How Organization Cultures Form Commerce Essay

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A social unit of people, systematically structured and managed to meet a need or to pursue collective goals on a continuing basis. All organizations have a management structure that determines relationships between functions and positions, and subdivides and delegates roles, responsibilities, and authority to carry out defined tasks. Organizations are open systems in that they affect and are affected by the environment beyond their boundaries.

An Organization can be defined as a one person or set of people getting together in order to achieve one common goal or set of goals. An organization will comprise of a vision, mission and value statement.

Vision : A statement which states the aspiration of an organization what the organization would like to accomplish in long term and short term basis.

Mission : This is a statement that says the how the organization is going to achieve the stated vision . This statement clearly show the purpose and the focus of the business.

A mission is different from a vision in that the former is the cause and the latter is the effect; a mission is something to be accomplished whereas a vision is something to be pursued for that accomplishment. Also called company mission, corporate mission, or corporate purpose.

Organization Culture

Organization culture is the basic pattern of shared assumption, values, and beliefs considered the correct way of thinking about and acting on problems and opportunities facing the organization. Organizational culture defines what is important and unimportant in the company.

(Organizational behaviour - emerging realities for the work force revolution, Steven L. McShane & Mary Ann Von Glinow 2nd Edition )

Culture of an organization is important as it affect the way in which people behave and has to be taken in to consideration as a contingency factor in developing organizations and HR policies, practices and procedures.

How Organization Cultures form

In an organization original culture is formed from the founder's philosophy. Generally top management actions set the general climate of what is the acceptable behaviour of its employees. It will have an impact on the how employees are to be socialized will depend both of the degree of success achieved in matching new employee's values to those of the organization in the section process and on the top management's preference for socialization methods.

Top Management

Organization Culture

Philosophy of organization founders

Selection Criteria

Selection Criteria

Organisational behaviour Stephen P Robbins, Bruce Millet , Terry Waters - Marsh, Chapter 16, Pg . 511

In the book of Michael Armstrong's Handbook of Human Resource Management Practice ( 11th Edition) , he defines organizational culture as follows:

Organizational or corporate culture is the pattern of values, norms , beliefs attitudes and assumption that may not have been articulated but shape the ways in which people in organizations behave and things get done.

The definition emphasizes that organizational culture is concerned with the subjective aspect of what goes on in the organization. It refers to abstractions such as values and norms that pervade the while or part of a business, which may not be defined, discussed or even noticed. Nevertheless, culture can have a significant influence on people's behaviour. The following are some other definitions of organizational culture:

The culture of an organization refers to the unique configuration of norms, values, belief and ways of behaving that characterize the manner in which groups and individuals combine to get things done. Eldrige and Crombie (1974)

Culture is a system of informal rules that spells out how people are to behave most of the time. Deal and Kennedy (1982)

A pattern of basic assumption - invented , discovered or developed by a given group as it learn to cope with the problems of external adaption and internal integration that has worked well enough to be considered valied and, therefore, to be taught to new members as the correct way to perceive, think and feel in relation to these problems. Schein (1985)

Culture is the commonly held beliefs, attitudes and values that exist in an organization. Put more simply, culture is 'the way do things around here.' Furnham and Gunter (1993).

Most of us will not be able to see the values, beliefs norms, attitudes , behaviors as its operate the beneath the surface of organizational behaviour.


Values are beliefs in what is best or good for the organization and what should or ought to happen. The 'value set' set of an organization may only be recognized at top level, or it may be shared throughout the business, in which case it could be described a 'value driven'.

The stronger the values the more they will influence behaviour. This does not depend upon their having been articulated. Implicit values that are deeply embedded in the culture of an organization and are reinforced by the behaviour of management can be highly influential, while espoused values that idealistic and are not reflected in managerial behaviour may have little or no effect. When values are acted they are called 'values in use.'

Values are translated into reality through norms and artifacts, as described below. They may also be expressed through the media of language (organizational jargon), rituals, stories and myths.

Michael Armstrong's Handbook of Human Resource Management Practice ( 11th Edition)

Values are socially desirable, so what people say they value (called espoused values) may differ from what they truly value (enacted values). Espoused values do not represent an organization's culture. Rather they establish the public image that corporate leaders want to display. Enacted values, on the other hand, are values in use. They are the values that guide individual decisions and behaviour in the workplace.

(Organizational behaviour - emerging realities for the work force revolution, Steven L. McShane & Mary Ann Von Glinow 2nd Edition )Chapte 15, Page 449.


Beliefs represent the individual's perception of reality. Values are more stable, long -lasting beliefs about what is important. They help define what is right or wrong, or good or bad, in the world. For example employees at San Francisco provider of internet greeting cards - think it's "cool" to spend long hours at the office with a fuzzy distinction between work and play. In contrast, the corporate culture at SAS institute, the Cary, North Carolina-based statistical software firm, values work - life balance and locking up the office by 5.00pm each day. (Organizational behaviour - emerging realities for the work force revolution, Steven L. McShane & Mary Ann Von Glinow 2nd Edition )Chapte 15, Page 449.


