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People Management

Unit-5.3

8/19/2014

User



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Serial Contents Page No
1.1 How Organizational Structure Impact on People in Organization 3
1.2 How Organizational Culture Impact on People in Organization

4
2.1 Impact of Personal Differences on Individuals Behavior at Work 5
2.2 Required Management Style for Dealing with Differences in Behavior 6
3.1 Effect of Leadership Style on Individuals and Team 7
3.2 Benefits of Flexible Working Practices to Individuals and Organizations 9
4.1 Application of Motivational Theories to Developing People in
Organization
11
4.2 Different Uses of Coaching and Monitoring in Organizations 13
4.3 Benefits of Training and Development to Individual and Organization 15
5.1 People Management Strategy Used in Organization 16
5.2 Impact on People of Management Strategies Used in Organization 17
5.2 Recommendations for Strategies to Promote High Level of Performance 18
6.0 References 19



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1.1 How Organizational Structure Impact on People in Organization
Organizational structure refers to the way people are organized ---the company's reporting
structure. This structure varies from company to company. "Tall" organizations use many layers
of management. "Flat" organizations use fewer levels, and managers often have a wider span of
control.
Organizational structure can make or break a business. Senior management and upward reporting
must provide a strong base for employees so they are sufficiently motivated. When there are
cracks in this structure, or a lack of forward thinking, businesses run the risk of losing their best
employees due to lack of motivation in the company
Managerial Influence
The efficiency of your managerial staff has a broad-reaching effect in your organization because
of the organizational structure. Weak or incompetent management at any level of an organization
will spread throughout the company as bad managerial decisions in those departments also affect
the departments that come into contact with each them and reduce productivity. Good
management can have the opposite effect, as efficient and intelligent decision-making can help
improve productivity and raise overall efficiency.
Structural Flaws
If your organizational structure is not set up properly, information is not able to travel where it is
needed. If the middle management team does not have effective channels of communication with
the executive team, important company information could take days before it reaches the entire
staff.
Confidence
When a business or company has a strong, consistent organizational structure, employees feel
secure in their jobs. If your organization has a history of hiring from within, promoting effective
employees and longevity, this inspires current employees and allows them to relax their fears of
job loss or mismanagement, and devote themselves to their position. In an article for
AllBusiness.com, Peter Christensen notes Abraham Maslow's theories that all human behavior is
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ruled by each individual's satisfaction with the five levels of human needs. Second on this list is
safety and security. It is safe to postulate that people who have confidence in their management
structure will respond positively to their organization.
Shared Goals
When your business has a transparent organizational structure, you have a conduit to share
corporate goals and plans with your employees. When you share these goals and align them with
your employee's personal goals, you can move teams forward in a productive manner. Once your
organization's management creates a new budget and business plan for the following year, share
the pertinent details with mid-level management and task them to create corresponding plans
with their team members. Each employee's professional development goal should run parallel
with the corporate goals. When business goals are met, employees should be notified so they can
gauge their own progress against that of the company.

Accountability
Effective corporate organizations have clear reporting lines. This means if an employee has an
idea, challenge, issue or problem, he knows exactly who to talk to. When companies do not have
a strong organizational structure, opportunities and complaints can both be lost. The best
companies have strong communication channels built into their organizational structure. The
result is employees who know they have both the opportunity to share ideas as well as the chance
to discuss problems. This also creates a culture where management and employees are
accountable for success and error. The more accountable your employees are, the more likely
they are to work toward success.



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1.2 How Organizational Culture Impact on People in Organization
Organizational culture describes how things get done in an organization in terms of the values,
behaviors and assumptions which dictate the way people approach their work. Organizational
culture is deeply embedded and is distinct from climate. Culture affects performance, profit and
even survival. We use the Human Synergistic Organizational Culture Inventory, which
incorporates the Circumflex model, to measure organizational culture.
Organizational culture is a vital aspect of any successful business or organization. A positive
culture can help attract and retain loyal and committed employees, which, in turn, can strengthen
relationships with customers and other partners. Just like any other asset, organizational culture
must be monitored and nurtured to ensure that it reflects the organization and its vision. In
unhealthy organizational cultures, a shared standard of excellence may be absent, leading
employees to focus solely on personal goals rather than business goals. For example, a pervasive
culture of greed was among the primary reasons cited for the well-documented collapse of
Enron.
Cultures can be bolstered and they also can be transformed. Such measures typically require a
comprehensive assessment and understanding of an organizations current strengths and
weaknesses, including corporate values and behavioral norms.
Additionally, effective cultural transformation requires leaders to create buy-in among all
stakeholders and nurture enthusiasm for change that may push.

