Engstrom Essay

1162 Words5 Pages
Question 1: Identify the key problems or issues for Engstrom, and then identify the key theoretical contributions that a Scanlon plan should bring to a company. Is Scanlon a good solution for Engstrom’s challenges? 1.1. Major issues for Engstrom: 1.1.1. Internal problems: - A crisis at the factory with the issues of productivity, work efficiency of workers.- Quality problems of products have also washed into the activities of Engstrom,Engstrom could lose the certified supplier status.- The workforce are having complaints, grievances, suspect of Scanlon Plan, a plan has been adopted for a long time but no change. "What senses does bonus plan make while bonus has not been paid for months?”- The enthusiasm and motivation of employees has been reduced, many people feel there is unfairness going with the current motivation plan. The causes of above problems: - The company could not adjust in time Scanlon plan to maintain staff motivation.- Engstrom did not answer and address the employees’ complaints promptly.- Unable to pay the monthly bonus.2 - The layoffs shook the confidence of employees, leading to insecurity affecting the morale of staff. 1.1.2. The impact of external problems:: - Current economic downturn.- There is many competitors in the field of distribution and production of automotive mirrors.- Quality problems because customers distrust the company's products. 1.2. Theoretical contributions that a Scanlon plan should bring to a company? The heart of Scanlon plan is the concept of participative management. Scanlon believed that individuals will work hard to help achieve their organization’s goals so long as they have an opportunity to take responsibility for their actions and apply their skills. It brings a lot of beneficial contributions to a company: - Employees would work smarter, more proactively and could contribute many initiatives to increase

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