The Attraction-Selection-Attraction (ASA) cycle explains the tendency for employees and their workplaces to align in motive. Individuals typically gravitate toward organizations that match their values, such as passionate people seeking not-for-profit missions, or financially driven individuals seeking for-profit companies. Organizations then select employees who align with these motives, perpetuating the cycle.

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There are three main organizational ownership structures: for-profit (FP), not-for-profit (NP), and local government (LG). These structures have distinct priorities that shape their workplace design and operations. NP and LG organizations typically delegate more responsibility to their employees than FP companies. Furthermore, FP organizations focus on external motivations, such as profit margins, whereas NP and LG structures emphasize intrinsic motivation and passion for a specific cause. Consequently, an organization's ownership structure significantly affects its management style and the well-being of its employees and clients.

Influence of Ownership Structure on Workplace Design

NP organizations are typically built upon a mission and people at the top of the hierarchy will usually give more responsibility and flexibility to their employees because the perception is that these employees have a more hands-on understanding of what the organization is accomplishing/how the clients and beneficiaries are doing. Profit is not a top priority for these companies and ladder-climbing within the companies is not common.

Not for Profit Leadership Structure

Local Government organizations are similar to NP settings in the sense that the mission and goals are the main priority. Local officials are the leaders of these organizations, and seek knowledge through members of their team who have personal experience with members of the community and how they can be helped. The main difference between LG and NP is that the ultimate owners of LG organizations are the citizens of the community while NPs will have a more specific owner. 

Local Government Leadership Structure

In a typical for-profit firm, the leadership structure is a hierarchy where different levels have distinct roles in strategy. The Board of Directors, representing the firm's owners, is responsible for determining the long-term strategic direction. Managers are then tasked with implementing these overarching strategies by translating them into operational plans and directing the work of employees.

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