Organizational culture and

climateBy

Jayant Isaac Author I Academician I Speaker

Contact No-9229156307Email: jayantisaac@yahoo.com

CULTURE• Culture means the way of life.• It is shared values philosophies, ideologies,

assumptions, beliefs, expectations, attitude and norms that knit a community together

• We can say that culture is an Integration of– Human group ideas– Customs & Tradition

• In system

Organizational Culture

• A common perception held by the organization’s members; a system of shared meaning.

• The shared knowledge within an organization regarding the rules, norms, and values that shape the attitudes and behaviors of its employees.

• Organizational Culture is the set of assumptions , beliefs , values and norms that are shared by an organizations members.

• Shared things(eg. The way people dress)• Shared saying(e.g. Lets go to work)• Shared actions(e.g. a service oriented approach)• Shared Feelings(e.g. hard work is not rewarded

here)All the above constitute the organizational culture

Belief, Values ,Assumptions• Belief: A belief is a proposition/plan/suggestion

about how the world works, that the individual accept as true; it is a cognitive fact for the person.

• Values: values are beliefs about what is desirable or “good” & what is undesirable or “bad.”

• Assumptions: Assumptions are beliefs that are regarded as so valuable and obviously correct that they are taken for granted and rarely examined or questioned.

Physical StructuresRituals & Ceremonies

StoriesLanguage

Beliefs

Values

Assumptions

2. Artifacts ofOrganizationalCulture

1.OrganizationalCulture

Elements of Organizational Culture

1.Elements of Organizational Culture

Assumptions• Deepest part of culture, unconscious Beliefs• Perceptions of realityValues• Stable, long-lasting beliefs – Espoused(supportive)– Enacted(performance)

Elements of Organizational CultureExample

•Brown & Brown, Inc. --

an aggressive culture

Annual sales meeting, managers of poorly performing divisions are led to the podium by medieval executioners while a funeral dirge(song) plays.

2. Deciphering(Interpreted) Organizational Culture Through Artifacts

Artifacts: observable symbols & signs of an organization’s culture

• i. Stories • ii. Rituals and Ceremonies• iii.Organizational Language• iv.Physical Structures and Symbols

• Contd..

i. Artifacts: Stories

• Social prescriptions of the way things should or should not be done

• Most effective stories:– Describe real people – Assumed to be true– Known throughout the organization

ii. Artifacts: Rituals and Ceremonies

• Rituals– Programmed routines of daily life– How visitors are greeted– How much time employees take for lunch

• Ceremonies– Planned activities for an audience– Award ceremonies– Public launch of new product

iii.Artifacts: Organizational Language

• How employees address co-workers, describe customers, express anger

• Leaders use phrases & metaphors or images as cultural symbols

• Language also found in subcultures

iv.Artifacts: Physical Structures and Symbols

Tiffanny protective and competitive culture is apparent in its building design. “We’ve always had a fortress mentality” Tiffanny executive.

Artifacts: Physical Structures and Symbols

“What we make is gold, and people will do anything to get it, so we protect it” Tiffanny executive.

Organizational Climate defined

• The practices, policies, and procedures, that are expected, encouraged, and rewarded with regard to something.

Organizational Culture Vs Org.Climate

ORGANIZATIONAL CULTURE

ORGANIZATIONAL CLIMATE

Based on anthropology and sociology

Based on psychology

Members learn and communicate what is acceptable or unacceptable in the organization

It does not deal with values & norms, it is concerned with the current atmosphere in the organization.

It is long lasting It is developed through the managerial prescriptions

THE UNDERLYING ORGANIZATIONAL VALUES WHICH ARE THE CORE OF A FIRM'S CULTURE

• 1. Trust & respect individuals

• 2. Focus on a high level of achievement and contribution

• 3. Conduct business with integrity.

• 4. Achieve common objectives through team work

• 5. Encourage flexibility and innovation.

Developing and Maintaining an Organizational Culture

• Attraction-Selection-Attrition (ASA) Model– Peoples are attracted to organizations that perceive fit in.– Organizations are more likely to select individuals that fit.– Individuals who no longer fit are likely to leave or be

terminated.• As J.Cochrane said, “If the person don’t fit, s/he must attrit.”

