Engstrom Auto Mirror

1064 WordsMar 21, 20105 Pages
Engstrom Auto Mirror is facing one of its most difficult periods of its history, driven by a variety of factors. After enjoying several years of prosperity, particularly due to an effective implementation of a Scanlon Plan, the company is facing problems associated with productivity and product quality. These issues have transcended to other areas of the company including its employees, who have been complaining for some time about the company’s policies and its current situation, and have been underperforming, which in turn leads to low productivity. The situation puts plant manager Ron Bent in a difficult position because he has to figure out a way to address these problems, and come up with solutions so that the company can continue…show more content…
When an employee is not receiving what they were promised, then his or her performance will decrease significantly and it will affect the company’s productivity as a whole. A pay-for-performance system is one in which employees receive compensations for their performance if they reach a certain target. Essentially, this system will be conducted by the specific goals of different companies. Communication between management and employees is key for this system to be successful, in order to enforce teamwork in an organization. The system works effectively if performance is the main focus of the employees, rather than money, because it can lead to exceeding goals. Money is definitely a motivator in any kind of organization, and especially in this economy. Many people are having a hard time finding jobs and generating money has become a difficult task. However, as proven in Engstrom, money is not the only motivator. Certainly there are other factors that contribute to the performance of an employee in a company. Things like feeling valuable, being heard, trusted, and having more responsibilities of actions, can make an employee perform better. Someone can receive monthly compensations but if that person is not feeling valued by the company, then some of the interest and effort is lost, and will perform poorly.
Open Document