Organizational Structure And Organizational Culture Commerce Essay


Organizational structure and organizational culture have a dependent relationship with one another. In the business world, management structure determines the behaviors, attitudes, dispositions and ethics that create the work culture. If a company's organizational structure is strictly hierarchical, with decision-making power centralized at the top, the company's culture will likely reflect a lack of freedom and autonomy at the lower levels. If a company's management structure is decentralized, with shared power and authority at all levels, the culture is likely to be more independent, personalized and accountable.

The way a company allocates power and authority determines how employees behave. These choices manifest in a company's organizational structure and organizational culture. Organizational structure is the way a company arranges its management and lines of authority. It determines roles, responsibilities and the flow of information within the company. Work culture results from those decisions.

Most companies use a hierarchical structure that looks like a pyramid on paper. The chief executive or president sits at the very top of the pyramid. His direct reports, usually the vice-presidents, are on a line under him. Their direct reports are on a line under them. The pyramid stretches outward and downward based on the number of levels of management the company needs to operate according to its objectives.

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Upper management uses organizational structure to control who has power and authority in the company. For example, if a company president only wants to deal with the most important decisions and wants to leave the day-to-day decision-making to someone else, the organizational structure would have the president on the top line with the vice-president of operations sitting alone on the second line. This effectively means that the vice-president of operations is the only executive with a direct line to the president, and everyone else reports to him. In this scenario, the vice-president of operations has a great deal of power.

Conversely, the president could allow many of his executives with direct access to him. This is a decentralized approach to organizational structure, allowing more people to have input into the decision-making process. Decentralized power gives more autonomy to individual departments and managers. In this way, organizational structure and organizational culture are interrelated.

A decentralized power structure means there is more room for employee input into decisions. Employees are more accountable, because they have more responsibility. They work more independently, because they do not always need approvals from upper management to proceed. The organizational culture reflects these freedoms.

Likewise, organizational structure and organizational culture can have a negative impact on one another if power and authority are highly centralized at the top of the pyramid. In this instance, employees have little control over decisions and must merely do their jobs. The type of culture this structure can breed is one of no accountability at the lower levels, hostility and an environment where employees do not feel vested in the company or their jobs.

CommonOrganizational Designs

The Simple Structure

• Low departmentalization

• Wide spans of control

• Authority centralized in a single person

• Little formalization

Bureaucracy Standardized activities in a highly efficient manner Economies of scale lesstalented, lesscostly, lower level manager. Creating subunit conflicts and overriding the overallgoals of the organization.

The Matrix Structure

Functional product departments

• Allowing the pooling and sharing

• Provide a clear responsibility for all of specialized resources across activities related to a product but with information duplication of activities and costs programs/ undergraduate Master's Ph.D. research Executive Community academic development service departments accounting Decision and information systems Finance management marketing

The Virtual Organization

Highly centralizedNo departmentalizationAllow them to contractManufacturing, distribution, marketing that to Independent research andbe done better or more cheaply developmentthe managers in virtual structures spend consulting firmtheir time coordinating and controlling externalrelations Factories in Executive Commission sales SouthKorea group representatives advertising agency

The Boundary less Organization

Eliminate the chain of command Limitless spans of control Replace departments with empowered teams by removing vertical boundaries:  Management flattens the hierarchy  Status and ranks are minimized Risk Management Techniques Knowledge Management Applying International Integrity SEAAR Framework Standards

The Boundary less Organization Eliminate the chain of command Limitless spans of control Replace departments with empowered teams By removing vertical boundaries:  Management flattens the hierarchy  Status and ranks are minimized Risk Management Techniques Knowledge Management Applying International Integrity SEAAR Framework Standards.

Question 1.2

- Tall structure is usually supported by role culture. Reasons: Functional specialization, e.g. Boss Ltd is divided by product and geographic areas. Stable organization with processes, procedures and rules, thus, longer decision making process and may be less responsive to market changes (Business performance).

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- Short structure is usually power culture because of lower hierarchy and owner's direct involvement (Relate to example in the case). Decision making is quicker and less time consuming.

- A matrix structure is usually set up to supplement tall organizational structure for project purpose. The advantages of matrix structure help to overcome the shortcoming of the tall structure because of its task-oriented nature. Relate to examples in the case.

Functional Unit Coordination

In an organization, it is assumed that functional units or departments understand their roles and how these contribute to the organization's overall goals. But, most functional units perform their roles in a way that only reflects their specialization and focuses on their own goals. The personal preferences and agendas of a department's senior managers influence the performance outcomes of that department.

