Scruton Ltd is a small engineer firm that manufactures machine parts.
The directors have a problem: productivity has fallen significantly in the last two year, and the business has started to suffer. The workers are failing to meet their production targets and the company is often late with deliveries to customers.
There are also complaints about poor quality.
The workers are unhappy because they are never able to earn their productivity bonuses.
Morale is low.
The situation has now reached a crisis: the company’s reputation is badly damaged, sales are falling and financial losses amount to thousands of euros each month.