Norms are the unwritten rules of behaviour, the 'rules of the game' the provide informal guidelines on how to behave. Norms tell people what they are supposed to be doing, saying, believing, even wearing. They are never expressed in writing - if they were , they would be policies or procedures. They are passed on by word of mouth or behaviour and can be enforced by the reactions of people if they are violated. They can exert very powerful pressure on behaviour because of these reactions- we control others by the way we react to them.

Typical Norms

How mangers treat the members of their teams (management style) and how the latter relate to their managers.

The prevailing work ethic, eg 'work hard, play hard', 'come in early, stay late', 'if your cannot finish your work during business hours you are obviously inefficient', 'look busy at all times', look relaxed at all times.'

Status - how much importance is attached to it; the existence or lack of obvious status symbols.

Ambition - naked ambition is expected and approved of , or a more subtle approach is the norm

Performance - exacting performance standards are general; the highest praise that can be given in the organization is to be referred to as 'very professional'.

Power - recognized as a way of life; executed by political means, dependent on expertise and ability rather than position; concentrated at the top; shared at different levels in different parts of the organization.

Politics - rife throughout the organization and treated as normal behaviour; not accepted as overt behaviour.

Loyalty - expected, a cradle to grave approach to careers; discounted, the emphasis is on results and contribution in the shorter.

Anger - Openly expressed; hidden, but expressed through other, possibly political, means.

Approachability - mangers are expected to be approachable and visible; everything happens behind closed doors.

Formality - a cool , formal approach is the norm; forenames are/are not used at all levels; there are unwritten but clearly understood rules about dress.


Artifacts are the visible and tangible aspect of an organization that people hear, see or feel and which contribute to their understanding of the organization's culture. Artifacts can include such things as the working environment, the tone and language used in e - mails, letter, or memoranda, the manner in which people address each other at meeting, in e - mails or over the telephone , the welcome(or lack of welcome) given to visitors and the way in which telephonists deal with outside calls. Artifacts can be very revealing.

Michael Armstrong's Handbook of Human Resource Management Practice ( 11th Edition)

Page 389


Probably the most frequently cited source of interpersonal conflict is poor communication because we spend nearly seventy percent of our waking hours communicating -writing, reading, speaking, listening - it seems reasonable to conclude that one of the most inhibiting forces to successful group performance is a lack of effective communication.

No group can exist without communication: the transference of meaning among its members. It is only through transmitting meaning from one person to another that information and ideas can be conveyed. Communication, however, is more than merely imparting meaning. It must also be understood. In a group in which one member speaks only German and the other do not know German, the individual speaking German will not understood. Therefore, communication must include both the transference and understanding of meaning.

Communication serves four major functions within a group or organization: control, motivation, emotional expression, and information. Communication acts to control member behaviour in several ways. Organizations have authority hierarchies and formal guidelines that employees are required to follow. When employees, for instance, are required to fist communicate any job related grievance to their immediate boss, to follow their job description, or to comply with company policies, communication is performing a control function. But informal communication also controls behaviour . When work groups tease or harass a member who produce too much (and makes the rest of the group look bad),they are informally communication with, and controlling, the member's behaviour.

Communication fosters motivation by clarifying for employees what is to be done, how well they are doing, and what can be done to improve performance if it is subpar. The communication that takes place within the group is a fundamental mechanism by which memebers show their frustrations and feelings of satisfaction. Communication, therefore, provides an avenue for expression of emotions and fulfillment of social needs.

The final function that communication performs is related to its role in facilitating decision making. It provides the information that individuals and groups need to make decisions by transmitting the data to identify and evaluate choices.

Essentials of organizational Behaviour - Stephen P Robbins - 5th Edition

Communication can be directed in following ways:




The language of the workplace speaks volumes about the company's culture. How employees address co - workers, describe customers, express anger, and greet stakeholder are all verbal symbols of cultural values. Organizational leaders also use phrases, metaphors, and other special vocabularies to symbolize the company's culture. For instances Jack Welch of ten talk about Geral Electic as a "grocery store." The former CEO of the giant conglomerate wanted every to think of GE as a small business where customer service and other constant search for new opportunities keeps the "shop" in business.

