Case Analysis : Root Cause Essay

1074 Words Feb 28th, 2016 5 Pages
Engstrom: A Case Analysis: Root Cause
By: Kyle Schafer As a result from the economic downturn in 2005, Engstrom had once again been faced with employee motivation, low production, and money issues. These issues have been a direct reflection of the poor financial and morality plaguing Engstrom since its start in 1948. The main cause behind Engstrom’s struggles is the declining employee motivation and the growing distrust between upper management and the workers. The employees at Engstrom lost their motivation and were unhappy is the lowest point in company history, which was attributed to the work bonuses being cut short for seven months straight (Beer & Collins, 2008). At the peak of Engstrom’s productivity employees expected to receive bonuses as part of their pay. As a result of this expectation the bonuses original intent of being based on their productivity was lost. The plant manager grew nervous from the lack of production because of its certified supplier agreement with Toyota, which could be lost if production fell to a certain degree. Since he was more concerned with the production issue the complaints of the workers fell to the back burner. Due to this lack of employee attention by the plant manager a “dysfunctional effect” within the company started to arise, with employee production and morale slipping and management not noticing the possible effects that an economic downturn could have on Engstrom (Newstrom, 2015). The employee disconnect has helped…

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