Case Study: Engstrom

Topics: Motivation, Emotional intelligence, Incentive program Pages: 4 (1274 words) Published: May 27, 2013
Engstrom Auto Mirror Plant: Reflection on Motivation
Many companies have endured both good times and bad. It is the process or measures taken, in which decide whether these companies succeed or submit to failure. In “Engstrom Auto Mirror Plant: Motivating in Good Times and Bad” Michael Beer and Elizabeth Collins prepare the detailed the case in which this company must face such a dilemma. The company itself is facing an issue of motivation in correlation to incentive standards, as well as organizational factors that contribute to inefficient production and development. Most recent plant manager, Ron Bent, is looking to find resolutions to theses problems.

The Engstrom Auto Mirror plant is a privately owned business that manufactures mirrors for trucks and automobiles. The organization is located in Richmond, Indiana and employs 209 people. Because the Engstrom Auto Mirror company has been operating since 1948, they have managed to experience some achievements and eventually troubles by the 1990s. The company was confronting a transition of redesigning its production lines to incorporate new technology. This was not a smooth process and was unsupported by plant manager who, “Lacked the sophistication with technology necessary to find solutions quickly and was inept at working with an increasingly militant union” (Beer and Collins, p. 3). By 1998, the manager resigned and Ron Bent was hired to endeavor a turnaround for the company. Bent had great faith in the power of worker incentive programs therefore felt the necessity to implement the Scanlon Plan. The Scanlon Plan is an incentive plan comprised of three components. The first is the submission of suggestions for improvement by employees at all levels. The second, is the structure of the company committees that evaluate the suggestions. Lastly, is the sharing of the benefits of increased productivity through monthly bonuses. Due to the issues that the plant faced, Bent felt the best for Engstrom’s redemption...
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