Case Study: Engstrom Auto Mirror

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Engstrom Auto Mirror is a private manufacturing organization that produces mirrors for vehicles such as trucks and other automobiles (Beer). The current major problems that Engstrom is currently facing, are some big layoffs and its newly implemented Scanlon plan isn't working. Thus, employees have been demotivated to work which causes its productivity level in the organization to decrease. In 1990s Engstrom’s production delays and low profitability were at its lowest, and downturn started in the industry from 2005 onwards.
This case represented an example of bad management. It is evident that Engstrom’s current system for employee engagement is outdated and has become unsuccessful. There have been numerous complaints and constant
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With organizational change, the first step in the process is to have the managers and governing body put into place and manage a policy or procedure that measures the current level of performance. This then generates ideas for how the organization can modify behavior. The primary goals of organizational improvement are to increase organizational effectiveness and efficiency to improve the ability of the organization to deliver goods and or services (, 2018). Engstrom is in dire need of an organizational improvement. For this change to work, Engstrom needs to implement the following solutions in a proactive…show more content…
A goal setting approach will provide effective goals and create attainable goals for employees to reach. An example of a goal oriented theory that can be implemented at Engstrom is the idea of the Path-Goal model. This theory is based on specifying a leader's style or behavior that best fits the employee and work environment to achieve a goal (House, 1974). The entire idea behind a goal based theory is to increase your employees' motivation, and satisfaction so they become productive members of the organization (House, 1974).
When organizations can engage their employees to become productive members, it is only then that the employee will change their attitude and have a sense of motivation that will show when the outcome is received. It is the same idea behind a kid receiving a reward for cleaning up after themselves. A goal was set and achieved and it was followed by a reward. Essentially, an individual will act in a certain way based on the expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual (Path-Goal Leadership Theory, 2018).
The basic steps behind the idea of a goal theory is for organizations to first determine the employee and environmental characteristics, second, select a leadership style that correlates with the organization and employees, and three, focus on motivational factors that will
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