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Running head: CASE STUDY ANALYSIS

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Engstrom Auto Mirror Plant: Motivating In Good Times and Bad
Name
Institutional Affiliation
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CASE STUDY ANALYSIS

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Introduction
Engstrom Auto Mirror Plant is recognized as a privately owned business that has been
operating since the year 1948 and which is located in Richmond, Indiana. This organization is a
relatively small production as well as a distribution company that is highly focused on the
distribution of mirrors for automobiles and also trucks. In the year 2007 in May, the firm goes
through a crisis as a result of many factors, a major one revolving around a decline in business
and sales for the second year in a row since 2005. Ron Bent who happens to be the plant
manager lay off forty-six of his two hundred and fifty-five workers. However, it occurred that
Bent encountered issues with the remaining workers with productivity being on the decline, the
morale of the employees was at its lowest in the years, there started to be concerns of product
quality arising and key consumer business relationships were at risk.
It is worth remembering that this was not the first downturn the organization had to deal
with, in the year 1998, the firm went through a similar situation whereby the plant manager
implemented what is recognized as the Scanlon Plan, an organization-wide worker incentive
program, which results in a turnaround for the company(Luce, 2013). For seven good years, the
workers were given the Scanlon Plan bonuses but this stopped in the year 2006 and it occurred
that the associates had not received one in seven months.
Ron Bent as the manager is now forced to carry out a reevaluation of the plan and
determine how to motivate workers, increase product quality, productivity and ultimately sales or
else Engstrom Auto Mirror Plant could shut down for good. Therefore, this case study analysis
revolves around identifying the organizational issues, root causes of known organizational

CASE STUDY ANALYSIS

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issues, creating solutions to aid improve the situation of the organization as well as actual
worksite organizational issues with ways to handle them.
Root Cause Case Study Analysis
Engstrom as an organization had been successful in its service delivery for nearly fifty
years until the late 1990s. Around this time, the company started becoming unprofitable and was
highly struggling to stay in business. There started to be redesign in the production lines as the
means to incorporate new technology resulting in an increase in production time leading to
frustrated consumers in addition to seeing some leave.
The manager in the year 1998 decided to resign. He did not have the knowledge as well
as the expertise, of the new technology required as the means to quickly solve problems. It
occurred that the union was changing hence becoming more assertive and the manager was not
in the position to or willing to adapt or work with them. Low employee morale, as well as
productivity, also spread throughout the organization.
Following the manager's resignation, Ron Bent was then hired as the new manager of
Engstrom Mirror Plant and granted the assignment to turn around and save the organization
(Luce, 2013). With the aim of realizing this task given, Bent implemented the Scanlon Plan, an
organization-wide incentive program, which happened to be the key player for the company’s
improved morale, profitability, and productivity, making the firm successful once more.
However, in the year 2007 in May, Ron Bent finds himself having to deal with a similar
company crisis. In this time, it occurs that the numbers are on the decline again, there is a drop in
sales as a result of slow productivity, and to a great extent, product quality issues start emerging.
The manager becomes very concerned and worried ...