Study Material

Module-4

Subject Name: Organizational Behaviour

Prepared By: Mr. Durgamadhab Padhy (Asst.

Professor)

Conflict Management
 Conflict is inevitable. Unresolved differences morph into complex, long-standing disputes that
cause stress, damage relationships, destroy trust, hurt morale, and hinder productivity. Conflicts
and disagreements get a bad name, but they are always a sign that change is needed, is coming,
or has already happened. Developing a positive outlook and practicing these skills can make
conflict less intimidating.

Conflict management refers to the way that you handle disagreements. On any given day, you
may have to deal with a dispute between you and another individual, your family members, or
fellow employees.

Although there are many reasons people disagree, many conflicts revolve around:

 Personal values (real or perceived)

 Perceptions
 Conflicting goals
 Power dynamics
 Communication style

Types of Conflict

Functional conflict is a healthy, constructive disagreement centered on tasks that improves

decision-making, fosters innovation, and enhances team performance. Conversely, dysfunctional
conflict is destructive, focusing on personal issues or power struggles that damage relationships,
hinder performance, and create a hostile, high-turnover environment.

Functional Conflict (Constructive)

 Focus: Task-related issues, goals, and processes.

 Outcome: Promotes creativity, team cohesion, and better decision-making.
 Characteristics: Open communication, mutual respect, and a "win-win" mentality.
 Example: Two colleagues debating different strategies for a project to find the best approach.

Dysfunctional Conflict (Destructive)

 Focus: Personal attacks, ego, or non-task issues.
 Outcome: Hinders performance, damages relationships, and reduces productivity.
 Characteristics: Hostility, high anxiety, and "win-lose" outcomes.
 Example: Colleagues arguing personally, spreading rumors, or stalling work to hurt a team
member.

Causes of conflict

There are five main causes of conflict: information conflicts, values conflicts, interest conflicts,
relationship conflicts, and structural conflicts.

 Information conflicts arise when people have different or insufficient information, or

disagree over what data is relevant. Allowing sufficient time to be heard, in a respectful
environment facilitated by a neutral person can allow parties to clear up information
disparities.
 Values conflicts are created when people have perceived or actual incompatible belief
systems. Where a person or group tries to impose its values on others or claims exclusive
right to a set of values, disputes arise. While values may be non-negotiable, they can be
discussed and people can learn to live peacefully and coherently alongside each other.
 Interest conflicts are caused by competition over perceived or actual incompatible needs.
Such conflicts may occur over issues of money, resources, or time. Parties often
mistakenly believe that in order to satisfy their own needs, those of their opponent must
be sacrificed. A mediator can help identify ways to dovetail interests and create
opportunities for mutual gain.
 Relationship conflicts occur when there are misperceptions, strong negative emotions, or
poor communication. One person may distrust the other and believe that the other
person’s actions are motivated by malice or an intent to harm the other. Relationship
conflicts may be addressed by allowing each person uninterrupted time to talk through
the issues and respond to the other person’s concerns.
 Structural conflicts are caused by oppressive behaviors exerted on others. Limited
resources or opportunity as well as organization structures often promote conflict
 behavior. The parties may well benefit from mediation since the forum will help
neutralize the power imbalance.
 Regardless of the cause of conflict, an experienced mediator can help parties shift their
focus from fighting to resolution. Since they are necessarily unbiased, neutrals create an
environment where parties can trust the process and work toward a solution.

Levels and types of conflict

When examining workplace conflict, one sees that there are four basic types, and they’re not
terribly different from those other conflicts you learned in freshman literature except that they all
deal with conflict among people. They are:

 Intrapersonal
 Interpersonal
 Intragroup
 Intergroup

Intrapersonal Conflict: The intrapersonal conflict is conflict experienced by a single

individual, when his or her own goals, values or roles diverge. A lawyer may experience a
conflict of values when he represents a defendant he knows to be guilty of the charges brought
against him. A worker whose goal it is to earn her MBA might experience an intrapersonal
conflict when she’s offered a position that requires her to transfer to a different state. Or it might
be a role conflict where a worker might have to choose between dinner with clients or dinner
with family.

