Engstrom Auto Mirror Plant: Motivating in Good Times and Bad.

1.Conduct an internet search for Scanlon Plans. Briefly describe the main elements of such plans. What are the pro’s and con’s of these types of gainsharing plans.
2.Briefly describe Maslow’s Hierarchy of Needs theory. Briefly describe Herzberg’s Two-Factor Theory. Briefly describe Equity Theory. What is the value of understanding these theories in managing compensation and motivating employees?
3.Many companies use merit plans to connect performance to compensation and salary increases. What must be in place for merit plans to work? What are the weaknesses of a merit plan?
4.Identifying the key problems/issues facing Engstrom, and then identify the key theoretical contributions (what it should do for a company) that a Scanlon plan should bring to a company. Is Scanlon a good solution for Engstrom’s challenges? Why? Why not?
5.What organizational factors at Engstrom impacted how well Scanlon performed at the plant? Now generalize to other organizations, not just Engstrom: how are pay-for-performance systems influenced positively or negatively by other organizational factors and organizational culture?
6.How important do you feel money is as a motivator? Does pay motivate you? Why or why not? Would you be less likely to spend time on innovative, creative pursuits if you were not paid for that effort? Explain.
7.How does pay, and employees’ perception that pay is seldom fairly linked to performance, hinder collaboration, team work and morale in an organization?
8.If you were Bent, how would you solve the problems facing Engstrom?

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