Milestone_2.doc Milestone 2 Business Department, Southern New Hampshire University OL

Milestone_2.doc    Milestone 2  Business Department, Southern New Hampshire University  OL-500-X5082 Human Behavior in Organization   Organizational Issues  Organizations are complex systems that combine people from many different backgrounds to achieve a common goal. Looking at Engstrom™s from this perspective we see that there are several issues that have led to Engstrom™s current issues that range from work-related issues to organization structural related issues (Lorenzi & Riley, 2003).  According to Strauss & Sayles (1957), success of the Scanlon plan requires interaction between management and union. So, when Engrstom once again starting to experience issues with production like they did 7 years earlier, Bent started looking at the ways which Scanlon lead to the break down they company is now facing.   Root Cause Analysis  We see that the plan initially started to fall apart when the economic downturn happened in 2005, and the company was forced to lay off 46 of it is 255 employees. And the remaining employees were not receiving bonuses they had grown accustomed too with little to no communication as to why these changes were occurring from management. Employees became disgruntled and started to question the reasons for layoffs, and the formula in which bonuses were calculated and fairness of how bonuses were paid out.  Looking back at when the Scanlon plan was initially introduced in the plant, meetings were conducted monthly in an open town meeting format allowing employees to