Engstrom Auto Mirror Plant Case Study

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Engstrom Auto Mirror Plant: Motivating in Good Times and Bad Quavian Belton Southern New Hampshire University Organizational Issues: Between 2000 and 2005 several similar problems resurfaced which needed to be addressed soon. Bent was forced to lay off 46 of his 255 employees. For the rest of the employees that stayed, they noticed that they had not received their Scanlon bonus in some months on their paycheck. The higher-level authority and hardworking employees began to lose trust among each other and resent each other because of the unfairness of the bonus calculation. The balance between the employees and managers was misunderstood. The employees felt like the managers bonus for the managers shouldn’t be equal or more …show more content…

When the employees saw that the managers were receiving rewards and motivation for work they were lying about doing, the employees became upset. The employees complained about the unfairness that they were receiving. The employees began producing less work and less productivity. Rewarding and motivating their employees should have been one of their top priorities for the company. In this paper, I will deliberate possibilities that Ron Bent could have used to loosen some of the problems that was occurring in his plant. First, revise the Scanlon Plan for the employees and management. Where the managers would be focusing more so on appreciation and recognition that the productivity of the employees. Then, change the Scanlon plan by introducing meetings were the ideas from the managers and workers can be concluded in a face to face manner. That would be for clarification of any suggestions and better understanding for some of the suggestions given as …show more content…

The Plan was initiated to reward individuals for working hard and increasing the company goals financially as well. The plan included higher level management receiving employee suggestions for improvement and monthly bonuses based of the productivity increase. The plan seemed well planned until they failed to mention the monthly bonuses calculations. The Plan was not well clarified of what percentage of the bonus that everyone receives and what was it based off. The misunderstanding led to accusations form the employees that there money was being played with. The company lacked a clear channel of communication between the employees who were actually doing the productivity and the management who were less active in the plant. When the company decided to introduce the Scanlon Plan to the employees they could have easily addressed all the issues prior too it getting out of

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