UNIT 4

Organization Culture and Conflict Management: Organizational Culture-Concept,

Functions, Socialization; Creating and sustaining culture; Managing Conflict
Sources, types, process and resolution of conflict; Managing Change; Managing across
Cultures; Empowerment and Participation.

Organization Culture

Organization Culture is the set of assumptions, beliefs, values and norms

that are shared by an organizations members.

Components of Organization Culture

Shared Things (The way people dress)

Shared saying (E.g. lets go to work)
Shared actions (Service-oriented approach)
Shared feelings (Hard work is not rewarded here)

Characteristics

Innovation and risk taking

Attention to detail
Outcome orientation
People orientation
Team orientation
Aggressiveness
Stability
Impact of Organizational Culture

Objective Setting
Work Ethic
Motivational Pattern
Organizational Processes (planning, decision making and control etc.)
 Dimensions of Professionally Family-managed
organizational culture managed companies companies
1. Nature of desired Emphasis on Emphasis on
managerial skill professional demonstrated skills,
qualifications and rank depth and quality, and
knowledge
2. Actual Performance Emphasis on Emphasis on originality
conformity to of action and thinking,
organizational values, innovation, and up
loyalty and relative fit gradation of knowledge
with the position and skills
3. Style of planning and Emphasis on Emphasis on selective
decision making information gathering, information usage,
bureaucratic mode of intuitive and qualitative
function, risk aversion decision making of
and non entrepreneurial entrepreneurial nature
decision making
4. Management systems Emphasis on use of Emphasis on reliance on
adopted elegant, scientific, business sense and no
sophisticated and frills, systems geared to
rational system quick action
5. Nature of Comprehensive, formal Emphasis on primary
management control and written reporting use of verbal reporting
and remedial action

Culture as a Liability

Organization culture works as resistant to change if it is based on the

principle of maintaining status quo.
Works as barrier to growth through external means like mergers and
acquisitions and joint ventures.
If organizational culture is not suitable to tolerate cultural diversity, it
will become ineffective.
Creating Organization Culture

Establishing values (What is right and what is wrong)

Creating vision (imagination of future. It is derived from values)
Inspires and exhilarates employees
Create common identity and shared sense of purpose
Creates competitiveness, originality and uniqueness
Foster risk taking and experimentation
Fosters long term thinking
Operationalising values and vision
Socialization of employees

Operationalising Values and Vision

Prepare written statement containing its values and vision and

communicate to members
Design its structure that facilitates employees to take those actions
that have been envisage by values and vision
Organizational processes should be prescribed in such way that inspire
employees to adhere to values and vision
Selection of employees should be done on by matching values
Reward system should encourage employees to engage in behaviors
that are compatible with values and vision

Socialization of Employees

Individual develops into a functioning member of the group according

to its standards, conforming to its modes, observing its traditions, and
adjusting himself to the social situations.
Process
Pre arrival
Encounter
Metamorphosis
Commitment
Productivity
 Conflict
Meaning

Disagreement or hostility between individuals or groups

Rivalry or competition
Perception of disagreement in the individuals
Scarcity of resources or policy differences

Functional and Dysfunctional aspects of conflict

Dysfunctional Aspect

1. Conflict as a cost
2. Conflict as a source of disequilibrium

Functional Aspect

1. Conflict provides opportunities to individuals and groups to think again and take a
more concrete view of the situation
2. Conflicting situations always present threats to working. To overcome this threat,
the individuals and groups have to find out new ways of working (innovation)
3. Conflicts bring cohesiveness in groups
4. Conflict provide challenging environment as these develop high degree of
competition
5. Conflict indicates the shortcomings in the existing system and so management
attention can be drawn for overcoming such shortcomings.
6. People may express their frustration and tension by means of conflicts. So they
are relieved from utter mental tension

The Conflict Process

Stage I: Potential Opposition or Incompatibility

Presence of conditions that create opportunities for conflict to arise:

(i) Communication
Insufficient exchange of information and noise in the
communication channel are all barriers to communication and
potential antecedent conditions to conflict
Potential for conflict increases when either too little or too much
communication takes place
 Channel chosen for communicating can have an influence on
stimulating opposition.