Organizational Alignment

Organizational structures that are inorganic and less versatile tend to cause miscommunication in the overall strategy of the organization. Miscommunication largely affects the execution of tasks and objectives and the organization's performance measurements. Open, fluid organizational structures have exemplary performance measurements. Second-and third-tier employees have an understanding of the goals the first-tier functional units have planned to achieve.


1. Demographic Factors: The demographic factors are socio economic background, education, nationality, race, age, sex, etc. Organizations prefer persons that belong to good socio-economic background, well educated, young etc as they are believed to be performing better than the others. The young and dynamic professionals that have good academic background and effective communication skills are always in great demand. The study of demographic factors is significant as it helps managers to pick the suitable candidate for a particular job.

2. Abilities and Skills: The physical capacity of an individual to do something can be termed as ability. Skill can be defined as the ability to act in a way that allows a person to perform well. The individual behavior and performance is highly influenced by ability and skills. A person can perform well in the organization if his abilities and skills are matched with the job requirement. The managers plays vital role in matching the abilities and skills of the employees with the particular job requirement.

3. Perception: The cognitive process meant for interpreting the environmental stimuli in a meaningful way is referred to as perception. Every individual on the basis of his/he referencecan organize and interpret environmental stimuli. There are many factors that influence the perception of an individual. The study of perception plays important role for the managers. It is important for mangers to create the favorable work environment so that employees perceive them in most favorable way. The employees are likely to perform better if they are going to perceive it in a positive way.

4. Attitude: According to psychologists, attitude can be defined as a tendency to respond favorably or unfavorably to certain objects, persons or situations. The factors such as family, society, culture, peers and organizational factors influence the formation of attitude. The managers in an organization need to study the variables related to job as to create the work environment in a favorable way that employees are tempted to form a positive attitude towards their respective jobs. The employees can perform better in the organization if they form a positive attitude.

5. Personality: Personality can be defined as the study of the characteristics and distinctive traits of an individual, the inter-relations between them and the way in which a person responds and adjusts to other people and situations. The several factors that influence the personality of an individual are heredity, family, society, culture and situation. It implies to the fact that individuals differ in their manner while responding to the organizational environment. Personality can be regarded as the most complex aspect of human beings that influences their behavior in big way. It can be concluded that the study of personality traits offers an opportunity to understand the individuals. It helps them properly in directing their effort and motivating them for the accomplishment of the organizational goal. It refers to the fact that different environmental factors may generate different responses. The study of these responses is very important for the organization. Every organization demands a particular type of behavior from their employees and such behaviors can be discovered through observation, learning, exposure, training, etc.

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- the economic environment is an important determinant of individual behavior .all work is performed with in economic framework .the concept of economic environment is a synthesis of several factorslike employment level, wage rate, economic outlook and technological changerate.People work for money but not only for money. However wages satisfied various needs of individuals.


The stability of government can affect the employmentopportunities both in quantity and quality. Management structures and philosophies in controlled societies have a significant impact on decision, strategies and methods of implementation available to managers. The relative

Freedom available can affect carrier choice, job design, and motivation methods andfinally individual behavior.


People grow up in a particular society thatshape their basic values, beliefs and behavior. Cultural vary from country tocountry and these variation produce different behavior across the country


Rules and laws are formalized ad written standards of behavior both rules and laws is strictly enforced by the legal system .laws relate to all members of society observing laws voluntarily allow predictability of individual behavior.


The characteristics of an organization are also affects human behavior.


The physical facilities such as ventilation ,proper lighting , painting on wall, proper space for employee and like that put impact on employee behaviour and performance. Hence physical environment at work placemay be said to be the arrangement of people and thinks in such a manner, so thatthey may have a positive impact on interpersonal behavior.


It refers to the way indifferent departments in organizations are set up and the way in which the emoting relationship and lines of communication are established among differentdepartments in the organizations.


The organizational establish a system of leadership and supervision to pride direction assistance, advice, and training, to individualmembers. The behavior of a leader is therefore a potential source of influence on an individual. In other words the behavior of an individual is influenced by their leaders.


Organizations establish reward systems to compensate the employees. The behavior of an employee influenced by reward system of an organization

Case study 1

Decentralization is the process of dispersing decision-making governance closer to the people and/or citizens. It includes the dispersal of administration or governance in sectors or areas like engineering, management science, political science, political economy, sociology, and economics.

Jill Thompson's proposal to decentralize the rules and procedures will work through:

Administrative decentralization seeks to redistribute authority, responsibility and financial resources for providing public services among different levels at Bosco plastics.

