FINAL PROJECT ANALYSIS 1

Engstrom Auto Mirror Plant: Case Study Analysis

Tracy Williams
Southern New Hampshire University
OL 500 Final Project Analysis
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Introduction
Engstrom Auto Mirror plant is a privately-owned business in Richmond, Indiana that

manufactures mirrors for trucks and automobiles. There have been several rough quarters at the

plant and they have encountered several issues within their production department. Current

issues within the department are low productivity and decreased quality which has been an

ongoing issue for over a year. Although customer complaints were on the rise, the problem was

not significant in the first quarter of the year, however as they year went on, production

efficiency and product quality continued to decline. Recently, the plant achieved certified

supplier status which is a recognition for extraordinary reliability and quality. Only one other

plant has achieved this status, and Engstrom Auto Mirror plant is on the verge of losing their

certification status.

Issues in the Plant

Organizational behavior is the systematic study and careful application of knowledge about how

people act within organizations (Newstrom, 2015). The three organizational issues that will be

addressed in this analysis is employee behaviors, workplace communication, and leadership and

empowerment. The main issues affecting the plant are low productivity and decreased product

quality.

Root Causes

Employee satisfaction is a contributing factor to low productivity in the plant. Engstrom

developed the Scanlon plan which rewarded employees by creating satisfying careers. However,

over time, employees grew to mistrust management due to their ineffectiveness in properly

executing the Scanlon plan. The employees at Engstrom Auto Mirror Plant are angry with
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management regarding the Scanlon Plan which has affected their morale, motivation, and trust in

management. The employees grew accustomed to bonuses as part of their regular paycheck and

when the bonuses stopped, the employees reacted with anger and suspicion, and mistrust of

management. In addition to low productivity issues, the plant faces product quality issues. With

Scanlon the workers were receptive to new methods and ideas because they felt they were part of

a companywide program. “Over time, however, enthusiasm waned and dissatisfaction grew with

certain aspects of Scanlon” (Collins & Beer, 2008). The employees at Engstrom have become

complacent and stopped following plant policies and procedures ensuring production of high

quality products.

According to Herzberg, the factors leading to job satisfaction are "separate and distinct from

those that lead to job dissatisfaction." Therefore, if you set about eliminating dissatisfying job

factors, you may create peace but not necessarily enhance performance. Employees have gone

months without getting their bonuses, therefore, they have lost their drive and motivation to work

hard.

Another contributing factor for low productivity and employee morale is poor management of

the plant. Engstrom managers were aware of a decline in production but did little to find the root

cause for it. They turned a blind eye to employee behaviors and focused solely on reaching

desired goals for the business.

Solution Development

According to Newstrom, quality of life programs are a way in which organizations recognize

their responsibility to develop jobs and working conditions that are excellent for people as well

as for the economic health of the environment. Some elements include concern for the employee
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job security and satisfying careers, caring management, and employee development and

participation in decision making. Management should set achievable goals for the employees and

provide rewards that the employees want. It’s also important for management to understand how

each member of their team communicates. They need to know how to present information and

feedback for an individual to receive the information as intended and act upon it.

Strategic Action

The process of change can bring stress to even the strongest organization. Leaders will struggle

and so will the people they are trying to convince. If employees do not fully understand why

change is necessary they will be resistant to it. The management team at Engstrom should focus

on influencing and supporting employee development, allowing the employees to be a part of the

change process, and together reaching the organization’s goals. They can achieve this goal by

holding monthly staff meetings for the entire organization. This helps employees understand

their role and the impact they have on the organization. Additionally, individual monthly

meetings with each employee will provide an opportunity for managers to talk with their

employees and understand their communication styles and how they personally like to receive

feedback and instruction. It will also allow for management to coach and develop employees

based upon their motivational drives. Many employees just want to feel that they are part of the

process. Management should take suggestions and/or recommendations from employees on how

to improve internal systems and processes. At the monthly meetings they should also recognize

outstanding performers. Additionally, the managers should create better training programs based

on position in the plant and appoint training leaders to train the new hires in specific positions.

