Book Review: Natural Capitalism: The Next Industrial Revolution

Natural Capitalism is a book that focuses on the natural development of the economic system. The work by Paul Hawken, Amory Lovins, and Hunter Lovins discusses the nature of technology and development within the economic system and how this impacts the natural environment. It discusses in great deal the next industrial revolution, economic waste, costs within organizations, food development, financial solutions, and human capitalism. Through the chapters the reader will be brought through painstaking detail the components of economic system and how the circumstances are right for another transformational development.

The book makes the theoretical argument that the next industrial revolution will be a natural environment one. At present the economic system focuses heavily on human capacity but will soon be more focused on natural resources and the efficient use of such resources. People could live twice as well on half as much energy and resource waste. The creation of efficient environmental usage will develop higher levels of social and economic existence. It is a systematic approach to society and its relation to the natural environment.

The book is written at a graduate level for other academics. It can be hard to follow or stay focused if one is not interested in the topical area. Much of the work has multiple statistics, lists of facts, and detailed information that eventually leads one to a conclusion about the system and its environment. However, the prose is not particularly interesting for the casual reader so one should already have a keen understanding of these concepts. The book's theoretical pitch, with environment changes a new way of societal interaction with the environment is coming, appears to be a sound one. There are lots of references for people who are interested in finding additional resources.

Hawken, P., Lovins, A. & Lovins, H. (1999). Natural Capitalism: creating the next industrial revolution. NY: Little, Brown & Co. ISBN: 0-316-35316-7

Blog Ranking 3.6 -1 (Age of Book)=2.6
Price: $13
Pages: 322

Motivation and Innovation: Pro-Social Problem Solving

The nature of work and the organization is changing. As this work becomes dynamic, uncertain, knowledge orientated, and ever adjusting it will rely more heavily on creative ideas of employees (George, 2007). Intrinsic motivation and innovation have important associations that should not be overlooked by organizational researchers. It is through this internal motivation that new ideas and concepts become born through associating and connecting new information in unique ways to solve larger problems.

Intrinsic motivation refers to the desire to expend effort based upon one's interests and enjoyment of the tasks being performed (Ryan & Deci, 2000). It is an internal desire for self-fulfillment, development, and accomplishment outside of the realm of extrinsic rewards. In history it was the desire of these intrinsically motivated and creative individuals that changed the nature of industry, methodology and even life by bringing forward ground breaking ideas and concepts.

Intrinsic motivation is believed to enhance creativity through positive affect, cognitive flexibility, persistence, and risk taking (Shalley, Zhou, & Oldham, 2004). Each of these concepts are necessary in order to guide an intrinsically motivated person to higher levels of idea generation, analysis, and eventual solution. Motivated Information Processing Theory indicates that motivations shape the cognitive processes, the selective information they are aware of, how they encode information, what information they will remember in order to solve novel problems (Kunda, 190).

Through cognitive flexibility employees are able to engage in pro-social behavior that encourages the development of new ideas. When employees take the perspective of the "other" they are more likely to develop useful solutions to a wider group of people (Mohrman, Gibson, & Mohram, 2001).  It is this pro-social behavior which encourages them to solve problems in ways that appeal to others (De Drue, Weingart, & Kwon, 2000). Through the perception and perspective of solving problems through customers, managers, employees, and shareholders vantage points can a person find solutions that fulfill the needs of and satisfy the desires of larger groups creating higher levels of creative utility.

There are a number of criteria for motivation to be successful in creating innovation. Positive affectivity stimulates creativity by broadening the range of cognitive information, expanding the scope of attention for obtaining information and ideas, and creating flexibility for identifying patterns and association between complex ideas (Amabil, Barsade, Mueller & Straw, 2005). It is the ability to move out to wider concepts and environmental facts that allow a person to reconnect information in new ways to solve complex problems. In order for this to happen one must display an "open mindedness" to new thoughts and ways of perceiving the environment.


Innovation and internal satisfaction mix with self-confidence to maintain task persistence. Through Self-Determination Theory it is the fostering of confidence and interest that intrinsic motivation encourages employees to maintain effort on challenging, complex and unfamiliar tasks (Gagne & Deci, 2005). Moving into the "unknown" is not easy for many employees. Without a belief in one's abilities there will be a lack of confidence that such activities will bear fruit or have a positive outcome.


The beauty of internal motivation is that when it develops into a pro-social context it expands its potential solutions to have the largest possible impact. Psychological research has show that such pro-social behavior in internally motivated and creative individuals push for solutions that impact multiple-generations (McAdams & de St. Aubin, 1992). The wider the impact the more problems its solves for people and the more financial and social worth it is to the organization or a nation.


