Engstrom Auto Mirror Plant and Work Analysis Case Study Essay

As a manager the three motivational methods that should be used would be to provide monetary incentives, employee recognition, and training incentives. Monetary incentives are one method that can be used by a leader or a manager in his or her workplace, these incentives is to reward an employee for his or her outrageous work-related performance. These incentives may include such as profit-sharing within the company, stock options, performance bonuses, and scheduled bonuses. These different types of monetary incentives can increase the motivation of its workers and can lead to more productive, less absenteeism, and may improve one’s quality of service. Monetary incentives when awarded to one employee may also be a morale booster can also encourage other workers to improve his or her work performance, and maintain a healthy, friendly, positive work environment. A healthy workplace is a product of a successful and productive work environment. Working in this kind of economy, monetary incentives is the excellent method to use. However, these incentives may persuade others and may not to some; the result will be the same, increased quality work

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.

Herzberg doesn?t believe in the giving of bonuses in order to increase productivity. Herzberg states that ?Hunger, a basic biological drive makes it necessary to earn money, and then money becomes a specific drive? (Herzberg, 1991, p.16). This means that once employees start being rewarded with money they won?t be able to work without it. Another firm believer of this is Kohn who states, ?When reward systems fail don?t blame the program, look at the promise behind it.? (1993, p.54). Kohns article describes incentives, as only bringing temporary compliance and once the rewards run out people will revert back to their old behaviours.

In May 2007, the Engstrom Auto Mirrors plant was facing the crisis. The business was doing badly and the sales had started to decline in 2005. Thus, there was a steep reduction in plant productivity and employee morale was all time low. The company used Scanlon Plan as an incentive for staff. The core element or foundation of the plan was concept of participative management, where management and staff together will decide the bonuses based on revenues for that year.

Most of us like to be valued as an employee and a person. This plan did not allow the employees to feel this way. As the morale dropped, so did production and from there, the bonuses dwindled. Instead of looking at themselves for the lack of bonuses, they blamed management. Their lack of understanding on the rate changes did not help the process. According to Maslow’s Hierarchy, the employees’ needs were not met and frustration created tension, which created low to no production. The company faced major decisions and needed this situation to be resolved quickly. The managers faced a crisis and needed a solution before the plant was forced to close its doors and have to lay off the employees.

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

All organization goes through issues during a period of time. The majority of the time they exist because management did not identify them on time. Whether or not if they are minor or malignant, these issues, if they are not solved in a timely manner can have a detrimental effect on the organizational structure of any company. As stated earlier in this case study, Engstrom Auto Mirror Plant faced organizational issues (lack of trust and employees’ low morale) that are clearly disturbing their social structure. They were too focus on implementing the Scanlon plan that they forget on how to prevent other issues from arising. There are a few measures that the plant could have taken to either avoid the issues from existing or improve their outcomes. By applying human behavior theories and concepts, organizational improvement outcome and strategic action for the plant will be

Engstrom should provide a space in which workforce can communicate by having managers listen to them and asking them questions. People generally know the right answers if they have the opportunity to produce them. For Engstrom creating teams and committees with members from each production department to management is important. A committee can help improve the line workers morale with ideas such as improvement for production, and meeting delivery deadlines. A committee of managers from each department within the plant who will work with plant line workers to make suggestions and improvements for employee morale and improvement. The teams formed should be from all functions and staffed with members whose talents match team tasks. Committees are

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.

Engstrom Auto Mirror Plant is facing an internal crisis which primarily is a motivational problem. Ron Bent, the manager, and Joe Haley the assistant has seen workplace culture and productivity decline over the years. Ron joined the company when it was going through a similar issue in the past. He came and implemented an employee incentive program which is general across the United States. The incentive program called Scanlon Plan was originally very effective in employee motivation and increasing productivity at Engstrom, but it is now failing.

In the early 2000’s, Engstrom developed a major issue with financial logistics. The inability to pay bonuses to hard working employees (most who had relied on them as a regular part of their paychecks since the Scanlon plan’s institution in the 1990s) resulted in damaged morale and decreased productivity (Beer, 2008). Ultimately, utilizing monetary praise as a lone symbol of employee value accelerated any negative impacts due to the outdated Scanlon plan or the economic downturn.

What intrinsic and extrinsic rewards could management provide to motivate and increase productivity in ES employees?

“While Mangers complain about lack of motivation in their workers, they might as well consider the possibility that the reward systems they’ve installed are paying off for the opposite”.

Lastly, employees like every other person seek recognition and appreciation. Therefore, they should be appreciated when they perform exuberantly in their jobs. One needs to clearly convey how an employee’s performance contributed to organizational results. By appreciating them, you are motivating them to do better. Monetary rewards in the form of year-end bonuses are also always a great way to improve the morale of the employees. I believe, that Mr.Hussey after considering the above motivational factors, should then take the final decision, as to how the work could be performed in the best possible manner.

Scientific management uses incentives to motivate workers. This idea comes from Henry Gantt who introduced the bonus system, which motivated workers to complete their daily tasks by