Case Study

2. Engstrom Auto Mirror Plant

3. Hafiz Salman Dawood
Neelam Fatima
Noreen Ghulam Rasool
Rana Faisal Ali

4. • Manufacturing Mirrors for trucks and
other automobiles
• Ron Bent
• 200 employees were working at
Indiana Plant

5. • In 1990
• From 1990’s to 1999
• In 2007
• In 2006 , 46 employee had to lay off

6. • Introduced in 1930 by Joseph N
Scanlon
• Acting as Director of R&D union
President
• Depressed Economy

7. • Join the union committee to solve problem

8. • Close the plant altogether
• Management issues
• Low productivity
• Proper incentives
• Rate of suggestion from employ rate
decreased

9. • Feed Back
• Disruption employee motivation
• Communication Gap
• Scanlon Plan was o complicated

10. • Modified Scanlon Plan
• Relates Bonuses to increase
productivity
• Feed back
• Set Goals for production

11. • Simplified Payout calculation
• No monthly payment of bonuses
• Well management

12. • Disposal of current Scanlon plan.
• Introduction of new Scanlon plan.
• Display the plan to create awareness in employees.
• Communication with employees.