According to a study of military personnel, water department employees, and in-house laboratory manipulation conducted by Grant and Berry it was found that high intrinsic motivation with pro-social behavior created higher levels of creativity, perspective taking, perceived choice, task interest and pro-social behavior than any other combination levels of high/low intrinsic motivation with high/low levels of pro-social behavior (2011). The main findings of the study indicate that intrinsic motivation is more successful in developing creativity when individuals are socially motivated to take the perspective of others and use innovation to solve problems.

Through the motivational, innovation is developed. It has important social underpinnings associated employee satisfaction and social group dynamics. As employees master skills, gain new information about their environment, and explore the wider social context of their work they use their higher levels of motivation and self-efficacy to complete complex and unfamiliar tasks.  It is through the encouragement of innovation, employee satisfaction, and motivation that organizations can further the development of new lines of revenue and social success.

Amabile, T., Barsade, S., Mueller, J.., & Staw, B. (2005). Affect and creativity at work. Administrative
Science Quarterly, 50: 367–403.

De Dreu, C., Weingart, L., & Kwon, S. (2000). Influence of social motives on integrative negotiation:
A meta-analytic review and test of two theories. Journal of Personality and Social Psychology, 78:
889–905.

Gagne´, M., & Deci, E. (2005). Self-determination theory and work motivation. Journal of Organizational Behavior, 26: 331–362.

George, J. (2007). Creativity in organizations. In J. P. Walsh & A. P. Brief (Eds.), Academy of Management annals, vol. 1: 439–477.

Grant, A. & Berry, J. (2011). The necessity of others is the mother of invention: intrinsic and pro-social motivations, perspective taking, and creativity. Academy of Management Journal, 54 (1).

Kunda, Z. (1990). The case for motivated reasoning. Psychological Bulletin, 108: 480–498.

McAdams, D., & de St. Aubin, E. (1992). A theory of generativity and its assessment through self-report,
behavioral acts, and narrative themes in autobiography. Journal of Personality and Social Psychology,
62: 1003–1015.

Mohrman, S., Gibson, C., & Mohrman, A. Jr. (2001). Doing research that is useful to practice: A
model and empirical exploration. Academy of Management Journal, 44: 357–375.

Ryan, R. & Deci, E. (2000). Self-determination theory and the facilitation of intrinsic motivation, social
development, and well-being. American Psychologist, 55: 68–78.


Shalley, C., Zhou, J., & Oldham, G. (2004). The effects of personal and contextual characteristics on creativity: Where should we go from here? Journal of Management, 30: 933–958.

American Gothic as a Depiction of the Great Depression by Grant Wood

American Gothic (1930)

The painting an American Gothic was produced by Grant Wood in 1930. It was completed in Iowa as a backlash against Europeans trying to depict Americans from their own vantage point. The concept of self-representation was called Regionalism. It was part of a movement of paintings by Americans to characterize "true" American life.

The picture is of a farmer and his daughter. Grant Woods used his sister and a dentist to model the image. One can see the age on the father's face and his willingness to work hard and save the farm. Perhaps he was saving it for his daughter. As the Depression took hold you can see the determination with just a touch of a classy sports jacket thrown over his bibs. It is an interesting clash of age and youth, wealth and poverty, ruggedness with soft flowers in the back, and commitment with a get-to-work attitude. 

Grant Woods moved to Cedar Rapids after his father passed away in 1901. He went to an art school in Minnesota and then came back to Cedar Rapids to teach in a one room school house. Around 1913 he attended the School of Art Institute in Chicago. Through his travels in Europe he exposed himself to other forms of art. He focused much of his effort on the Midwest and the lives of its inhabitants.

The Depression was a worldwide event that started in 1930 and ended in the early 40's. It is seen as the world's longest lasting economic downturn. International trade declined by 50% and unemployment rose to around 30%. The causes of the Depression range from explanations of market contraction to governmental inefficiencies. However, the initial decline of the stock market was seen by some economists as a symptom of bank and government policy failures.

In a study of the Great Depression by economist James K. Galbraith's work The Great Crash:1929 he writes:

The main relevance of The Great Crash, 1929 to the great crisis of 2008 is surely here. In both cases, the government knew what it should do. Both times, it declined to do it. In the summer of 1929 a few stern words from on high, a rise in the discount rate, a tough investigation into the pyramid schemes of the day, and the house of cards on Wall Street would have tumbled before its fall destroyed the whole economy. In 2004, the FBI warned publicly of “an epidemic of mortgage fraud.” But the government did nothing, and less than nothing, delivering instead low interest rates, deregulation and clear signals that laws would not be enforced.