(Organizational behaviour - emerging realities for the work force revolution, Steven L. McShane & Mary Ann Von Glinow 2nd Edition ) Chapte 15, Page 453

In knowledge - based economy, employees require a high level of communication competence. Communication competence refers to a person's ability to identify appropriate communication patters in a given situation and to achieve goals by applying that knowledge. Communication plays an important role in knowledge management. Employee are the organization's brain cell, and communication represents the nervous system that carries information and shared meaning to vital parts of the organizational body. Effective communication brings knowledge edge into the organization and disseminates it quickly to employees who require that information. Effective communication minimizes the "silos of knowledge" problem that undermines and organization's potential and , in turn , allows employees to make more informed decisions about corporate actions. Along with decision making and knowledge management, effective communication coordinates work activities. Through dialogue, co -workers develop common mental models- the broad worldviews that people rely on to guide their perceptions and behaviours -so they can synchronize interdependent work activities through common expectations and assumption. Lastly communication is the glue that bonds people together: it fulfills social needs and as part of the dynamics of social support, eases work related stress.

Communication Channels

Verbal Communication

Written communication

Electronic Mail

Other computer mediated communication

Instant Messaging

Financial statements


Video conference



Individual Behaviour






Key Variables afftecting individual Behaviour - Page 45

In very simplified terms, we can say that an individual enters an organization with a relatively entrenched set of attitudes and a substantially established personality. Although they are not permanently fixed, and employee's attitudes and personality are essentially "given" at the time he or she enters an organization. How employees interpret their work environment (perception) will influence their level of motivation, what they learn on the job and eventually, their individual work behaviour. We have also added ability to our model to acknowledge that an individual's behaviour is influenced by the talents and skills that person holds when he or she joins the organization .


Perception is a process by which individuals organize and interpret their sensory impression in order to give meaning to their environment. Research on perception consistently demonstrates that different individuals may look at the same thing yet perceive it differently. The fact is that none of us sees reality. What we do is interpret what we see and call it reality.

Esstetials of Org behaviour


Attitudes reflects person's likes and dislikes their affinities and aversions towards any identifiable object in their environment.

Attitudes are not the same as values. Attitudes are evaluative statements - either favourable or unfavourable - concerning objects people, or events. The maintenance of work - related behaviours implies that the conditions of the job somehow provide the needs of the individuals, fostering a sense of satisfaction. It has been treated both as a general attitude and as satisfaction with five specific dimensions of job: pay , the work itself, promotion, opportunities, supervision and co - workers (Smith, Kendall, and Hulin, 1969; Balzer and Smith et al , 1990) The combined effect of these factors produce for the individual some measure of satisfaction and dissatisfaction (Herzberg, Mausner, and Snyderman, 1959).

"They 're a bunch of freeloaders!"

"They don't want to work!"

Sore back, baloney!"

You can't trust any of them"

Sound familiar? It should. Therese are some popular tunes on today's business "hit parade." Nat King Cole's classis underscores today's workers' compensation (WC) reality: "Although it's been said may times, many ways….." the problem is bad employee attitudes. "Bad attitudes" are central to the workers compensation costs. (Article on building Positive Employee Attitudes by Larry L. Hansen - American society of safety engineers)

Employee attitudes and satisfaction represent one of the major areas where organizational effectiveness should be measured. How employee feel about their job situation and their commitment to organization are among the most critical consequence that managers can strive to improve. For eg. Employee attitudes about their pay and benefits, their co - workers and supervisors and work hours and conditions are among the many factor that both managers and researchers have considered important to examine.

Attitude and satisfaction are not just outcomes or consequences of managerial strategies. They can also impact on other outcomes in important ways. For eg. There is ample evidence, that employee satisfaction is correlated with lateness, attendance and turnover. Organizations' suffer significant direct and indirect costs when workers miss work. When they quit, the cost of recruitment, selection and getting new employee to fulfill the productivity can be considerable.

However, job satisfaction does not necessarily mean high performance. Many employees regardless of whether their work performance is high or low , may be quite satisfied with many aspects of their employment . One might conclude from this that there is no connection between satisfaction and job performance. Much to the contrary are of the key goals in management behaviour in organizations is to create linkages between employee performance and their satisfaction. It is a significant issue that employees act in same capacity such as with same skill levels, live in the same organizational culture, benefited with similar benefits hold different attitudes as some are enriched with positive attitudes where as some are with negative attitudes. Problem arises when the employees hold negative attitudes as it has a direct impact on following key areas related to individual, group as it will ultimately effect organizational effectiveness.

The most powerful have been found to be the importance of the attitude, its specificity , its accessibility, whether there exist social pressure and whether a person has direct experience with attitude.

Important attitudes are one that reflects fundamental values, self-interest, or identification with individuals or group that a person values, attitudes that individual consider important tend to show a strong relationship to behaviour.

Finally the attitudes behaviour relationship is likely to be much stronger if an attitude refers to something with which the individual has personal experience.

Attitudes are not the same as values , but the two are interrelated . Below are the components of attitudes



Behaviour can be consider

The belief that "discrimination is wrong" is a value statement such as opinion is cognitive component of a attitude. It sets the stage for the more critical part of an attitude Its affective component is the emotional or feeling segment of an attitude. Affect can lead to behavoural outcomes. The behavioural component of an attitude refers to an intention to behave in a certain way towards someone or something. Three main job related attitudes are ;

Job satisfaction

Job involvement

Organizational commitment

Why positive attitudes are important?

