Dorris Achibela Running Head: Production efficiency of the plant has become ineffective and the quality of their products has declined. Though the problems can be tied to their failure to honor their Scanlon plan to pay individual employees their bonuses, the management can use human behavioral theories to understand and resolve these issues.
By Engstrom was failing and the Scanlon bonus plan was a major cause of discord between the employees and management. The bonus plan centered on production goals and as the business slowed down production goals were not met. This case analysis will identify the organizational issues from a human behavior perspective, analyze root causes from the human behavior perspective, and explain the impact of poorly aligned and administered human behavior theories and concepts.
Scanlon Plan The Scanlon Bonus plan is based around engaged management. The plan was developed with the belief that individuals will work hard to help achieve the organization goals, providing they have the opportunity to take responsibility for their actions and apply their skills.
A key tactic of the Scanlon Plan is to communicate financial and other business data through all levels of an organization. The key driver for this is that everyone within the organization is encouraged to suggest ways to improve the productivity of the plant. The Scanlon Plan did provide Engstrom with some positives such as teamwork for increased productivity and cost savings, creativity and innovations, and knowledge sharing.
Organizational Issues Organizational issues are one of the most common causes in an organizations failure today.
As organizations strive to be more diversified and expand, there is always the opportunity for organizational issues to develop. When looking at the organizational issues at Engstrom, there were several factors that come up; motivation, communication, leadership, and management issues.
Motivation The Scanlon Plan was a failing incentive plan, employees felt they no longer mattered and showed a negative attitude toward the plan, and there were numerous complaints from employees regarding the incentive plan.
The employees trust in the organization had failed because of the incentive plan because they felt it was a biased plan, the monthly meetings that management held because increasingly heated, and employees had not received an incentive bonus for numerous months.
Communication Several factors were evident in the communication issues between Engstrom and the employees. The Scanlon Plan was not clearly communicated to employees, they were not aware of how the plan was calculated.
This led to employees believing the plan favored managers not the production teams. The company lacked a clear channel of communication for company communication between management and employees, both upward and downward.
Employees were not provided with regular communication updates, along with the lack of a communication management system. This led to conflicts between management and employees, along with conflicts between management. A clear communication plan would have been a huge benefit as employee issues could have been easily addressed.For the Engstrom Auto Mirror ENGSTROM AUTO MIRROR PLANT: ISSUES AND SOLUTIONS 3 Plant, employees are hostile with the management for going for months without getting their bonus dues.
The workers have thus lost the urge and motivation to work hard. The problem for Engstrom Auto Mirror Plant is that they placed too much emphasis on extrinsic factors such as this Scanlon incentive plan as a part of the total rewards system to cultivate motivation of the employees and they failed to foster employees’ perceptions of organizational justice/5(1).
Engstrom Auto Mirror Plant – Root Cause Case Study Analysis Week 4. Debbie Draughan. Southern New Hampshire University. Abstract. Engstrom Auto Mirror was a moderately successful auto and truck mirror business, which started in /5(1).
Engstrom Auto Mirror plant, as a privately owned business, it manufactured mirrors for trucks and automobiles. The managers aimed to increase productivity for sustainable development of the company. Back in , to pursue highly productivity.
When students have the English-language PDF of this Brief Case in a coursepack, they will also have the option to purchase an audio leslutinsduphoenix.com May , the Engstrom Auto Mirrors plant, a. Engstrom Auto Mirror Plant: Motivating in Good Times and Bad Root-Cause Analysis Southern New Hampshire University Emeka Ekezie Abstract Engstrom Auto Mirror Plant is facing an internal crisis which primarily is a motivational problem.