Case Study: Root Causes
Milestone Two Analysis
The organizational issues that have arisen in Engstrom can be characterized based on the cognitive approach. It proceeds from the recognition of the primacy of human mental activity (Luthans et al., 2021). This approach has found the most significant application in developing motivation theory. Expectation, attribution (attribute, affiliation), locus (direction) of control, and goal setting characterize the purposefulness of organizational behavior (Luthans et al., 2021). This approach uses the connections between the process of cognition and organizational behavior.
The fact is that the company has made attempts to create a motivation system based on the activity of employees regarding their suggestions for improving the company. However, in this case, the problem is that the Scanlon method used by the company does not allow to motivate employees at unstable times competently. In this case, the main problems are that the company has no opportunity to pay the bonus after the decline in economic indicators (Luthans et al., 2021). From the employees’ point of view, only what concerns them directly is important to them. They lose the opportunity to receive bonuses, and their productivity and initiative respectively decrease. This is due to the fact that they no longer have the opportunities to realize their potential as before.
Case Study: Solutions
Milestone Two Analysis
In addition to the systematic perception of the workforce, the situational approach requires considering the managerial situation and the influence of situational factors on the behavior of people in the organization. This approach to management proclaimed that due to the uncertainty existing in the organization and its environment. The multiplicity of possible solutions to management tasks is generated by a variety of situations; there is not and cannot be a single universal approach to management in general (Thompson & Glasø, 2018). To predict people’s behavior, it is necessary to consider the situation and its perception by the system, that is, by the team and the organization.
Engstrom needs to change and modify the current employee incentive system and focus on increasing trust. The reward system should be transparent and understandable, based on quantitative assessments. It is necessary to use clear evaluation criteria common to most employees. It is essential to ensure the information availability of the incentive system; information about them should be distributed promptly at all levels (Thompson & Glasø, 2018). Employees should receive incentives immediately after positive results. The size of salaries and bonuses should not be tied to the positions held – if an employee consistently shows good results, their remuneration should be significant.
Case Study: Strategic Actions
Milestone Two Analysis
It should be noted that Engstrom is entirely dependent on the motivation of its employees, so it is necessary to develop strategies that will allow the company to change its approach to management. One of the prerequisites for proactive management in business is analyzing market behavior and trends (Escrig-Tena et al., 2018). The use of intelligent technologies helps to predict the behavior of the business system to the head of the corporation based on analyzed and created models of the development of the situation (Escrig-Tena et al., 2018). It can be done by taking into account previously accumulated and current data. The intelligent, proactive management complex includes various software and hardware platforms, and universal and specialized applications that can be integrated into a single information system to solve a unique task for Engstrom. Thus, with the use of a human-machine system and a tool to support the effective intellectual predictive activity of the company, it will be possible to make the necessary changes without losing the company’s efficiency.
Case Study: Description, Understanding, Prediction, and Control
Milestone Two Analysis
With a well-chosen strategy and its optimal implementation, the movement of the participating elements is transformed from a chaotic state into an ordered one. It is worth noting that this significantly increases the effectiveness of the planned actions of the organization. The goal of the strategy is to hold the points of the present and the future simultaneously and implement a consistent and gradual transition of actions on these ideas (Olkiewicz, 2018). Forecasting plays a special role in developing the strategic image of the organization. Ideas about the future of a company can be very diverse. However, without them, the organization loses its development guidelines and the meaning of its existence (Olkiewicz, 2018). The importance of describing and understanding the situation in which the company is economically and financially located is manifested.
In the ever-changing conditions of the modern world, timely implementation of changes in an organization plays a significant role. This aspect is depicted in its existence as an integral structure and in determining the financial and social status of its employees (Olkiewicz, 2018). If global and long-term perspectives prevail when making a particular management decision, they are likely to be divorced from reality, and only general answers will be received to specific problems. If local organizational problems are solved without understanding broader relationships at the strategy level, then such decisions will not be properly prospectively justified; they will be focused only on the organization’s present situation. Therefore, it is essential to control many aspects of the functioning of all company systems.
References
Escrig-Tena, A. B., Segarra-Ciprés, M., García-Juan, B., & Beltrán-Martín, I. (2018). The impact of hard and soft quality management and proactive behavior in determining innovation performance. International Journal of Production Economics, 200, 1–14.
Luthans, K. W., Luthans, B. C., & Luthans, K. W. (2021). Organizational behavior. Van Haren Publishing.
Olkiewicz, M. (2018). Quality improvement through foresight methodology as a direction to increase the effectiveness of an organization. Contemporary Economics, 12(1), 69-81. Web.
Thompson, G., & Glasø, L. (2018). Situational leadership theory: A test from a leader-follower congruence approach. Leadership & Organization Development Journal, 39(5), 574–591.