Case Study Analysis: Engstrom Auto Mirror Plant: Motivating in Good Times and Bad
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Case Study Analysis:
Engstrom Auto Mirror Plant: Motivating in Good Times and Bad
Bhavesh Bhut
Southern New Hampshire University
Jul-2019
Case Study Analysis: Engstrom Auto Mirror Plant: Motivating in Good Times and Bad
Abstract
In Milestone One, I have developed an explanation of the organization issues within the case study
I have outlined a direction for the case study analysis of the Engstrom Auto Mirror Plant.
Case Study Analysis: Engstrom Auto Mirror Plant: Motivating in Good Times and Bad
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Introduction
Engstrom Auto Mirror is located in Richmond, Indiana. The company manufactures mirrors for
automobiles. The company is privately owned and has approximately 209 employees.
Throughout the years the company has had some difficult times. In 2005 sales had started to
decline. The plant manager, Rob Bent, was forced to lay off about 20 % of his employees, "Plant
productivity was dropping, employee morale was low, and product-quality issues had begun to
surface. Relationships with key customers were at risk." (Engstrom Auto Plant, 2008)
Because the business was no stranger to these types of situations, the institution reinstated the
Scanlon Plan, a company-wide incentive program designed to motivate the workers to participate
more in the workplace. The plan was created by Joseph Scanlon in the 1930s. The three key plan
components are as follows:
:The employees' suggestion ways to improve productivity at the plant.
: The production committees' structure that assess the suggestions
Th screening committee determine the sharing of the fruits of increased productivity
through monthly bonuses. (Engstrom Auto Plant, 2008)
The Scanlon Plan did exactly what it was meant to do. The productivity of the employees had
greatly improved, and their spirits were also lifted. The quality of the products manufactured also
increased significantly. For many years under the new plan workers had received bonuses as an
incentive to do better and help the company prosper. But as the years went on the workers began
to think of the bonuses as just another daily paycheck. Due to this the work ethic of the people
begins to deteriorate because they can get the same amount of money or more by not doing as
much work. It leads to there being a sharp decline in the overall productivity of the business.
People began to rely on their bonuses however the bonuses won't be there for long. The plant