Interpersonal Conflict: As you might guess, interpersonal conflict is conflict due to

differences in goals, value, and styles between two or more people who are required to interact.
As this type of conflict is between individuals, the conflicts can get very personal.

Intragroup Conflict: Intragroup conflict is conflict within a group or team, where members
conflict over goals or procedures. For instance, a board of directors may want to take a risk to
launch a set of products on behalf of their organization, in spite of dissenting opinions among
 several members. Intragroup conflict takes place among them as they argue the pros and cons of
taking such a risk.

Intergroup Conflict: Intergroup conflict is when conflict between groups inside and outside an
organization disagree on various issues. Conflict can also arise between two groups within the
same organization, and that also would be considered intergroup conflict.

Within those types of conflict, one can experience horizontal conflict, which is conflict with
others that are at the same peer level as you, or vertical conflict, which is conflict with a manager
or a subordinate.

Conflict management styles

It's human to deal with conflict by defaulting to what's comfortable. According to University of
Pittsburgh professors of management Ken Thomas and Ralph Kilmann, most people take one of
two approaches to conflict management, assertiveness or cooperativeness [1]. From these
approaches come five modes or styles of conflict management:

1. Accommodating

An accommodating mode of conflict management tends to be high in cooperation but low in

assertiveness. When you use this style, you resolve the disagreement by sacrificing your own
needs and desires for those of the other party.

This management style might benefit your work when conflicts are trivial and you need to move
on quickly. At home, this style works when your relationship with your roommate, partner, or
child is more important than being right. Although accommodation might be optimal for some
conflicts, others require a more assertive style.

2. Avoiding

When avoiding, you try to dodge or bypass a conflict. This style of managing conflicts is low in
assertiveness and cooperativeness. Avoidance is unproductive for handling most disputes
because it may leave the other party feeling like you don't care. Also, if left unresolved, some
conflicts become much more troublesome.

However, an avoiding management style works in situations where:

 You need time to think through a disagreement.

 You have more pressing problems to deal with first.
 The risks of confronting a problem outweigh the benefits.

3. Collaborating

A collaborating conflict management style demands a high level of cooperation from all parties
involved. Individuals in a dispute come together to find a respectful resolution that benefits
everyone. Collaborating works best if you have plenty of time and are on the same power level
as the other parties involved. If not, you may be better off choosing another style.

4. Competing

When you use a competitive conflict management style (sometimes called 'forcing'), you put
your own needs and desires over those of others. This style is high in assertiveness and low in
cooperation. In other words, it's the opposite of accommodating. While you might think this style
would never be acceptable, it's sometimes needed when you are in a higher position of power
than other parties and need to resolve a dispute quickly.

5. Compromising

Compromising demands moderate assertiveness and cooperation from all parties involved. With
this type of resolution, everyone gets something they want or need. This style of managing
conflict works well when time is limited. Because of time constraints, compromising isn't always
as creative as collaborating, and some parties may come away less satisfied than others.
 Organizational Culture

Organizational culture is the set of values, beliefs, attitudes, systems, and rules that outline and
influence employee behavior within an organization. The culture reflects how employees,
customers, vendors, and stakeholders experience the organization and its brand.

Organizational culture is a system of shared assumptions, values, and beliefs, which govern how
people behave in organizations. Organizational culture includes an organization’s expectations,
experiences, philosophy, and values that hold it together and is expressed in its self-image, inner
workings, interactions with the outside world, and future expectations.

According to Robbie Katanga, “Organizational Culture is how organizations do things.”

According to Alec Haverstick, “In large part, Organizational culture is a product of
compensation.”