The three major forms of administrative decentralization -- deconcentration, delegation, and devolution - each have different characteristics which may be beneficial or detrimental to Bosco plastics.

Decentralization for instance will redistributes decision making authority and financial and management responsibilities among different levels of unitary departments. It can merely shift responsibilities from management to the production managers for instance thus creating strong field administration or local administrative capacity under the supervision of middle level and top management.

Delegation is a more extensive form of decentralization. Through delegation man agent can transfer responsibility for decision-making and administration of public functions to semi-autonomous employees or production supervisors that are not wholly controlled by top and middle management, but ultimately accountable to it.

Devolution. A third type of administrative decentralization is devolution. If Jill Thompsons employs to devolve functions, she will transfer authority for decision-making, finance, and management to quasi-autonomous units of management with corporate status. Thus increasing overall output and employee motivation.

Fiscal Decentralization

Financial responsibility is a core component of decentralization. If Jill Thompson is to carry out decentralized functions effectively, she must have an adequate level of revenues -either raised locally or transferred from loan accrued. Fiscal decentralization can take many forms, including a) self-financing or cost recovery through user charges,

b) Co-financing or co-production arrangements through which the users participate in providing services and infrastructure through monetary or labor contributions;

c) Expansion of local revenues through property sales or indirect charges;

Under appropriate conditions, all of these forms of decentralization can play important roles in broadening participation in the organization: through output and increasing profit.

Jill Thompson will help alleviate the bottlenecks in decision making that are often caused by top and middle management when it comes to planning and control of important R&D or production activities. Decentralization can help cut complex bureaucratic procedures and it can increase manager's sensitivity to subordinates conditions and needs. Moreover, decentralization can help Bosco plastics to reach larger market segment with services an increase in services and real output, thus relieving top managers of routine tasks to concentrate on policy.

But decentralization is not a panacea, and it does have potential disadvantages.

Decentralization may not always be efficient, especially for standardized, routine, network-based services. It can result in the loss of economies of scale and control over scarce financial resources by top level managers. Weak administrative or technical capacity at local levels may result in services being delivered less efficiently and effectively.

Administrative responsibilities may be transferred to local levels without adequate financial resources and make equitable distribution or provision of services more difficult. Decentralization can sometimes make coordination of the company's policies more complex and may allow functions to be captured by local elites. Also, distrust between employees may undermine cooperation at the local level.


Company rules such as punch time clocks. Every time an employee leaves or enters the building will be alienated. Managers will therefore implement the punching of the time clock during entry and exit.

Evaluations will not be undertaken monthly but annually to give sufficient time for introduction of a solid proposal.

All employees will be accountable and transparency instilled by the production supervisors thus ensuring high levels of output.

The department that will be formalized is the production department. To minimize the level of anarchy delegated allocations to the production supervisors should be granted to ensure that all workers are performing and delivering on their quota.


The term "organic" suggests that, like living things, organizations change their structures, roles, and processes to respond and adapt to their environments.

Organic organizations are characterized by:


flexible, broadly defined jobs

interdependence among employees and units

multi-directional communication

employee initiative

relatively few and broadly defined rules, regulations, procedures, and processes

employee participation in problem solving and decision making, often interactively and in groups

In organic organizations, the emphasis is on effectiveness, problem solving, responsiveness, flexibility, adaptability, creativity, and innovation. Such an organization is able to respond in a timely manner to environmental change because employees are empowered to be creative, to experiment, and to suggest new ideas. The process of innovation is triggered by employees throughout the organization in a "bottom-up" manner. The following four sections explain how these characteristics fit together in a cohesive organizational structure that allows for flexibility and ongoing change in regard to Jill Thompsons Policies.

An unstable external environment increases the uncertainty and complexity with which Bosco paints must contend. An organization is continually confronted with a variety of new and unexpected problems and opportunities, of which the nature and relevant factors are initially unclear and for which appropriate responses are not immediately obvious. Further, since the environment changes rapidly, responses to today's problems and opportunities may need to be modified or may even be inappropriate or irrelevant to tomorrow's challenges. In short, the organization cannot keep doing the same old things in the same old ways. Under conditions of uncertainty and complexity, the organization must design its structures and processes to be flexible and responsive to changes in customer desires, technology, governmental regulations, and economic conditions.