This will allow the employees to be part of the change process while fostering their growth and

development within the company. “Empowerment and motivation happen when people solve
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their own problems and create their own aspirations and expectations. They will be motivated to

do outstanding work because they know their role is part of something bigger. They will realize

they are valued and that achieving their goals is essential to the success of their organization.

More importantly, they will begin to trust their leaders” (Comaford, 2018). Managers at

Engstrom should take on a proactive leadership approach. Proactive leaders share the company’s

vision, allow employees to be part of the problem-solving process, model teamwork, and focus

on achieving performance outcomes.

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America’s Diner: Workplace Analysis

Tracy Williams

Southern New Hampshire University

OL 500 Final Project Analysis

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Introduction

America’s Diner is a table service diner-style restaurant chain. It operates 1600 restaurants in the

United States and was founded in Lakewood, California in 1953. America’s Diner is known for

always being open, serving breakfast, lunch, and dinner around the clock. They have been

involved in a series of discrimination lawsuits involving food servers providing inferior service

to racial minorities, and several restaurants which are franchise owned were force to shut down

when the franchise owner failed to pay $200,000 in back taxes. In an effort to increase revenue

and boost popularity, America’s Diner has changed its menu and partnered with millennial

friendly brands to promote new menu and collector items.

Issues in the Diner

Organizational behavior is the systematic study and careful application of knowledge about how

people act within organizations (Newstrom, 2015). The three organizational issues that will be

addressed in this analysis is employee behaviors, workplace communication, and leadership and

empowerment. The main issues affecting the diner are employee dissatisfaction and decreased

product quality.

Root Causes

Employee satisfaction and poor management were contributing factors to low morale and food

quality issues in the diner. Employees were dissatisfied with their jobs due to long work hours,

low pay, and short staffing which means the people who did show up for work had to do more by

picking up the tasks that the people who called out should have been doing. Employees were

being overworked and underpaid. Even though bonuses were available the restaurant never

reached their goals to achieve the monthly bonus due to lack of teamwork and poor management.
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Management only cared about revenue and labor hours. By sending people home before the end

of their scheduled shift, they saved on labor hours but lacked in providing top notch customer

service. Being short staffed affected not only the staff but the guests as well. In turn, employees’

tips declined which contributed to low morale and anger towards management.

Another issue in the diner was that managers didn’t help staff out when it was busy. At one diner

there was a constant wait list and this diner would serve up to 100 people per hour. There have

been times when there were only two servers for the entire diner on a Friday or Saturday night.

As a former manager, there have been nights where I worked as hostess, busser, cashier, server,

and manager. Despite the incentive of competitive pay, tips, and benefits, employees lost their

drive and motivation to work hard.

Poor management is contributing factor to low morale for the diner. Shift managers complained

to the General Manager for always being short staffed. The General Manager was aware of

problems in the diner but did little to find the root cause and a solution. Instead, the General

Manager turned a blind eye to employee behaviors and focused solely on reaching desired goals

for the diner.

In addition to low morale in the diner, there were food quality issues. The cooks were the highest

paid staff workers excluding the shift managers, however, the quality of food was undesirable

which led to loads of guest complaints. Managers had to provide discounts or comp guest meals

which led to decreased revenue and low guest satisfaction scores for the diner. The cooks at

America’s Diner have become complacent and stopped following brand standards, policies, and

procedures ensuring production of high quality food items. Low morale in the diner stemmed

from being short staffed, over worked, and not being granted requested time off.
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All employees at the diner developed negative attitudes which had an adverse effect on the

overall success of the diner. There were high turnover rates, employees calling off, dissatisfied

guests and poor-quality products. Employee attitudes are important to understand, monitor, and

manage. Employee attitudes develop as a consequence of equity or inequity, treatment from

supervisors, and job satisfaction.

