Engstrom Auto Mirror Plant Root Cause Analysis Essay

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This analysis provides a detailed root cause analysis from a human behavior perspective associated to Engstrom Auto Mirror Plant following the failed implementation of an incentivized Scanlon Plan based on my workplace experience, validates the analysis through supportive research and examines the impact of poorly managed human behavior concepts. The following information was obtained from the Harvard Business School Case Study (Beer & Collins, 2008).
Root Cause
The first issue with the Engstrom Auto Mirror Plant is the failed employee incentive program. Bent knew that the implemented Scanlon program was not capable of matching the needs of the work force, but he failed to respond to the need for an improved system and later stated that he had no reason to implement a new strategy despite the poor performance of the plant and the plant worker’s decreased morale. A new incentive program needs adopted that does not reward on a scheduled basis, but is the performance based system that is awarded when the objective is met. Additionally, when problems began immediately the plant employee’s blamed what they did not understand. The Scanlon plan was too complex and the employees could not grasp how the incentive rate was calculated. When charged with the responsibility of an upcoming Material Condition Inspection for ten strike fighter aircraft a plan needed implemented to preserve aircraft integrity and pass the inspection. Without the counsel of the maintenance department’s leadership I issued an order with the steps that needed taken to ensure the success of the inspection. When the inspectors conducted the inspection it was discovered that the order I issued was not being executed and the inspection was a failure. The inspection team uncovered that executing my directed orders was too complex and no division was completing the individual requirements because of the complexity. After consulting the leaders within the maintenance department and encouraging their feedback we designed a much simpler process and eventually passed the inspection through simple and easily repeatable procedures. When dealing with a labor force, simplicity is a key ingredient to success. Next, the Engstrom employees lacked a method to continually improve the plant’s operations, make suggestions on improvements and devote themselves to the priorities. When it was initially implemented the Scanlon Plan received favorable opinions from the Engstrom employees. However, when the plant employees began feeling manipulated by Engstrom’s management they questioned the fairness of the incentive program and distrusted the rate calculations of managers which resulted in a communication breakdown and the failed feedback system. A feedback system needs implemented that incentivizes improvement suggestions and empowers employees to take ownership in the plant’s operations. As a part of an aviation unit’s data analyst program a monthly summary of maintenance department metrics must be produced, analyzed and distributed with graphical representations. The importance is for maintenance managers to implement controls in problematic areas. In my current assignment not only was this requirement not being performed, but when it was first implemented the needed audience did not have access to the approved information. A feedback mechanism had to be built in that was not cumbersome and allowed for personnel to view the comments of
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According to Thompson and McEwen (1958), the setting of goals is essentially a problem of defining desired relationships between an organization and its environment and even where the most abstract statement of goals remains constant, the practical application requires redefinition or interpretation as changes occur in the organization, the environment or both (p. 23). When making personnel changes in my maintenance department I included my management team and solicited their inputs. In an effort to include their opinions and address the core issues, compromises were made on both sides. When the meeting was concluded we left the room with a clear direction that was agreed and supported by all divisions and managers. Even though some changes were not ideal, the team was empowered to execute our mission and we’ve all been more dedicated to meeting the goals of the department. When the managers at the Engstrom Auto Mirror Plant fail to provide direction to the employees on what the objectives of the company were and how they were expected to perform the plant was destined to

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