Engstrom Auto Mirror is a family owned manufacturing plant in Richmond, Indiana. The company was established in 1948, producing truck and automobile mirrors. By the mid 2000’s Engstrom employed about 225 people. Engstrom Auto Mirror has the distinct honor of being one of only two certified suppliers for a Toyota, which plant they provide mirrors to. For 50 years the company prospered, unfortunately by 1998 the company has dug their self into a deep hole of unprofitability. The plant was transforming their production lines to include newer technology. This did not go smoothly as intended causing major delays, which caused irritated customers, disgruntle workers, overly stressed and tired managers. With everything going on the manager resigned. (Collins & Beer, 2008). …show more content…
(Collins & Beer, 2008). After evaluating the company and talking with everyone Mr. Bent adopted the Scanlon plan. With the support of the owners and the employees, Mr. Bent was able to turn the company around to the point that between 2000 and 2005 profit of sales quadrupled, productivity increased, product quality increased, and employee satisfaction increased. (Beer, 2008, p. 2-5). In 2005 when the economic downturn started, Engstrom’s sales also decreased. As sales decreased do did employee’s morale. Which in turn cased productivity to decline and product quality suffered. This cycled continued throughout the year and into 2006, to the point the employees had to be laid off. By 2007, all bonuses had ceased, workers satisfaction and morale also ceased. (Beer, 2008, p.