Milestone 3: Solutions Development
Solution:
The Scanlon Plan can be used as a major catalyst to turnaround the plant by emphasizing more on productivity. The more they work the faster they roll towards their bonuses; this magical spell is a win-win situation for both the employees and the management. The management can cruise steadily over the wave of bonus motivated productivity and the employees can reap the benefits from the high production rate in terms of bonuses. The plan can be redrawn and a slight change can be made by making the entire plan revolve around the concept of productivity. When productivity assumes a prime position in the plan, employees will strive hard to reach the productivity goals set in the plan, as a result the bottom line of the plant improves and sales will expand (Newstrom, 2015). The management should be vigilant in doling out the bonuses as a monthly bonus will again
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The employee goal will be the production rate and every time they achieve that, bonuses shall be doled out.
• Feedback from the employees should be valued and evaluated as this will help the management to reduce costs and maximize revenues.
• Employees will be self-motivated to achieve the desired production rate as beyond a certain payroll value they will be eligible for the bonus. This strategy will keep them on the run towards achieving a high production rate.
• Employee engagement schemes such as organizing workshops bridges the gap between the management and the employee as listening to the employee grievances solves half of the problem. The other half lies in how the management is able to provide a timeline of solutions.
• Changes and modifications in the plan should be transparent and understandable by the employees which can keep trust issues at bay.
• Engstrom should rope in an Influential leader who has the capability to infuse his beliefs in the
The plan paid out bonuses regularly along with paying a percentage of the labor savings each month. Which motivated all of the employees to increase their morale and increase their productivity. However, the only misleading part about the Scanlon plan was that the employees began to believe that the bonus was part of their regular paycheck, instead of relating the bonus with their own improved efforts they put into the company. Therefore, expectancy theory has been a dominant model in explaining how people make decisions regarding effort expenditure at a workplace; the conventional approach while applying the theory involved in multiplying the outcomes such as pay raise or promotion by expectancy of an outcome that will occur if a person works hard. (Biberman, G., Baril, G. L., & Kopelman, R. E., 1986, p.2). Furthermore, the results in the expectancy theory would be obtained by a motivational force score that would possibly predict work effort and job performance across the employees. So, it is ideal that the employees would respond in a positive manner to the following three essentials for them to employ extra effort and performance on a specific job. The three essentials are the following: expectancy, instrumentality and valence are linked to motivation. If an employee feels valued and rewarded for the efforts they’ve
The Company has adopted this plan to keep things transparent and smooth functioning of the business. But the plan is still not that successful to a large extent.
We can see that piecework is a direct indicator of the employees output. In addition, the year end bonus is linked with the profit the company earns. The guaranteed employment provides employees the base line for their life, so they don’t have to be worried about getting fired or searching for other jobs, which makes them more concentrated on their jobs. From the combination of these three components, employees can have confidence to work and to understand that their performance will be measured properly.
The Engstrom Auto Mirror Plant is confronted with several organizational issues. The Scanlon Bonus Plan is no longer effective, the employees do not trust the plan or management, and the employees lack concern for the company. Engstom must find a way to increase motivation for its employees and implement an incentive plan that will be successful.
This author can remember when his former company offered profit sharing for achieving production and it was motivation to do better job. Smart companies recognize that motivated employees are productive employees, which inspires them to create tactics to keep their workforces gratified and inspired. Therefore, it is wise to offer Incentive plans for performance. With that said there are several incentive plans that can be utilized by companies such as “team and group incentives”, “piecework plans”, “stock options”, “non-tangible and recognition based awards”, “employee stock ownership” ,“merit pay”, and “profit sharing plans” (Dessler, 2011).
For my second recommendation, in order to help with the problem with business having trouble with keeping employees motivated to work for them for longer, businesses should reward employees with bonuses if they stay for x amount of year(s). This will keep employees motivated to continue working at their place of employment and decrease turnover.
Encourage engagement – One of the ways in which recognition of your employee’s efforts or hard work can benefit is by encouraging or inspiring further engagement and boosting overall performance. When one gets some praise or pat on the back, he/she automatically tries to give the same level of performance and improves efforts further.
Participation leads to the enhancement of the quality of the enterprise condition through the employees’welcomed productive suggestions, as the are the ones who are familiar with the actual working realities of the enterprise. This also can assist in the boosting of the employees’ morale, self-esteem and sense of belonging, thus leading to an enhanced feeling of commitment to the organization. The second objective is the resolution of industrial disputes.... ... middle of paper ... ...2014.
In today's complex business environment; traditional approaches like monetary incentives are not the only prime motivators. In addition to expecting financial incentives for their performance, employee's expectations are much more. Appreciation, recognition and opportunities for personal growth; must be catered for to harness maximum productivity. Furthermore in an era where change is imperative for the organisation's survival, highly motivated employees, represent flexibility and show willing to change; a vital component for the success of any organisation.
The "SHL Workers and Good Management Study" asked respondents what inspired them to work harder. The study found that only 20 percent of the workers surveyed reported that they found motivation in money and bonuses. (2)
Victor Vroom proposed that the motivation that a person puts in at work depends on a person’s performance to work towards a reward. (Redmond, n.d.). If an employee puts in more of an effort in his or her job performance, then the overall yield be more as well. This theory works well with salespeople whose income is based off of commission. The commission is a motivator to get more sales which leads to more money for them.
They want their employees to grow and excel to become greater assets for the organization SLIDE 8: Types of Incentives • Rewards • Bonuses • Merit pay • Skilled based pay • Training and Education SLIDE 9: How it will motivate employees – employees are motivated by monetary incentive. The program will enhance the interest of the employees and push them to work harder. Real-time feedback will allow them to set goals and receive continuous feedback from their managers to help them meet those goals and receive incentives. Employees can motivate each other through this plan, if several employees are performing at high levels and receiving incentives, it motivates others to compete at the same level to receive the same incentives as their co-workers.
For maintaining high employee retention, enhancing work productivity, and reducing the amount of turnover, it is essential to deliver feedback that acts as a morale booster and does not hurt one’s ego.
Research has shown that motivation in an employee is an important factor which determines his performance. Motivation is the “driving force within individuals” (Mullins, 2007, p. 285). It is the concerned with finding out the reasons which shape and direct the behaviour of the individuals. The people act to achieve something so that they can satisfy some needs (Gitman and Daniel, 2008). It is important for the manager to understand this motivation of individual employees in order to inspire them and devise an appropriate set of incentives and rewards which would satisfy the needs that they have individually (Kerr, 2003). Once these needs are expected to be met in return for some specific behaviour or action, they would work more diligently to have that behaviour in them and to achieve that objective (Meyer and Hersovitch, 2001). Since it would lead to early and fuller achievement of the company objectives as the individual would work more diligently, it would lead to better organizational performance (Wiley, 1997).
Provide your employees with proper feedback. Feedback can be positive or negative and it is crucial for a better overall team performance. Positive feedback will make your employees feel appreciated and more motivated towards their work. Negative feedback is absolutely crucial for improving the performance of an employee as well as correcting mistakes in the workplace.