2.1 Impact of Personal Differences on Individuals Behavior at Work
Individual differences have a direct effect on behavior People who perceive things differently
behave differently People with different attitudes respond differently to directives People with
different personalities interact differently with bosses, coworkers, subordinates, and customers.
When people arrive at the office, they bring with them their individual traits and personalities.
Regardless of a person's position or responsibilities in the workplace, personality plays a role in
how a person approaches a job, completes a task and interacts with others.
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Teamwork
Individual personalities become recognizable during teamwork activities. Someone with an
outgoing personality is likely to be a cheerleader for the group, focus on positive aspects of the
project, and possibly volunteer for leadership and coordination roles. Likewise, someone who is
shy and reserved is more likely to take a follower role and be more comfortable completing tasks
that are assigned to him or taking direction from others.
Time Management
People who are naturally focused and organized are usually efficient in managing time and
completing tasks on schedule. These people do well in leadership roles, but their personalities
can potentially conflict with those who have a more laid-back and relaxed approach and aren't as
deadline-conscious or motivated. This becomes a problem if a colleague has a manipulative
personality as well, and attempts to sabotage other staffers' work efforts. While not necessarily
poor workers, people with overly-relaxed personalities often prefer to work at their own pace
without constraints of time lines, which can lead to frustrations unless appropriately managed.
Problem-Solving
Analytical personality types have the ability to problem-solve in an organized manner. They
might accomplish this through leading brainstorming sessions, developing decision trees or
workflow charts or creating detailed project plans. Indecisive personality types often throw a
wrench in the works when they're unable to make a decision or choose a course of action, and it
results in stalled work projects. This can be difficult in group work situations in which one
person meeting deadlines is crucial to another person carrying out related tasks and
responsibilities.
Interpersonal Relations
Extroverted personality types are comfortable engaging with colleagues and clients, and are
often able to work out minor differences and create workable compromises. Neurotic personality
types, however, are more likely to be disagreeable in nature. These individuals often do better in
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work environments or positions in which they have limited contact with clients, customers and
co-workers

3.1 Effect of Leadership Style on Individuals and Team

Leadership styles have significant effects not only in small businesses but also in the world's
largest corporations. These styles affect everyone from senior management to the newest college
intern. They create the corporate culture that influences the organization and its performance.
Autocratic Style Effects
Also known as authoritarian leadership, autocratic style clearly defines the division between
leaders and workers. Autocratic leaders make decisions with little or no involvement from
employees. These leaders are supremely confident and comfortable with the decision-making
responsibility for company operating and strategic plans. Although research indicates that
autocratic leaders display less creativity than more contemporary styles, this style still works
when fast decisions must be made without employee involvement. Employees may feel some
disconnect with this style.
Participative Leadership Effects
Also called democratic leadership, this style is usually considered the best option for most
companies. The opposite of autocratic leadership, this style emphasizes that management offers
guidance to its teams and departments while accepting input from individual staff members.
Leaders reserve the right to make final decisions but encourage feedback, ideas, and suggestions
from all employees. Participative leaders generally have a more content workforce, since each
individual has input into decision-making.
Delegate Leadership Effects
This style, also called laissez-faire leadership, is typically considered the least effective option.
In stark contrast to the other primary styles, delegate leaders rarely make decisions, leaving this
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function up to the group. These leaders seldom offer guidance to the team and delegate decision-
making to trusted team members. While offering few advantages, this style often creates some
disadvantages. Job descriptions and lines of authority become blurred and confusing. A loss of
motivation and positivity often accompanies the confusion of team members.
Corporate Culture Effects
Also called organizational culture, corporate culture defines "the way we do things." Leadership
styles have strong effects on corporate culture because employees tend to act in ways that mirror
their leaders. Staff also subconsciously wants to please supervisors and management. Over time,
leaders and employees usually become "comfortable" with each other, which can cause some
"culture friction" when new leaders take over. Every business, regardless of size, has a culture. It
can help or hurt operations, often dependent on the strength and efficiency of leadership.