Galbraith, J. (1961) , The Great Crash 1929, Pelican Books

Employee Satisfaction and Motivation as Determinants in Competitiveness

Employee satisfaction and employee reward are associated concepts that work together to create a more competitive work environment. According to Radovanovic & Savic, "Today is the time of knowledge, creativity innovation and information" (2012). The research conducted helps show how motivation and satisfaction are connected in the minds of workers even though they are two separate constructs. Despite this difference they have some connecting traits focused primarily around the environment and the activities of managers.

A study conducted at a number of companies used employee survey questions that help highlight what encourages employees to be motivated and what creates satisfaction.

1.) What is the work climate in your company and how does it influence your motivation and satisfaction at work?
a) positive and stimulative for work and satisfaction 80%.
b) negative and not stimulative for development and satisfaction 20 %.

2.) What are the most frequent present factors of motivation and satisfaction for work in your company?
a) monetary compensation, 56%
b) the nature of the job 30%
c) career development 20%

3.) How much does praise affect motivation of employees for work and for their further development:
a) a lot 70%
b) a little 20%
c) not at all 10%

4.) Does the pronounced sanction for employee inactivity influence the performance in further work:
a) It does not, 70%.
b) It should, 20%
c) It does, 10%

5.) Is it necessary to establish work performance evaluation, as stimulating factor for work and development (occasionally,all the time):
a) Yes, 65%
b) No, 25%
c) Maybe, 10%

6.) How much is the company management obliged to deal with the issue of motivation of employees and their satisfaction?
a) Yes 95%
b) No 5%


7.) How much is the motivation of employees in your company influenced by: individual characteristics, job characteristics, and characteristics of the company?
a) individual characteristics, 40%
b) job characteristics, 30%
c) characteristics ofthe company, 30%

8.) How much is satisfaction of your employees influenced by reward, work atmosphere, colleagues at work and the job itself?
a) Reward 40 %
b) Work atmosphere 20 %
c) Colleagues at work 20 %
d) Job Itself 20%

The survey finds that the environment and how managers encourage workers is a large factor in creating motivation and satisfaction. Furthermore, the use of discipline doesn't detract from this environment. It is still necessary to offer appropriate levels of performance feedback and equitable rewards.

The researchers also suggests that strong human resource functions are very important in developing this environment. Employees adopt motivational systems through their perceptions and personal opinions from a stable system of beliefs that predispose them to behave in a certain manner. Using flexibility, innovation, and changes the organization can create the right mix for stronger global competition.

Radovanovic, V. & Savic, L. (2012). Motivation and job satisfaction-determinants of competitiveness. Metalurgia International, 17 (11).

Book Review: Descarte's Error by Antonio Demasio

Descarte's Error by Neurologist Antonio R. Damasio delves deeply into the workings of the brain and the use of emotion to make decisions. He moves through concepts such as biological ethics, social norms, rational thinking, pre-frontal lobe damage, and finally into Descartes error. He digs into cognitive science to understand how the separation of body and mind was an error by one of the most famous philosophers of yesteryear.

"I think, therefore I am" is an important saying of Descartes as he philosophized the nature of human life. Yet many seem to have forgotten his clarification a few lines below:

"From that I knew that I was a substance, the whole essence or nature of which is to think, and that for its existence there is no need of any place, nor does it depend on any material thing; so that this "me", that is to say, the soul by which I am what I am, is entirely distinct from body, and is even more easy to know than is the latter; and even if body were not, the soul would not cease to be what it is."-Descartes

To Damasio the body and mind are the same. One cannot exist without the other. More importantly, the body feeds the mind through its senses and feelings exist throughout the entire body. To him it is not possible to understand the brain without knowledge related to neuroanatomy, neurophysiology, and neurochemistry. He sums up his argument as:

"The comprehensive understanding of the human mind requires an organismic perspective; that not only must the mind move from nonphysical cogitum to the realm of biological tissue, but it must also be related to a whole organism possessed of integrated body proper and brain and fully interactive with a physical and social environment."

Under such circumstances the mind is more than an animal spirit. It exists within the cognitive, physical, and social aspects of life. Each component fits within the nature of its existence and defines who and how it will think. Senses draw information, the mind has a sense of existence, and society defines its perception. If such a concept were true then to expand the mind would mean exploring the physical, mental, and social aspects of one's life.

