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Engstrom Case

516 Words3 Pages

The case analysis will develop an understanding of Engstrom’s organizational issues of the company. The analysis will examine the impact of results from organizational theories and concepts that will explain the behavior at Engstrom. Furthermore, there will be a clear direction of elements for and solution for Engstrom to implement within the organization.
Explanation
In 2005, the Engstrom company was facing an economic downturn. This downturn has faced the company with declining sales and revenues, and in effect the company could not pay bonuses to employees. This cause and effect has deemed low employee morale within the organization. Morale is an important factor to determine group satisfaction, as individuals take their cues from associates …show more content…

Management has noticed the deterioration of quality products and the terms of employment has been reduced. Engstrom has lost the goodwill of the supply chain, that raises flags for the demanding customer. Engstrom has the potential to lose their certification of being a recognized in both reliability and excellent quality.
The Scanlon plan can be resolved by advocating changes within the plan that employees are readily to embark for change. Employees need to have an understanding for the changes to be able to accept the terms. Engstrom will need to implement the two-factor model of motivation for employee engagement (Robbins & Judge, 2015).
Direction
The theoretical survey would be relevant for a proper solution to Engstrom’s situation. Maslow’s hierarchy of needs are not being met. The physiological needs, job safety and security, and the need to belong are not satisfactorily being met (Newstrom, 2007). Should money be the most important factor for motivational behavior; the company needs to understand the needs of their employees. Then, the rationalization of motivation will concur with the beliefs of the employees. The incentive scheme should be re-evaluated to introduce a new program of motivation. The company should implement a goal-setting objective. The goal-setting will allow employees to reach self-actualization and manifest self-efficacy, while challenging themselves to do better within the company (Newstrom, 2007). Supervisors will be giving performance feedback to reiterate good

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