Engstrom Auto Mirror
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