Attitudes serve many purposes for people. The functions they perform are,

Provide a frame of reference

Attitudes help us to make sense of the world or interpret and particular situation. In selecting and organizing facts we extract only part of the total information available. We were likely to select those facts that re consistent with our and ignore or discount those that aren't give meaning to what perceive. If our attitude toward on organization is positive, we might interpret what it does in a positive way and ignore practices that are inconsistent with our attitude.

Reinforcement function

Attitudes can serve as means to an end. If we have co-operative attitude at work we might be rewarded by recognition or favourable treatment. Negative attitudes toward co-operation might hurt our chances for promotions.

Ego protection

Attitudes help us maintain our self-image and self respect.

Reconciliation and contraction

Most people have contradictory attitudes or beliefs that do not always add up to an internally consistent whole. Attitudes help us put our thoughts in separate compartments and thereby reconcile contradiction.

Career Attitude

Carrier attitudes are those specific individual attitudes related to work. These are attitudes about the work itself, the place of work , the level of achievement, and the relation between work and other parts of person's life. Career attitudes begin to be formed early in life, before a person has a job, and they continue to be shaped by the person's work experience with regard to the above mentioned facts on attitudes, satisfaction also has an impact on absenteeism, productivity and turnover mainly in an organization.

Satisfied and committed employees tend to remain in the organization and they show less absenteeism since they do like and satisfy with their jobs. Where as dissatisfied employees tend to mislead their work and act poor performance in organizations.


This is a cautious process. It is not just about locating a peak often and reaching future. For, what appears tobe a peak often turns out to be just a plateau from where we can get a view of higher peaks yet to be conquered. In this sense , performance of goals are like shifting sands.

When we look back civilized history, it seems so clean that there has been a dynamic process of setting up goals, reaching them and then looking forward to new ones.

What is true of goals is also true of Olympic or world records. Year after year, the old targets and achievements for high jump, the 100m sprint, weight lifting, swimming and any other sport you can name, pass into history as they yield to new ones in the record book.

Life is a string of stop - over on a journey towards destinations that shift and change as we approach them. We reach individual targets, but we cannot afford to think that we have arrived at a place where we can finally rest, for that sense of arriving comes only at the end of life itself. We must strive to reach but never feel satisfied that we have arrived. This is what keeps an oraganisation going and growing.

Individual Performance

Group performance

Organizational Performance

Page 455(steven L) mary OB - organizational culture and performance

Employee Turunover

Employee turnover (sometimes known as 'labour turnover, 'wastage 'or attrition) is the rate at which people leave an organization. It can be disruptive and costly . The CIPD (2008) survey of recruitment, retention and turnover found that the average rate of turnover (the number leaving as a percentage of the number employed) in the UK was 17.3% . It is necessary to measure employee turnover and calculate its costs in order to forecast future losses for planning purpose and to identify the reasons that people leave the organization. Plans can then be made to attack the problems causing unnecessary turnover and to reduce costs. There are a number of different methods of measuring turnover, as described below.

Employee turnover index

Number of lever in a specified period ( usually 01 year) X 100

Average number of employee during the same period

Michael Armstrong's Handbook of Human Resource Management Practice ( 11th Edition)

People Resourcing Practice Page 497.

The cost of employee turnover can be considerable.

Factors affecting the cost of employee turnover

Direct cost of recruiting replacements (advertising, interviewing, testing, etc)

Direct cost of introducing replacement (induction cost)

Direct cost of training replacements in necessary skills

Leaving costs - payroll and HR administration

Opportunity cost of time spent by HR and line managers in recruitment, induction and training

Loss of output from those leaving before they are replace

Loss of output because of delays in obtaining replacements

Loss of output while new starters are on their learning curves acquiring the necessary knowledge and skills

Research by Phillips (1990) found that the 'visible' ie direct, costs of recruitment accounted for only 10% to 15% of total costs. By far the highest costs were associated with the inefficiencies arising while the post was vacant (33%) and the inefficiency of new workers (32%) . On average, 12.5% months were required for executives to be comfortable in a new position and 13.5 months were required for a new employee to achieve maximum efficiency.

Michael Armstrong's Handbook of Human Resource Management Practice ( 11th Edition)

People Resourcing Practice Page 502.


The turnover of key employees can have a disproportionate impact on the business. The people organizations wish to retain are often the one most likely to leave. It was claimed by Reed (2001) that: 'Every worker is five minutes away from handing in his or her notice, and 150 working hours away from walking out of the door to a better offer. There is no such thing as a job for life and today's workers have few qualms about leaving employers for greener pastures.' Concerted action is required to retain talented people but there are limits to what any organization can do. It is also necessary to encourage the greatest contribution form existing talent and to value them accordingly.

