When the plant had reached a similar crisis point years earlier, the institution of a Scanlon Plan, a company-wide employee incentive program, had proven critical in building morale, increasing productivity and product quality, and leading Engstrom into a turnaround. On the other hand, employees have been complaining for months, getting more and more hostile and fed up with the Scanlon Plan. Bent encountered issues with the remaining employees as productivity was declining, concerns of product quality arose, employee morale was at its lowest in years and key customer business relationships were at risk. The communication style and how it was relayed to employees by Bent should have been carefully and strategically planned versus the way he describes telling associates of the news. Being the upstanding citizen that I am, I get up when my alarm goes off.
Bent feels strongly about not having an individual recognition system, however, it is vital to attain the need of achievement. Employees were emotional and divided the plant. This leads right into the next element of the 3 factor theory, Achievement. Business environments are often complex and require holistic solutions. Nohria is the first Indian, and indeed the first non-white, to become the dean of the 102-year old institution that typically ranks among the top three business-schools in the world.
But the bonuses had stopped in 2006, and now Ron Bent must determine how to get the plant back on track. Be comprehensive in your response covering the problems you found in the article. When the profits and sales decreased, so did the bonuses which led to disgruntled employees. What Hides Behind the Mirror? In order to do so, Bent implemented the Scanlon Plan, an organization-wide incentive program, which was the main contributor for the plants improved morale, productivity and profitability, making the organization successful again. However, after analyzing the plant, the main issue is productivity and more recently product quality concerns.
The productivity was severely hit in a negative way. Sales had started to decline in 2005; a year later, plant manager Ron Bent had been forced to lay off more than 20 percent of the work force. The most pressing issue at the time was the slow pace of productivity. Should he revise the Scanlon setup? Differentiating Products, Services and Solutions Marketing 4. It cannot be denied that the main goal of every manager is to maintain a good relationship with employees and job satisfaction in order to achieve great result. I feel that he used the supportive model mentioned in our book Organizational behavior: Human behavior at work. Assignment Please answer the following questions.
They stopped suggesting ideas which is why Bent saw the drop from hundreds to 50 a year. The mirror also metaphors itself as a lake and tells the important relationship it has with a woman. At Engstrom 3 critical elements of employees are missing: equity, achievement and camaraderie. In general, for gainsharing plans to be successful, organizations need to have rewards for honoring individuals and groups under 4 conditions; they must be truly special, given infrequently, given publically, and signifies appreciation from both management and peers. The Scanlon Plan lacks in this aspect. Basically, employees have to be boosted by other incentives.
Identify and change other organizational factors that may be sabotaging Scanlon? Step 10 - Critically Examine Engstrom Auto Mirror Plant: Motivating in Good Times and Bad case study solution After refreshing your mind, read your case study solution critically. Provide a brief overview of what they are and how they work. However, in 2007, the plant once again faced issues of unproductivity and low profits. Downturns were not new at Engstrom. Be very slow with this process as rushing through it leads to missing key details. The program was successful when it was first introduced but ran into problems time after.
Bent asks: Could he revise Scanlon in some way that worked better during a downturn? This decreased morale even more. Ultimately this resulted in the replacement of the plant manager with a younger more tech savvy individual. Suggestion rates dropped precipitously, down from hundreds to 50 a year. What organizational factors at Engstrom impacted how well Scanlon performed at the plant? Now he is concerned with losing his best client Martinez whom designated. In contrast, workers who perceive their ratios of inputs to be higher than the outputs received will feel angry Thorn, 2010. Productivity problems and quality issues have brought about a delivery problem and the risk in losing clients has been becoming high.
It is described as being proud of organizational accomplishments, personal accomplishments that are important and well done, and receiving recognition for it. Downturns were not new at Engstrom. Since 1999, workers at the plant have received bonuses based on the Scanlon Bonus Plan, which paid a percentage of all labor savings each month. You should make a list of factors that have significant impact on the organization and factors that drive growth in the industry. Productivity and quality issues brought about a delivery problem and therefore increased the risk in losing clients. Analysis of the Engstrom Auto Mirror case will explore specific perception and motivation factors. Plant productivity was dropping, worker morale was low, and problems had started to surface.