Running head: A CASE STUDY ANALYSIS OF THE ENGSTROM AUTO MIRROR PLANT:MOTIVATING IN GOOD TIMES AND IN BAD1A Case Analysis of the Engstrom Auto Mirror Plant: Motivating in Good Times and BadKatherine DohertySouthern New Hampshire University
A CASE ANALYSIS OF THE ENGSTROM AUTO MIRROR PLANT: MOTIVATING IN GOOD TIMES AND BAD2AbstractThe purpose of this paper is to review and discuss the issues surrounding the Engstrom Auto Mirror Plant. The case study describes the financial history of the plant from its inception in 1948 to May 2007 as well as the workplace behavior of the managers and employees throughout this period. The Engstrom Auto Mirror Plant has adapted to the changing times of their industry demand while trying to maintain quality merchandise with consistent production by their employees. In addition to challenges faced by technology demand the industry also faced an economic downturn in 2005 which had a negative effect on the sales. The analysis will review the behavioral models exhibited by all parties involved, including the McGregor’s Theory X and Theory Y, the Equity Theory and Organizational Modification Behavior and their role in the adoption of the Scanlon Plan that was implemented in the plant.
A CASE ANALYSIS OF THE ENGSTROM AUTO MIRROR PLANT: MOTIVATING IN GOOD TIMES AND BAD3A Case Analysis of the Engstrom Auto Mirror Plant: Motivating in Good Times and BadIntroductionThe Engstrom Auto Mirror Plant has been in business since 1948 in Richmond, IN. It is aprivately owned company that currently employs 209 people. Its primary function is to manufacture mirrors for automobiles and trucks (Beer & Collins, 2008). Engstrom Auto Mirror Plant has been faced with some difficult quarters in the past few years. After going back to review the history of the company and the plans that it has followed it is clear that the plant has faced difficult times before. Several years ago the company adopted “The Scanlon Plan”, an organizational incentive plan that gears toward motivating employees by “working smarter not harder” (Beer & Collins, 2008, p. 2). The adoption of the Scanlon Plan is not just a rewards plan,it is an attempt at behavior modification by the managers (Newstrom, 2015). The factors that had the most impact on the failure of the plan came down to communication, execution, and consistency. Although the plant owners may have had good intentions with their calculations, they were too difficult to understand by some employees and therefore considered to be dishonest. The communication of the message is dependent not only on the sender but the receiver as well (Newstrom, 2015). If the employees did not have the same knowledge or understanding of the message as the managers intended then it was not received properly. The message sent by the owners may have been trustworthy but it was not received by the employees as such, and therefore failed.
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- Spring '14
- Auto Mirror Plant, Engstrom Auto Mirror