The need for flexibility and responsiveness leads to the decentralization of decision-making authority in organic organizations. As a result, rules, regulations, procedures, and policies tend to be few, are defined broadly rather than precisely, loosely rather than rigidly, and are often informal rather than written. Employees are allowed to exercise a great deal of discretion. The authority to identify problems and opportunities and to devise responses is delegated to those best able to respond, regardless of their position, unit, or level in the organization. Emphasis is placed more on individual and group control than on managerial, hierarchical control. Top-level managers in organic organizations are more concerned with coordination and integration as opposed to passing directives down a vertical hierarchy, which is a common task of top-level managers in mechanistic organizations.

The need for flexibility and responsiveness also affects how work is designed and performed in organic organizations. Jobs are not clearly or precisely defined in these organizations. Positions, roles, job descriptions, and standard operating procedures are broad and generalized rather than specific and specialized. Employees accept general responsibility for getting things done, but the manner in which they accomplish their tasks is dictated more by autonomous or semi-autonomous teams than by standard operating procedures. Because the work of organic organizations is often interdependent, specific tasks and responsibilities vary from one situation to another and are refined through direct interaction and mutual adjustment among employees and work units. Too much direction from top-level management may hinder rather than assist the accomplishment of tasks.

A key issue in organic organizations is determining who has the knowledge, perspective, experience, expertise, or skills required to identify opportunities or find solutions to problems. Rather than assuming that top management is the fountainhead of all knowledge and wisdom, organic organizations assume that various people in the organization may have crucial insights or capabilities. Thus, communication is multidirectional, decentralized, and informal rather than hierarchical and formalized. In order to facilitate the sharing of information and ideas, employees are frequently empowered to communicate across traditional organizational boundaries regardless of position or level or unit.

Going one step further, pharmaceutical firms, for example, may collaborate across corporations and with academic researchers to conduct basic research leading to new drug development. Jack Welch, former CEO of General Electric, referred to this type of company as a "boundary less organization." Coordination and integration with multiple constituencies beyond traditional organizational boundaries is a necessary component for success, especially in multinational organizations.

Diversity of information and perspectives is often the key to the development of creative responses to vague, complex problems and opportunities. Thus, in organic organizations, much work is done in groups composed of employees with different backgrounds and from different levels, units, or functional areas. Such teams are among the main coordination mechanisms in organic organizations.


Human needs and dynamics play an important role in organic organizations. The empowerment and participation of employees is motivational because it meets the human need for autonomy, responsibility, challenge, esteem, social interaction, and personal development. Furthermore, this empowerment and participation helps the organization develop and capitalize on its intellectual capital, which is becoming increasingly valued by many organizations. By emphasizing initiative, direct interaction, open communication, and the creation of teams composed of various members of the organization, organic organizations are able to utilize their internal diversity to foster innovative responses to environmental challenges and changes.


The organic organization is not entirely without hierarchy or formalized rules, regulations, procedures, and processes. Indeed, structural parameters, even if loosely or broadly defined, are necessary to prevent the chaos that would result from absolute decentralization (i.e., where everyone in the organization is completely free to decide what they want to do or not do). As an example of such structural parameters, while employees of Minnesota Mining and Manufacturing (3M) are encouraged to take the initiative in suggesting new products and seeking support from others in the organization, new product teams must still meet specific financial measures at each stage of product development. Nonetheless, the real control is found in constant interaction among peers and the normative rules that develop informally among them.

It is not always necessary for an entire organization to be organic. Some units, such as research and development departments, may benefit from an organic structure because they face an unstable environment. Units that have a more stable environment, such as routine, administrative departments, may favor a mechanistic structure. Some units may borrow from both models. Customer service departments, for example, can build flexibility into responding to exceptional circumstances while maintaining standardized protocols for more typical situations.

The structures of organic organizations are informal, fluid, and constantly changing to identify and develop responses to new problems and opportunities. Authority and responsibility shifts from one situation to another. Groups are established, complete their work, and disband, and a single employee may belong to several temporary teams at the same time. In organic organizations there is diminished emphasis on superior-subordinate roles in favor of dispersed initiative. Roles, tasks, and responsibilities are not limited by rigid, vertical boundaries of hierarchy for decision-making, communication, coordination, and control. Relations and interactions between personnel and units continually change, and managers and other employees must figure out which relations and interactions will be most effective for each particular problem or opportunity.



Some leaders rule with an iron hand, a methodology that is often referred to as "my way or the highway." Authoritarian leaders tend to create organizations that are hierarchical, tightly run and filled with people who take orders well. Many highly creative and innovative people flee such organizations because they feel constricted. Authoritarian leaders can be very effective in emergency situations where quick, decisive action is needed, but their organizations may suffer from a lack of flexibility over the long term.


