Case Analysis Of Engstrom Auto Mirror Plant And Workplace Analysis

1952 Words 8 Pages
Every aspect within an organization must be addressed and understood in order for the organization to be profitable. Periodically, numerous organizational issues emerge and must be assess with strategy planning and expertise. With Newstrom’s insight and different scholars, the root causes and the problems were analyzed in both Engstrom Auto Mirror Plant and Workplace Analysis. The case study analysis identifies organizational issues and provides possible solutions. Engstrom Auto Mirror Plant solution proposal contain key terms, such as, Motivation, Communication, Feedback, Goal Setting Theory, Empowering Employees, Social System and Equity Theory. In regards to the "Workplace Analysis," the solutions keywords consist of McClelland’s Achievement …show more content…
Managers of any organization goal should build and maintain a positive and open communication with workers and job fulfillment as the root based of a successful organization. Engstrom Auto Mirror Plant is in incredible misery due to absence of worker motivation; they have sufficient equipment but lack incentives to keep workers pleased. The business organizational issues stemmed from the downfall of the Scanlon Plan. The bonus system was mainly implemented to motivate workers and to have employees surpass the company’s performance goal. However, the purpose of the plan failed because the employees became demotivated by the incentive system, as a result of not receiving their bonuses for seven months. The root cause of organizational issues of Engstrom Auto Mirror Plant was due to lack of motivation and poor communication between management and the employees. The company’s incentive system implemented was an ineffective technique of motivating workers as it failed to support employees’ needs. Engstrom management must understand that to motivate employees, it is important to first find and comprehend each employee’s needs. Management should willingly take care of the necessities of their workers. “The success of any organization depends on the ability of managers to provide a motivating environment for its employees” (Osabiya, 2015 …show more content…
As a result, workers felt disappointed, which led to a reduction in profitability and issues in quality control. The incentive system symbolizes the difference and significance of extrinsic versus intrinsic motivation, one of Herzberg’s Two-Factor Models. In Herzberg Model, “Intrinsic motivations are internal rewards that a person feels when performing a job, otherwise self-motivated while extrinsic motivations are external rewards that occur apart from the nature of work” (Newstrom, 2015 p.123). Evidently, the plan focused on external factors, which led to employees’ increased extrinsic motivation. However, there are several other ways a company can motivate their employees through verbal and formal recognition (awards ceremony, recognition in the weekly meetings) and provide feedbacks. This will show employees how valuable they are to the company and that their hard work does not go unnoticed, which will increase their confidence, attitude and performance. “If management provides feedback to employees, employees are more likely to engage if they have a strong competence motive, a powerful drive to self-evaluate” (Newstrom, 2015

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