Al 2008 due to money troubles manager ron bent had

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(Beer et. al., 2008). Due to money troubles manager Ron Bent had been forced to lay off 46 of his 255 employees. Those individuals who remained had not received a Scanlon bonus in seven months. Employees had become costumed to the plans substantial bonuses so when they stopped the workers responded with anger and suspicion. Bent had to determine if he should look elsewhere for solutions to sustaining productivity or scraps the Scanlon plan. Organizational Issues Engstrom Auto Mirror has enjoyed a considerable amount of success for decades. By the late 1990’s the plant began redesigning its production lines to incorporate new technology. The increase in production delays irritated and eventually alienated customers (Beer et. al., 2008). Due to the lack of sophistication with technology and inept at working with an increasingly militant union the manager resigned in 1998 and that’s when Ron Bent was hired to attempt a turnaround. This was when the Scanlon Plan was implemented. It quickly led to growth, higher profits, and consistent quality standards (Beer et. al., 2008).
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As a few years passed, some employees began to get suspicious whenever the management team changed the ratio. As this happened four times in a five-year span, some
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  • Fall '15
  • Management, Termination of employment, Ron Bent

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Christopher Reinemann
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