(ii) Structure
Factors of structure, which increase conflict are:
Large size of group
Higher specialized activities
Group members are younger
Greater ambiguity in precisely defining where responsibility for
action lies
Jurisdictional ambiguities
Diversity of goals among groups
Close style of leadership, tight and continuous observation
Too much reliance on participation
One member is rewarded at anothers expense
Groups are interdependent

(iii) Personal Variables

Certain personality types-as, highly authoritarian and dogmatic,
who demonstrate low esteem- lead to potential conflict
Differing value system create conflict

Stage II: Cognition and Personalization

In first stage antecedent conditions for conflict arise. But these conditions are
actually converted to conflict in second stage
Therefore, one or more of the parties must be aware of the existence of the
antecedent conditions (Perceived Conflict)
Emotional involvement in a conflict creates anxiety, tenseness, frustration or
hostility (Felt Conflict)
Emotions play a major role in shaping perceptions. Example:
This stage is important because its where conflict issues tend to be defined and
this definition delineates the set of possible settlements.

Stage III: Intentions

Decisions to act in a given way in a conflict episode

Five conflict-handling intentions are:

(i) Competing
When one person seeks to satisfy his or her own interests, regardless of impact
on the other parties to the conflict.
Assertiveness: The degree to which one party attempts to satisfy his or her
own concerns
 Cooperativeness: The degree to which one party attempts to satisfy the other
partys concerns

High Competition Collaboration

Assertiveness Compromise

Avoidance Accommodation
Low

Cooperativeness High

(ii) Collaborating

When the parties in conflict each desire to fully satisfy the concern of all
parties, we have cooperation and the search for a mutually beneficial outcome.

(iii) Avoiding
A person may recognize that a conflict exists and want to withdraw from it or
suppress it.

(iv) Accommodating
When one party seeks to appease an opponent, that party may be willing to
place the opponents interests above his or her own.
For the relationship to be maintained, one party is willing to be self-
sacrificing.

(v) Compromising
When each party to the conflict seeks to give up something, sharing occurs,
resulting in a compromised outcome.

Stage IV: Behavior

 It includes the statements, actions and reactions made by the conflicting parties
But these behaviors have a stimulus quality that is behaviors sometimes deviate
from original intentions.

Annihilatory Conflict Overt efforts to destroy the other party

Aggressive physical attacks

Threats and ultimatums

Assertive verbal attacks

Overt questioning or challenging of others

Minor disagreements or misunderstandings

No Conflict

Conflict Intensity Continuum

Stage V: Outcome

(i) Functional Outcome

(ii) Dysfunctional Outcome

Retarding of communication
Reduction in group cohesiveness
Subordination of group goals to the primacy of infighting between
members
Group functioning at halt and threaten the groups survival

Types of Conflict

Macro Organizational

Intergroup

Interpersonal

Intra Individual
Micro

I. Individual Level Conflict

1. Intra Individual Conflict

Conflict at interpersonal level occurs because a smooth progression of the need
drive goal cycle does not occur in reality

(i) Conflict due to frustration

Need Drive Barrier Goal / Incentive

(Deficiency) (Deficiency with direction)

Frustration 1. Overt
2. Covert
Defense Mechanisms:

a. Aggression
b. Withdrawal
c. Fixation
d. Compromise

(ii) Goal Conflict

Another common source of conflict for an individual is a goal that has
both positive and negative features, or two or more competing goals.
Three types of goal conflict are:
a. Approach-Approach Conflict: Where the individual is
motivated to approach two or more positive but mutually
exclusive goals. E.g. a new college graduate who is faced with
two excellent job opportunities.
b. Approach-Avoidance Conflict: Where the individual is
motivated to approach a goal and at the same time is motivated
to avoid it. The single goal contains both positive and negative
characteristics for the individual.
c. Avoidance-Avoidance Conflict: Where the individual is
motivated to avoid two or more negative but mutually exclusive
goals. E.g. workers who detest their supervisor and have too
much pride to be unemployed.

