Company Background & Problem

International Paper is a global company whose mission is to improve people’s lives, the planet, and the company’s performance by transforming renewable resources into products that people rely on every day. International Paper is a publicly traded company, meaning it is owned by shareholders rather than an individual or family. Although International Paper operates worldwide with over 37,000 employees, this consulting project focuses specifically on the Elizabethton, Tennessee location, which employs approximately 58 individuals. Our analysis centers on this site to better understand how organizational behavior issues manifest at the local level within a large multinational corporation.

The organization is currently facing challenges due to its recent acquisition of DS Smith, ongoing strategic restructuring, and a struggling fiber-based market. These changes have created pressure and uncertainty, requiring both employees and managers to rapidly adjust to new roles and expectations. Forming new roles rapidly can cause harm to the organizational structure.“Organizational structure and culture form gradually over time and are based on an organization’s norms and behaviors and how it changes due to environmental conditions” (Robbins & Judge, 2013).

At the Elizabethton location, employees have reported feelings of uncertainty and stress as they navigate these global changes. Local managers and staff have also expressed difficulty adapting to evolving processes and shifting demands.

This issue is directly tied to organizational behavior, as it affects key areas such as employee motivation, adaptability to change, and teamwork within daily operations at the site. The primary organizational behavior problem at this location is decreased motivation and role clarity caused by rapid organizational change and uncertainty.

Research & Theory Review

To better understand the motivation challenges at the Elizabethton location, Herzberg’s Two-Factor Theory provides the most appropriate framework for analysis. “Herzberg’s two-factor theory, also known as motivation-hygiene theory, posits that certain workplace factors contribute to job satisfaction, called motivator factors, while different factors cause dissatisfaction” (Herzberg, 1964, 1969; Herzberg et al., 1959). Hygiene factors include job security, pay, and working conditions. Currently, the company is under strain due to the acquisition and unstable market conditions. As a result, employees feel uneasy and uncertain about their future roles within the company. Additionally, motivators such as recognition and a sense of purpose have begun to decline as workers feel disconnected from their organization.

Another theory that helps explain the current situation is Lewin’s Change Model, which consists of three stages: unfreezing, changing, and refreezing. At present, the Elizabethton location appears to be stuck between the unfreezing and changing stages. While old routines are being disrupted, there has not yet been a clear new direction established by top management. Because of this lack of clarity, many employees are experiencing confusion and uncertainty. Without a stable and well-communicated transition, it is difficult for employees to “refreeze” and fully adapt to the new processes. Employees are not opposed to change; however, they need a clear direction and defined end goal.

Leadership and communication play a vital role in any organizational restructuring. When these elements are lacking, employees often feel disconnected and unsupported, which is evident at the Elizabethton site. Leaders and top-level management should guide employees by clearly explaining how roles will change, setting new goals, and communicating the reasoning behind the change. Strong communication builds trust and stability; without it, employees are more likely to feel disengaged and unmotivated.

Herzberg's Two-Factor Theory Of Motivation-Hygiene

For this reason, our group selected Herzberg’s Two-Factor Theory as the primary framework for analysis. This theory allowed us to examine how instability in both hygiene and motivator factors has directly impacted employee morale and motivation. Lewin’s Change Model further helped identify where the workforce is currently located within the change process and emphasized the importance of effective communication in supporting this transition.

Data Collection & Analysis

We made efforts to reach two contacts at International Paper in Elizabethton, Tennessee. While one of the contacts, a sales representative, did not respond, we did receive a detailed response from the company’s HR Coordinator, who served as our primary source of information for this project. She responded promptly and was willing to provide insight into the organizational changes taking place at the site.

Based on what the HR Coordinator shared, we can conclude that the recent organizational changes have required employees to adjust to new priorities, learn new systems, and engage in continuous learning. The company has had to redefine roles as necessary, align employees with new responsibilities, and help them manage learning curves, all while maintaining productivity and morale during the transition.

She also explained that the company strives to maintain clear communication and hosts weekly meetings to discuss policies and updates related to the changes in production. Even with this strong communication system in place, the HR Coordinator noted that the company could benefit from increased management engagement and additional support for the rollout of new programs.

These responses helped identify the main themes affecting employees during the transition, including:

Communication
Training
Role clarity
Leadership involvement
Support during change

Although the survey participation was limited, the responses that were received provided consistent and meaningful insight into employee experiences during this transition.

Survey Results:

The single response we received was consistent across all questions. The HR Coordinator strongly agreed that communication, supervisor support, and training were effective, and overall morale was rated as high. These results support the themes identified in the interview and highlight both the company’s strengths as well as the continued need for leadership engagement as the changes continue to develop.

Interpretation of Charts:

The survey results show consistent agreement in the responses received. The HR Coordinator strongly agreed that communication, supervisor support, and training were effective, and overall morale was rated as high. Although participation was limited, these results support the main themes identified in the HR Coordinator’s interview and highlight both current strengths and the continued need for leadership engagement as organizational changes progress.

Key Theory

Herzberg's Two-Factor Theory gives a detailed explanation of the two factors that affect motivation. These two-factors are hygiene factors such as supervision and support and motivators such as recognition and responsibility.

A simple way to explain Herzberg's Two-Factors is that employees feel motivated when their peers and supervisors are supporting them and making them feel heard, which would be hygiene factors, and they get recognized for the work they have completed and they are trusted that they can adequately do their work, which this would be motivators.

We can apply Herzberg's Two-Factory theory to the Elizabethton location because both factors are being affected by the acquisition and restructuring. The changes going on in the organization are affecting the hygiene factors such as job security and the working conditions, and some of the motivators such as being unrecognized and having non-meaningful work leads them to feel like they have no responsibility with the company. As a result of the of job factors, when a company doesn't have a strong structure, it sinks. "Organizational Culture has been compared to an iceberg (Schein, 2010)". This shows us that the employees are unmotivated due to the instability of the hygiene factors and motivators.