Elements of Organizational Culture

The two key elements seen in organizational culture are −

 Visible elements − These elements are seen by the outer world. Example, dress code,
activities, setup, etc.
 Invisible elements − These inner elements of the group cannot be seen by people outside
the group or firm. Example, values, norms, assumptions, etc. Now let us discuss some
other elements of organizational culture. They are −
 Stories − Stories regarding the history of the firm, or founder.
 Rituals − Precise practices an organization follows as a habit.
 Symbol − The logo or signature or the style statement of a company.
 Language − A common language that can be followed by all, like English.
 Practice − Discipline, daily routine or say the tight schedule everyone follows without
any failure.
 Values and Norms − The idea over which a company is based or the thought of the firm
is considered as its value and the condition to adopt them are called norms.
  Assumptions − It means we consider something to be true without any facts.
Assumptions can be used as the standard of working, means the employees prepare
themselves to remain above standard.

How to Create an Organizational Culture

An organizational culture is created with the combination of certain criteria that are mentioned
below −

 The founder of the organization may partly set a culture.

 The environment within which the organization standards may influence its activities to
set a culture.
 Sometimes interchange of culture in between different organizations create different new
cultures.
 The members of the organization may set a culture that is flexible to adapt.
 New cultures are also created in an organization due to demand of time and situation.

Roles of Organizational Culture

Culture plays an important role in organizations. Some organizations that developed a strong
corporate culture increased their goodwill and got a good position in the market.

The various roles of organizational culture are given below:

 Culture unites (brings together) employees by providing a sense of identity with the
organization.
 An informal control mechanism.
 Facilitation of open communication.
 Culture enables organizations to differentiate themselves from one another.
 Culture often generates commitment, superseding personal interests.
 Culture sets organization norms, rules, and standards. Thereby, culture enables
employees to function in an organization, by teaching them how to behave.
 A shared understanding.
  Culture becomes especially important in a program/project-based organization. In such
an organization, the hierarchy is flat and decision-making is moved to the
project/program purpose units and departments. In this context, culture provides the
guiding light towards the achievement of goals and objectives.
 Enhanced mutual trust and cooperation.
 Fewer disagreements and more efficient decision-making processes

Types of Culture

The culture a firm follows can be further classified into different types. They are −

 Mechanistic and Organic culture

 Authoritarian and Participative culture
 Subculture and Dominant culture
 Strong and Weak culture
 Entrepreneurial and Market culture

Mechanistic and Organic Culture

Mechanistic culture is formed by formal rule and standard operating procedures. Everything
needs to be defined clearly to the employees like their task, responsibility and concerned
authorities. Communication process is carried according to the direction given by the
organization. Accountability is one of the key factors of mechanistic culture.

Organic culture is defined as the essence of social values in an organization. Thus there exists a
high degree of sociability with very few formal rules and regulations in the company. It has a
systematic hierarchy of authority that leads towards free flow of communication. Some key
elements of organic culture include authority, responsibility, accountability and direct flow
towards the employee.

Authoritarian and Participative Culture

Authoritarian culture means power of one. In this culture, power remains with the top level
management. All the decisions are made by the top management with no employee involvement
in the decision making as well as goal shaping process. The authority demands obedience from
the employee and warns them for punishment in case of mistake or irregularity. This type of
culture is followed by military organization.

In participative culture, employees actively participate in the decision making and goal shaping
process. As the name suggests, it believes in collaborative decision making. In this type of
culture, employees are perfectionist, active and professional. Along with group decision making,
group problem solving process is also seen here.

Subculture and Dominant Culture

In subculture, some members of the organization make and follow a culture but not all members.
It is a part of organizational culture, thus we can see many subcultures in an organization. Every
department in a company have their own culture that gets converted to a subculture. So, the
strength and adaptability of an organizational culture is dependent on the success of subculture.

In dominant culture, majority of subculture combine to become a dominant culture. The success
of dominant culture is dependent on the homogeneity of the subculture, that is, the mixture of
different cultures. At the same point of time, some cold war between a dominant culture and a
minor culture can also be seen.

