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case study analyze

Category: Case Study

Subcategory: Business

Level: Masters

Pages: 2

Words: 550

Engstrom Auto Mirror Plant: Motivating in Good Times and Bad

Engstrom Auto Mirror Plant: Motivating in Good Times and Bad
Milestone One: Introduction (Section 1)
On May 14, 2007, Ron Bent and Joe Haley ascertained that Engstrom Auto Mirror plant was facing a crisis. Lately, employees at the plant were complaining of bonus that had not been paid over a considerable time. The key problem that initiated complaints from employees at Engstrom was that they were formerly used to high bonuses and nearly perceived them as part of their basic compensation. Workers, therefore, had angrily reacted to the lateness of the bonus that was critical to their pay. Bent expressed worry over the reducing quality. Engstrom had adopted the Scanlon plans that aim to improve productivity among employees (Beer & Elizabeth, 2008).
Scanlon plan helps build collective teamwork and enhance sharing knowledge among employees to increase productivity (Snell & Bohlander, 2012, p. 453; Dar-El, 2013, p. 197). Besides initiating competitiveness among employees, the plan helps them through rewards such as bonuses (Whitney & Ochsman, 2013, p. 83). The plan has three components. First, employees at all levels propose possible suggestions justifying improvements. Second, set committees at the company conduct an evaluation of the suggestions. Finally, monthly bonuses are offered to employees who coordinate to provide improved quality (Beer & Elizabeth, 2008). Engstrom A…

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