Evidently, there are two major organizational issues that affect the normal functioning of the Engstrom Auto Mirror Plant. After having enjoyed success for years, the firm is facing profitability crisis due to the fact that the management is redesigning its production line so as to incorporate new technology (Beer & Collins, 2008). However, the transition is not smooth. Secondly and most importantly, the issue of employee motivation has proved to be a big challenge. Having been a successful entity, employees were entitled to the Scanlon bonus program that enhanced their hourly productivity level. Since the workers had been accustomed to receiving bonuses, the felt betrayed and reacted with anger when such privileges stopped. Therefore, the productivity and general performance of the organization became increasingly low as employees perceived that what rightfully belonged to them is no longer given.
Direction
Behaviorism, as one of the theories of studying human behavior, states that it through conditioning that shapes an individual/group behavior (Molm, 2011). The conditioning may either be operant or classical whereby a conditioned response is naturally realized in the present of a reoccurring stimulus. Applying this theory to the Engstrom Auto Mirror Plant scenario, it is understandable that employees’ high-performance level was reinforced/motivated through the presence of bonuses. The behavior is now under extinction due to the absence of the stimulus. Therefore, there is a need for the top management to develop a clear strategy to initiate a turnaround. According to the manager – Ron Bent – the suitable turnaround strategy remains to be the Scanlon program. However, this time round, a clear outline of the criteria for awarding bonuses has to be incorporated and agreed upon by all stakeholders and explained effectively to the employees. Also, an effective communication strategy during the program implementation is fundamental in avoiding confusion and suspicion (Bekaert & Engstrom, 2009).
References
Beer, M., & Collins, E. (2008). Engstrom Auto Mirror Plant: Motivating in Good Times and Bad. Brief Cases of Harvard Business School.
Bekaert, G., & Engstrom, E. (2009). Asset Return Dynamics under Bad Environment Good Environment Fundamentals. doi:10.3386/w15222
Molm, L. D. (2011). Behaviorism. Encyclopedia of Social Theory. doi:10.4135/9781412952552.n20