Michael Armstrong's Handbook of Human Resource Management Practice ( 11th Edition)

People Resourcing Practice Page 503

Retention strategies should be adopted based on the understanding of the factors that affect whether or not employees leave or stay. For early - career employees (30 years and under) career advancement is significant. For mid -career employees (age 31 to 50) the ability to manage their careers and sastifaction from their work are important. Late - career employees (over 50) will be interested in security. It is also the case that a younger workforce will change jobs and employers more often than an older workforce, and workforces with a lot of part timers are less stable than those with predominately full time staff. The other factors that affect retention are:

Company image

Recruitment, selection and deployment

Leadership -'employees join companies and leave manager;

Learning opportunities

Performance recognition and rewards

A study by Holbeche (1998) of high flyers found that the factor that aided the retention and motivation of performers included providing challenge and achievement opportunities (Eg assignment),mentors, realistic self - assessment and feedback processes.

According to Capellli (2000), that the market, not the company will ultimately determine the moment of employees. Cappelli believes that it may be difficult to counter the pull of the market - 'you cannot shield your people form attractive opportunities and aggressive recruiters. 'he suggests that : 'The old goal of HR management - to minimize overall employee turnover-needs to be replaced by a new goal: to influence who leave and when. 'This , as proposed by Bevan et al (1997) , could be based on risk analysis to quantify the seriousness of losing key people or of key posts becoming vacant.

Michael Armstrong's Handbook of Human Resource Management Practice ( 11th Edition)

People Resourcing Practice Page 503.


Every organization has to go on a change management process in order to face the competitiveness in the market. According to Levin's is simplified in three stages. For example he says if you have an ice cube and you need to have a corn the following steps should be followed:

The best know change models are those developed by Lewin (1951) and Beckhard (1969) . But other important contributions to an understanding of the mechanisms for change have been made by Thurley (1979), Bandura (1986) and Beer et al (1990).

The basic mechanism for managing change as set out by Lewin (1951) are :

Unfreezing: altering the present stable equilibrium that supports existing behaviour s and attitudes. This process must take account of the inherent threats change presents to people and the need to motivate those affected to attain the natural state of equilibrium by accepting change.

Changing - developing new responses based on new information.

Refrezing- Stabilizing the change by introducing the responses into the personalities of those concerned.

Michael Armstrong's Handbook of Human Resource Management Practice ( 11th Edition) Change Management page 426.

First you need to melt the ice cube (Unfreeze), then you need to mold the melted ice (Change) and finally you make the shape what you want (Refreeze).

Ice cube Unfreeze Refreeze


"Motivation is an inner state of mind, which channels or directs behaviour towards the achievement of pre determined goals" (Mover)

"Motivation can be described as behaviour caused by some stimulus but directed towards a desired outcome" (Victor H.Vroom)

Motive is a reason for doing something. Motivation is concerned with the strength and direction of behaviour and the factor that influence people to behave in certain ways. The term 'motivation' can refer variously to the goals individuals have, the ways in which individuals chose their goals and the ways in which other try to change their behavior.

Motivating people means directing them to move towards what needs to be done by them in order achieve a result. Motivation can be described as goal directed behaviour. People are motivated when they expect that a course of action is likely to lead to the attainment of a goal and a valued reward- one that satisfies their needs and wants.

Well motivated people will engage in discretionary behaviour - in the majority of roles there is scope for individuals to decide how much effort to exert. Such people may be self -motivated, and as long as this means they are going in the right direction to attain what they are there to achieve, then this is the best form of motivation. Most of us, however, need to be motivated to a greater or lesser degree . There are two types of motivation, and a number of theories explaining how it works.

Intrinsic motivation

Extrinsic motivation

Intrinsic motivation

This can be created by self-generated factors that affects people's behaviour. This will not be created by external incentives. When individuals feels that work is important, interesting and challenging and provides them with a reasonable degree of autonomy (freedom to act) , opportunities to achieve and advance, and scope to use and develop their skills and abilities. Deci and Ryan (1985) suggested that intrinsic motivation is based on the needs to be competent and self-determining .

Intrinsic motivation can be enhanced by job or role design. According to the early writer on the significance of the motivational impact of job design (Katz,1964) : 'The job itself must provide sufficient variety, sufficient complexity, sufficient challenge and sufficient skill to engage the abilities of the worker.' Hackman and Oldham (1974) emphasized the importance of the core job dimensions as motivators, namely skill variety, task identity, task significance, autonomy and feedback.

Extrinsic motivation

Extrinsic motivation occurs when things done to or for people to motivate them. These include rewards, such as incentive schemes, pay plans, profit sharing or promotions. Extrinsic motivators can have a powerful effect immediate effect, but nevertheless will not last long.

