Case Study: Improving The Scanlon Plan At Engstrom

1269 Words 6 Pages
Question 3
The first factor that is internal to the organization: Haley had told Ron that we both know the employees have been complaining for months, but yesterday and today the talk has been pretty hostile. He wasn’t saying that there is a definite connection between nearly late delivery and the grumbling I heard, but you've got to wonder. Product-quality issues had also been creeping into the work done at Engstrom. Bent hoped that he was not trying to pay for air-expedite defective mirrors to Martinez. (Beer, Collins). The second factor that is internal to the organization: In June 2006, Bent had to lay off a lot of employees, the amount totaled to 46 of his 255 employees employed at Engstrom. And in turn, those people who remained
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As mentioned in the case, the major problems with the plan were the bad communication from the upper management to their employees that led to lots of confusion and distrust. The confusing and complicated bonus calculations. As well as the lack of consistent implementation, as the plan wouldn’t be implemented for multiple months in a row. As such, the following are some suggestions we have formulated to help improve the Scanlon Plan at Engstrom:
Generate bonus calculations that are simple and understandable for the employees. Make it very transparent and easy to figure out so that your employees can quickly check whether or not their bonus amount is indeed the correct amount. This way they don’t have to just take their superiors word for it.
Consistent implementation is also very important. Since it has been established at the very beginning, that the bonuses are to be given out every month of every year, you need to make absolutely sure that you keep that promise and give out the due bonuses every month without fail. Otherwise, the credibility of the plan will be questioned and create dissatisfaction among the
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A change of views is refreshing, and being elsewhere can take away a lot of stress.

We came up with a few actions that would be needed for the implementation of the recommendations for Engstrom that would gain employee acceptance:
Maintaining a positive attitude.
Being available to all employees.
Offering to help other staff.
Telling their staff what needs to be done, but allowing them to do it how they see fit.
Valuing differences between employees as individuals & utilize the differences.
Actively listen, including using positive body language.
Play with the employees when applicable, this allows real-time for people to get to know one another.
Share real compliments on employees’ work and contributions to the business.
Be sure that everyone knows the end goal.
Be congruent and transparent at all times.
Hopefully, by Engstrom management following these steps, they will start to rebuild the trust with their employees that they once had. It will take time for the employees to believe in the management team again because they had already been let down, but if they see a sincere attempt is constantly being made, they will eventually believe in the company

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