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Organization Leadership Case Analysis

0 March 13 2018, 15:53 in Business Essays

Organization Leadership Case Analysis

U: Engstrom is suffering not only from the decline in sales and production but also in employee motivation. The situation turned worst when Rob Bent fired 46 employees, andthis caused more demotivation among the employees, which affected the operations and sales of the company. The operations suffered issues of demotivation among the employees, andthis escalated into lesser productivity, decreased the quality of products, and at the same time, decreased sales. The Scanlon Plan, which is an employee incentive strategy, can become a good solution for the company’s challenges only that if the appropriate means of giving bonuses at the correct phase and at the right time is used for the provision of incentives. As a form of employee motivation, the Scanlon Plan can promote positive reinforcement for individual productivity, and the desired behavior from the employee increases.


S: The central issue of employee demotivation is based on the need to use reinforcement well among the employees. The concept of rewards is definite that it is an inverse relationship between monetary and non-monetary rewards. Therefore, not all employees are rewarded equally. Framing the problem at Engstrom, it can be asserted that the issue is defined by the lack of reinforcement after the devastating actions done in order to keep the company afloat, e.g., the massive firing of employees. It is also noted that employees have become demotivated because Engstrom experienced a massive downturn which prompted the management to fire a lot of employees, and this further aggravated the situation because the employees felt that the management cannot cover for their interests.


C: The alternatives which Bent can use to keep the company back on track, aside from using the Scanlon Plan, is to reassert strategic management. By promoting shared goals and shared the vision, the employees would be adhesive to these shared ideas and thus make them become more motivated in their tasks and responsibilities. The sense of community and belongingness as well as striving to meet the same goal for the company can act aspositive reinforcement. Strategic management allows the alliance between the employees and the management to be built on shared vision and employee engagement so that the company would continue working as a group of personnel working for the same goals – and that is to keep the company in good running condition for the benefit of all personnel. This can also promote increased productivity, production of higher quality products, and harmonious working relationships between the employees and the administration.


C: The best alternative that can address the problem is to use the Scanlon Plan but with reforms to emphasize the need for employees to make an effort rather than wait for their rewards. This would make them deliver tasks according to the needs of the company, and it would make them more motivated to increase their productivity and performance. Reforms in the Scanlon Plan such as giving different forms of incentives to the employees, avoiding harsh punishments, and defining the standard rewards-to-effort ratio can fulfill the needs of the company to motivateits employees effectively.


T: The implementation steps needed to be considered to make Engstrom successful this time is to distribute reinforcement for increased motivation properly. Reinforcements should not be given equally to all members. Positive reinforcement must be given to those who excel at their fields and tasks, while negative punishment must be given to those who are not engaged in their tasks and only promotes chaos and disorder in the work environment. The use of motivational memos for those who are found to excel in their tasks is a good implementationwhile giving incentives – material or nonmaterial – is the best action to be used to increase employee morale and employee engagement. Clearly defining the standards of the company by using the SMART goals as the structure can produce better rewards, and thus increase motivation among the employees.

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