Human Behavior - Organizations

Milestone 1: Introduction

Kader Conde

OL-500-X3579 Human Behavior-Organizations 18TW3

SOUTHERN NEW HAMPSHIRE UNIVERSITY

Created in 1948 in Richmond, Indiana, Engstrom was a modest auto mirror plant that enjoyed relative success. However, by the late 1990s success turned into failure when previously enjoyed high productivity vanished. Ron Bent, a successful manager in his mid-40s was brought on board with the sole purpose to righted the ship (Beer, Collins, 2008). His solution took shape in the form a well-advised Scanlon Plan. A Scanlon Plan was a known successful recovery plan developed by Joe Scanlon and Douglas McGregor in 1947. It recognizes the work force as “a reservoir of creativity and experience” that can drive plant productivity (White, 1979). The plan was a success; employees enjoyed bonuses, and productivity climbed rapidly. However, in 2005, the once miracle pill became the Achilles’ hill of the system. The industry had hit a downturn, productivity sank as employee moral reached its all-time low. In addition, as if that wasn’t enough, a climate of suspicion, mistrust, and unhappiness grew throughout the plant (Beer, Collins, 2008). Bent’s Scanlon Plan was failing and it was time to do something about it. How did the Scanlon Plan that once helped save the company failed so dramatically? The fact of the matter, in the case of Engstrom Auto Mirror plant, the Scanlon Plan concept did not fail, rather its implementation. In fact, one can claim that Bent’s SP failed to appreciate the long-term effect of relevant organization behavior issues like employee motivation, reward system, effective communication which resulted in lack of trust, and the fact that industries are constantly changing.

The Scanlon Plan was implemented after a majority vote from the employees since they were enthusiastic about the results and returns it could bear. They actively participated to the meetings and suggestions because for once their voices were heard. The problem became evident when the bonuses stopped coming which can be seen as negative reinforcement. According to Beer and Collins, enthusiasm waned, dissatisfaction grew, and suggestion rates dropped precipitously (2008). In order to rebuild employee morale, Ron Bent needs to pay close attention to the expectancy model in order to keep the work force motivated ensuring that positive partial reinforcement is at the heart of it.

Bent also faces another critical organization behavior issue. In fact, the current reward system implemented turned out to be a double-edged sword; thus, affecting the plant productivity and employee morale. It indeed helped motivate the work force with bonuses during the high season in addition to employee