(iii) Role Conflict

In the organization, every person is expected to behave in a particular
manner while performing a specific role.
When expectations of a role are materially different or opposite from
the behavior anticipated by the individual in that role, he tends to be in
role conflict.
Four types of role conflict are:
a. Intra sender role conflict: Where the expectations from a single
member of a role set may be incompatible
b. Inter sender role conflict: Where the expectations sent from one
sender are in conflict with those from one or more other senders.
c. Inter role conflict: When an individual occupies two or more roles
simultaneously and the expectations associated with those different
roles are incompatible.
d. Role self conflict: When role requirements violate the needs,
values or capacities of the person. It occurs in three situations:
When the individual occupies a role, which is not
consistent with the images, needs and expectations of the
self
When the individual is biologically inadequate to fulfill the
expectations
When due to gaps or deficiencies in the process of
development of self, the person fails to perceive accurately
the expected behaviors associated with the role.

Factors in role conflict:

1. Role Ambiguity: When role expectations are

inadequately defined or substantially unknown.
2. Organizational Position: Example: Position of
supervisor in the organization. One set of
expectations of his role is that he is part of the
management team and should have the
corresponding values and attitudes. A second set
of expectations is that he came from the workers
group and should have their values and attitudes.
A third set of expectations is that he is a separate
link between management and workers and
should have his own unique set of values and
attitudes. Conflict arises in the mind of the
supervisor as to which expectations he should
fulfill.
3. Personal Characteristics: Several personality
dimensions mediate significantly the degree to
which a given intensity of role conflict is
experienced as strain by the person. E.g.
emotionally sensitive, introvert, strong
achievement oriented.
 2. Inter personal Conflict

(i) Vertical Conflict

It is in the form of superior subordinate relationship
Arise because superior attempts to control the behavior of his
subordinates, and subordinates resist such control.

(ii) Horizontal Conflict

It is among the persons at the same hierarchical level in the same
function or in different functions.

Reasons of inter personal conflict:

1. Nature of Persons

a. Ego States: People interact with particular ego states (way of thinking, feeling
and behaving at any particular time). If ego states are not complementary, the
conflicting situations take place.
b. Value Systems: People having different dominant value systems may develop
conflict in their interaction.
c. Socio-Cultural Factors: Conflicts based on caste, religion, region and family
background are based on difference in socio-cultural differences.

2. Situational Variables

a. Interest Conflict: When people in a group see their interest differently.

People have different permutations and combinations in order to protect their
self-interest
b. Role Ambiguity: If various roles interacting have not been clearly specified.

Analyzing Interpersonal Conflict

The person knows about the The person does not know
other about the other
The person knows about 1 2
him or herself Open Self Hidden Self
The person does not know 3 4
about him or herself Blind Self Undiscovered Self

Johari Window

1. Open Self: There would be openness and compatibility. It would tend

to lead to little, if any, interpersonal conflict
 2. Hidden Self: Person remains hidden from the other because of the fear
of how the other might react. The person may keep his or her feelings
secret. There is potential interpersonal conflict.
3. Blind Self: The person may be unintentional by irritating to the other.
The other could tell the person but may be fearful of hurting the persons
feelings. So there is potential interpersonal conflict.
4. Undiscovered Self: Most explosive situation. There is much
misunderstanding and interpersonal conflict.

II. Group Level Conflict

1. Intra Group Conflict

It may arise in three situations:
When group faces a novel problem of task
Where new values are imported from the social environment into the
group
Where a persons extra group role comes into conflict with his intra group
role

2. Inter Group Conflict

Factors influencing relations between two or more groups are:

(i) Goal Incompatibility
Goal attainment by one group may prevent or reduce the level of goal
attainment by one or more other groups. E.g. Labor Management conflict.

(ii) Resources Sharing

This type of conflict arises when two groups draw from a common pool of
resources and it is not adequate to meet the demands of both the groups.
E.g. such conflicts take place on the quantum of wages, amenities,
working conditions and other related matters.

(iii) Task Relationships

Each group in the organization is related with others in some way or the
other. Various groups may be related in two ways:
Interdependence (Two groups coordinate each other)
Dependence (One is dependent on other)
The conflicts arise in these relations if a group exceeded its authority.

(iv) Absorption of Uncertainty

Various groups in organization face uncertainty due to external
environment
Organizations assign certain groups to deal with it
That group makes decisions or set premises for decision making
for other groups
 Conflict arises if uncertainty absorption by one group is not in
accordance with the expectations of other groups.

