When I took a mgmt role as VP/Engnring at a firm a few years ago, the first thing I did was assess and address morale, which was not good. One of the obvious things was that the staff didn't like the militaristic-layout of desks, being on display to others in the organization who had cozy and private retreats to use.
The CEO freaked out when I told him we were moving to the opposite side of the office floor (we had a full floor in a standard big-city downtown office building). When we moved over, we had our choice of cubes, open areas (not desks, but full-on tables) and quiet corners. Product management hated it because they "had to walk over to see what was going on". It didn't take a lot to figure out the source of frustration with the office environment for the engineering team. After that, I was able to take on the frustrations of the product management group since they could no longer easily impact the engineering team.
As it turned out, the engineering team didn't mind working in any combination of those situations, as long as they could kind of pick-and-choose over time. And, wouldn't you know it, productivity went up -- considerably.