Topic > Engstrom Auto Mirror Case Study - 722

The plan paid regular bonuses along with paying a percentage of the labor savings each month. This motivated all employees to boost their morale and increase their productivity. However, the only misleading part of the Scanlon plan was that employees began to believe that the bonus was part of their regular paycheck, instead of connecting the bonus with their own improvement efforts they had put into the company. Thus, expectancy theory has been a dominant model in explaining how people make decisions about spending effort in the workplace; the conventional approach while applying the theory involved in multiplying outcomes such as salary increase or promotion by the expectation of an outcome that will occur if a person works hard. (Biberman, G., Baril, G.L., & Kopelman, R.E., 1986, p.2). Furthermore, findings in expectancy theory would be obtained from a motivational strength score that could predict work effort and job performance of all employees. Therefore, it is ideal that employees respond positively to the following three essential elements so that they can put extra effort and performance into a specific job. The three essential elements are as follows: expectancy, instrumentality and valence are linked to motivation. If an employee feels appreciated and rewarded for their efforts