The Engstrom auto mirror plant was beset by various organization issues previously discussed in the introduction of this case study. Some of those key organizational issues included a lack of trust between employees/employer, a lack of employee motivation/morale, and a decrease in comradery among employees (Beer & Collins, 2008). These organizational issues were all centrally rooted around the downfall of the company’s incentive plan, the Scanlon Plan. Now that the organizational issues have been identified, we will analyze these issues from a human behavior perspective, as well as provide an explanation of the resulting impact of …show more content…
This concept of motivation in its simplest form, suggests that employee input must equal employer output (Pritchard, 1969). Or in other words, “employees will put forth a particular level of effort that they feel compares to the reward potential” (Pritchard, 1969). This theory worked well for many years. Employees felt the reward they received via the Scanlon plan was worth the increased level of input on their part, but once the company could no longer afford to continue giving out the bonuses, the employees decreased their input, which ultimately decreased overall production at the plant and began the downfall of the Engstrom auto mirror plant.
References
Beer, Michael, and Elizabeth Collins. (2008). Engstrom Auto Mirror Plant: Motivating in Good Times and Bad. Harvard Business School Brief Case 082-175.
Bruce, A. Pepitone, J.S. (1999). Motivating Employees. McGraw-Hill International.
Manzoor, S. R., Ullah, H., Hussain, M., & Ahmad, Z. M. (2011). Effect of Teamwork on Employee Performance. International Journal of Learning and Development, 1(1). doi:10.5296/ijld.v1i1.1110
Newstrom, J. (2015). “Organizational Behavior: Human Behavior At Work” (14th ed.). New York, NY.
Pritchard, R. D. (1969). Equity theory: A review and critique. Organizational Behavior and Human Performance, 4(2), 176-211. doi:10.1016/0030-5073(69)90005-1
Shields, J. (2007). Managing Employee Performance and Reward.