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Engrstrom Auto Mirror Plant Motivationg in Good Times and Bad

By:   •  April 7, 2019  •  Essay  •  743 Words (3 Pages)  •  879 Views

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This paper will describe the Engstrom Auto Mirror Plant ways of trying to show their employees they appreciation through good and bad times.  Every company has there moments in the industry, sometimes you up and sometimes you are down.

In 1948 Engstrom Auto Mirror Plant begin their business as a company that made mirrors for truck and automobiles. The company had over 209 employees that made the company function great. The plant was based out of Richmond, Indiana and ran by two men by the name of Ron Bent and Joe Haley. The two of then wanted to have a good company will great sales and pay their employees what they were worth. In 2007 the company productively was going down in major way, they had a client that gave them good business throughout the years but a dateline between the two companies could not be met. Ron had mention to Haley that the employees had been complaining and was not being valued for the work they were doing.

        When the company ran into some problems Bent had to lay off 46 employees, this was not the first the company had an issue, but they pull through the hardship. The company then the company started losing profits and having a hard time trying to stay in business. During the 1998 Bent put a plan in called the Scanlon Plan. Scanlon plan is a cost-saving productivity-incentive plan in which any saving that is computed per unit of output is compared with a standard labor cost that is agreed upon and is shared equally between the firm and workers (Business dictionary, 2019). Ben was upset and was trying because he did not want to lose a major company business or disappoint his workers. Bent tried to come up with many ideas to save the company, he even wants to pay the employees bonus to help keep their spirits up and work harder for the company.

Bent felt like if giving the employees bonus that would increase their productivity- and the plant could go back to it normal pace and keep employees motivate to do their job. The company were missing three areas that was important for the workers to have fairness, implantation, and togetherness. Without those elements the company was wasting its time with the workers.

When Ben had tried everything in the book, he was not looking at the real problem the plant was facing. When you’ve established a Scanlon plan properly, you’ve also built a good communications network throughout your organization” (Beer et. al., 2008). Ben was convinced that the upgrade in technology influenced the company, but that was not the case. When everything Ben tried worker being to worry rather or not, they were going to have job. Once Bent tried so many things the only thing he was lacking was communication with his worker. Communication is very important when working with people because if you do not have an ideal of how your worker feel how can you run a successful business.


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