Strong and Weak Culture

In a strong culture, the employees are loyal and have a feeling of belongingness towards the
organization. They are proud of their company as well as of the work they do and they slave
towards their goal with proper coordination and control. Perception and commitment are two
aspects that are seen within the employees. In this culture, there is less employee turnover and
high productivity.

In a weak culture, the employees hardly praise their organization. There is no loyalty towards the
company. Thus, employee dissatisfaction and high labor turnover are two aspects of this culture.
Entrepreneurial and Market Culture

Entrepreneurial culture is a flexible and risk-taking culture. Here the employees show their
innovativeness in thinking and are experimental in practice. Individual initiations make the goal
easy to achieve. Employees are given freedom in their activity. The organization rewards the
employees for better performance.

Market culture is based on achievement of goal. It is a highly target-oriented and completely

profit-oriented culture. Here the relationship between the employees and the organization is to
achieve the goal. The social relation among the workers is not motivating.

Change Management

Change management is a systematic approach to dealing with the transition or transformation of

an organization's goals, processes or technologies. The purpose of change management is to
implement strategies for effecting change, controlling change and helping people to adapt to
change.

Change management is defined as the methods and manners in which a company describes and
implements change within both its internal and external processes. This includes preparing and
supporting employees, establishing the necessary steps for change, and monitoring pre- and post-
change activities to ensure successful implementation.

Techniques or models of Change

Lewin’s change management model

Developed in the 1940s, Lewin's change management model remains relevant because of its
simple yet effective structure. According to the change model's namesake, Kurt Lewin,
organizational change management can be broken down into three smaller, more manageable
stages:

 Unfreeze
 Change
  Refreeze

1. Unfreezing
The first stage is known as “unfreezing,” which involves breaking away from established
practices and preparing individuals to embrace new alternatives. During this stage, outdated
beliefs, processes, and behaviours are discarded in favour of more suitable approaches for the
current situation. The goal is to help organisational members understand that the status quo is
no longer viable given the evolving demands of the environment.
Unfreezing involves several steps:
1. Recognising the Driving Forces: Managers must develop a keen awareness of major
environmental changes and internal issues that necessitate change. By understanding the
pressures for change, they can effectively identify the need for transformation.
2. Increasing the Driving Forces: Once the need for change is recognised, it is essential to
communicate this need to the people involved. By explaining the reasons behind the
change, individuals are more likely to embrace it willingly.
3. Managing the Resisting Forces: Resistance to change often arises when individuals
perceive potential harm or negative impact on their interests. It is crucial to address these
concerns and fears by highlighting the benefits of the proposed changes and alleviating any
misconceptions.
To achieve unfreezing, various techniques can be employed, such as:
 Education: Providing information and knowledge regarding the need for change and its
advantages.
 Communication: Engaging in open discussions to clarify the rationale behind the change
and address any uncertainties.
 Participation in decision-making: Involving employees in the change process by
encouraging their input and ideas.
 Negotiation through the exchange of rewards: Offering incentives or rewards to
motivate acceptance of the change.
 Persuasion: Shaping perceptions and attitudes through effective communication and
influence strategies.
 Encouragement and Support: Providing the necessary resources and assistance to
facilitate the transition.
These techniques aim to either strengthen the driving forces that propel behaviour away from
the status quo or weaken the restraining forces that hinder progress. By unfreezing existing
mindsets and behaviors, organizations can create a receptive environment for change and lay
the foundation for subsequent stages of the change process.
2. Changing or Moving
Once individuals embrace the need for change, the proposed changes are introduced
systematically, fostering new learning and the adoption of new behaviors. This moving phase
encompasses key elements that facilitate a successful transition:
 Encouraging Compliance: In some cases, change may be enforced through incentives or
consequences. However, true transformation requires more than compliance; it requires
internalization and identification.
 Internalization: Change becomes meaningful when individuals experience situations that
call for new behaviors. Through firsthand encounters, they begin to understand the
importance of change and gradually internalize new ways of behaving.
 Identification: Individuals also identify suitable behavioral models within their
environment. They recognize role models whose actions align with the desired change and
choose to emulate them.
Refreezing
The final phase of the change process is refreezing, where the changes implemented during the
moving phase become ingrained as a permanent part of the organization’s culture. During this
phase, members of the organization internalize the new beliefs, attitudes, and behaviors they
have learned. It is the responsibility of the manager, acting as the change agent, to ensure the
effective integration of these new behaviors with existing patterns. Without proper
internalization, there is a risk of individuals reverting to old ways of doing things.
We should consider the following approaches during the refreezing phase:
1. Integration and Alignment: Ensure that the new behaviors, beliefs, and attitudes align
with the overall organizational goals and values. Seamlessly integrate them into existing
systems and processes to foster consistency and coherence.
2. Ongoing Support: Provide continuous support and resources to reinforce newly acquired
behaviors. This may include training, coaching, and mentoring to assist individuals in
adapting to the changes. Supportive leadership and a positive organizational climate are
critical in maintaining the desired behaviours.
3. Celebrate Success: Recognize and celebrate accomplishments related to the change
implementation. This helps reinforce positive outcomes and motivates individuals to
continue embracing new behaviors.
4. Feedback and Evaluation: Establish feedback mechanisms to monitor the effectiveness of
the change and gather insights for improvement. Regular evaluation ensures the sustained
adoption of desired behaviors and allows for further refinement, if necessary.