• Socialization– The primary process by which employees learn the social

knowledge that enables them to understand and adapt to the organization’s culture.

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StrengtheningOrganizational

Culture

Founders& Leaders

CulturallyConsistentRewards

AligningArtifacts

Selecting & SocializingEmployees

Changing and Strengthening Organizational Culture

MORALE• “Morale is the capacity of a group of people to

pull together persistently in pursuit of common purpose.”

• Morale represents a composite of feelings, attitudes and sentiments that contribute to general feelings of satisfaction.

• It is a state of mind and spirit affecting willingness to work, which in turn, affects organizational and individual objectives. It shapes the climate of an organization.

Nature of Morale

• Morale represents the collective attitudes of the workers.

• High morale represents an attitude of satisfaction with desire to continue in and willingness to strive for the goals of the group.

• Morale is both an individual and a group phenomenon. In the latter case, high morale is reflected in good team work and team spirit.

Importance of Morale

• Morale of employees must be kept high to achieve the following benefits:– i) Willing cooperation towards objectives of the

organization.– ii) Loyalty to the organization and its leadership or

management.– iii) Good discipline i.e., voluntary conformity to rules and

regulations.– iv) High degree of employees’ interest in their jobs and

organization.– v) Pride in the organization.– vi) Reduction of rates of absenteeism and labour turnover.

Indicators of Low Morale

• Low morale indicates the presence of mental unrest.

• The mental unrest not only hampers production but also leads to dissatisfaction of the employees. The indicators are:– i) High rates of absenteeism and labor turnover.– ii) Excessive complaints and grievances.– iii) Frustration among the workers.– iv) Friction among the workers and their groups.– v) Antagonism towards leadership of the

organization.– vi) Lack of discipline.

Measurement of Morale

• 1. Observation of employees’ attitude and behavior.

• 2. Attitude or Morale survey• 3. Use of morale indicators• 4. Use of suggestion boxes

Building of High Morale

• i) Fair Remuneration• ii) Incentive System• iii) Congenial Working Environment• iv) Job Satisfaction• v) Two-way Communication• vi) Training• vii)Workers’ Participation• viii)Social Activities• ix) Counseling

Relationship between Morale & productivity

MORALE

PRODUCTIVITY

HIGH PRODUCTIVITY ONLY

HIGH MORALE,HIGH PRODUCTIVITY

HIGH MORALE ONLY

Satisfaction Productivity Model

INDIVIDUAL FACTORS

SATISFACTION

ORGANIZATIONAL FACTORS

MORALE

ATTITUDES

PRODUCTIVITY

MORAL

• Moral originally originated from Latin word “moralis” which means a message conveyed or a lesson to be learned from a story or event.

• The moral may be left to the hearer, reader or viewer to determine for themselves.

ORGANIZATIONAL CONFLICTS

CONFLICT MANAGEMENT

CONCEPT OF CONFLICT

• Conflict is having different meanings to different persons. Some say conflict is a disagreement between individuals/groups or may be viewed as a perception of disagreement in the individuals.

• Thomas defined Conflict as “ Conflict is a process that begins when one party perceives that another party has negatively affected, or is about to negatively affect ,something that the first party cares about.”

• As per Newstrom & Davis “Conflict is any situation which two or more parties feel themselves in opposition .It is an interpersonal process that arises from disagreements over the goals or the methods to accomplish those goals.”

On the basis of the definition we can derive various features:

1. Conflict arises because of incompatibility of two or more aspects of an element : it may be goals ,interests, methods of working or any other feature.

2. Conflicts occur when an individual is not able to choose among the available courses of action.

3. Conflict is a dynamic process as it indicates a series of events.

4. If no one is aware of conflict ,it is generally agreed that conflict does not exist even though there may be incompatibility in some respect.