3.2 Benefits of Flexible Working Practices to Individuals and Organizations.
'Flexible working' is more than just working from home. It's about working from wherever you
need to be, whether that's from a caf with a client, a customer's HQ or during your commute. By
making best use of technology such as audio and video-conferencing, instant messenger and
mobile internet this can be achieved while strengthening collaboration and enhancing a sense of
community between colleagues even if employees aren't physically in the same place.
Attract Skilled & Motivated Staff - Retain Talent
As well as attracting more talent providing flexibility helps you keep trained, skilled people
whose changing circumstances may otherwise have led them to leave. Higher retention rates of
staff and increased return rates from parental leave. When an Employer holds onto its most
skilled and experienced people it's good news for all involved.


Motivate & Energised Staff
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Staff morale is higher and this increases your bottom line, productivity and profits. Today's
evidence shows that flexible and enlightened working practices are good for business. Achieving
a work life balance between the needs of home and work is a win win for the employee and the
employer.

You Will Become An Employer Of Choice
Attract new talent and recruit hard to fill positions as you are known as an Employer of Choice.
Flexibility will give your business a bigger pool of talent to draw from and a real competitive
advantage. Customers are also attracted by the favourable image and employee motivation can
be easy to maintain because of a shared pride. People who work for best employers let others
know about it.


Reduced Operating Costs
Office space can be reduced and used more effectively which lowers accommodation costs. Desk
sharing can be introduced if employees work remotely and flexibly. A flexible and remote
working plan enables companies to retain valued staff by offering them choices to suit their
lifestyle demands.


Improved Business Performance
Flexible working times can help businesses to better meet customers needs as working patterns
can be matched to when the service is required with the ability to match work provisions closely
with customer/product demand.




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Good for Small Business
Smaller businesses often offer flexibility as a successful recruitment tactic. It is one of the ways
they can stay competitive with bigger companies. In addition, many businesses provide flexible
work schedules because they think such policies simply make good business sense. Flexible
schedules provide a work-life balance which is favoured by many potential employees, and
instating such policies can help small businesses to attract and retain the best of the best
Reduces Business Expenses
Companies can save substantial amounts of money through flexible working. Reduces business
expenses: sick time (less is used); productivity (employees are more productive);resources(less
computer space and access are needed, increased hours of customer service; employee safety
(fewer accidents at the job site and commuting);environmental requirements(reducing the
number of commuters) and relocation of employees (tele-working may avoid relocating workers
Australian data from the 2007 National Work/Life Benchmarking Study (Barbara Holmes,
Work Life Balance International) found that best practice organisations reported the following
key benefits from flexible work arrangements:
37% stated that their work/life balance strategy contributed to a reduction in absenteeism
88% stated that flexible work place practices have helped to manage staff more
effectively
79% reported a positive impact on work productivity
76% stated that flexible workplace practices enabled them to consistently attract and
retain the best possible talent
54% said that their work/life balance strategies have contributed to a reduction in staff
turnover.




