Introduction
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 It is evident that Engstrom’s current system for employee engagement is outdated and has become unsuccessful.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 (en.wikipedia.org, 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
After careful consideration, our team has identified the overarching problem Permalco faces as employee dissatisfaction due to engagement issues. Employee engagement expresses the extent to which employees bring energy and commitment into an organization. Research has proven that engaged workers tend to be more productive and loyal to their employers. Companies whose employees lack engagement are in danger of high turnover rates and low productivity. We have come to the conclusion that, based on the information provided, Permalco has a poor selection process and poor development process.
The central cause stemming from Engstrom’s incentive plan and the lack of transparency of layoffs and clarity of the incentive plan and not being paid based on the terms of the incentive plan. The flaw in the incentive plan was during its initial implementation. The incentive plan was created to save costs not to create unity and increase work performance. Most Scanlon type plans are created for (Wilson,1993): • Submission for improvement by employees from leadership to worker • Structure of the firm that evaluates, giving the sense that every employee has an input in the progress and future of the firm and its own productivity • Monthly bonuses based on the firm’s overall
Engstrom Auto Mirror Plant Author’s Name Institution Engstrom Auto Mirror Plant Engstrom improvement results to remedy the organizational issues Increasing employee engagement The plant seeks to raise the degree of employee engagement with the organization and with their distinct tasks. Employee relations Engstrom auto mirror intends to restructure its management in an effort to restore its strained relationship with employees. It will reduce the layers of management and confer large spans of control to individual managers in order to reduce bureaucracy.
Engstrom Auto Mirror is a family owned manufacturing plant in Richmond, Indiana. The company was established in 1948, producing truck and automobile mirrors. By the mid 2000’s Engstrom employed about 225 people. Engstrom Auto Mirror has the distinct honor of being one of only two certified suppliers for a Toyota, which plant they provide mirrors to.
Ron Bent and Joe Haley, the management team at Engstrom Auto Mirror Plant, must change the way they view the low-productivity problems the plant is having. Bent and Haley’s Scanlon Plan needs a major overhaul, and communication and trust should be immediately returned to the United Auto Workers’ union and the employees who make the auto mirror products. Several concerns need to be addressed: first, whether there was a better business and production plan than the Scanlon plan; second, improving productivity; and third, restoring communication and mutual trust to the organization. Ron Bent’s negative attitude and voiced opinions have cast a pall over all of the issues in the organization (Beer & Collins, 2008). His wavering belief in the company, his leadership, and his employees’ dedication is having the
Analysis AHIMA How are the principles of goal setting applied in this case? In order to transform the way Health Information Services (HIS) Department works, they have implemented a strategy of goals settings in different levels of the organization and that would gradually help the different departments work smarter. The goals setting principle that had been applied in this case are: 1.
Goal setting theory is the idea that goals are the main drivers of intensity and persistence of effort. By setting specific and difficult goals the team will have a better outcome. Coach Brooks is great at setting goals and pushing his team to achieve them. For example, Coach Brooks tell the newly formed team “the final roster will have 20 names on it so more of you are going home. Give 99% and you’ll make my job very easy.”
Overall, the first major issue at Engstrom is motivation. The productivity as well as the quality of the products has deteriorated over the years along with the company’s revenue, causing the employees to lose their incentive to work because nothing is motivating them. Additionally, one of the causes leading to the decline of motivation is the lack of positive reinforcements. A positive reinforcement is when an individual is rewarded for a desirable behavior, which in turn will encourage the repetition of that behavior. For example, when you praise a staff member for doing an excellent job, there is a good chance he or she will repeat that same behavior.
DISCUSSING ORGANIZATIONAL CHANGE Lisa Thai HRMT-440 Colorado Technical University 4/18/2018 Business organizations in the industry are always experiencing changes in the business environment. This forces them to change their operations hence in order to coup with the changing business environment (Fletcher, 2004). The technology keeps on advancing hence the need for business enterprises to adopt the use of it in order to boosts its performance in the industry. Organizations that perform well in the industry starts to grow in size hence expanding their operations in the industry. The increase in size of a firm requires it to makes certain changes in its operations in order to incorporate the growth in its operations.
Using Kotter’s eight steps to analyze the change process 1 Create a sense of urgency From my perspective, our organization change was a failure case. There are many causes, one of which is that our instructor didn’t create a sense of urgency. As Warner Burke stated “Organizational members must see the need for change for them to be willing to embrace it.” (Burke, 1999) However, we all thought that we accumulated a good reputation through years of effort, so that we could easily get the right to host various campus activities, and the greater chance to receive funds and sponsorship fees.
Hence, leaders need to be prepared and manage readiness to the alteration by making an environment of honesty and transparency for their team as a successful implementation of the change is unlikely. Employees must be part of the change hence, they must to be told about the requirement of the change and be given a reward to motivate to embrace the change. If change be accepted by all recipients it can be implemented quickly and effectively. The leaders’ attitudes and behaviors have both positive and negative alterations on the change success. Therefore, leaders of organizations need to try and develop a more framing and shaping behavior, adding skills on themselves to change and motivate the subordinates towards the embracing the change.
Hence, the quality of communication is a critical aspect of successful change (Hayes, 2007). One form of effective communication strategy that PAT should adopt is “Underscore and Explore” which involves two-ways communication. This strategy allows managers to focus on the core issues related to the change. Employees are also given the opportunity to raise their concerns and feedbacks (Campitt, Dekoch and Cashman, 2000). Feedbacks in the form of surveys can be collected from the employees to improve in the change processes (Ford and Ford, 2010; Young and Post,
Employee engagement is a role the employees play in creating a resilient environment for the organization. Employee engagement means that workers are committed to their jobs and switched on at work. This role consists of Career contentment- employees are content with what they are doing, Feasible management- workers display leadership qualities and become more innovative. This encourages resilience as employees are problem solvers and more innovative. " Tesla encourages employee engagement by creating a dashboard that conveys results from a valuable anonymous internal survey that let workers share reviews and concerns to better understand employees.
Now days in business world, there are lots of concepts. The owner of the business needs to follow these concepts and keys to become successful. One of the most important concepts is employee engagement. How the owner follows this concept. This essay will talk about all these and answer these entire questions above.
If employees don 't connect with the values of an organisation, appreciate the contribution they can make, or do not feel that their employer cares or values them; they will not feel committed to the organisation or motivated to perform well. The strength of this is its focus on a specific physical and psychological state of being, meaning that it can be reliably measured and acted upon. Employee engagement as a concept has become increasingly main stream in management thinking over the last decade. It proposes a ‘mutual gains’ employment relationship, creating a win-win for employees and their employers.