Leaders who seek the input of their followers and attempt to value each person as an individual can create a very different type of organization than authoritarian leaders. A cooperative leader sees himself as a facilitator of a common goal, and seeks to share both the responsibilities and the rewards. Effective delegation of tasks and vision can spread the work load effectively and lead to efficient accomplishment of goals. Employees who want a say in how their company is run will respond better to a cooperative leadership style than to an authoritarian one.


Visionary leaders put the overall goal of the organization above the personal concerns of either themselves or their employees. A visionary is someone who seeks success so he can dedicate that success to a more worthwhile and universal goal. If a visionary leader is able to fill his organization with people who share his vision, he can create a very vibrant and powerful force for change. If such a leader is put in charge of disengaged people, however, the result can be a culture clash between the urge to sacrifice for a dream and the desire to simply make a living without excessive commitment.


Effective leaders are able to engage the desires and imaginations of their followers, and to forge a common vision that helps to keep everyone headed in the same direction. While in many cases followers do what they are told out of obedience or the simple desire to earn a paycheck, an engaged group cooperates with the overall goal because they have internalized it.


Organizational theory

Organizational theory and management theory is used in many aspects of a working business. Many people strive to adhere to the theory to help them become better at their jobs or more successful in life, although this may lead to them having to sacrifice some of their personal principles in order to succeed.

One example of following organizational theory in the financial sector would be an employee or manager who wants to know how to achieve goals by having a set structure to follow. In addition, someone in a Human Resources sector will have to make decisions throughout their working day that will undoubtedly change the structure and practice of a working day for all other employees in the company.

If an individual gets so wrapped up in trying to fit the mould of what they interpret their role should be in terms of organizational theory, they may start to neglect other areas of business.

In the same way, management theory may also underpin the personal values of some individuals. For instance, they may disagree with a particular rule or regulation that has been introduced by the company, however in order to carry out their job as a manager effectively and professionally, they need to move away from their principles and execute the job.

It is difficult to try to execute both management and organizational theories as a psychological contract between the employer and employee still needs to be maintained. This will need to consider how fairly the company is treating the employee and how 'fairly' the employee is treating the company, i.e. are they actually putting 100 percent effort into their work? Any changes to the organization or management in a company, is undoubtedly going to have an effect on all of this.


The empirical or case approach: In this approach, one tries to understand management principles with the help of cases. It also identifies the situations, wherein organizations have either succeeded or failed by following this approach.

The interpersonal behavior approach: This approach is based on individual psychology and focuses on interpersonal relationships.

The group behavior approach: This approach is based on sociology and social psychology. It stresses on the behavior of people in groups.

The cooperative social systems approach: It advocates a system of cooperation using both interpersonal and group behavioral aspects.

The sociotechnical systems approach: It realizes the impact of technical systems on personal attitudes and group behavior. This approach focuses on areas involving close relationships between technical systems and the people involved such as production, office operations, etc.

The decision theory approach: The focus in this approach is on the decision-making process and people involved in it.

The systems approach: It considers organizations to be open systems as they interact with the external environment. It recognizes the importance of the inter-relationship between planning, organizing and controlling.

The mathematical or "management science" approach: This approach treats management as a logical process, which can be expressed in terms of mathematical symbols and relationships.

The contingency or situational approach: In this approach, the main assumption is that there is no hard and fast rule for all situations. Managerial practice depends upon circumstances. Different circumstances may necessitate the use of different methods.

The managerial roles approach: This approach had been developed by studying the work methods of five chief executives. The study identified ten managerial roles, which were grouped into three categories - interpersonal, informational and decisional roles.

The McKinsey's 7-S framework: The seven S's used in this approach are strategy, structure, systems, style, staff, shared values and skills.

The operational approach: This approach attempts to develop the science and theory of management by drawing upon concepts, principles, techniques and knowledge from other fields and managerial approaches.

Case study 3

Existence of a senior workforce most of them spanning 20 years at the shoe company "old dogs and new tricks don't get along"-referring to the new policies.

The fact that predecessor manager had had a constant way of relating with his workers and doing things around the company over the period he had been the manager, an absentee autocrat

Change of policies would have in a way demoralized the workers since the existing ones were doing just fine

Her rise to the leadership position was short fast and that most of her co workers resent it the fact the shoe business is her uncle's makes her co workers resent her and her leadership style even more.


Dialogue with workers before setting up committees

Allow transitional period for her to effect her own leadership style from her predecessor.


There are many ways you can lead. Which leadership style is most effective depends on the employee, the situation, and the leader.

