Engstrom Auto Mirror Case - Anirudh Agarwal MANGT 531...

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Anirudh Agarwal MANGT 531 November 10 2011 Dr. J Prince Engstrom Auto Mirror Case The main issue with the Engstrom Auto Mirror Plant was how to improve quality and performance of its assembly line workers. The plant manager determined the best way to do this was to implement the Scanlon plan, which focuses on employee participation to identify ways to increase productivity. When the plan was proposed, it was widely accepted by employees (81% voted for it.) In the beginning, employees had many suggestions to improve productivity (305) and management accepted almost all of them (276) despite the fact that only a few had a meaningful impact on productivity. Employees loved that communication between themselves and managers was so strong, as evidenced from the statements from Jim Lutz and Dori Andrews. Eventually, the employees became less satisfied with the way the Scanlon plan was working. At the same time, an industry downturn was leading to decreased sales, which began to really affect the bonuses paid out to employees. Things deteriorated so much that the plant manager was forced to lay off 46 employees and no bonuses had been paid in seven months. I think that this incentive system had problems because of the failure on the part of the
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This note was uploaded on 03/08/2012 for the course MANAGEMENT 531 taught by Professor Dr.jprince during the Spring '12 term at Kansas State University.

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Engstrom Auto Mirror Case - Anirudh Agarwal MANGT 531...

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