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Engstrom Case Summary

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The issues surrounding the production and quality concerns at Engstrom seem to have come about as a direct result of a disconnect between the company's compensation package and the outcome of quality control. Moving forward with the concept of attempting to provide more incentive to workers while also improving the quality of the products being offered by the company may seem counterintuitive. The tendency of upper management, particularly in manufacturing companies, to view more benefits and incentives being given to employees as being detrimental to the bottom line is often true, but the way in which it is true is related to shortsighted thinking. Providing employees with medical insurance for instance might seem like an expense without benefit for the company, but employees who are not worried about paying their medical bills often prove to be more productive. Outside of gratitude, …show more content…
There appears to be a disconnect between the bonuses which were supposedly set aside for employees, and the actual rate at which the employees in question were compensated when comparing what the employees thought they would be taking home based on the verbal promises of management. Taking advantage of the various tools of compromise and negotiation in this case would mean looking at the budget in a way that is both proactive and honest, and this could mean additional budget cuts in other areas for Engstrom. There should also be a certain level of accountability being embraced here, because it is clear that the company has made some significant mistakes. Being able to compromise in this case would appear to include taking the opportunity to look also at the contributions being made to the company by the management, who clearly is not fully embracing their

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