OL 500 OL500 OL/500 Engstrom – Milestone 2.docx
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OL 500 OL500 OL/500 Engstrom – Milestone 2.docx
OL-500 Human Behavior-Organizations: Engstrom Case Study Angela Gallagher Southern New Hampshire University
Engstrom Auto Mirror Plant: Case Study
Engstrom Auto Mirror plan is a privately owned business that manufactured mirrors for trucks and automobiles and employed 209 people.
The company had been going through significant production issues and decreased sales numbers for about a year.
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OL 500 OL500 OL/500 Engstrom – Milestone 2.docx
OL-500 Human Behavior-Organizations: Engstrom Case Study Angela Gallagher Southern New Hampshire University
Engstrom Auto Mirror Plant: Case Study
Engstrom Auto Mirror plan is a privately owned business that manufactured mirrors for trucks and automobiles and employed 209 people.
The company had been going through significant production issues and decreased sales numbers for about a year.
The production time had slowed down which caused missed deadlines so a product that was supposed to be done on Monday wasn’t completed until Thursday therefore requiring an authorization to air-freight a large order which is significantly more expensive than regular shipment methods had the work been done in the appropriate amount of time.
There had been concerns about employee morale that the managers of Engstrom were trying to address. Several years back, Ron Bent, the plant manager faced a similar crisis, marked by low employee morale.
At the time, he had rated the average worker productivity at a dismal 40% of expectation (Engstrom Case Study). As a result, he has implemented a Scanlon Plan, which is a bonus plan paid to workers for increased productivity. For over seven years, business had been good, sales quadrupled.
However, a downturn hit the industry in the past year which forced layoffs, and those who remained had not received a Scanlon bonus in seven months. Engstrom has several organizational issues that need to be addressed. There is distrust amongst the employees and management.
Some employees felt that the company might be “playing with” the numbers in order to calculate the bonus payouts. Just the complex nature of the calculation itself, caused concern for some employees. The fact that a lower bonus could be paid out following a month of record number of units produced was concerning to employees.
The Scanlon Plan had been in place for almost 10 years with no significant adjustments made outside of adjusting the base ratio to determine the bonus payout.
The Scanlon plan may have outlived its usefulness. The employees were paid out regular bonuses every month and when the bonuses stopped they reacted with anger and decreased productivity. There was also increased evidence of worker disaffectation.
The layoffs caused the employees to become indifferent to what was happening with the company, the potential for it to close. There were concerns of pilfering based on inventory reports and conversations with employees. The employees may have
OL 500 OL500 OL/500 Engstrom – Milestone 2.docx
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Create solutions that will improve the situation at the Engstrom Auto Mirror Plant. Include the following critical 1 2 3 4 5 can you tell me if I am on the right track here with this paper? These are the expectations: Identifies the root causes of known organizational issues from a 1 2 3 4 5
Am I on the right track on this one? requirements are at the end of my writing Communication is defined as the transfer of information and understanding from 1 2 3 4 5 Describe the three stages of change. Why is it critical that each stage be fully implemented before moving to the next? Provide concrete, detailed examples and 1 2 3 4 5
When I am using citation within a paper and I’m quoting something that the author of the paper I’m reading quoted from another author how do I reference that 1 2 3 4 5 Course OL-500 Human-behavior in organizations- school- SNHU I need help in summarizing these questions.
Milestone Four of your final project is now based on a 1 2 3 4 5 I have a paper due today. Solutions development based on the Engstroms case study. Attached is the guidelines 1 2 3 4 5 Back to Department Related Courses OL 125 – Human Relations in Administration (4853 Documents)
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