To begin my analysis of the case study, “Engstrom Auto Mirror Plant: Motivating in Good Times and Bad” there are many factors that affect their organization. Some of the issues that were discussed in the case study where, low morale amongst employees, unmotivated workers and low production. The case study begins with discussing the issues the plant is having with low productivity rates and unhappy employees and customers. As the case continues to build, Collins and Beer discuss the Scanlon Plan. When workers first heard of the Scanlon Plan they were very excited about the news of being able to receive bonuses based on higher work quality and efficiency. After being under the Scanlon Plan for years, bonuses begin to deteriorate …show more content…
Management can have effective communication skills and convey all information to coworkers regarding the state of the business and upcoming information, employees can still have issues with what they are being told. “Although all employees recived a detailed explanation of the process and could easily access the bonus calculations, some employees thought that the company might be “playing with” the numbers.” (Beer 5) Trust is commonly defined as “the willingness of a party to be vulnerable to the actions of another party based on the expectations that the other will perform a particular action important to the trustor, irrespective of the ability to monitor or control that other party” (Mayer, Davis, & Schoorman, 1995, p.712). The lack of trust was created when employee wages and bonuses were being changed which brought about the idea that they were being shortened. However, the issues with wages would have been an issue whether the Scanlon Plan was put into effect or …show more content…
Building a relationship of trust between employee and management goes hand and hand. Without one the other doesn’t exist. Having a lack of motivation, being that the Scanlon Plan was ineffective plays a negative impact on the role of production and performance. According to Maslow’s Hierarchy of Needs, “Employees are more enthusiastically motivated by what they are currently seeking than by receiving more of what they already have” (Newstrom, 2015, p.122). Employees are already receiving payment for their work or thinking process. Implementing another incentive plan wouldn’t change the performance or production levels of the plant being that the Scanlon Plan has failed them once. Maslow’s Hierarchy of Needs models the variety of needs that employees have they can be met. Money is not always the number answer when it comes to solving issues within the work