Case Study: Engstorm Company

Our task for the Engstrom Auto Mirror Plant case analysis was to identify the main problems of the company as well as it’s managers’ decisions and to find reasonable solutions by taking into account roots from where they have been appearing. This case is extremely relevant because it looks at organizational behavior everyday problems and analyses issues of building relationships with employees. All our assumption will be based on Organizational Behavior theoretical background in order to find solutions and alternatives for the particular company’s case. The main aim was to figure out how to increase company’s productivity, employees’ motivation and management strategy.

All employees analyze their environment and strive to be recognized and rewarded for their hard work and dedication they put into the company, in a word they are seeking justice. Justice can be defined as a person receiving what they feel they are entitled to and if they do not receive what they deserve the situation may board on injustice. Unfortunately in today’s society justice and appreciation are not given out to all those deserving (Pinder, 1998). A major problem to address is how to keep the motivation level high in a company when the employees do not feel appreciated.

It is clearly that the company is experiencing some growth; however, the management needs to find a solution to solve the arising issue where their employees are lacking of motivation in their job. However, the executive team’s decision to raise pay rates for its customer service staff and the vested profit-sharing plan does not improve the employees’ work performance or customers’ satisfaction.

The Engstrom Auto Mirror plant is located in Richmond, Indiana and employs around 200 or more people. The plant has been going through some changes over the last few years and has seen a decline in employee motivation. The focus today will be to determine some of the root causes of the problems facing the plant from an organizational view and a human behavior issue. The bottom line is determining how to solve the issues the company is facing and move forward. Some of the questions that will need to be answered is, “why is motivation at an all-time low, is the Scanlon plan benefiting everyone in the company and can the plan be revamped with

Engstrom Auto Mirror Plant is experiencing productivity and quality problems arising from the organizational effects of the Scanlon Plan, an incentive plan that is tied to individual performance. As a consequence of the highly economic-centered nature of the Scanlon Plan, employees have already adapted to the custodial model of organizational behavior where the main basis is the use of economic resources, and the managerial orientation predominantly relies on money to improve performance. Consequently, employees are oriented around security and benefits which developed their dependence on the organization for their financial welfare. Though the Scanlon Plan has supportive model dimensions because as a form of upward communication, employees

The success of an organization is built on a functional relationship between managers and employees. Managers can depend on this type of relationship to set programs in place to motivate employees, thus, increase productivity and profitability.Throughout the years, a few issues have brought on the relationship amongst administration and workers at the Engstrom Auto Mirror Plant to fall apart. The goal of this milestone is to identify the root causes of the organizational issues, look at the fundamental drivers from a human behavior perspective and offer

It’s important to have motivated workforce, so it can enhance productivity of company. IKEA makes sure to understand its staffs and wat motivates them. Besides satisfying their basic salary needs, IKEA ensures that job security is assured for each worker by valuing all workers and creating this sense of belonging n the company. Each worker has equal opportunities for promotion and career advancement. Motivation is also important between staffs themselves and with IKEAs friendly working environment has helped improve working relationships in every individual staff. Each human has different needs in their lives, so knowing what they desire is important to management. It can be associated with Maslow’s Hierarchy Motivation Theory (Griffin, R. (2014) Fundamentals of Management (7th Edition, pg.15) stating “people are motivated by a hierarchy of needs, including monetary incentives and social acceptance”. There are no best motivations method, however, motivation is based on individuals or the

One of the valued but demanding customer, who had considered Engstrom as a certified supplier, was requesting a large order but Engstrom was unable to deliver on time due to the low productivity problem. The plant manager along with his assistant were already dealing with the troubling numbers when this happened. While the task was a tough bone and not easy to tackle, and there were a lot of factors needed to be taken in to consideration. The leadership started to analyze and break down the main causations other than the overall economic trend that dragged the company into the turmoil, as it turned out, it was the low, frustrated employee morale and diminished work satisfaction.

II. Root Cause Case Study Analysis Identify root causes of known organizational issues from a human behavior perspective. There are several major organizational issues that have contributed to low productivity and lack of motivation at Engstrom. The events that commenced Engstrom’s organizational issues stem from the failure of the Scanlon Bonus Plan (Beer, 2008). The system was created so that employees became motivated to exceed the standard.

The success of any business depends on the productivity and satisfaction of its employees. Employees need to be motivated to work. Motivation can be defined as the inner force that drives individuals to accomplish personal and organizational goals. Motivation can be either intrinsic or extrinsic. For an individual to be motivated in a work situation there must be a need, which the individual would have to perceive a possibility of satisfying through some reward. Intrinsic motivation stems from motivations that are inherent and arise from performing the task of the job itself, which the individual gets a feeling of either positive or negative motivation as a result of

Engstorm Auto Mirror Plant : Motivating in Good Times and Bad This case study evaluates the impact of lack of communications can have in an organization. Engstrom Auto Mirror Plant is a private owned company with 209 employees. For several years, they have been giving their employees incentives as a great way to keep them motivated. They used the Scanlon Plans which is a plan that determine employees bonus using ratios.

ASIAN JOURNAL OF MANAGEMENT CASES, 7(2), 2010: 135–155 SAGE PUBLICATIONS LOS ANGELES/LONDON/NEW DELHI/SINGAPORE/WASHINGTON DC DOI: 10.1177/097282011000700204

Over the last several years, the issue of employee motivation inside the workplace has been increasingly brought to the forefront. The reason why is because, globalization has been having an effect on the ability of firms to compete (which is placing more pressure on them). To deal with these challenges, most organizations are relying on their employees. The results are that those employers who are able to use this resource will be able to make adjustments quickly. This is when the firm will be able to maintain their dominance in the marketplace.

Motivation in the workplace is one of the major concerns that managers face when trying to encourage their employees to work harder and do what is expected of them on a day-to-day basis. According to Organizational Behavior by John R. Schermerhorn, James G. Hunt and Richard N. Osborn the definition of motivation is "the individual forces that account for the direction, level, and persistence of a person's effort expended at work." They go on to say that "motivation is a key concern in firms across the globe." Through the years there have been several theories as to what motivates employees to do their best at work. In order to better understand these theories we will apply them to a fictitious organization that has the following

Expectancy theory of motivation Hausser Food. Employees and organization both of them have expectation and needs. Organization have expectation to their employees through target. Employees have expectation to the organization or company through their reward if they can reach or above the target. In this point of view The employees of Florida team are feel under rewarded which although they have high E to P that have good P to O