Case Study Analysis (Milestone Three):
Engstrom Auto Mirror Plant: Motivating in Good Times and Bad
Patrice Tave-Wagner
Southern New Hampshire University
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Abstract
In Milestone Three, I have identified organizational improvement outcomes that are a
direct remedy to the organizational issues identified in the case study analysis of the Engstrom
Auto Mirror Plant: Motivating in Good Times and Bad. Also, including recommended strategic
actions that would proactively lead the organization by applying human behavior theories and
concepts to validate my recommendations for the study.
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III. Solutions Development
According to "equity theory," companies should strive to make employees feel that they
are neither over-rewarded nor under-rewarded. If employees feel that either case is being applied
in their work setting, they will strive to balance equity. The first solution that could be used by
the company is the improvement of equity in the organization, which was a direct correlation of
the lack of variance in the Scanlon Bonus Plan (incentive program) for employees who were not
extrinsically motivated by money. It is evident that the employees felt that they were not being
treated fairly; therefore, actions should be taken to fix that. For example, the company needs to
amend the existing compensation plan, along with the inclusion of employees in the decision-
making process. By involving the employees in developing the incentive program and how to
improve it, the company is allowing the employees "to contribute to group goals and share
responsibility for them" (Newstrom, 2015, p. 208). This allows for true participation, which
ultimately empowers the employees.
To explain further, when it comes to deciding the number of bonuses that should be
handed down to the employees, it would be a good idea to include some of them. That way, they
can weigh-in on the details of the plan along with air out their opinions on what they believe is
fair. (i.e., company/individual/team goals, and the number of bonuses, etc.). Another move that
can be undertaken by the company is to ensure that management also takes a hit when it comes
to decision making regarding layoffs. If they cannot be laid off from their employment, they can
make a significant reduction in their salaries. That way, the employees will feel that the
organization is treating all of the employees equally, and it will work to improve on their
productivity. The difference in bonuses between the employees and the management should not
be too high. The higher the difference, the higher the feeling of inequality in the organizatio