Motivation also can be defined as the process that account for an individual's intensity, direction and persistence of effort towards attaining a goal.

Organizational Behaviour Stephen P Robbinson,Beuce Millet,Rerry Water Marsh part 2 the individual page 164

Most popular and well known theory of motivation is Abraham Maslow's hierarchy of needs. In his theory Maslow states that every human being has hierarchy of five needs. They are :

Physiological : includes hunger, thirst, shelter, sex and other bodily needs

Safety : includes security and protection form physical and emotional harm

Social : includes affection, belongingness, acceptance and friendship

Esteem: includes internal esteem factor such as self -respect , autonomy and achievement; and external esteem factors such as status, recognition and attention

Self -Actualization: The drive to become what one is capable of becoming; includes growth, achieving one's potential and self - fulfillment.

Organizational Behaviour Stephen P Robbinson,Beuce Millet,Rerry Water Marsh part 2 the individual page 164

The other famous motivation theory is Two Factor Theory proposed by psychologist Frederick Herzberg. In his theory he states that an individual's relation to work is basic and that one's attitude towards work can very well determine success or failure, Herzberg investigated the question, 'What do people want from their jobs?'

In his research Herzberg concluded that the replies people gave when they felt good about their jobs were significantly different form the replies given when they felt bad. Certain characteristics tend to be consistently related to job satisfaction and others to job dissatisfaction. Intrinsic factors, such as advancement, recongnition, responsibility and achievement, seems to be related to job satisfaction. Respondents who felt good about their work tended to attribute these factors to themselves. On the other hand dissatisfied respondents tended to cite extrinsic factors, such as supervision, pay company policies and working condition.

The data suggest, said Herzberg, that the opposite of satisfaction is not dissatisfaction, as was traditionally believed. Removing dissatisfying characteristics from a job does not necessarily make the job satisfying. Hence he states that opposite of 'satisfaction' is 'No Satisfaction' and the opposite of 'Dissatisfaction is 'No dissatisfaction'.

Insert the diagram

Source : reprinted by permission of Harvard Business review, Federick Herzberg, One More Time: How Do You Motivate Employee?" Harvard Business Review, January 2003. Copyright © 2003by Harvard Business School Publishing Corporation.

Profitability: firm for its manage

Generation Gap

Born between 1927 and 1945, Traditionalists (also known as the Silent Generation) are in their 60s, 70s and 80s. About 95% of the Traditionalists are retired from the workforce. Those who remain in the workforce are at or near retirement age and many work reduced hours. Traditionalists in the legal workplace are largely aging partners, managers, senior support staff and "of counsel" to law firms.

Below are a few common characteristics of Traditionalists.

Hardworking: Raised by turn-of-the-century farmers, Traditionalists brought a strong work ethic into the factories of industrialized society. Traditionalists grew up during lean times and consider work a privilege. This generation believes you earn your own way through hard work. Traditionalists are willing put in long, grueling hours to get ahead in their legal careers.

Loyal: Traditionalists are civic-minded and loyal to their country and employer. Unlike younger generations Generation Y and Generation X, many Traditionalists worked for the same employer their entire life and are less likely to change jobs to advance their careers than younger generations.

Submissive: Raised in a paternalistic environment, Traditionalists were taught to respect authority. Traditionalists are good team players and generally don't ruffle any feathers or initiate conflict in the workplace.

Tech-Challenged: Of all four generations in today's workplace, the Traditionalists are slow to change their work habits. As a whole, they are less technologically adept than the younger generations. As technology evolves and changes the practice of law, Traditionalists may struggle to learn new technology and work processes.

Traditional: Traditionalists value traditional morals, safety and security as well as conformity, commitment and consistency. They prefer brick-and-mortar educational institutions and traditional lecture formats to online, web-based education. In the legal workplace, they favor conventional business models and a top-down chain of command.

Baby Boomer Generation

Born between 1946 and 1964, Baby Boomers are predominately in their 40s and 50s. They are well-established in their careers and hold positions of power and authority. This generational segment constitutes a large majority of today's law firm leaders, corporate executives, senior paralegals and legal managers. In fact, nearly 70 percent of law firm partners are Baby Boomers.

Labor statistics indicate that nearly 80 million Baby Boomers will exit the workplace in the next decade. These employees are retiring at the rate of 8,000 per day or more than 300 per hour. This unprecedented loss of skilled labor in the legal profession, consisting largely of partners, executives, senior support staff, legal managers and other legal thought leaders, may dramatically impact the legal industry.

Below are several common characteristics of the Baby Boomer generation.

Work-Centric: Baby Boomers are extremely hardworking and motivated by position, perks and prestige. Baby Boomers relish long work weeks and define themselves by their professional accomplishments. Since they sacrificed a great deal to get where they are in their career, this workaholic generation believes that Generation X and Generation Y should pay their dues and conform to a culture of overwork. Baby Boomers may criticize younger generations for a lack of work ethic and commitment to the workplace.