Solutions Development

" Organizations cannot exist without communication. If there is no communication employees

cannot know what their co-workers are doing, management cannot receive information inputs,

and supervisors and team leaders cannot give instructions" (Newstrom,2015). Management at

America’s Diner can turn things around by getting to know their employees. Being transparent

with company goals, facilitating one on one meetings with employees, and empowering

employees will help motivate them to trust in their management team and be productive

members of the organization.

Quality of life programs are another way in which organizations recognize their responsibility to

develop jobs and working conditions that are excellent for the people as well as for the economic

health of the environment. America’s Diner worked hard to construct a desirable benefits plan

for employees. Some benefits include medical, dental, vision and life insurance, retirement plan,

floating holidays and competitive salaries. According to the social psychologist Kurt Lewin, the

interaction between personal characteristics and the environment largely determines an

employee’s behavior (Newstrom, 2015).

Strategic Action
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At America’s Diner, the General Manager needs to be transparent about goals of the diner and

progress towards those goals. They can achieve small goals in the diner by holding monthly staff

meetings for the entire staff. This helps employees understand their role and the impact they have

on the organization. The General Manager can share guest satisfaction scores, new menu items,

upcoming promotions and recognize outstanding performers. Individual monthly meetings with

each employee will provide an opportunity for managers to talk with their employees and

understand their communication styles and how they personally like to receive feedback and

instruction. It will also allow for management to provide feedback and constructive criticism to

shift managers and staff members. This will help the General Manager coach and develop

employees based upon their motivational drives. Some employees may be interested in cross

training or becoming a trainer. It is important for the General Manager to take an active role in

the development of each employee. Many employees just want to feel that they are part of the

organization and want to know how they fit into the bigger picture of the organization.

The General Manager should take suggestions and/or recommendations from employees on how

to improve internal systems and processes. “Empowerment and motivation happen when people

solve their own problems and create their own aspirations and expectations. They will be

motivated to do outstanding work because they know their role is part of something bigger. They

will realize they are valued and that achieving their goals is essential to the success of their

organization. More importantly, they will begin to trust their leaders” (Comaford, 2018).

Additionally, the manager should create better training programs based on positions in the diner

and appoint training leaders to train the new hires in specific positions. This will allow the

employees to be part of the change process while fostering their growth and development within

the company. The management team at America’s Diner should focus on influencing and
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supporting employee development, allowing the employees to be a part of the change process,

and together reaching the diner’s goals.

Integrated Conclusion

In both the case study of Engstrom Auto Mirror Plant and the workplace analysis there were

similar organizational issues. Common issues within each organization were employee

behaviors, workplace communication, and leadership and empowerment. These issues led to

employee dissatisfaction, low productivity, and decreased product quality. Both organizations

failed to conduct an analysis to determine root causes for the problems within their organization.

They attempted to find solutions however, they did not take strategic action in implementing the

solutions. Therefore, the solutions were a temporary fix and the problems resurfaced.

The most important step that management in both organizations skipped was conducting a root

cause analysis. Management could have determined what negative events were occurring. Then

they should have looked at the complex systems around those problems and identified key points

of failure. Finally, they should have determined solutions to address those root causes. There is

an inspirational adage that says, "People don't plan to fail. Instead they fail to plan." When

management does not initiate a strategic action plan they have already failed. Every successful

organization incorporated a vision, mission, strategies, and an action plan. Organizations need

strategic planning not only to gain a competitive advantage against competitors but also to

achieve sustainability.
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Resources

America’s Diner. (n.d.). Retrieved on Sep 6, 2018 from https://www.dennys.com/

Beer, Michael, and Elizabeth Collins. "Engstrom Auto Mirror Plant: Motivating in Good Times

and Bad." Harvard Business School Brief Case 082-175, April 2008.

Comaford, C. (2018). Why Leaders Need to Embrace Employee Motivation. Retrieved on Sep

6,2018 from https://www.forbes.com/sites/christinecomaford/2018/01/20/why-leaders-need-to-

embrace-employee-motivation/#5bdd57e12725

Newstrom, J. (2015). Organizational behavior: Human behavior at work (14th ed.). New York,

NY: McGraw-Hill