Michael LaRosa Southern New Hampshire University OL-500 Human Behavior in Organization 6-2 Final Project Milestone Three: Solutions Development 02/23/2020
By now, it is abundantly apparent that the Engstrom Auto Mirror Plant is in trouble.
Decreased productivity, slumping sales, and the loss of the bonus plan coupled with a lack of
knowledge from upper management are just some of the factors that are contributing to
Engstrom's downward spiral. (Newstrom, 2014) The one thing that I noticed is that all of the
issued that I mentioned are correlated to one another, almost as if these occurrences are a
snowball effect. I will discuss why I feel that this is indeed the case and what I feel would be the
appropriate recommendations. Furthermore, I will recommend a strategic action plan for
management to implement that will enable the Engstrom Auto Mirror Plant to run more
efficiently and give upper management the tools that they need to lead in a more proactive
manner.
Poor management led to the loss of bonus pay which in turn led to decreased productivity
which led to slumping sales. This is what I simply refer to as a snowball effect. From a human
behavior perspective, management should have done a better job of listening to their employees
Communication between upper management all the way down the chain of command is essential
in any organization. Management should have an open-door policy that promotes employee
feedback, whether it be positive or negative. Managers should not only listen to their employees
closely, but also implement the ideas of the employees when possible. This ensures that
employee's voices are heard and also makes employees feel as though their hard work and
contributions to the organization are appreciated. These qualities will show that management is
leading by example and the positive behavior will also help to groom future members of
management who may be promoted from within the organization. (Johnson, 2018)
The implementation of the Scanlon plan to re-instate the bonus payouts, although not
favorable by every single employee, was a very good start to re-structure the Engstrom Auto
Mirror Plant to become a fiscally strong and employee centric company once again. This alone
will not ensure the success of the organization moving forward. There needs to be a system in
place where employees can not only voice their concerns, but also make suggestions on how to
improve the organization. There should be mandatory meetings between upper management and
the employees on a regular basis. The meetings should be focused around the company's profits,
employee productivity, organizational announcements, and should also be an avenue for
management and employees to make suggestions for improvements within the organization.
I also feel that there should be a way for each employee to track their progress toward
their next bonus payout. This ensures that the criteria for receiving a bonus payout is fair and
transparent. I would suggest the implementation of a computer based system, linked to any
existing employee portal, that employees can log into from hom