Engstrom Auto Mirror Plant Motivating in Good and Bad

3618 Words15 Pages
ISM UNIVERSITY OF MANAGEMENT AND ECONOMICS
UNDERGRADUATE STUDY PROGRAMME IN INTERNATIONAL BUSINESS AND COMMUNICATION

ENGSTROM AUTO MIRROR PLANT MOTIVATING IN GOOD AND BAD
ORGANISATIONAL BEHAVIOR COURSE
CASE STUDY PAPER

2014 02 14

Contents

Introduction 3 1. Situation analysis 3 2. Problem identification 4 3. Theoretical survey 6 3.1. Theoretical framework 6 3.2. Theoretical survey relevant to the situation 8 4. Evaluation of alternatives 9 4.1. Psychological needs 9 4.2. Physiological needs 12 4.2.1. Safety needs 13 4.2.2. Material motivation 14
5 Suggested solution 15
Conclusion 16

Introduction
Our task for the Engstrom Auto Mirror Plant case analysis was to identify the main
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Engstrom plant was concentrating on “cost savings, producing more per hour of labor spent.” Scatlon plan was working very well for some period of time by increasing productivity and employees’ motivation, higher profits and employees receiving good financial rewards. However, by the year of 2007 situation at plant started getting worse which led to the conclusion that famous Scatlon plan was not effective anymore.
First of all, occurred distrust that bonuses are not calculated in truthful way. Employees started doubting company’s complex nature of the calculation itself while appointing amounts of bonuses. Secondly, there was a question of fairness when some employees thought that they should receive more bonuses as they are putting more efforts and work than other ones. As a consequence such moods at workplace led to the primary stage when Scatlon plan had not been adopted yet: employees became passive, work became inefficient and employers started layoffs.
Therefore, it leads to the conclusion that in this case the main issue is appropriate employees motivation and satisfying job conditions, which could be achieved by choosing right incentives plan. However, sticking to the same incentives plan also might not be a good idea because people usually get used to such things very easily. As it can be seen from Engstrom Auto Mirror Company’s case employee’s motivation and morale can

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