Organizational culture is a system of shared assumptions, values, and beliefs, which governs how people behave in organizations. These shared values have a strong influence on the people in the organization and dictate how they dress, act, and perform their jobs.

1. Organizational culture
and climate

2. 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

3. 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.

4. • 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

5. 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.

6. Physical Structures
Rituals & Ceremonies
Stories
Language
Beliefs
Values
Assumptions
2. Artifacts of
Organizational
Culture
1.Organizational
Culture
Elements of Organizational Culture

7. 1.Elements of Organizational Culture
Assumptions
• Deepest part of culture, unconscious
Beliefs
• Perceptions of reality
Values
• Stable, long-lasting beliefs
– Espoused(supportive)
– Enacted(performance)

8. Elements of Organizational Culture
Example
•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.

9. 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..

10. 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

11. 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

12. 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

13. 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.

14. Artifacts:
Physical Structures and Symbols
“What we make is
gold, and people
will do anything to
get it, so we
protect it” Tiffanny
executive.

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

16. 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

17. 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.

18. 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.
18

19. Strengthening
Organizational
Culture
Founders
& Leaders
Culturally
Consistent
Rewards
Aligning
Artifacts
Selecting &
Socializing
Employees
Changing and Strengthening Organizational
Culture

20. 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.

21. 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.

22. 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.

23. 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.

24. 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

25. 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

26. Relationship between Morale &
productivity
MORALE
PRODUCTIVITY
HIGH PRODUCTIVITY ONLY
HIGH MORALE,HIGH PRODUCTIVITY
HIGH MORALE ONLY

27. Satisfaction Productivity Model
INDIVIDUAL FACTORS
SATISFACTION
ORGANIZATIONAL FACTORS
MORALE
ATTITUDES
PRODUCTIVITY

28. 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.

29. ORGANIZATIONAL
CONFLICTS

30. 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.”

31. 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.

32. Stages of Conflict Episode
LATENT CONFLICT
PERCEIVED CONFLICT
FELT CONFLICT
MANIFEST CONFLICT
CONFLICT AFTERMATH

33. 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.

34. 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.

35. 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.

36. 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 Aftermath
 At 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.

37. 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.

38. 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

39. 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.

40. 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.

41. • 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

42. 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

43. Individual Level Conflict Group level Conflict Organization level Conflict
Goal Conflict(GC):
1. Approach-Approach
Conflict
2. Approach –Avoidance
Conflict
3. Avoidance-Avoidance
Conflict
Role Conflict(RC):
1. Intra sender RC
2. Inter sender RC
3. Inter-Role RC
4. Role-self RC
1. Intra-group Conflict
2. Inter-group Conflict:
a. Goal Incompatibility
b. Resource Sharing
c. Task Relationship
d. Absorption of
Uncertainty
e. Attitudinal Sets
1. Inter-organizational
Conflict
2. Intra-organizational
Conflict

44. • 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

45. 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.

46. • 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

47. • 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

48. 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 RC
2. Inter -sender RC
3. Inter-Role RC
4. Role-self RC

49. 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.

50. • 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

51. 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.

52. –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.

53. • 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

54. 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 Solving
2. Avoidance
3. Smoothing
4. Compromise
5. Confrontation

55. 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.

56. 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.

57. 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.

58. 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.

59. 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.

60. 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

61. Methodology of conflict resolution
• Managerial Grid
• Sensitivity Training
• Transactional Analysis
• Team building Interventions
• MBO

62. 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.

63. 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.

64. 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.

65. 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).

66. 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.

67. 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).

68. • 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

69. Thanks