(v) Attitudinal Sets

If the group relations begin with the attitudes of distrust, competitiveness,
secrecy and closed communications there is a possibility of various factors
of group relationship being emphasized in a negative way, consequently
leading to conflicts.

(vi) Jurisdictional Ambiguity

It involves overlapping responsibilities. E.g when one group attempts to
assume more control or take credit for desirable activities, or give up its
part and any responsibility for undesirable activities.

(vii) Status Struggles

This conflict occurs when one group attempts to improve its status and
another group views this as a threat to its place in the status hierarchy.

III Organization Level Conflict

1. Intra Organizational Conflict

In an organization there are four predominant types of structural conflict:

(i) Hierarchical Conflict

Conflict between various levels of the organization. E.g. conflict
between board of directors and top management.

(ii) Functional Conflict

Conflict between various functional departments of the organization.
E.g. conflict between production and marketing departments

(iii) Line-Staff Conflict

It often results from situations in which staff personnel do not formally
posses authority over line personnel.

(iv) Formal-Informal Conflict

Informal organizations norms for performance may be incompatible
with the formal organizations norms for performance.

2. Inter Organizational Conflicts

It may include:
Conflict between organizations pursuing similar objectives
Conflict between government agency and organization
Conflict between head office and manufacturing unit
 Conflict Resolution

1. Preventive Measures
a. Establishing Common Goals
b. Changing structural arrangement
i. Reduction in interdependence : Pooled (less degree),
sequential and reciprocal interdependence (Highest
degree)
ii. Reduction in shared resources
iii. Exchange of personnel
iv. Creation of special integrators
v. Reference to superiors authority

2. Curative Measures
a. Conflict Resolution
i. Problem Solving: Emphasis on attaining of common
interests of both conflicting parties. Effective where
conflict is based on misunderstanding and not where
conflict is based on different value systems.
ii. Avoidance: When one party leaves the field and other
party may win or goal may be redefined through mutual
withdrawal from the field.
iii. Smoothing: Differences are suppressed and similarities
are brought forward. With shared viewpoints the ability
to work together towards a commonly held goal must be
facilitated.
iv. Compromise: External or third party intervention plus
internal compromise between conflicting parties. It can
be through mediation or bargaining.
v. Confrontation: When parties are having rigid stand, they
are left to confrontation to settle conflict themselves with
win-lose situation.

What type of resolution action would be taken depends upon:

Nature of conflict
 Nature of parties involved in conflict
Behavioral strategies adopted in conflict resolution

According to Wall and Callister following conclusions are drawn:

Males tend to use forcing approach; females use forcing less and rely
on a range of other tactics.
Managers tend to use forcing approach, employees prefer avoiding,
smoothing or compromising.

American managers tend to be competitive; Japanese managers prefer

a cooperative approach.

Each party tries to mimic the style of other-forcing induces forcing;

accommodating induces accommodating and so on.

People tend to use different resolution styles for different issues;

confrontation is use in performance appraisals, compromise in issues
relating to habits and mannerisms.

Outcomes of Conflict Resolution

Party B

Party A Win Lose

Win Win-Win Win-Lose
Lose Lose-Win Lose-Lose
 Change

Meaning
Making Things Different

Forecasts of changing economic conditions, consumer purchasing patterns, technological

and scientific factors and competition, both foreign and domestic, force top management
to evaluate their organization and consider significant changes.

Forces for Change

Force Example Type of Pressure for

Change
People Generation X Demands for different
Senior Citizens training, benefits, workplace
arrangements and
compensation systems
Nature of Work Force More cultural Demand for human resource
diversity policies and practices
Increase in according to the diversity
professionals
Many new entrants
with inadequate
skills
Technology More computers and More education and training
automation for workers at all levels,
TQM programs more new products,
Reengineering products move faster to
programs market
Manufacturing in
space
Internet
Artificial
Intelligence
Information processing Computer, satellite Faster reaction times,
and Communication communications, immediate responses to
video conferencing questions, new products,
new products, different
 office arrangements,
telecommuting
Competition World wide markets Global competition, more
International trade competing products with
agreements more features and options,
Emerging nations lower costs, higher quality
Mergers and
Consolidations
Growth of specialty
retailers
Economic shocks Security market Financial implications due
crashes to change in economic
Interest rate conditions in the external
fluctuations environment
Foreign currency
fluctuations
Social trends Increase in college Increasing number of single
attendance households and single
Delayed marriages portion quantities of
by young people eatables
Increase in divorce
rates
World politics Collapse of Soviet
Union
Iraqs invasion of
Kuwait
Attack on world
trade centre

