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Case | HBS Case Collection | April 2008

Engstrom Auto Mirror Plant: Motivating in Good Times and Bad

by Michael Beer and Elizabeth Collins

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Abstract

In May 2007, the Engstrom Auto Mirrors plant, a relatively small supplier based in Indiana, faces a crisis. The business was in the second year of a downturn. Sales had started to decline in 2005; a year later, plant manager Ron Bent had been forced to lay off more than 20 percent of the work force. Plant productivity was dropping, employee morale was low, and product-quality issues had begun to surface. Relationships with key customers were at risk. Downturns were not new at Engstrom. When the plant had reached a similar crisis point years earlier, the institution of a Scanlon Plan, a company-wide employee incentive program, had proven critical in building morale, increasing productivity and product quality, and leading Engstrom into a turnaround. For several subsequent years, Engstrom workers had received regular Scanlon pay bonuses. But the bonuses had stopped in 2006, and now Ron Bent must determine how to get the plant back on track. Should he revise the Scanlon setup? Remove Scanlon and try another plan? Identify and change other organizational factors that may be sabotaging Scanlon?

Keywords: organizational behavior; leadership; change management; human resource management; incentives; motivation; manufacturing; Leadership; Change Management; Employees; Motivation and Incentives; Goals and Objectives; Manufacturing Industry; Indiana;

Language: English Format: Print 8 pages EducatorsPurchase

Citation:

Beer, Michael, and Elizabeth Collins. "Engstrom Auto Mirror Plant: Motivating in Good Times and Bad." Harvard Business School Brief Case 082-175, April 2008.

Related Work

  1. Teaching Note | HBS Case Collection | April 2008

    Engstrom Auto Mirror Plant: Motivating in Good Times and Bad (Brief Case)

    Michael Beer and Elizabeth Collins

    Teaching note for case # 2175

    Keywords: organizational behavior; leadership; change management; human resource management; incentives; motivation; manufacturing; Motivation and Incentives; Leadership; Change Management; Production; Organizations; Human Resources; Manufacturing Industry;

    Citation:

    Beer, Michael, and Elizabeth Collins. "Engstrom Auto Mirror Plant: Motivating in Good Times and Bad (Brief Case)." Harvard Business School Teaching Note 082-176, April 2008.  View Details
    CiteView DetailsPurchase Related

About the Author

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Michael Beer
Cahners-Rabb Professor of Business Administration, Emeritus

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More from the Author

  • Case | HBS Case Collection | May 2000 (Revised December 2018)

    SMA: Micro-Electronic Products Division (A)

    Michael Beer and Michael Tushman

    The Micro-Electronic Products Division of SMA has financial and organizational problems. Conflict and lack of coordination exist between functional groups. Employees do not have a sense of direction and morale is low. The cause of these problems is found in a change in business environment followed by change in organization and management. A rewritten version of an earlier case.

    Keywords: Change Management; Organizational Change and Adaptation; Organizational Culture; Organizational Structure; Conflict and Resolution; Business Strategy;

    Citation:

    Beer, Michael, and Michael Tushman. "SMA: Micro-Electronic Products Division (A)." Harvard Business School Case 400-084, May 2000. (Revised December 2018.)  View Details
    CiteView DetailsEducatorsPurchase Related
  • Teaching Note | HBS Case Collection | February 2010 (Revised December 2018)

    SMA: Micro-Electronic Products Division (A), (B) & (C)

    Michael Beer

    Teaching Note for [400084], [400085], and [400086].

    Citation:

    Beer, Michael. "SMA: Micro-Electronic Products Division (A), (B) & (C)." Harvard Business School Teaching Note 910-413, February 2010. (Revised December 2018.)  View Details
    CiteView DetailsPurchase Related
  • Supplement | HBS Case Collection | May 2000 (Revised December 2018)

    SMA: Micro-Electronic Products Division (B)

    Michael Beer and Michael Tushman

    Focuses on the recommendations and implementation strategy suggested by the organizational development group for the division's problems. A rewritten version of an earlier case.

    Keywords: Change Management; Organizational Culture; Conflict Management; Corporate Strategy;

    Citation:

    Beer, Michael, and Michael Tushman. "SMA: Micro-Electronic Products Division (B)." Harvard Business School Supplement 400-085, May 2000. (Revised December 2018.)  View Details
    CiteView DetailsPurchase Related
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