A Report On Engstrom Auto Mirror Plant Essay

1235 Words Apr 29th, 2016 5 Pages
Engstrom Auto Mirror Plant has been experiencing a severe decrease in productivity, product quality, and employee motivation in several recent quarters. The company was initially able to improve performance by instituting the use of the Scanlon plan, but the improvements were temporary and the company has continued to decline since. There are a couple of root causes which have contributed to the decline in production, motivation, and quality; communication, and trust seem to be at the top of those issues. The success and morale for any organization relies on clear and concise communication. When Engstrom first implemented the Scanlon Plan there was many employees who voiced a distrust for how the bonuses were calculated and also the fact managers received bonuses which employees felt they didn’t earn (Michael Beer, 2008). Managers and plant leaders seem to have overlooked the growing concern and distrust of how the bonuses were calculated, and failed to follow The Two-Way Communication Process as outlined in the text (Newstrom, 2015). The employees developed an idea, the distrust of the calculations, which they communicated to the leadership, who failed to provide adequate feedback to maintain the trust. While it was agreed to show the employees how the bonus was calculated regularly the complexity of it made it difficult to understand for many, this resulted in the distrust many employees felt. As a result of continued lack of communication and understanding of the…

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