Stages of Conflict Episode

LATENT CONFLICT

PERCEIVED CONFLICT

FELT CONFLICT

MANIFEST CONFLICT

CONFLICT AFTERMATH

1.LATENT CONFLICT

1. Each conflict begins with latent(hidden) conflict.

2. In this stage the conflict has not taken a shape, therefore it is not noticeable.

3. It may occur in subconscious mind.

2.Perceived Conflict

• Parties to the conflict may perceive about incompatibility of the past history of conflict ,though sometimes this perception may be wrong.

• This stage of conflict occurs due to misunderstanding of parties ,caused due to lack of communication.

3.Felt Conflict

• At this stage parties to the conflict feel that they have some conflict among themselves.

• Felt conflict differs from perceived conflict .

• For example inconsistency in demands from the organization and individual needs may create internalization of conflict situation.

4.Manifest Conflict

• This is the stage when two parties to the conflict show variety of conflict-ful behavior such as open aggression, withdrawal etc

5.Conflict AftermathAt this stage attempts are made to resolve the conflict

through conflict resolution mechanism.

If the conflict is resolved properly then a basis of cooperative behavior is established between the parties.

Issues involved in Conflict

1. Facts: Conflict may occur because of disagreement

2. Goals: Sometimes there may be disagreement over the goals which two parties want to achieve.

3. Methods: Even if goals are perceived to be same there may be difference over the methods, procedures ,strategies.

4. Values: There may be difference over the values-ethical standards, fairness justice etc.

Positive and Negative aspects of Conflict• In general the opinion of common person about conflict is

negative. The reason behind this is they have seen the conflicts between two groups in an organization.

• There are three approaches for looking at consequences of conflicts– TRADITIONAL VIEW– HUMAN RELATIONS VIEW– INTERACTIONIST VIEW

TRADITIONAL VIEW HUMAN RELATIONS VIEW INTERACTIONIST VIEW

Conflict in the organization is taken negatively.

Treats conflicts as a natural phenomenon

Beliefs that conflict is not only a positive force but also necessary for a group to perform effectively

In the light of these divergent views about the consequences of conflicts ,we may arrive at some conclusions if we analyze the positive and negative aspects of conflicts.

Positive Aspect of Conflict• Positive aspects of conflict is derived from Interactionist view. This view does not

believe in static equilibrium in the organization.

• It is true also because an organization works in its environment which is dynamic and the organization has to build equilibrium in the light of environment changes .

• The positive aspects of conflicts are:– Conflict provide opportunities to individual and groups to think again and take a

more corrective view of the situation.– These lead to innovation as conflicting situation always present threats to the

working group .In order to overcome this individual and groups have to find out new ways of working.

– Conflict brings cohesiveness(Static) in the group– Conflict provide challenging work environment– Conflict can be used as a device to overcome many frustrations and tensions. People

may express their frustration and tension by means of conflicts.

• Negative aspect of conflict is based on dysfunctional consequences in the organization. These consequences are mentioned as under:

– Conflict as a cost: Sometimes individuals raise some degree of conflict and competition among themselves and their subordinates for better management of organizational affairs. This may lead to the cost on the part of the organization.

– Conflict as a source of disequilibrium: When conflict occurs it effects the equilibrium of an organization.

– This Dysfunction consequences of a conflict may lead to • High tension among employees• Discontent• Lack of trust• Goal displacement• Resignation

Negative Aspect of Conflict

LEVELS OF CONFLICT

• For an effective management it is necessary to understand the conflict at all the levels namely:–Individual Level Conflict–Group Level Conflict–Organizational Level Conflict

Individual Level Conflict Group level Conflict Organization level Conflict

Goal Conflict(GC): 1. Approach-Approach

Conflict2. Approach –Avoidance

Conflict3. Avoidance-Avoidance

ConflictRole Conflict(RC):4. Intra sender RC5. Inter sender RC6. Inter-Role RC7. Role-self RC

1. Intra-group Conflict

2. Inter-group Conflict:a. Goal Incompatibilityb. Resource Sharingc. Task Relationshipd. Absorption of

Uncertaintye. Attitudinal Sets

1. Inter-organizational Conflict

2. Intra-organizational Conflict

• The analysis of Individual level conflict starts at the individual level itself. Thus, an individual experiences two types of conflict in himself : goal conflict, role conflict.

