Running head: A Case Study of the Engstrom Auto Mirror Plant1A Case Study of the Engstrom Auto Mirror PlantTimothy MusserSouthern New Hampshire University
A Case Study of the Engstrom Auto Mirror Plant2AbstractThe Engstrom Auto Mirror factory had a long history of providing quality products to its clients in the automotive industry; however, after a technological update that was not well received, the plant’s productivity and product quality began to suffer. Enter Ron Bent, who was hired to bring the company back to prominence. He initially succeeded in this by implementing aScanlon Plan which rewarded productivity by employing a profit-sharing model for all employees. While this was initially a success, a downturn in the economy led to the company operating at a deficit, a major decrease in the disbursement from the profit-sharing plan, and the rekindling of some of the issues that were prevalent when Bent assumed control over the plant. This analysis will examine the issues leading up to the current state of the plant, as well as offer suggestions on how to rectify what has caused the employee dissatisfaction and subsequent drop in productivity and product quality.
A Case Study of the Engstrom Auto Mirror Plant3A Case Study of the Engstrom Auto Mirror PlantWhen Ron Bent was hired as the plant manager of the Engstrom Auto Mirror factory, the company was in great danger of going out of business due to issues related its unmotivated employees. Quality control had deteriorated so severely due to low employee morale that the company was in eminent danger of losing many important clients. Bent surmised that the root cause for this downfall was the lack of an attractive incentive plan. Additionally, employees weredisgruntled by the implementation of new technology and processes on the production line, as well as the balance of incentive pay between the plant laborers and management. In his attempt to turn the company around, Bent felt as though he needed to address the problem at its source. Bent needed to increase employee morale by allowing them to feel more involved in the decision-making process regarding their compensation, thus making them feel more empowered and important. Additionally, Bent felt the need to strengthen upward communication and transparency with the upper management, so as the laborers felt neither misled by their upper management, nor uncertain about the future of their employment due to the financial health of the company. While I do not disagree with the ideas that Bent had come up with to turn the company around, he may have had more success by slightly modifying the incentive plan that he and the company had come up with to include a quality control component as well as provisions for what would happen if the company did not meet the threshold for bonus payouts. Also, while Bent appears to have taken a human resources approach to how he went about implementing his
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- Summer '18
- Brett Gordon
- Management, Final Project, Auto Mirror Plant, Engstrom Auto Mirror