The book is not for the amateur. At times it can be heavy and other times more theoretical. However, the premises of the book seems to fit more closely with current cognitive research. More importantly the book provides a way of looking at the mind as having three planes of existence that help it make meaning in the lives that we live. To understand the root of emotions and thought is to create greater insight into the nature of our lives. It is through this nature we can help develop a stronger perspective of our learning, working, and feeling existence. An extensive list of references are included in the work.

Price: $11
Pages: 252
Blog Ranking: 3.8/5
Damasio, A. (1994). Descartes' Error: emotion, reason, and the human brain. New York: Grosset/Putnam Book. ISB: 0-399-13894-3

Improving Employee Empowerment in Organizational Culture

Empowering employees is more that offering a few trinkets of appreciation and turning a backside to fundamental principles. Improving employee empowerment requires consistent positive affect of behavior that builds trust and commitment to organizational expectations. Through proper management techniques employee empowerment can lead to a higher functioning organization.

Empowering employees has a number of benefits for companies that seek to make improvements within their organizational approaches. Employee empowerment has been seen as a way to increase motivation, morale, satisfaction, commitment and innovation (Ford & Fottler, 1995). These elements work together to create a stronger organizational approach to employee management.

According to Thomas and Velthouse (1990) empowerment is associated with intrinsic task motivation. Such task motivation reflects four cognitive approaches which include meaning, competence, choice and impact. Through positive affect in these areas employees are able to create higher levels of positive orientation and empowerment.

Meaning: The work should have meaning to the employee and the organization.

Competence: The employee should feel as though they are gaining mastery over their work.

Choice: The employee should feel their line of employment and their work tasks are of interest to them and a personal choice.

Impact: The employee should feel their work is making a difference.

Importantly, the empowerment requires a level of organizational fairness. The perceptions of fairness are influenced by the equity of reward distribution and interpersonal respect (Lind & Tyler, 1998). Employees who view the reward process as unfair and who are not treated appropriately will not be empowered to work harder, solve problems or engage the organization.

The concept of fairness can often be perceptual by nature. Such perceptions abound when employees feel that they have not been treated with ethical appropriateness associated with common understandings of civility and dignity (Greenberg, 1990). It is these socialized understandings the contribute greatly to the level of willingness to be proactive within the workplace.

Despite these benefits there are a number of barriers that impact the success of employee empowerment approaches. These barriers are often related to the trust and fear between management and labor (Andrews, 1994). Without strong work relations and social equity there is a lack of trust that management will follow through with expectations and fear associated with management styles that impact the feelings of fairness among employees.

Even small negative events can add up overtime to reduce empowerment (Abelson, 1985). Employees who have been treated unfairly, inappropriately, or have witnessed failures of management will accumulate such instances to make an impression of their work environment. Encouraging these detractors from empowerment within the workplace over time can even create a culture lacking of empowerment that impacts the financial abilities of the organization.

Detractors are not just one-off instances of unfair treatment. Such actions drains motivational energy which further creates ineffectiveness in managerial effectiveness and innovation within their departments (Spreitzer, 1995). The longer such detractors exist the more ineffective the manager will become in his/her approaches. On an organizational scale this can have large financial consequences.

Through trust organizations can improve labor management relationships and overall organizational effectiveness. Trust impacts the overall outcome of individual cooperation and group cohesiveness (Alexander & Ruderman, 1987). It is through this group cohesiveness with shared senses of behavior and understanding that a positive organizational culture can be built.

Empowerment is not a workplace concept that can be implemented and pulled at the whim of executives. It must be fostered throughout the organization, management techniques, and organization culture. Those managers who detract from an empowerment strategy should be removed and replaced by those who can realize higher levels of worker performance as well as organizational development. 


Abelson, R. (1985). A variance explained paradox: when a little is a lot. Psychological Bulletin, 97.


Alexander, S. & Ruderman, M. (1987). The role of procedural and distributive justice in organizational behavior. Social Justice Research, 1.

 Andrews, G. (1994). Mistrust, the hidden obstacle to empowerment. Human Resource Magazine, 39 (9).

Ford, R. & Fottler, M. (1995). Empowerment: a matter of degree. Academy of Management Executive, 9.

Greenberg, J. (1990). Organizational justice: yesterday, today and tomorrow. Journal of Management, 16. 

Kane, K & Montgomery, K. (1998). A framework for understanding disempowerment within organizations. Human Resource Management, 37 (3/4).

Line, D. & Tyler, T. (1988). The social psychology of procedural justice. New York: Plenum Press.

Spreitzer, G. (1995). Psychological empowerment in the workplace: dimensions, measurement and validation. Academy of Management Journal, 38


Thomas, K. & Velthouse, B. (1990). Cognitive elements of empowerment: an interpretive model of task motivation. Academy of Management Review, 15.