For example, aspects of leadership that I've struggled to balance are

(1) holding employees responsible for results vs. holding employees responsible for implementing exactly what you tell them to implement

(2) having a "soft," supporting interface with employees vs. having a "hard," demanding interface.

With (1), when staffs have a pretty good idea about what they need to do to succeed, holding them responsible for final results seems to work well in motivating them. They have freedom to use their skills, and this- and, of course, success- is greatly motivating. However, if the employee is under-equipped- not enough skill, knowledge, or experience to confidently take-on the challenge- then holding them responsible only for implementing whatever you want them to seems to be better- the employee feels more secure and also has a better chance of succeeding. I guess the bottom line here is to give employees the maximum amount of freedom you can give them without setting them up to fail.

Regarding (2), any employee could probably use a bit of both from leaders in their organization. For example, if I'm an employee who is struggling to crack a problem but pushing myself as hard as I can, a soft/ supporting leader would probably help renew my energy, while a hard/ demanding leader might upset me and make it harder for me to keep pushing. Then again, there have been moments in my career when I have "slacked"- maybe spent a bit too much time browsing the Web- and at times like that, it would have been nice to have a hard/ demanding leader give me a swift kick-in-the-butt and get me back on course


Incentive Theory of Motivation

The incentive theory suggests that people are motivated to do things because of external rewards. For example, you might be motivated to go to work each day for the monetary reward of being paid. Behavioral learning concepts such as association and reinforcement play an important role in this theory of motivation.

Drive Theory of Motivation

According to the drive theory of motivation, people are motivated to take certain actions in order to reduce the internal tension that is caused by unmet needs. For example, you might be motivated to drink a glass of water in order to reduce the internal state of thirst. This theory is useful in explaining behaviors that have a strong biological component, such as hunger or thirst. The problem with the drive theory of motivation is that these behaviors are not always motivated purely by physiological needs. For example, people often eat even when they are not really hungry.

Arousal Theory of Motivation

The arousal theory of motivation suggests that people take certain actions to either decrease or increase levels of arousal. When arousal levels get too low, for example, a person might watch and exciting movie or go for a jog. When arousal levels get too high, on the other hand, a person would probably look for ways to relax such as meditating or reading a book. According to this theory, we are motivated to maintain an optimal level of arousal, although this level can vary based on the individual or the situation.

Humanistic Theory of Motivation

Humanistic theories of motivation are based on the idea that people also have strong cognitive reasons to perform various actions. This is famously illustrated in Abraham Maslow's hierarchy of needs, which presents different motivations at different levels. First, people are motivated to fulfill basic biological needs for food and shelter, as well as those of safety, love and esteem. Once the lower level needs have been met, the primary motivator becomes the need for self-actualization, or the desire to fulfill one's individual potential.

Instinct Theory of Motivation

According to instinct theories, people are motivated to behave in certain ways because they are evolutionarily programmed to do so. An example of this in the animal world is seasonal migration. These animals do not learn to do this; it is instead an inborn pattern of behavior.

William James created a list of human instincts that included such things as attachment, play, shame, anger, fear, shyness, modesty and love. The main problem with this theory is that it did not really explain behavior, it just described it. By the 1920s, instinct theories were pushed aside in favor of other motivational theories, but contemporary evolutionary psychologists still study the influence of genetics and heredity on human behavior.


Puts human resources into action

Every concern requires physical, financial and human resources to accomplish the goals. It is through motivation that the human resources can be utilized by making full use of it. This can be done by building willingness in employees to work. This will help the enterprise in securing best possible utilization of resources.

Improves level of efficiency of employees

The level of a subordinate or an employee does not only depend upon his qualifications and abilities. For getting best of his work performance, the gap between ability and willingness has to be filled which helps in improving the level of performance of subordinates. This will result into:

Increase in productivity,

Reducing cost of operations, and

Improving overall efficiency

Leads to achievement of organizational goals

The goals of an enterprise can be achieved only when the following factors take place:-

There is best possible utilization of resources,

There is a co-operative work environment,

The employees are goal-directed and they act in a purposive manner,

Goals can be achieved if co-ordination and co-operation takes place simultaneously which can be effectively done through motivation.

Builds friendly relationship

Motivation is an important factor which brings employees satisfaction. This can be done by keeping into mind and framing an incentive plan for the benefit of the employees. This could initiate the following things:

Monetary and non-monetary incentives,

Promotion opportunities for employees,

No incentives for inefficient employees.