1. GOAL CONFLICT: Goal conflict occurs when two or more goal block each other. There can be three(3) alternatives of goal conflicts and they are:

a. Approach-Approach Conflict

b. Approach-Avoidance Conflict

c. Avoidance-Avoidance Conflict

Individual Level Conflict

Approach-Approach Conflict• In this situation the individual is caught between trying to decide

upon one or another of two attractive goals which are mutually exclusive.

• The problem comes when the desirability's are roughly equal.

• Approach-Approach Conflict can be analyzed in terms of Festinger’s theory of Cognitive Dissonance.

• “Dissonance” is a psychological state where an individual feel discomfort or conflict when he/she is faced with two or more alternatives to a decision.

• In this situation, the individual has both Positive and Negative feelings about trying a goal because goal possesses both attractive and repulsive characteristics.

• For example: Managers engaged in long term planning and developed a goal plan .As the time gets nearer for the implementation of the plan ,the negative aspects of plan seem to appear much grater as compare to that at the beginning. Manager in such situation may reach the point where approach equals avoidance.

• The result is a great deal of internal conflict & stress.

Approach-Avoidance Conflict

• This is the position where the individual must choose between two mutually exclusive goals, each of which possesses unattractive qualities.

• Unless other alternatives are available such conflict has a tendency to stay unresolved.

Avoidance-Avoidance Conflict

2.ROLE CONFLICT(RC)

• It is known to all that an individual perform number of roles in the organization and his/her organizational role is most important for that individual.

• When expectations of role are materially different or opposite from behavior anticipated by in individual then he tends to be in role conflict.

• Role conflict is of four types:1. Intra -sender RC2. Inter -sender RC3. Inter-Role RC4. Role-self RC

1. Intra sender RC: Where the expectations from a single member of a role set may be incomplete. This happens when a person is called upon to perform a work within specified limit but it cannot be possible to do the work within that limit.

2. Inter sender RC: The expectations sent from one sender are in conflict with those from one or more other senders.

3. Inter-Role Conflict: When an individual occupies two or more roles simultaneously and the expectations associated with those different roles are incompatible.

4. Role-Self RC: It occurs when role requirements violate the need, values or capacities of the person.

• Conflict may occur at group level. A group constitutes two or more persons who interact in such a way that each person influences and is influenced by others.

• In this interaction process there may be two types of conflict

1. Intra - group conflict( Within the group itself) 2. Inter-group Conflict(Between the groups)

Group Level Conflict

Intergroup conflict• Intergroup conflict occurs between the groups.

• There are various factors responsible for Intergroup conflict and they are(5):– Goal Incompatibility– Resource Sharing: Two or more groups sharing from

common resource pool.– Task relationship: (group exceeds its authority) Staff

departments influence in decision making process well in excess of the advisory roles assigned to them.

–Absorption of uncertainty: Uncertainty is the gap between what is known and what needs to be known to make correct decisions. A rule set by the A/c department for travelling expenses to be incurred by Mkt deptt. And if the Mkt deptt finds the rules framed by A/c deptt. is inadequate then the conflict arises.

–Attitudinal Sets: The set of attitudes that a members of various groups hold towards each other.

• Inter-organizational Conflict: Conflict occurs with other organization perusing same goals or with government agency.

• Intra-organizational Conflict: Conflict occurs within the organization.: “The boss wants more production, subordinates want more considerations. Customers want faster deliveries, peers request schedule delay. Consultants suggest change, subordinate resist change. The rule book provide formula ;the staff says it will not work.”

Organization Level Conflict

CONFLICT RESOLUTION• Whenever Conflict arise ,these have to be resolved by some

specific actions known as Conflict Resolutions Actions. Some major action of conflict resolution take place in the following ways:

1. Problem Solving2. Avoidance3. Smoothing4. Compromise5. Confrontation

1. Problem Solving

• It is the most positive technique because it emphasizes the attaining of the common interests of both conflicting parties.