Keynesian Theory: Benefits and Detractors

Keynesian economic theory has been under increased scrutiny as the U.S. national debt load increases and the economy suffers from a long period of recession. The theoretical standpoint of the Keynesian model is one of a mixed bag where those elements that would have a positive impact are often drowned out by inefficient governmental waste, political favoritism, and the cost of servicing the debt. Under certain circumstances the policies can help stave off economic collapse but fail to bring about positive benefits the longer it is used.

According to the U.S. Census Bureau an era between 1790's to 1930's only saw deficits in government spending in approximately 38 years. Most of this debt was short-term and a direct result of increased costs of war or economic downturns (Lee, 2012). Total federal budgets ran at approximately 3.2% of GNP when compared to nearly 70% of GNP today (The 2012 Long-Term, 2012). At such a high debt-to-earnings scenario the Keynesian approach loses its power to encourage future economic benefits.

To Dr. Dwight Lee, from the University of Georgia, most recessions were relatively small before the Great Depression of the 1930's (2012). They were small because market forces moved in to clear up slack in the economic system and create more productivity. He further makes the argument that Keynesian economics work best when running a surplus for many years and then used to spur economic growth in a quick paced fashion. However, running a long-term deficit and then applying additional debt on top of old debt creates higher levels of inefficiencies and costs. It dilutes the potential positive power of each dollar spent and increases its costs. 

One problem with Keynesian economics result from the political process that filters effective action through multiple competing interests and short-term results that create fiscal irresponsibility (Lee, 2012). What could have been considered effective government spending is often wasted in unrelated expenditures that do little to solve economic problems. This often occurs as decisions are filtered through the political process and sifted to those who support that process. It is always easier to spend then it is to save or ask for a tax increase.

It can be beneficial to see how poorly designed spending matched with political favoritism can impact the effectiveness of taxpayer liabilities. Accordingly, natural disaster legislation has shown that in the past nearly half of the funds were allocated based upon political interests versus that which actually aligns with the needs of victims (Garrett and Sobel, 2003). Such wasteful activities dilute much of the potential benefits of a stimulus that encourages recovery and growth by inappropriately allocating resources to the least effective entities and pinning them to taxpayer debt. 

It is this political favoritism that has made economic policy more dangerous. For example, the multiplier effect is based upon the concept of Keynes statements, “to dig holes in the ground" can benefit society (Keynes, 1936). In this concept, as money is paid for employment purposes it impacts secondary services through the economic chain passing resources to small businesses, companies, and other entities. However, if only a percentage of that money makes it through to these secondary entities its overall impact is diminished.

The end result of misguided economic applications of Keynes theory will result in higher taxes and greater expenses on debt (Barro, 1974). Someone will need to pay back the money. In most cases it will be the next generation and the one thereafter. The costs associated with debt servicing rises above the original costs creating ever increasing problems for the future. It is this future that is short changed for current needs.

The concepts of Keynesian economics works well under certain circumstances but can be disastrous if inappropriately applied in the long term. Positive applications of Keynesian economics occurs when the nation has been running a surplus for a number of years and uses this surplus to spur economic growth through liquidity that fosters cash flow and lending. Such monies will need to be effectively and efficiently allocated only to those areas where it is likely to have the most beneficial and long-term impact. As political favoritism, debt servicing costs, and inefficiencies rise the effectiveness of the financial economic injection diminishes.When used appropriately with assurances of proper expenditures in strategic entities it has the ability to increase economic activity in the short run.

Key Points:
-Keynesian Economics comes with benefits and risks.
-Money spent should have an immediate impact with long-term potential.
-The economic chain and spending decisions should avoid all waste.
-The cost of debt rises over time.

-Keynesian policies work in the short-run to counter quick shocks to the market.
-Political favoritism diminishes its impact.

-Economic activity would need to pick up much more than the costs associated with debt and misspending when compared to low debt and efficient spending in order to justify such policies. 
-The risks and benefits of using such policies should be carefully analyzed and calculated. 

Garrett, T., and Sobel, R. (2003) The Political Economy of FEMA Disaster Payments. Economic Inquiry 41 (3): 496–509.

Lee, G. (2012).  The Keynesian Path to Fiscal Irresponsibility. Kato Journal, 32 (3).

Keynes, J. M. (1936) The General Theory of Employment, Interest and Money. New York: Harcourt, Brace and Co.

The 2012 Long-Term Budget Outlook. (June 5th, 2012). Congressional Budget Office. Retrieved January 14th, 2013 from http://www.cbo.gov/publication/43288