Running head: MILESTONE ONE: INTRODUCTION
Case Study Analysis Milestone One
Madison Burkett
Southern New Hampshire University
MILESTONE ONE: INTRODUCTION
2
Abstract
In Milestone One, I will be identifying the different organizational issues that exist within the Engstrom Auto Mirror Plant and how they contribute to a decline in productivity and human behavior. Finally, I will outline the direction in which my case study will follow to target a solution for Engstrom Auto Mirror Plant's organizational issues.
MILESTONE ONE: INTRODUCTION
Case Study Analysis Milestone One
Engstrom Auto Mirror Plant: Motivating in Good Times and Bad
Introduction
Engstrom Auto Mirror Plant is a privately owned business located in Richmond, Indiana
that produces and manufactures mirrors for trucks and other automobiles. 209 employees make
up the organization, along with Ron Bent -- the plant manager. Ron and his assistant, Joe Haley
have had regular meetings each week to discuss troubling numbers and other issues within the
organization. These issues include things such as productivity and product-quality problems, as
well as low employee satisfaction, morale, and engagement. One of the primary catalysts that has
caused an upset within the institution, is the implementation of the Scanlon Plan. The Scanlon
Plan was created by Joseph Scanlon back in the 1930's, and was designed to encourage
participative management. Ron Bent incorporated this plan into Engstrom by paying bonuses to
employees for increased productivity. However, back in 2005, a downturn hit the industry and
Bent was forced to lay off 46 of his 255 employees, which resulted in the remaining staff without
a Scanlon bonus in seven months (Beer, 2008). Employees that were once contributing to a
booming and productive organization, are now responding with anger due to feeling like a huge
part of their compensation has been taken away from them. Bent is now confronted with the
difficult decision to get rid of the Scanlon Plan completely, or find another solution to retain
product quality and employee management for the time being.
The Scanlon plan is made up of three separate components. The first component offers
employees at all levels the ability to submit suggestions for improvement in the organization.
Next, the company committees will evaluate these suggestions. The final phase is designed to
bring big changes in behavior and attitude to the workplace by sharing the "fruits of increased