In order to build a cordial, friendly atmosphere in a concern, the above steps should be taken by a manager. This would help in:

Effective co-operation which brings stability,

Industrial dispute and unrest in employees will reduce,

The employees will be adaptable to the changes and there will be no resistance to the change,

This will help in providing a smooth and sound concern, in which individual interests will coincide with the organizational interests,

This will result in profit maximization through increased productivity.

Leads to stability of work force

Stability of workforce is very important from the point of view of reputation and goodwill of a concern. The employees can remain loyal to the enterprise only when they have a feeling of participation in the management. The skills and efficiency of employees will always be of advantage to employees as well as employees. This will lead to a good public image in the market which will attract competent and qualified people into a concern. As it is said, "Old is gold" which suffices with the role of motivation here, the older the people, more the experience and their adjustment into a concern which can be of benefit to the enterprise.

Motivation is important to an individual as:

Motivation will help him achieve his personal goals.

If an individual is motivated, he will have job satisfaction.

Motivation will help in self-development of individual.

An individual would always gain by working with a dynamic team.

Similarly, motivation is important to a business as:

The more motivated the employees are, the more empowered the team is.

The more is the team work and individual employee contribution, more profitable and successful is the business.

Case study 4

Physiological needs

Physiological needs are the physical requirements for human survival. If these requirements are not met, the human body cannot function properly, and will ultimately fail. Physiological needs are thought to be the most important; they should be met first.

Air, water, and food are metabolic requirements for survival in all animals, including humans. Clothing and shelter provide necessary protection from the elements. While maintaining an adequate birth rate shapes the intensity of the human sexual instinct, sexual competition may also shape said instinct.

Safety needs

With their physical needs relatively satisfied, the individual's safety needs take precedence and dominate behavior. In the absence of physical safety - due to war, natural disaster, family violence, childhood abuse, etc. - people may (re-)experience post-traumatic stress disorder or transgenerational trauma. In the absence of economic safety - due to economic crisis and lack of work opportunities - these safety needs manifest themselves in ways such as a preference for job security, grievance procedures for protecting the individual from unilateral authority, savings accounts, insurance policies, reasonable disability accommodations, etc. This level is more likely to be found in children because they generally have a greater need to feel safe.

Safety and Security needs include:

Personal security

Financial security

Health and well-being

Safety net against accidents/illness and their adverse impacts

Love and belonging

After physiological and safety needs are fulfilled, the third level of human needs is interpersonal and involves feelings of belongingness. This need is especially strong in childhood and can override the need for safety as witnessed in children who cling to abusive parents. Deficiencies within this level of Maslow's hierarchy - due to hospitalism, neglect, shunning, ostracism, etc. - can impact the individual's ability to form and maintain emotionally significant relationships in general, such as:




According to Maslow, humans need to feel a sense of belonging and acceptance among their social groups, regardless if these groups are large or small. For example, some large social groups may include clubs, co-workers, religious groups, professional organizations, sports teams, and gangs. Some examples of small social connections include family members, intimate partners, mentors, colleagues, and confidants. Humans need to love and be loved - both sexually and non-sexually - by others.Many people become susceptible to loneliness, social anxiety, and clinical depression in the absence of this love or belonging element. This need for belonging may overcome the physiological and security needs, depending on the strength of the peer pressure.


All humans have a need to feel respected; this includes the need to have self-esteem and self-respect. Esteem presents the typical human desire to be accepted and valued by others. People often engage in a profession or hobby to gain recognition. These activities give the person a sense of contribution or value. Low self-esteem or an inferiority complex may result from imbalances during this level in the hierarchy. People with low self-esteem often need respect from others; they may feel the need to seek fame or glory. However, fame or glory will not help the person to build their self-esteem until they accept who they are internally. Psychological imbalances such as depression can hinder the person from obtaining a higher level of self-esteem or self-respect.

Most people have a need for stable self-respect and self-esteem. Maslow noted two versions of esteem needs: a "lower" version and a "higher" version. The "lower" version of esteem is the need for respect from others. This may include a need for status, recognition, fame, prestige, and attention. The "higher" version manifests itself as the need for self-respect. For example, the person may have a need for strength, competence, mastery, self-confidence, independence, and freedom. This "higher" version takes precedence over the "lower" version because it relies on an inner competence established through experience. Deprivation of these needs may lead to an inferiority complex, weakness, and helplessness.


"What a man can be, he must be. This quotation forms the basis of the perceived need for self-actualization. This level of need refers to what a person's full potential is and the realization of that potential. Maslow describes this level as the desire to accomplish everything that one can, to become the most that one can be however, this is a broad definition of the need for self-actualization; when applied to individuals, the need is specific. For example, one individual may have the strong desire to become an ideal parent. In another, the desire may be expressed athletically. For others, it may be expressed in paintings, pictures, or inventions.As previously mentioned, to understand this level of need, the person must not only achieve the previous needs, but master them.