Resistance to Change

Resistance to change is the reluctance of people to adapt to change. Employees can be overt or
covert about their unwillingness to adapt to organizational changes. This opposition can range
from expressing their resistance publicly, to unknowingly resisting change through micro-
resistance, language, or general actions.

Reasons for Resistance to Change

 Individual resistance occurs when employees resist change based on their unique
perceptions, personalities, and needs. Things like job security, habit, and economic
factors have a massive influence on individual resistance.
 Organizational resistance is an organization’s tendency to resist change and want to
maintain the status quo. Companies that suffer from organizational resistance become
inflexible and cannot adapt to environmental or internal demands for change. Some signs
of organizational resistance include internal power struggles, poor decision-making
processes, unconfident leadership, and bureaucratic organizational structures.

The common causes of resistance to change in all organizations are stated below:

 People are not willing to go out of their comfort zones defined by some existing methods
for learning something new.
  Changes in methods and techniques come with a change in power, responsibilities as well
as influence.
 Organizational resistance to change comes in from people negatively affected by the
changes implemented.
 Insecurity, laziness and lack of creative approach make people cling to the pre-existing
customs there by resisting changes.

Overcoming Resistance

Although change will always come with opposition, it is certainly possible to overcome it.
Managers should strive to help their employees adapt to changes and facilitate new variations in
performance.

First, managers must be able to convince employees that the changes they propose are necessary.
They should show how employees and the organization itself will benefit from these changes.

Second, managers can keep the following in mind to make changes smoothly:

 Changes should not happen all at once because they are easy to apply in stages.
 Changes should never create safety issues for employees. Managers should consider the
views of all employees who will influence the proposed change.
 If managers show leadership by first adapting to the changes themselves, the staff is less
likely to resist.
 Adequate staff training in advance can help them to accept change with confidence.

McDonald’s
The publication “A Case Study of McDonald’s Organizational Development” describes how
McDonald’s tackled organizational change in the 2000s.

At the time, when McDonald’s entered the Chinese market, they faced declining sales and
negative public perception due to concerns about food safety and hygiene. As a response to that
McDonald’s revamped its brand image and introduced healthier menu options to cater to
changing consumer preferences.

Other steps that were taken:

 Restructuring: McDonald’s restructured its operations in China by consolidating
regional offices and streamlining its supply chain to improve efficiency and reduce costs.
 Leadership Development: They invested in leadership development programs: sending
Chinese executives to the company’s headquarters in the US for training and
development.
 Cultural Change: McDonald’s implemented a cultural change program that focused on
improving communication and collaboration between employees and enhancing customer
service.