubi, Ali and Alqotaish, 2017). Employees had been complaining for months with
hostile comments relating back to the Scanlon Plan. Why would the employees feel motivated to
meet their productivity goals? They had not received their bonuses in seven months and their
fellow co-workers had been laid off. Employee morale was at an all-time low. Bent was now
focusing the Friday meetings on the negative consequences of the downturn instead of listening
to the employees who once aided in increased growth and quality items being produced. The
company was more worried about profit and cost savings than the morale of their employees.
The psychological contract (Newstrom, 2015) that the employees had with Engstrom was slowly
deteriorating due to their expectations not being met. The Scanlon Plan had once "promised" the
employees satisfaction and a feeling of accomplishment. However, with the recent events,
employees were left feeling unappreciated and unheard. Suggestion rates dropped precipitously,
down from hundreds to 50 a year (Beer & Collins, 2008, p.5).
All of the organizational issues that have currently been identified relates to why the
employee