Our task for the Engstrom Auto Mirror Plant case analysis was to identify the main problems of the company as well as it’s managers’ decisions and to find reasonable solutions by taking into account roots from where they have been appearing. This case is extremely relevant because it looks at organizational behavior everyday problems and analyses issues of building relationships with employees. All our assumption will be based on Organizational Behavior theoretical background in order to find solutions and alternatives for the particular company’s case. The main aim was to figure out how to increase company’s productivity, employees’ motivation and management strategy. It cannot be denied that the main goal of every manager is to maintain a good relationship with employees and job satisfaction in order to achieve great result. As our main focus is turnover of Engstrom Auto Mirror Plant something has to be changed in order to overcome problems such as low employees’ morale. As Harley said: “We can’t climb out of this downturn with a performance like that.” (Beer & Collins, 2008) . Therefore we will try to identify main problems and look for alternative solutions. 1.
Case about Engstrom Auto Mirror Plant mostly talks about the crisis at the plant. There are three main causes of this situation: management decisions, manufacturing problems and labour work. These three branches are detailed in the mind map below. Analysis is organized in a systematic way, which helps to understand why company faced difficulties. Easiest way to read this map is to start from the management position then go to labour problems and finish with the manufacturing. It is a cause – effect situation, then management decisions influenced labour actions and it reflected on manufactured products.
Engstrom Auto Mirror Company faced a great deal of problems as it is seen from the case. It started in 2007 when Ron Bent and his assistant Joe Haley faced a downturn of a company. One of the main issues was slow pace of productivity, quality issues that caused late deliveries. The company could not afford that because of Engstrom being a certified supplier for some companies. Therefore, there could be highlighted one major problem, which is low employee morale. Engstrom Auto Mirror faced the same problem in 1998. At that time plant needed to incorporate new technologies although manager lacked the sophistication with technology and failed to adapt to the new methods of work as well as motivation of employees. That is why he resigned in 1998 and Ron Bent was hired into that position. Thus, Ron Bent found a solution and Scatlon plan was adopted. “With Scatlon plan, workers are receptive to new methods and new machinery because they feel they are a part of company – wide program. When you’ve established a Scatlon plan properly, you’ve also built a good communication network throughout your organization” (Ron Bent, Engstrom Auto Mirror, page 3). Engstrom plant was concentrating on “cost savings, producing more per hour of labor spent.” Scatlon plan was working very well for some period of time by increasing productivity and employees’ motivation, higher profits and employees receiving good financial rewards. However, by the year of 2007 situation at plant started getting worse which led to the conclusion that famous Scatlon plan was not effective anymore. First of all, occurred distrust that bonuses are not calculated in truthful way. Employees started doubting company’s complex nature of the calculation itself while appointing amounts of bonuses. Secondly, there was a question of fairness when some employees thought that they should receive more bonuses as they are putting more efforts and work than other ones. As a consequence such moods at workplace led to the primary stage when Scatlon plan had not been adopted yet: employees became passive, work became inefficient and employers started...
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