Engstrom Auto Mirror

In: Business and Management

Submitted By ahernandez
Words 1064
Pages 5
Engstrom Auto Mirror is facing one of its most difficult periods of its history, driven by a variety of factors. After enjoying several years of prosperity, particularly due to an effective implementation of a Scanlon Plan, the company is facing problems associated with productivity and product quality. These issues have transcended to other areas of the company including its employees, who have been complaining for some time about the company’s policies and its current situation, and have been underperforming, which in turn leads to low productivity. The situation puts plant manager Ron Bent in a difficult position because he has to figure out a way to address these problems, and come up with solutions so that the company can continue operating and supplying its clients. One of the most fundamental factors that has contributed to these problems is related to the work force, in general. A hostile environment, numerous complains by the employees, low morale and lack of communication are just a few of the elements that are present in this organization. Essentially, the employees’ complaints revolve around the Scanlon Plan and how recently it has been less effective.
In 1999, the company was facing similar problems and they implemented a Scanlon Plan. A Scanlon Plan is an organization-wide plan that reinforces teamwork and cooperation across the organization, focusing on cost savings and employee motivation. Its main components include: a system where employees from all levels submit suggestions for improvement, a committee that evaluates and enables communication between employees and management, and finally, a sharing of monthly bonuses of which both the company and the workers can benefit. These components contribute to participative management, where employees are motivated to increase productivity and take responsibility of their actions, and improved…...

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