• Questions of who is right or wrong is usually avoided but sharing and communicating are required in order to find areas of common interest.

• This technique is applied when conflict is based on misunderstanding.

2. Avoidance

• In this technique the parties in the conflict are suggested to withdraw or conceal the incompatibility.

• This method is more correctly for avoiding conflicts rather than solving the actual conflicts.

3.Smoothing

• It is a process of playing down differences that exist between individuals or groups while emphasizing common interests.

• Differences are suppressed and similarities are accentuate d or highlighted in smoothing process.

• This is also not a long term solution for the conflicts.

4.Compromise• It is a well accepted technique for resolving conflicts.• There is neither a looser or a winner.• In this method the external or third party intervention is

entertained.• A compromise achieve by third party intervention is

called as mediation and without the intervention of the external parties is called as bargaining.

• This is an effective method to solve conflict between management and workers.

5.Confrontation

• If the parties takes a rigid stand then the methods discussed above may not bring resolution of conflict between parties.

• In such case the parties are left to confrontation to settle the conflict themselves.

• The parties concerned may settle their score by applying their strength against each other.

Outcomes of Conflict resolution• Win-Win: Ideal for both the parties• Lose-lose : Both parties feel cheated• Lose-win and Win-lose: Only one party wins at the cost of

other and conflict becomes zero-sum game.

WIN-WIN WIN-LOSE

LOSE-LOSELOSE-WIN

WIN

LOSE

LOSEWIN

Party A’s outcomes

Party B’s outcomes

Methodology of conflict resolution

• Managerial Grid• Sensitivity Training• Transactional Analysis• Team building Interventions• MBO

Grid Training

• Grid training is an outgrowth of the managerial grid approach to leadership (Blacke and Mouton, 1978). It is an instrumental approach to laboratory training.

• Sensitivity training is supplemented with self-administered instruments (Benny, Bradford and Lippitt, 1964).

• The analysis of these instruments helps in group development and in the learning of group members.

• This technique is widely used and has proved effective.

Grid training for OD is completed in six phases. They are:

1. Laboratory-seminar training, which aims at acquainting participants with concepts and material used in grid training;

2. A team development phase, involving the coming together of members from the same department to chart out as to how they will attain a 9 x 9 position on the grid;

3. Inter-group development aims at overall OD. During this phase, conflict situations between groups are identified and analyzed;

4. Organization goal setting is based on participative management, where participants contribute to and agree upon important goals for the organization;

5. Goal attainment aims at achieving goals which were set during the phase of organizational goal setting; and

6. Stabilization involves the evaluation of the overall program and making suggestions for changes if appropriate.

Sensitivity training • This has many applications and is still used widely, even though new

techniques have emerged (Lewin, 1981).

• Sensitivity training (Benny, Bradford and Lippitt, 1964) basically aims at: – Growth in effective membership;

– Developing ability to learn;

– Stimulating to give help; and

– Developing insights to be sensitive to group processes.

• These process variables - in a systems sense - interact and are interdependent.

Team building

• Team building has been considered the most popular OD technique in recent years, so much so that it has replaced sensitivity training.

• It aims at improving overall performance, tends to be more task-oriented, and can be used with family groups (members from the same unit) as well as special groups (such as task forces, committees and inter-departmental groups).

There are five major elements involved in team building (French and Bell, 1978):

1. Problem solving, decision making, role clarification and goal setting for accomplishing the assigned tasks.

2. Building and maintaining effective inter-personal relationships.

3. Understanding and managing group processes and culture.

4. Role analysis techniques for role clarification and definition.

5. Role negotiation techniques.

Transactional Analysis

• Transactional analysis is widely used by management practitioners to analyzes group dynamics and inter-personal communications.

• It deals with aspects of identity, maturation, insight and awareness (Berne, 1964).

• As a tool for OD, it attempts to help people understand their egos - both their own and those of others - to allow them to interact in a more meaningful manner with one another (Huse, 1975).

• It attempts to identify people’s dominant ego states and help people understand and analyze their transactions with others. It is quite effective if applied in the early stage of the diagnostic phase.

Transactional Analysis

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