Introduction
Engstrom Auto Mirror Plant is in a financial fix. The management is at crossroads on the best way to navigate the company out of its current condition. The firm seems to have a series of production problems, the third in two weeks. The plant manager, Bent seems to be losing his tempers on his assistant, Haney, who he tends to think, is making a series of bad decisions (Beer & Collins, 2008). The slow pace of production seems to be the sole reason for the downturn in progress of the Engstrom Auto Mirror Plant.
Hanley thinks that the murmurs among the employees about the scrapping of the Scanlon plan are a reason of concern. According to Haley who has only been in the plant for four months, the employees are demoralized the reason for the poor delivery at work. Bent hold to it that the company loses money on a slip up on productivity the same amount he could have used to give to the employees as a bonus. The company needs a drastic solution to overcome the challenges that it currently faces.
Incentives Implementation (Scanlan)
The management at the Engstrom Auto Mirror Plant needs not only to share the risks with the employees but the rewards as well. The employees will feel appreciated and recognized by the organization, as such; they will commit to doing more towards the achievement of the plant goals (Rose, 2013). The human behaviour is that they will act in their best interest depending on the structure of both pecuniary and non-pecuniary rewards. The Scanlon incentive plan that seems to enjoy the favour of many workers going by the 81% employees who voted in its favour should be implemented for the sake of the employees (Beer & Collins, 2008). Human behaviour theory points to the fact that employees just like clients appreciate the slightest gesture of appreciation hat come from the management.
Observational Learning
The management at Engstrom Auto Mirror Plant should initiate instant refresher training for all its employees. The decision by Bent to take a group of workers to a different firm that had effectively and successfully implemented the Scanlon plan is one of the ways by which workers learn by observation (Beer & Collins, 2008). Bent should task Haley with inviting workers from other organizations to inspire commitment and discipline among the employees at the Engstrom plant. There is a need to promote the disciplined workers to supervisory positions as a means of identifying the role models to emulate by the rest of the employees in the organization.
Self-Efficacy
The management must immediately seek to instil and emphasize on the organization culture. The must be strict rules that every worker must follow for as long as they work in the organization. Bent must be able to make hard decisions such as firing those employees who seem unable to follow the organization's rules. According to the human behaviour theory, employees tend to suffer from the illusion of control (Rose, 2013). They may sabotage the progress and the work of the Plant if their demands are not met. The management must be ready to initiate a viable stability situation at the plant to ensure that the self -efficacy becomes a part and culture of the Engstrom Auto Mirror Plant. Each of the employees must be responsible for their actions and must as such responsibility for the same (Rose, 2013). The reward or punishment of workers must thus follow individualized approach to the same.
References
Beer, M., & Collins, E. (2008). Engstrom Auto Mirror Plant: Motivating in Good Times and Bad. Human Behavior in Organizations. Harvard Business School. (2175); 536-543
Rose, A. M. (2013). Human behaviour and social processes: An interactionist approach. Routledge.
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