Engstrom Auto Mirror Plant

In 2007, the Engstrom Auto Mirror plant is still facing issues with productivity and profit loss. Production workers have become unhappy and lost confidence in the Scanlon Bonus Plan (Beer &Collins, 2008, p.6). Engstrom Auto Mirror Plant is experiencing a dysfunctional effect in their social system. Employees have a lack of interest and trust for the company due to the failed incentive plan in motion. Employees feel the calculation of the Scanlon Plan is not fair based on the amount of bonuses that is distributed and fairness.

Some employees felt they deserved a higher bonus amount based on their efforts exceeding co-workers, which led production workers to become passive and production rates to decline. Productivity is a major concern for Engstrom. Employee motivation contributes to good job performance. Engstrom is lacking the ability to provide their employees with a positive incentive bonus, which is affecting the overall production performance.

Employee contribution is another issue that Engstrom Auto Plant faces. Employees dropped to 50 a year, which is a clear sign that employees feel like they are no longer contributing successfully to the plant (Beer &Collins, 2008, p.5). Employee feedback helps to identify employee concerns and needs. Employees should feel that their concerns are heard and addressed by management with the overall outcome to make the improvements at employee and company levels.

Suggestions made by employees are submitted to a committee, which makes the executive decision on recommendations that are implemented or discarded (Beer &Collins, 2008, pg.5). This method needs improvements to make the process more public; employees should have the opportunity gather together to express their ideas and concerns, allowing employees to develop a sense of teamwork (Newstrom, 2015, p.75). Control is one of the four thrust of organizational behavior (Newstrom, 2015, p.5). "Managers