9-1 Final Project Submission-Nicholas Watts ROUGH DRAFT.docx - Running head ENGSTROM AUTO MIRROR PLANT CASE STUDY ANALYSIS Engstrom Auto Mirror Plant

9-1 Final Project Submission-Nicholas Watts ROUGH...

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Running head: ENGSTROM AUTO MIRROR PLANT CASE STUDY ANALYSIS1Engstrom Auto Mirror Plant Case Study Analysis Nicholas I WattsSouthern New Hampshire University
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ENGSTROM AUTO MIRROR PLANT CASE STUDY ANALYSIS2ContentsAbstract............................................................................................................................................3Introduction......................................................................................................................................4Root Cause Case Study Analysis.....................................................................................................5Solutions Development..................................................................................................................10Workplace Analysis.......................................................................................................................13Conclusion.....................................................................................................................................18References......................................................................................................................................19
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ENGSTROM AUTO MIRROR PLANT CASE STUDY ANALYSIS3Abstract
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ENGSTROM AUTO MIRROR PLANT CASE STUDY ANALYSIS4Introduction Engstrom Auto Mirror Plant, a manufacturing company with over 200 employees, specializes in the production of vehicle mirrors for major companies like Toyota. The company has been in business since 1948 but experienced substantial financial trouble in the late 1990’s. In 1998, the plant hired a successful manager Ron Bent who worked in a similar automobile manufacturing business. To increase profits, Bent decided to implement an organizational incentive plan called the Scanlon plan. Its core objectives are to epitomize teamwork, report all financial data through participative management, and encourage productivity improvements through employee suggestions (Beer & Collins, 2008, p. 537). These vital components incorporate the incentive of the Scanlon plan which is a distribution of monthly bonuses based on the company’s performance. The plan gave the employees a sense of psychological ownershipover the company and instilled passion and commitment to organizational goals (Newstrom, 2015, p.42-43). For several years, the employees reaped the benefits of the plan financially and psychologically. Yet in 2005, the company began a downturn which affected several functions of the organizations behavior. Product quality began to suffer and the business began to lose profit. This performance drop lead to a decrease in monthly bonuses and produced a general distrust towards management. The employees became suspicious of the payroll ratio and the notion of alterations to bonus calculations. They also lost trust in their supervisors and believed that they did not work as hard (Beer & Collins 2008, p.540-541). After laying off nearly a fifth of its employees, Bent knew that changes had to be made. Engstrom Auto Mirror plant had several deteriorating organizational issues that originated from the way management communicated with their employees. The management team lost focus of its vision, which instigated a total lack of trust. Although management included employees in
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ENGSTROM AUTO MIRROR PLANT CASE STUDY ANALYSIS5day-to-day business operations, they lacked the flexibility to address the root concerns of employee job satisfaction and motivation. The goal of this analysis is to examine the organization from a human behavior perspective and paint a new portrait of what the organization and its members can be in the desirable future with a few key changes to how managers interact and communicate with their employees (Newstrom, 2015, p. 45).
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  • Fall '16
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  • Management, ........., Auto Mirror Plant, ENGSTROM AUTO

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