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4.1 Application of Motivational Theories to Developing People in Organization
Motivation is the force that initiates, guides and maintains goal-oriented behaviors. It is what
causes us to take action, whether to grab a snack to reduce hunger or enroll in college to earn a
degree. The forces that lie beneath motivation can be biological, social, emotional or cognitive in
nature.
Researchers have developed a number of different theories to explain motivation. Each
individual theory tends to be rather limited in scope. However, by looking at the key ideas
behind each theory, you can gain a better understanding of motivation as a whole. In
organizations, motivating people is a highly researched subject as it contributes to both the
quality of working life and the productivity of the organization (Wood et al, pg 78).
McClellands Acquired Needs Theory can be used to profile people into suitable jobs and Victor
Vrooms Expectancy Theory can help motivate people by reward success opportunities. While
these theories do not explain motivation as a biological or psychological phenomenon, they were
chosen for their proven value to motivate people in the workplace. Together they provide
valuable insight into human behaviour and can help managers understand and motivate
individuals thereby increasing job performance. For example Johari Window theory indicates
that people often enjoy events which include new non-work activities, especially when bosses
and superiors take part in the same teams as their junior staff, which also helps cohesiveness and
'can-do' culture.


4.2 Different Uses of Coaching and Monitoring in Organizations
Coaching and mentoring can provide an array of benefits for organizations of all sizes, especially
small businesses. When conducted in an efficient and productive manner, coaching and
mentoring provides employees a way to connect, learn and grow within the company and along
their own career paths.
Significance
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Coaching and mentoring involve pairing experienced professionals with employees that could
use help adapting to the environment and culture of the workplace. This can include pairing a
mentor with new employees to help them settle into the surroundings and get off to a good start.
Coaching often comes in play when a new employee or current employee can benefit from
personal guidance on specific job duties, processes or responsibilities. Small businesses can also
use mentors to help develop other employees along a specific career path, such as management.
Retention
On an organizational level, coaching and mentoring can provide a host of benefits. Mentoring
and coaching can help encourage loyalty to the company. When experienced professionals help
mold the career of and provide opportunities for mentees, these individuals may feel a greater
sense of connection and commitment to the business. Coaching helps an employee feel
comfortable with management and encourages open communication, resulting in a positive work
experience. This can allow the company to save money that would have otherwise been spent on
the continual recruitment and training of replacement employees.
Related Reading: Coaching, Mentoring & Team Building
Personal Development
Taking advantage of the expertise and knowledge of experienced employees and professionals
can help bring younger or less experienced employees up to speed. This results in better
efficiency across the organization when bringing on new employees. In addition, coaching and
mentoring can help guide an employee along on her career path resulting in an employee well
versed on company expectations. Coaching specifically allows individuals to resolve issues and
concerns within the boundaries of a trusted and confidential relationship. This can help reduce
frustrations on a personal level and improve the job satisfaction of the individual, providing a
benefit for the organization.
Team Efficiency
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On top of developing employees, coaching and mentoring can improve the function of the team,
department and entire organization. Coaching and mentoring allows managers to identify the
weaknesses and strengths of each employee. This allows the organization to capitalize on the
resources at hand to keep the whole team working smoothly when employees request vacation or
take a sick day.


4.3 Benefits of Training and Development to Individual and Organization
Training and development is an integral part of any organization. If it is not, then the amount of
growth the company can attain will be much lower than its potential. Also, it will have a higher
attrition rate as the employees feel stagnant and will look for greener pasture elsewhere.
Although trainings can be costly and take up valuable working hours, they are essential. Keeping
up to date with the trends and the technology and occasional refresher courses will add a new life
to both the employee and the organization.
Increased Profitability:
As the ASTD study demonstrates, there is a clear correlation between providing your employees
with the training they need to become more productive and an increase in the company's overall
profitability.
Consistent Quality:
Providing employees with up to date training ensures that they will be able to complete their
tasks in the most efficient manner possible while providing consistency and quality for the
organization.
Customer Satisfaction:
Increased productivity and higher quality results in a greater level of customer satisfaction.

