As we understand from the study of Informal Organization, the main energy available to the informal group is social need satisfaction. When the informal organization has goals that are incongruent with the formal organization, the employees must be dissatisfied with extrinsic factors, to the extent that the needs to alleviate the negative extrinsic factors take precedence over the social needs.

Beaver Basket Company was privately owned by the original company and the culture was filled with the traditional rural values of the founders. This could have several implications. First, the company is not paying out a lot to its employees. Second, the company is not a like most modern public ownership organization that shares profit with employees and have complex incentive plans in place.

arslow's Need Theory, we can identify that the lowest level of need, physiological need, is not being satisfied at this privately owned company. The sales team, or the informal group has extrinsic needs that are not satisfied. In fact, the needs to satisfy the needs take precedence over the social needs, as evident by the way the old salesman talkes to Alice.

First of all, let's identify the first level outcome, which is of concern to the organization. In this case, the goal for the company is to maximize profit. In order to achieve greater profit, the company needs to increase sales revenue and reduce expenses.

Using Expectancy theory we can understand why the informal group's goal cannot be congruent with the formal organization goal.

The second level outcome, as we identified earlier is for the informal group to increase their pay, or to maximize the money they can take home.

Therefore, the effort salesmen direct toward first lev

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Approximate Word count = 639
Approximate Pages = 3 (250 words per page double spaced)