Bent’s Scanlon Plan

However, fast forward to early 2007, and the company is facing the same crisis as it did back in 1998. Bent’s Scanlon Plan couldn’t keep the company up in the long term and has only worked for a short turn around. There were many organizational issues with Bent’s Scanlon Plan, such as “trust”, poor management, employee dissatisfaction.. The employees started to lose the trust they put in they company. Many times, the employees did not receive their bonuses, some of their bonuses has been delayed by more than several months. Another organizational issue was the distrust due to the bonus calculations. As the employees lost their trust in the company, there was belief that the company is “playing with numbers”. One of the main reasons was the fact the management team was changed a total of four times in five years. The employees accused the management of playing with numbers to take additional bonuses for them and not for employees. Both of these issues caused a lot of psychological distancing and started a domino effect as the employees have started to lose their trust in the company, they lost interest in the company, stopped participating in meetings, work and productivity started to suffer, quality of product decreased, and eventually everything fell back to square one. Company is becoming unprofitable, low morale of employees, and eventually failing and losing their customers.

Even though