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Employee Development:
Providing employees with training allows them to develop their individual skills making them
better able to contribute to the overall success of the organization.
Employee Retention:
Making training available to your employees provides them with the tools to increase their skills
and makes them feel more valued by the organization resulting in greater employee retention.
5.1 People Management Strategy Used in Organization
5 people management strategies to incorporate in your organizations business strategy:
Recruitment & Selection: It all starts with hiring the right person for the job. It is critical to
understand what positions you will need in your organization in the year to come. While you
cannot predict all of your needs, a staffing forecast can help you in proper planning for
organizational growth.
Once you have outlined the positions you will need to fill then you will need a targeted recruiting
plan. This plan includes identifying responsibilities, knowledge, skills, core competencies and
cultural fit for your ideal employee. Use creative recruiting sources to target that individual
including social media as an outlet to find top talent. An interview process that allows the
company and the candidate to learn as much about each other is important to making sure it is a
good fit.
Training & Development: Your employees are your greatest asset. Continual development of
your team is important, whether succession planning or panning for growth. Use your people
management strategy to identify high potential leaders and employees who and training
opportunities to enhance their performance. You should also incorporate annual compliance
training, tuition reimbursement, and a company reading list.
This is a great time to determine if these programs will be internal or external. A great training
and development plan does not have to break the bank. Dont forget annual compliance training
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as well. A carefully thought out and well executed plan can contribute to the overall success of
the company without breaking the bank.
Performance Management: The measurement of each persons performance is necessary to
ensure that your team is meeting expectations. It also allows for feedback, give your employees
opportunities to improve and also addressing performance issues when an employee is not
meeting expectations. Some people prefer to leave performance management to the annual
evaluation. I recommend a yearlong performance management process that not only rewards
high performers and manage problem performers but also ties compensation increases and
bonuses to individual and company performance.
As you map out the coming year, include not only the annual performance evaluation but also a
more frequent check in with employees. If you have problem performers then put them on an
Individual Development Plan and monitor them more frequently. It is an unfortunate part of
performance management, but it you have a problem performer who has been given the
opportunity and tool to improve and has not then this person probably is not a good fit. Dont let
problem performers linger too long; it could drain the rest of your team and create
problems among your team employees.
Employee Engagement: The best way to have your finger on the pulse of your team is to
measure their satisfaction. Now this is a tricky endeavor to take on. When conducting an
employee satisfaction survey you want to first make sure the questions are carefully crafted to
get insights on the topics that you find critical to your organization. Once you have created the
survey then you should give your employees an anonymous way to provide their feedback so
they feel comfortable being honest. This may open them up to providing candidate feedback so it
is important to properly handle the data once received.
Once you have the feedback it should be put into a deliverable form so the leadership team can
begin synthesizing the data, conducting feedback session with their employees to get more
information and finally putting together an action plan to address top dissatisfies. Share the
results along with the action plan with your team and most importantly execute the
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plan. Incorporate year round activities to keep morale high and continue to address dissatisfies
and celebrate the things that employees love about their jobs.
Rewards & Recognition: Demonstrating your employees value and showing your appreciation
for the contributions that they make to the company can go a long way in boosting morale and
having a happy workplace. This is important for many reasons. One thing to note is that studies
have shown that happy employees are more productive, they are more engaged and they provide
a higher level of service to your customers. A new study from the University of Missouri has
found that companies that attend to employee satisfaction can improve internal moral, prevent
turnover, and enhance customer satisfaction including repurchase intentions. (Source)
Your reward and recognition program similar to training and development does not have to cost
you a lot of money. Plan out the things that you want to celebrate or reward and frequency. A
manager may get an allotment of small dollar amount gift cards for on the spot recognition.
Acknowledging anniversaries and birthdays can also be incorporated. Fun Friday, refreshments
in the break room, end of year bonuses are just a few examples. This is a great place to be
creative, have fun and most importantly say thank you!
This is the time of year that I begin to discuss these topics with our people management clients.
The strategies above are suggestions but each company is going to have plan elements unique to
their organization and budget. Regardless of what components make up a successful people
management strategy for your company it is going to be critical to your organizations success
that you incorporate a people management strategy into your overall business strategy.

5.2 Impact on People of Management Strategies Used in Organization

Corporate strategy is the means by which an organisation chooses its overall intent in response to
the opportunities and threats in the marketplace and in consideration of its internal strengths and
weaknesses. This contrastive understanding is often derived from such as SWOT analysis
(Strengths, Weaknesses, Opportunities and Threats).