Unfreeze Change Refreeze

Old (Movement (Assurance New
State (Awareness from Old of State
of Need for State to Permanent
Change) New State) Change)

Lewins Process of Organization Change

1. Forces for 2.Recognize 3.Problem
Change and Define Solving
Problem Process

Change
Agent

5.Measure, 4.Implement
Evaluate, the Change
Control

Transition
Management

Continuous Change Process Model

Change = Making things different

Planned Change = Change activities that are intentional and goal oriented

Planned Change

First Order Change Second Order Change

Linear and Continuous Change that is multidimensional,

(No shift in assumptions) Multilevel, discontinuous & radical
 (Shift in assumption)

Change Agents = Persons who act as catalysts and assume the responsibility
for managing change activities

What can change agent change?

1. Changing Structure
2. Changing Technology
3. Changing Physical Setting
4. Changing People

Approaches to Managing Organizational Change

1. Lewins Three Step Model

Unfreeze Movement Refreeze

Status Quo-Equilibrium State

To move from this equilibrium, to overcome the pressures of both

individual resistance and group conformity, unfreezing is
necessary.
It can be achieved in three ways:
i. Driving Forces (which direct behavior away from
status quo) can be increased.
ii. Restraining Forces (which hinder movement from
the existing equilibrium) can be decreased
iii. Combine the first two approaches.

Restraining
Forces

Desired State
Status
Quo

Driving Forces
 Time
2. Action Research Model
Action research refers to a change process based on systematic
collection of data and then selection of a change action based on what
the analyzed data indicate.

(i) Diagnosis
Change agent begins by gathering information about
problems, concerns and needed changes from members
of the organization
He asks questions, interviews employees, review
records and listen to the concerns of employees.

(ii) Analysis
The information gathered during the diagnostic stage is
then analyzed
Change agent synthesizes this information into primary
concerns, problem areas and possible action

(iii) Action
Employees and the change agent carry out the specific
actions to correct the problems that have been identified

(iv) Evaluation
The change agent evaluates the effectiveness of the action
plans
Using the initial data gathered as points of reference, any
subsequent changes can be compared and evaluated

3. Continuous Change Model

Objectives of Planned Change

1. Environmental Adaptation
2. Individual Adaptation
3. Structural Adaptation
4. Technological Adaptation
5. Task Adaptation
Resistance to Change

Though changes are necessary for successful organizational

functioning these are generally resisted by the people
Individuals tend to resist many types of changes because new habits
or sacrifices are required.

1. Organizational Sources of Resistance

Organizational Sources Examples

Over determination / Structural Employment system, job
Inertia descriptions, evaluation and reward
system
Narrow focus of change Structure changed with no concern
given to other issues, e.g. jobs,
people
Group inertia Group norms
Threatened expertise People move out of area of
expertise
Threatened power Decentralized decision making
Resource allocation Increased use of part time help

2. Individual Sources of Resistance

Individual Sources Examples

Habit Altered tasks
Security Altered tasks or reporting
relationships
Economic factors Changed pay and benefits
Fear of the unknown New job, new boss
Lack of awareness Isolated groups not heeding notices
Social factors Group norms
Selective information processing Hear what they want to hear
Management of Change

Key Impact
Consider international issues Global competition is a force for
change, and change is accepted
differently in different cultures
Take a holistic view of the Anticipate effects on social system
organization and culture
Secure top management support Get dominant coalition on the side of
change, safeguard structural change,
head off problems of power and
control
Encourage participation by those Minimize transition problems of
affected by the change control, resistance and task
redefinition
Foster open communication Minimize transition problems of
resistance and information and
control system
Reward those who contribute to Minimize transition problems of
change resistance and control systems