Gibson can become ateacher by profession because he was able to train the low paid employees in the company and they were able to apply for senior position which means they could now understand more than just being able to write their names only.

Gibson profession as a teacher could be shown in that he was not happy there but he still kept on with his training and it was not because of the money. He was even told before he started trainingthe low paid employees that he would not be given much and he did not complain at all but kept on ahead with training this means he really loved teaching.

Gibson profession as a teacher could be characterized by his motivation towards the job. He was a very determined person in what he did and he never gave up whenever any of his students were slow he kept up with them and he was motivated every day to go to work but in the end we see that the company become a success because people learnt more and no one was left behind.


The Nature of groups

Normative views, describes how a group is to be organized and how its activities are to be carried out.

Group dynamics consists of a set of techniques regarding internal nature of groups.

Formal groups- These groups are formed by an organization to carry out a specific task. These groups are formally structured & are arranged for a division of work. A formal group attributes:

A sense of identity

Loyalty to the group

Purpose & leadership.

Informal groups- These groups are formed by the employees themselves. Hence they are not Formally Structured. Example: Workplace cliques, groups of mates etc.



The group where tasks have to be understood, resources and information acquired, individuals have to get to know one another and there is considerable reliance on the leader.


Individuals begin to question or challenge the task and have to confront emotional issues between and among themselves.


This period of relative upheaval moves into a more considered stage where conflicts are settled, new standards are developed and owned by the members.


Teamwork develops and solutions are found.


Group's life will eventually come to an end as people move on elsewhere in the organization or as original purpose is attained and the job is completed.


1.Group size- The size of a group is one factor that can determine its likely behavior. Large groups:

· require a higher degree of formalization than smaller

· Require clearer lines of communication

· Tend to pay less attention to the needs of individuals than smaller groups

· Concentrate more on task requirements than personal issues

2. Purpose of group- Groups are assigned definite purpose within the organizational structure. These groups are often asked to focus their efforts on specific problems, usually of a short-term nature.

3.Nature of task- The nature of the task is broadly decided in terms of the group's purpose and objectives.



In order to have everyone efficiently working together, you need to lay the proper groundwork. If the foundation and training aren't there, then no amount of hyperbolic boosterish will right the ship later on. From the beginning, the core values of teamwork need to be instilled. Team building exercises, such as situational scenarios, ropes courses and games, are an effective way to do this.


Establish clearly defined roles for each and every team member, as this gives him a sense of purpose. However, it is important that he knows where his specific job falls in relation to the big picture. Too much tunnel vision can lead to the "not my problem" effect, which is obviously counterproductive.


Some workers are more skilled than others, and some tasks are harder than others. Impatience can be divisive, which is the last thing you want. Remind yourself that you are all working towards a common goal, and offer a helping hand instead of criticism or judgment.


Schedule regular meetings to ensure that everyone is still on the same level this can be done as a group or in private, as long as constructive feedback and an open dialogue is the letter of the law. Being proactive and stopping problems before they start not only helps your business, it also strengthens teamwork in the sense that you know that everyone worked together.


By this point, everyone is presumably sold on working together for the greater good. However, it doesn't hurt to add extra, performance-based perks here and there, as long as they are for the entire group. Individual awards can sometimes lead to team members creating their own agenda and losing focus, when everyone stands to benefit, with no individual axes to grind, productivity increases.


Impacts of technology have an organizational productivity also considered as potential impact on the wellness of employees.

There is the increased flexibility of working hours

Ability to effectively manage people at a distance

Use of employee resources when working at home that is not reimbursed by the employer and the difficulties of switching off from work.

The display of advertising is easier through the social media and get can get to learn more about your organization

Availability of modern office locations that allow people to work in avariety of locations.

Flexible offices allow adaptation for different requirements.

Case study 4

high energy

creative imaginations

goal oriented

good listener

cause oriented


gathers needed information

task accomplisher

b) Large groups display greater levels of divergence and less conformity than smaller groups meaning that members of large groups are more diverse and there is less pressure for homogeneity as in the case of Jose.

In smaller groups, individuals are more committed and there is a lower turnover rate. Larger groups are more diverse and less committed.

Small groups are more likely to share opinions and to be invested in one another than large groups.


If I were JoseI would have made the decisions from the very beginning and would not have allowed them to use the existing designs because they were too old. So I would have made sure I convince thepresident's way before they even thought of a better solution.