Independent: Baby Boomers are confident, independent and self-reliant. This generation grew up in an era of reform and believe they can change the world. They questioned established authority systems and challenged the status quo. In the legal workplace, Baby Boomers are not afraid of confrontation and will not hesitate to challenge established practices.

Goal-Oriented: With increased educational and financial opportunities than previous generations, Baby Boomers are achievement-oriented, dedicated and career-focused. They welcome exciting, challenging projects and strive to make a difference.

Competitive: Since Baby Boomers equate work and position with self-worth, they are quite competitive in the workplace. They are clever, resourceful and strive to win. Boomers believe in hierarchal structure and rankism and may have a hard time adjusting to workplace flexibility trends. They believe in "face time" at the office and may fault younger generations for working remotely.

Generation X

Generation X encompasses the 44 to 50 million Americans born between 1965 and 1980. This generation marks the period of birth decline after the baby boom and is significantly smaller than previous and succeeding generations.

Members of Generation X are largely in their 30's and early 40's. On the whole, they are more ethnically diverse and better educated than the Baby Boomers. Over 60% of Generation X attended college.

Generation X legal professionals hold junior partner, senior associate, mid-level paralegal and mid-level support staff positions in law firms. They also hold middle-management positions in the government, corporate legal departments and other legal practice environments.

Below are a few common characteristics of Generation X.

Individualistic: Generation X came of age in an era of two-income families, rising divorce rates and a faltering economy. Women were joining the workforce in large numbers, spawning an age of "latch-key" children. As a result, Generation X is independent, resourceful and self-sufficient. In the workplace, Generation X values freedom and responsibility. Many in this generation display a casual disdain for authority and structured work hours. They dislike being micro-managed and embrace a hands-off management philosophy.

Technologically Adept: The Generation X mentality reflects a shift from a manufacturing economy to a service economy. The first generation to grow up with computers, technology is woven into their lives. As law firms and corporate legal departments integrate new technological tools, Generation X has learned and adapted. This generation is comfortable using PDAs, cellphones, e-mail, laptops, Blackberrys and other technology employed in the legal workplace.

Flexible: Many Gen Xers lived through tough economic times in the 1980s and saw their workaholic parents lose hard-earned positions. Thus, Generation X is less committed to one employer and more willing to change jobs to get ahead than previous generations. They adapt well to change and are tolerant of alternative lifestyles. Generation X is ambitious and eager to learn new skills but want to accomplish things on their own terms.

Value Work/Life Balance: Unlike previous generations, members of Generation X work to live rather than live to work. They appreciate fun in the workplace and espouse a work hard/play hard mentality. Generation X managers often incorporate humor and games into work activities.

Generation Y

Born in the mid-1980's and later, Generation Y legal professionals are in their 20s and are just entering the workforce. With numbers estimated as high as 70 million, Generation Y (also known as the Millennials) is the fastest growing segment of today's workforce. As law firms compete for available talent, employers cannot ignore the needs, desires and attitudes of this vast generation.

Below are a few common traits that define Generation Y.

Tech-Savvy: Generation Y grew up with technology and rely on it to perform their jobs better. Armed with BlackBerrys, laptops, cellphones and other gadgets, Generation Y is plugged-in 24 hours a day, 7 days a week. This generation prefers to communicate through e-mail and text messaging rather than face-to-face contact and prefers webinars and online technology to traditional lecture-based presentations.

Family-Centric: The fast-track has lost much of its appeal for Generation Y who is willing to trade high pay for fewer billable hours, flexible schedules and a better work/life balance. While older generations may view this attitude as narcissistic or lacking commitment, discipline and drive, Generation Y legal professionals have a different vision of workplace expectations and prioritize family over work.

Achievement-Oriented: Nurtured and pampered by parents who did not want to make the mistakes of the previous generation, Generation Y is confident, ambitious and achievement-oriented. They have high expectations of their employers, seek out new challenges and are not afraid to question authority. Generation Y wants meaningful work and a solid learning curve.

Team-Oriented: As children, Generation Y participated in team sports, play groups and other group activities. They value teamwork and seek the input and affirmation of others. Part of a no-person-left-behind generation, Generation Y is loyal, committed and wants to be included and involved.

Attention-Craving: Generation Y craves attention in the forms of feedback and guidance. They appreciate being kept in the loop and seek frequent praise and reassurance. Generation Y may benefit greatly from mentors who can help guide and develop their young careers.

