Case Study Analysis Introduction
Engstrom Auto Mirror Plant: Motivating in Good Times and Bad
Engstrom Auto Mirror is a plant located in Richmond, Indiana. Engstrom manufactures mirrors for automobiles and employs 209 people (Beer p. 1).
There are several organizational issues within Engstrom but for this case study, we will focus on shorter list that lead to productivity problems, product-quality issues, and employee satisfaction.
The company was booming at first and doing very well but after some poor management decisions, the fallout of anincentive plan, and distrust between management and employees causes the downfall of Engstrom Auto Mirror Plant.
The Scanlon Plan is a very old incentive plan to reinforce teamwork and cooperation across work groups while they focus attention on cost savings and motivating employees to “work smarter, not harder” (Beer p. 2).
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