The connection between Herzberg’s Two-Factor Theory and the themes from our interview and survey allowed us to form evidence-based recommendations tailored to the motivational needs of employees at the Elizabethton site.

Recommendations

After reviewing the challenges faced by International Paper in Elizabethton, Tennessee, a stronger focus on leadership behavior and clearer communication across the company hierarchy is recommended. The transition to new products requires employees to learn new methods of production, which takes both time and support. In order for this transition to be successful, managers and upper-level leaders must show understanding, patience, and encouragement toward employees as they adapt to these new expectations.

Herzberg’s Two-Factor Theory explains that job satisfaction and dissatisfaction are influenced by two separate sets of factors: hygiene factors such as salary, job security, and working conditions, and motivator factors such as achievement, recognition, and responsibility. Based on the data collected and employee concerns regarding uncertainty and change, the primary areas needing improvement at the Elizabethton location fall under the motivator factors specifically achievement, recognition, and responsibility.

To strengthen these motivator factors, leadership should establish a clear and realistic timeline for employees to fully learn and adjust to the new production processes. Clearly communicating this timeline will help reduce stress and anxiety by assuring workers that they are not expected to master new responsibilities immediately. In addition, managers should provide consistent encouragement and recognize employee progress and accomplishments throughout this adjustment period. Celebrating small successes and offering positive feedback will increase motivation, reinforce a sense of purpose, and help employees feel valued during the transition.

By improving recognition practices, setting clear expectations, and offering continued support, International Paper can increase employee confidence, strengthen morale, and create a more stable and motivated workforce during this period of change. A key idea, is that companies must know how to work with the people they have, and make them feel at home. "Organizations must analyze their cultures and how to either operate effectively within them or change them" (Edgar Schein, 1985).

Outcomes

Our team conveyed our findings and recommendations directly to the site management contact with whom we communicated. Leadership expressed appreciation for the clear identification of both strengths and areas for improvement, with particular emphasis placed on communication practices and leadership engagement.

Although survey participation was limited, the information gathered provided meaningful insight into employee motivation and the support systems in place during organizational change. The results indicate that International Paper’s Elizabethton site demonstrates strong morale and effective communication, while continued leadership involvement and reinforcement of training efforts could further enhance employee outcomes. By adopting the team’s recommendations, the site is well-positioned to support employee motivation, strengthen resilience, and promote continued success throughout the restructuring process.

Team Mission

Our team’s mission was to collaborate as consultants to identify and analyze organizational behavior challenges at International Paper’s Elizabethton site. We aimed to apply theory-based analysis to real workplace issues and develop actionable recommendations that could improve motivation, communication, and adaptability within the company.

Team Reflection

This project allowed our team to connect organizational-behavior theory to real-world challenges. We learned that even limited data can reveal valuable insights when paired with theory and careful analysis. The consistent feedback from both participants reinforced the importance of communication, leadership, and teamwork during change. One challenge we faced was a low response rate, which taught us the importance of engagement and persistence when collecting organizational data. Despite this, we successfully identified key strengths within the company and produced realistic, evidence-based recommendations.

Individual Contributions

Abigail Heimann: I did the company and problems section. And I led the data collection interviews and help give it for the sections to be completed with it. I keep in contact with our contact person to get our information and also sent it to them when we were finished. I also completed the Data Collection & Analysis interpretation by organizing the survey charts and writing the analysis of the themes. I made sure the formatting of the blog was nice and professional and served the company well. I also outlined the whole blog so it was nice and organized and easy for the team to get done.

Sean Cearley : I completed the research and theory section. I made sure to use accurate theories based on the companies situation. I explained how the workers may feel disconnected from the company. I also explained what could make the company do better briefly. I also did the references page.

Ashton Byrd: I contributed to the Data Collection & Analysis section by assisting with organizing the information from the interview and helping summarize the key points the HR Coordinator shared about communication, training, and role clarity during the transition.

Ava Henderson: I completed the Key Theory section by clearly defining Herzberg’s Two-Factor Theory and explaining the difference between hygiene and motivator factors. I connected the theory directly to the company’s situation and helped clarify how motivation was being impacted by recent changes at the Elizabethton location.

Eric Mullikin: I completed the Recommendations section by developing clear, actionable strategies aligned with Herzberg’s Two-Factor Theory. I focused on improving leadership behavior, clarifying communication expectations, and strengthening employee support as the company transitions to new processes and restructuring.

Connor Doeren: I completed the Outcomes section by summarizing how our findings and recommendations were communicated to the company contact and describing the expected impact of our proposed improvements. I emphasized how communication, training, and leadership engagement could support employee motivation during organizational change.

References

Cummings, T. G., & Worley, C. G. (2009). Organization development and change (9th ed.). South-Western Cengage Learning. http://www.mcs.gov.kh/wp-content/uploads/2017/07/Organization-Development-and-Change.pdf

Great River Learning. (2025). Topic 7: Motivation. In Organizational Behavior & Management (online course module). Great River Learning.

Herzberg, F., Mausner, B., & Snyderman, B. B. (1959). The motivation to work (2nd ed.). Wiley.

Kurt, S. (2022, October 17). Herzberg’s motivation-hygiene theory: Two-factor. Educational Library. https://educationallibrary.org/herzbergs-motivation-hygiene-theory-two-factor/

Robbins, S. P., & Judge, T. A. (2013). Organizational behavior (15th ed.). Prentice Hall.

Schein, E. H. (2010). Organizational culture and leadership (4th ed.). Jossey-Bass.

The Visionaries: Group 5 MGMT 3000

Final Consulting Project - International Paper - Final