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The Burke-Litwin Causal Model Of Organizational Performance

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The Burke-Litwin Causal Model of Organizational Performance and .Change (B-L Model), was developed by George H. Litwin and later refined by W. Warner Burke in the late 1980's. This model includes several key features: twelve theoretical constructs (i.e., organizational variables), distinguishes between the culture and the climate of an organization, distinguishes between transformational and transactional dynamics, specifies the nature and direction of influence of organizational variables, and based on previous models, empirical studies, and organizational development practice.

The B-L Model identifies twelve organizational variables as the external environment, mission and strategy, leadership, organizational culture, structure, management practices, systems, work unit climate, task requirements and individual skills, motivation, individual needs and values, and individual and organizational performance. With representation of the external environment as a variable, it should be apparent that the open systems theory underlies this model. The external environment variable is the input into the system, with the individual and organizational performance variable representing the output. The external environment includes exterior conditions or situations that influence the performance of the organization.

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INTRODUCTION

The Burke-Litwin Causal Model of Organizational Performance and .Change (B-L Model), was developed by George H. Litwin and later refined by W. Warner Burke in the late 1980's. (Burke, 1992) This model includes several key features: twelve theoretical constructs (i.e., organizational variables), distinguishes between the culture and the climate of an organization, distinguishes between transformational and transactional dynamics, specifies the nature and direction of influence of organizational variables, and based on previous models, empirical studies, and organizational development practice.

The B-L Model identifies twelve organizational variables as the external environment, mission and strategy, leadership, organizational culture, structure, management practices, systems, work unit climate, task requirements and individual skills, motivation, individual needs and values, and individual and organizational performance. With representation of the external environment as a variable, it should be apparent that the open systems theory underlies this model. The external environment variable is the input into the system, with the individual and organizational performance variable representing the output. The external environment includes exterior conditions or situations that influence the performance of the organization.

ORGANIZATIONAL PERFORMANCE VARIABLES

Leadership

Leadership is the executive conduct that gives direction and encourages others to take needed action, and includes executive practices and values in view of followers and the role modeling of leaders.

Mission and Strategy

Mission and strategy of the organization is the senior leader's belief and declaration. This variable is where the organization states how it plans to achieve its purpose.

Culture

Culture is the organizations collection of explicit and implicit norms, values, and beliefs that directs its organizational behavior, and which is strongly influenced by past experiences, customs, and practices.

Management Practices

Management Practices are the normal line of events within the human and material resources that enable an organization to carry out their strategy.

Structure

Structure is the arrangement of functions and people of an organization into particular units and chains of command, decision-making authority, communication, and relationships to execute their ...

Solution Summary

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Burke-Litwin Causal Model analysis on Industrial Services of America, Inc.

In this segment of our ongoing case, you will be identifying key transformation or throughput processes and looking at the relationships between them. To do this you will be drawing on the Burke-Litwin Causal Model.

The Burke-Litwin is a complicated model and is, perhaps, too big for an analysis of this size. For this reason, you are going to limit your analysis to those transactional variables identified.

The seven transactional variables are:
â?¢ Structure (Burke-Litwin describes structure as the arrangement of the functions, people responsibilities, authorities, communication and interactions in a way that supports the organization's mission, goals and strategy. Identify the organizational structure of Industrial Services of America, Inc. and comment on how well it fits - or not - with its strategy. Be sure to specify the structure by type: matrix, team based, functional or product departmentalization, organic/mechanistic, etc..)
â?¢ Tasks and Skills (Unique or core competencies)
â?¢ Management practices (e.g. participative or centralized decision making)
â?¢ Systems and Policies (information systems, financial, marketing, production, human resources, etc.)
â?¢ Work unit climate
â?¢ Motivation
â?¢ Individual needs and goals

Individual and Organizational Performance is influenced by the Motivation factor. And, the Motivation factor interacts with three factors: Task and Skills, Individual Needs and Values, and Work Unit Climate. It also shows other interactions.

Research Industrial Services of America, Inc. on its throughput variables. This may take some digging, since companies do not usually provide this inside information liberally. You may have to make some inferences.

ASSIGNMENT:
Make a Case that the amount of Motivation in the chosen company has a direct effect on the Performance. You need to show that the Motivation in the company is a primary factor in generating this performance. In order to make this case, you need to generate some backing evidence and data.

In order to make your case you need to:
1. Identify and briefly discuss each of the throughput variables in the company.
2. Explain how these variables interact.
3. Determine how these interactions generate the amount of Motivation in the company.
4. Make a Case for your proposition on how Motivation affects the companyâ??s Performance.

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