By Sally Kane, Guide

For the first time in the nation's history, four generations are working side by side in the workplace. As attorneys, paralegals and other legal professionals work beyond retirement age, many law firms and legal departments are trying to balance a generation gap of more than 50 years between the oldest and youngest employees. Although there is no consensus of the exact birth dates that define each generation, they are generally broken into four distinct groups:

The diverse perspectives, motivations, attitudes and needs of these four generations have changed the dynamics of the legal workforce. A little insight into the differences among the generations can help you better understand the needs and expectations of your colleagues in an age-diverse workforce. By learning the motivations and generational footprint of each segment, you can leverage your talents and capitalize on the diversity of your legal teams.

Born between 1927 and 1945, Traditionalists (also known as the Silent Generation) in the legal workplace today are in their 60s, 70s and 80s. About 95% of Traditionalists are retired from the workforce. Those who are not retired are at or near retirement age and many are working reduced hours. Many Traditionalists in the legal workplace are aging partners, managers and "of counsel" to law firms.

On the job, Traditionalists are hardworking and loyal. Raised during the Depression, Traditionalists cherish their jobs and are hard workers. Many Traditionalists have worked for only one employer their entire work life and are extremely loyal to coworkers and employers. Traditionalists are great team players and get along well with others in the workplace.

Traditionalists differ from younger generations in how they process and respond to information. They are less tech-savvy than younger generations and prefer in-person interaction to e-mails and technological gadgets. Therefore, the best way to engage this generation is through face-to-face interaction.

Unlike younger generations, Traditionalists are comfortable sitting in long lectures and meetings are less inclined to incorporate video-conferencing and web-based technology into the workplace.

Born between 1946 and 1964, the Baby Boomer generation is predominately in their 40s and 50s. They are well-established in their careers and hold positions of power and authority. This generational segment constitutes a large majority of today's law firm leaders, corporate executives, senior paralegals and legal managers. In fact, nearly 70 percent of law firm partners are Baby Boomers.

Members of the Post-War War II generation, Baby Boomers are loyal, work-centric and cynical. This generation has lived through many changes in the legal industry and brings a different perspective to the workplace.

Baby Boomers often equate salaries, high billables and long hours with success and commitment to the workplace. They value face time in the office and may not welcome work flexibility or work/life balance trends. High levels of responsibility, perks, praise and challenges will motivate this generation.

Generation X encompasses the 44 to 50 million Americans born between 1965 and 1980. This generation marks the period of birth decline after the baby boom and is significantly smaller than the previous and succeeding generations. Members of Generation X are largely in their 30's and early 40's and hold junior partner, senior associate, mid-level paralegal and mid-level support staff positions in law firms as well as middle-management positions in corporate legal departments

After witnessing the burnout or layoff of their hardworking parents, Generation X entered the workplace with different work ethic and culture than previous generations. Unlike the Boomers, Generation X places a premium on family time and has a different attitude about work. They are ambitious and hardworking but value work/life balance.

In the legal workplace, Generation X dislikes rigid work requirements. They value the freedom to set their own hours. Flexible work schedules and work-from-home options (as long as billable quotas are met)may help to retain and motivate this generation.

Generation X has an entrepreneurial spirit. This generation thrives on diversity, challenge, responsibility and creative input. If their current law firm does not provide them with these opportunities, they will not hesitate to seek an employer who will.

A hands-off attitude often works best when supervising, mentoring or working with this generation. Members of Generation X value freedom and autonomy to achieve desired goals and often prefer to work alone rather than in teams. They dislike "meetings about meetings" and don't want face time. Flexible hours and challenging assignments will motivate this generation.

Generation Y

Generation Y legal professionals are in their 20s and are just entering the workforce. With numbers estimated as high as 70 million, Generation Y (also known as the Millennials) is the fastest growing segment of today's workforce. As law firms compete for available talent, employers cannot ignore the needs, desires and attitudes of this vast generation.

This new generation holds entry level associate, paralegal, law clerk and legal support positions in law firms, corporate legal departments, the government and other practice environments.

Generation Y is smart, creative, optimistic, achievement-oriented and tech-savvy. This young generation seeks out creative challenges, personal growth and meaningful careers. They seek supervisors and mentors who are highly engaged in their professional development.

Generation Y are excellent multi-taskers and prefer communications through e-mail and text messaging over face-to-face interaction. Their attitude is "don't waste my time making me come to your office." They would rather send an e-mail so they can be drafting a brief, research a case and answering e-mail at the same time. Cyber training and lectures through web-based delivery systems may be more effective than traditional lectures.

The legal industry is notorious for imposing long hours and billable hour quotas. As Generation Y demands work/life balance in the law firm, employers will need to accommodate them by creating a culture of flexibility. E-mail, laptops, Blackberrys, and other technology tools will help Generation Y work remotely and remain connected 24/7.

When working with or supervising Generation Y, it's wise to impose structure and stability and cultivate a team-oriented environment. Immediate feedback and praise will help motivate and reassure this young generation. Frequent communication and reassurance will help keep members of Generation Y eager and involved.