Revamping Engstrom's Compensation Plan: The Scanlon 1.5

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III. Solutions Development Organizational Improvement The Scanlon Bonus Plan at Engstrom was not working as initially anticipated. Engstrom must make the decision of keeping the exact plan in place, amending it, or to discard and create a completely new compensation plan. Keeping the exact plan that is in place would be a poor choice which was explored in the previous Milestones. The best options would be to either amend the current plan or to start fresh with an entirely new plan. Employees currently lack trust in the plan that’s in place, therefore, a new compensation plan should be generated. The previous Scanlon Bonus Plan was confusing and could easily be manipulated; and in time, it became extremely inefficient. The new compensation plan, titled Scanlon 1.5, should be generated. Scanlon 1.5 …show more content…

Due to the sudden cut-off of bonuses, the termination of employees, ignoring employees, lack of trust, and managements reaction, the overall work culture at Engstrom has been eliminated. It is imperative to upkeep workplace culture because it is a direct correlation to job satisfaction, innovation, and employee pride; these are determinants of whether employees choose to leave the job, or stay. It is in Engstrom’s best interest to keep good employees on board; incentives must be in place to assure such. Workplace culture is the most difficult to repair; and the most important to address. To successfully repair workplace culture, management must assure the following: employees are satisfied with their tasks, employees must enjoy working together, must understand and believe in the company values, employers must reward good work, both management and employees must be aware of the mission statement, and that all management leaders are all in sync (Saltzman, 2015). If these tasks are completed, the workplace culture, in theory, will slowly rise in a positive

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