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Case Study on Engstrom

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Discussion: 14746 Re: Case Memo #1: Engstrom Auto Mirror Plant Issues: Though the Scanlon plan was effective when it was implemented, there are now several potential issues existing in Engstrom. The employees are no longer seeing the benefits of the incentive plan that originally showed them bounty. They do not trust the system of bonuses, or the methods by which they are calculated, and by extension are beginning to distrust management entirely. They are starting to observe a lack of fairness in payment, valuing relative over concrete compensation. Ultimately, employees as a whole are beginning to be more individually minded as opposed to having a group mentality. This is the main cause of Engstrom’s problems. The Scanlon plan is…show more content…
In the meantime, enacting come group bonding retreats and meetings is encouraged, in order to lessen the negative effect of losing a company-wide group mentality which the Scanlon plan has
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