Engstrom Auto Mirror Plant Case Study

Now that the Engstrom Auto Mirrors Plant case study has been analyzed, I would recommend taking account employees suggestions while ensuring that employees are valued and equality is maintained, and modifying the Scanlon plan to maintain employee motivation and enthusiasm. To start it is important to modify the Scanlon Plan first foremost to resolve inequality and motivation & enthusiasm issues at the Engstrom Auto Mirrors Plant. Therefore, Engstrom should create a modified Scanlon Plan that would conveys bonuses to increase companies productivity, allow feedback to improve job performance and set specific goals for production to motivate the workers. “The five needs of Maslows motivational hierarchy are physiological, safety- security, belongingness,
esteem, and actualization (Taormina, R., & Gao, J.H., 2013). As far as the new Scanlon Plan it should have a simple payout type of calculation. Therefore, the bonuses should not be paid on a monthly basis, but on a fixed ratio plan, which would help in aiding for motivation. When the right behavior and production goals are met the worker will get rewarded in form of a bonus.
For example the current allowed payroll at the Engstrom Auto Mirror Plant is a 38 % of sales value (Beer & Collins, 2008, p. 7, Exhibit 1). The current percentage does not have to change rather when the company production reaches about one million dollars then 10 % of the amount should be distributed to all of the employees at the Engstrom Auto Mirror Plant in form of a bonus on there paycheck because the production goal was increased and met. Consequently, resolving all of the issues with the first Scanlon plan. The new modified Scanlon plan would typically connect the employee’s hard work and effort with rewards. Which would later instill in the employee mind if they increase their production and put in effort it would increase their rewards which is in the form of a bonus. Furthermore, in this modified plan there is less mystery within in the plan. If an employee is fully in charge and knows that to earn a bonus, hard work and meeting production goals are necessary. Which would prevent any issues with upper level management for holding their bonus money along with preventing any interpersonal issues with upper level
management. Secondly, in addition to the modified Scanlon plan there would also be improved communication system, in suggesting productivity, improvement by utilizing the new improved feedback system to the upper level management. Along with that now upper level management would hold regular open meetings with the employees to discuss productivity and come up with strategies as a team to improve production goals. Not only will this build better interpersonal relationships amongst upper level management and employees, both parties would have to work together to achieve specific production goals. In the process all of the employees would feel valued and appreciated. Certain types of games and competitions can also be held within the company to achieve and build relationships and earn bonuses & rewards. For example, upper level management and employees could be split up together into two or three groups in doing a specific common task at the plant. And whichever team figures out the plan and completes the task first would win a prize. Games like this would help the company and workers at the company to bond together and work together as teams to reach production goals along with maintaining a family like environment amongst the employees and upper level management. In conclusion, it is vital that one sets realistic and achievable goals for employees to achieve.