BUAD 304 Chapter Notes - Chapter 1: Equity Theory, Expectancy Theory, Toyota Electronic Modulated Suspension
26 May 2016
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Engstrom auto mirror plant: motivating in good times and bad. The case facts (brief summary; 2-4 sentences of what"s happening and who"s involved): Engstrom auto mirror plant is suffering from a productivity problem, resulting in issues with the quality of the product produced and meeting customer-required timelines. Problems seem to be arising from lack of motivation in the work force. Management seems to be struggling with coming up with a proper incentive plan to motivate their employees. The issues/potential main problem (main issues in ob terms related to the module): Engstrom employees, to some extent, consider the bonus to be an expectancy, therefore diminishing its ability to motivate. The scanlon plan is not in compliance with the equity theory because employees feel they are working harder than some supervisors who are not suffering from reduced bonuses. This results in reduced motivation because the employees, relative to the supervisors, feel under-rewarded.
