A small merchant located in India was faced with a crisis in May 2007. During this time, the businesses in India were undergoing a sharp decline for two consecutive years where in the year 2005, the sales of plants declined significantly. After about one year, Ron Bent was enforced to put aside the twenty percent of the total workforce. During this period, there were many upcoming issues concerning the quality of the products that were sold by the business.
Additionally, the morale of almost every worker had gown down, and the plant productivity was also going down continually. It was not the first time for the downward trend to occur in this business. However, during this period; the new downward trend in the Engstrom had brought a lot of risk relating to the relationship with the customers.
The organization of Scanlon planned to put more incentives to workers as one of the strategies of boosting the morale of the workers hence boost their productivity in the business. By doing so, the quality of the products produced by the business was predicted to increase hence. As a result of boosting the company back to its production levels. However, the support by Scanlon stopped in the year 2006 where Ron Bent was left with the task of identifying how to get the plant back on the track for production purposes. During this period, Ron Bent laid off many workers from the company as one of the strategies of coping up with the situation of the downward trend by the business (Beer et al. 2008). As a result, he encountered a lot of dispute with the workers who were left in the business because the production of the company was declining in output as well as the low esteem among the employees.
Moreover, he faced disputes because of the problem in the association with the client. It was however not the first time where the business faced this kind of hardships. The business had encountered a similar problem in the year 1997, but the problem was solved by applying the Scanlon Plan.
Since the establishment of Enstrom Glass Pant in the year 1948, the plant had to be active for the more than fifty-two years where after that started making loses in the late 1990s. During this time, the plant was undergoing a transition of trying to create new designs in production as one of the ways to be in line with the use of modern technology. However, the change was very difficult for Engstrom hence with time; the customers became irritated with the business due to the long delays in production. At that time, the plant manager lacked the technological know-how on how to get the plant out of the substandard condition which it was stuck in at that moment. As a result, the manager resigned in 1998 from the business hence paving the way for Ron Bent who was appointed as the manager of the company. The main of Ron Bent was to turn round the activity of the plant hence bring it back to production as before. Ron Bent had a strong belief that he had the power to bring back quality production of products by the company within a short period. A Scotland Plan was one of the strategies which he would use to bring back the quality functioning of the business which he was elected as the manager. A proper establishment of Scotland Plan would lead to better communication with the employees hence in return; the employees would provide meaningful and quality labor to the company hence boosting the working of Engstrom. Additionally, Ron Bent came up with a formal statement on how the plan would be implemented in the business. This formal statement was contained in Scotland Bonus Plan Agreement.
The result of the Sconlan Bonus Plan brought a lot of improvements in the business more so the working of the workers. The bonuses motivated the employees hence making them more productive therefore providing meaningful as well as productive labor which was necessary for the growth of the business. However, Ron Bent had a good vision for the plant but he at some point failed to consider the activity the effect of economic downsides. Another critical factor that the Sconlan Bonus Plan did not provide was the Engstrom misfortune on the wage earner self-esteem (Newstrom et al. 2015). The plan did not provide a way in which self-esteem would be resolved. It was clear that most workers would bring more productivity, but it was not clear that the plan would bring back their self-esteem which they had before.
Resolution and Choices
Ron Bent realized that he had a duty of trying to bring back the self-esteem to the workers by fixing it back. Ron Bent employed ''supportive model'' as a way of trying to fix self-esteem back to the workers. The main objective of better management in business is to facilitate optimum job performance by the employees rather than offering benefits to the employs. In this case study, Ron Bent main ability in the corporation was to notice that there was low morale in the business hence resulting in low performance by the workers. As a result of low morale by the workers, the productivity of the business also goes down hence the low output is realized in such type of situation. However, Ron Bent did not come up with a plan which would ensure that the Sconlan Plan was sustainable.
Beer, Michael, and Elizabeth Collins. (2008). " Engstrom Auto Mirror Plant: Motivating in Good Times and Bad." Harvard Business School Brief Case 082-175, April.
Newstrom, J.W.,& Davis, K.(2015).Organizational behavior: Human behavior at work (14 the ed.).NewYork, McGraw-Hill.
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