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Corporate strategising often takes a position that makes very limited consideration of the human
needs of the people in the organisation, focussing first on the needs of shareholders and (as a
means to satisfying these) the needs of customers. The needs of the people in the organisation are
considered lower down the thinking order, even though a small change in motivation can result
in a step change in organisational performance. Strategy thus can easily end up having a greater
negative effect on motivation, with resultant negative impact on human performance.

To some practical extent, the importance of worker motivation depends on the cost of replacing
them. If a person does not perform up to scratch or fit in with strategic needs, then there are costs
associated with their termination and replacement. Beyond the financial cost of pay-offs and
recruitment, however, there are also indeterminable intangible costs such as the cost of lost
knowledge and the motivational impact on co-workers.

The growth decision
In strategic decision-making, the company may well make decisions to grow in some areas as
well as cut back in other areas. The matrix defined by Igor Ansoff is just one tool that is
commonly used to help strategic focus in the area of choosing combinations of products and
markets. New products and new markets both required additional skill

The make or buy decision
In selecting strategy, a critical decision that a company makes is whether to 'make or buy' for any
parts of the design-to-service continuum. When choosing the 'buy' decision, the company elects
to pay another company to perform the action or service, whether this is product design,
manufacture or after-sales service. This outsourcing choice may also be applied to infrastructure
services, from cleaning to management of compensation and benefits.

The process-redesign decision

A common strategic decision for an organisation is to redesign its operations and processes in
some way. The underlying principle is that organisations are sets of processes that deliver goods
and services, and operational hierarchical structures that are imposed on these tend to result in
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misalignment and waste within the processes. Processes may also reach out into suppliers, where
further mismatch and distortion can lead to problems.

The reorganisation decision
When processes are redesigned or other strategic change takes place, there may well be a
reorganisation of some kind, with changes in the hierarchical reporting structures and people
gaining and losing responsibility and budgets.


5.3 Recommendations for Strategies to Promote High Level of Performance
Top 5 Recommendations:
Recruitment & Selection: It all starts with hiring the right person for the job. It is critical to
understand what positions you will need in your organization in the year to come. While you
cannot predict all of your needs, a staffing forecast can help you in proper planning for
organizational growth.

Training & Development: Your employees are your greatest asset. Continual development of
your team is important, whether succession planning or panning for growth. Use your people
management strategy to identify high potential leaders and employees who and training
opportunities to enhance their performance.

Performance Management: The measurement of each persons performance is necessary to
ensure that your team is meeting expectations. It also allows for feedback, give your employees
opportunities to improve and also addressing performance issues when an employee is not
meeting expectations. Some people prefer to leave performance management to the annual
evaluation.

Employee Engagement: The best way to have your finger on the pulse of your team is to measure their
satisfaction. Now this is a tricky endeavor to take on. When conducting an employee satisfaction survey
you want to first make sure the questions are carefully crafted to get insights on the topics that you find
critical to your organization. Once you have created the survey then you should give your employees an
anonymous way to provide their feedback so they feel comfortable being honest. This may open them up
19 | P a g e

to providing candidate feedback so it is important to properly handle the data once received.

Rewards & Recognition: Demonstrating your employees value and showing your appreciation
for the contributions that they make to the company can go a long way in boosting morale and
having a happy workplace. This is important for many reasons. One thing to note is that studies
have shown that happy employees are more productive, they are more engaged and they provide
a higher level of service to customers.

References
Harvard business essentials : managing creativity and innovation, 2003, Harvard Business
School Press, Boston, Mass.
Adams, B. & Adams, C. 2009, Transformation, Leadership Excellence, vol. 26, no. 2, pp. 14-
15.
Amabile, T. M. & Khaire, M. 2008, Creativity and the role of the leader, Harvard business
review, vol. 86, no. 10, pp. 100.

http://www.ehow.com/list_7486634_effects-organizational-structure-employee-motivation.html

http://www.studymode.com/subjects/how-organisational-structure-impacts-on-people-in-
organisation-page1.html

http://www.businessballs.com/motivation.htm

http://smallbusiness.chron.com/effects-leadership-styles-organization-10387.html