Organizational Issues
The decline in employee motivation and overall efficiency was due to the many organizational issues Engstrom Auto Mirror plant faced, which began with the Scanlon Plan. Employees should have had a voice in what occurred throughout the workplace. In addition, new technology was consistently introduced to increase profit and efficiency. After considerable time, different plant management did not support the Scanlon Plan with the times, and what was once a great idea began to fail. Management techniques also did not work well with the plant's employees. Employees who were motivated to recommend ways to enhance the plant were now disregarded The trust between the employees and management decreased.
Communication and trust had clearly become an issue at the plant even though one of the tactics of the Scanlon Plan to help motivate employees was to communicate financial and other forms of data to the entire organization (Newstrom, 2015, p. 540).
Case Study Analysis Engstrom Auto Mirror Plant
Since 1949, the Engstrom Auto Mirror plant of Richmond, Indiana has been manufacturing mirrors for automobiles. It is privately owned and employs 209 people. Engstrom has had a lot of success since opening. However, as time has passed the plant's profits are dropping. Plan (Newstrom, 2014, p. 536). Engstrom Auto Mirror plants organizational issues played a role in the decline in productivity despite their significant success for much of its lifetime. By the late 1990s, they had become stuck in unprofitableness. The organizational issues that Engstrom Auto Mirror faced are a failing incentive plan, low employee morale, poor productivity, lack of trust among staff and management, and the lack of employee engagement. Newstrom, states "The three key concepts of organizations are that they are social systems, they are formed on the basis of mutual interest, and they must treat employees ethically" (Newstrom 2014, p. 19). Within this case analysis, I plan to discuss the organizational issues, the root cause of them, how they impacted the company, its outcome, and solutions. I will also provide you with a personal experience of organizational issues I endured with opening a new location for a research company I worked for in the past.
Engstrom
As mentioned earlier Engstrom was developed in 1949 and has over 40 decades of
substantial success. Engstrom began to decline in the late 1990s and implemented the Scanlon
Plan to help increase its profits. The Scanlon Plan is an incentive program that provides the
employees to have a share in the company's profits and cost savings if their product is high.
Newstrom states, "Organization-wide plans such as Scanlon reinforce teamwork and cooperation
across work groups while they focus attention on cost savings and motivating employees to
"work smarter, not harder." (p. 537). Implementation of the Scanlon plan was to have employees
have more influence on work-related decisions and were to be more motivated by their work
However, despite the plan to motivate their employees, there was a possibility it would have
adverse effects. Many the costs and time associated with the