UNIT V:UNDERSTANDING AND MANAGING ORGANIZATIONAL

CULTURE

• Sub topics:
• Power and political behaviour in organizations
• Conflict management
• Negotiation
• Managing organizational changes

CONFLICT MANAGEMENT:
Conflict is the disagreement or difference of opinions between or
among individuals that can be potentially harmful to any
organization. In the workplace setting, it often involves personal
agendas, insights, or goals versus the agendas, insights, or goals of
the group or team. Conflict management seeks to resolve the
disagreement or conflict with positive outcomes that satisfy all
individuals involved or is beneficial to the group. However, the
perception of conflict is often negative.
• Conflict can, in fact, be positive if it is managed properly. Conflict can
promote team-building skills, critical thinking, new ideas, and
alternative resolutions. Conflict management is a crucial competency
that leaders must possess, for the success of the team, group, unit,
or employees they lead.

TYPES OF CONFLICTS
1. Interpersonal Conflict: This occurs between individuals due to
differences in personalities, communication styles, or personal values.
It might involve disagreements, misunderstandings, or clashes
between colleagues or between employees and managers.
2. Task Conflict: This type of conflict emerges from differences in
opinions, ideas, or approaches related to work tasks or projects. It
 can be constructive if managed well, leading to innovative solutions,
but it can also hinder progress if not addressed.
3. Structural Conflict: These conflicts arise from the organization's
structure, policies, procedures, or resource allocation. Examples
include disputes over promotions, resource distribution, or
conflicting goals between departments.
4. Role Conflict: When individuals experience tensions or confusion
regarding their roles and responsibilities within the organization. This
can occur due to unclear job descriptions, overlapping
responsibilities, or conflicting expectations from supervisors.
5. Cultural Conflict: Differences in organizational culture, including
values, norms, or practices, can lead to conflicts. This often arises in
situations such as mergers or when employees from diverse
backgrounds interact.
6. Ethical Conflict: Conflicts may arise when individuals or groups
perceive actions or decisions within the organization as unethical.
This could include issues related to integrity, fairness, or compliance
with laws and regulations.
7. External Conflict: Organizations can face conflicts with external
entities such as competitors, suppliers, customers, or regulatory
bodies. These conflicts may involve disputes over contracts, market
share, or compliance with industry standards.

CUASES FOR THE CONFLICTS:

Task interdependence, differences between values and beliefs, the
absence of/or ambiguous rules, resource scarcity, ineffective
communication, and incompatible goals. Lack of common
performance standards, Competition, Personal differences, Time
constraints, and Status issues.
STEPS IN CONFLICT MANAGEMENT
• Before communication begins, set rules for respectful
communication.
• Ask all involved to set aside preconceived opinions about each
other.
• Ask all parties to engage in active listening without
interruption.
• Ask all parties to write down the problem. Then restate the
problem out loud. This provides understanding and agreement
about the problem causing the conflict.
• Ask each party to come up with a solution.
• Discuss each solution and the positive and negative aspects of
each proposed solution.
CONFLICT MANAGEMENT STYLES
• Avoidance:In this style of conflict management, some or all
people involved in the conflict simply avoid the situation or
ignore its existence. For the individuals involved, this is a losing
situation in the long run. The conflict is unresolved. It continues
to fester and build, creating more conflict. However, this style
may be useful temporarily to de-escalate a very tense, non-
emergency situation.
• Accommodative:In this style of conflict management, one party
wins and one party loses. One opinion is accepted, and the
other opinion is lost. The resolution will benefit one instead of
all involved. For the person who manages the conflict, this
becomes a sore spot and causes resentment. Although it may
resolve the conflict, it may not satisfy all involved individuals.
• Competitive:In this style of conflict management, one party will
win, and one party will lose. It will resolve the situation, but will
not promote a unified or team approach to solving problems.
• Compromise:In this style of conflict management, neither party
will be fully satisfied. The result will harbor resentment
 between those involved. In the resolution, each party sacrifices
a portion of his or her solution. A significant part of the
resolution can be left out, and the best outcome may not
prevail.
• Collaborative:In this style of conflict management, all parties
involved are brought together for a resolution. Active listening,
respectful communication, and an open mind are incorporated
into the solution process for the best outcome. All parties
involved have a say, and all parties involved reach a solution.
This solution is accepted as the best outcome for all involved.
POWER AND POLITICAL BEHAVIOUR IN ORGANIZATIONS
POWER :
• Power is the capacity to influence the behavior of others.3 The
term power may be applied to individuals, groups, teams,
departments, organizations, and countries. For example, a
certain team within an organization might be labeled as
powerful, which suggests that it has the ability to influence the
behavior of individuals in other teams or departments. This
influence may affect resource allocations, space assignments,
goals, hiring decisions, and many other outcomes and
behaviors in an organization.
SOURCES OF POWER:
• Interpersonal source of power
• Structural source of power
Interpersonal source of power
Reward power :It is an individual’s ability to influence others’
behaviors by rewarding their desirable behaviors. For example, to
the extent that subordinates value rewards that the manager can
give—praise, promotions, money, time off, and so on—they may
comply with requests and directives. A manager who controls the
allocation of merit pay raises in a department has reward power over
the employees in that department. Accordingly, employees may
comply with some attempts by managers to influence their
behaviors because they expect to be rewarded for their compliance.
Coercive power :It is an individual’s ability to influence others’
behaviors by punishing their undesirable behaviors. For example,
subordinates may comply because they expect to be punished for
failure to respond favorably to managerial directives. Punishment
may take the form of reprimands, undesirable work assignments,
closer supervision, tighter enforcement of work rules, suspension
without pay, and the like. The organization’s ultimate punishment is
to fire the employee.
Legitimate power:It is most often refers to a manager’s ability to
influence subordinates’ behaviors because of the manager’s formal
position in the organization. Subordinates may respond to such
influence because they acknowledge the manager’s legitimate right
to prescribe certain behaviors. Sometimes nonmanagerial employees
possess legitimate power.
Expert power:It is an individual’s ability to influence others’
behaviors because of recognized competencies, talents, or
specialized knowledge. To the extent that managers can
demonstrate competence in implementing, analyzing, evaluating,
and controlling the tasks of subordinates, they will acquire expert
power. Expert power often is relatively narrow in scope.
Referent power:It is an individual’s ability to influence others’
behaviors as a result of being respected, admired, or liked. For
example, subordinates’ identification with a manager often forms
the basis for referent power. This identification may include the
desire of subordinates to emulate the manager.A young manager
may copy the leadership style of an older, admired, and more
experienced manager. The older manager thus has some ability—
some referent power—to influence the behavior of the younger
manager. Referent power usually is associated with individuals who
possess admired personality characteristics, charisma, or a good
reputation.
Structural source of power
KNOWLEDGE AS POWER
knowledge as power means that individuals, teams, or departments
that possess knowledge crucial to attaining the organization’s goals
have power. Those in a position to control information about current
operations, develop information about alternatives, or acquire
knowledge about future events and plans have enormous power to
influence the behaviors of others.
NETWORK AS POWER
Managers and departments that have connecting links with other
individuals and departments in the organization will be more
powerful than those who don’t. networks as power implies that
various affiliations, channels of information, and coalitions, both
inside and outside the organization, represent sources of power.
DECISION MAKING AS POWER
decision making as power recognizes that individuals, teams, or
departments acquire power to the extent that they can affect the
decision-making process. They might influence the goals being
developed, premises being used in evaluating an issue, alternatives
being considered, outcomes being projected.
RESOURCE AS POWER
The concept of resources as power suggests that individuals, teams,
or departments who can provide essential or difficult-to-obtain
resources acquire power in the organization. The old saying that “he
who has the gold makes the rules” sums up the idea that resources
are power.

POLITICAL BEHAVIOR IN ORAGANIZATION:

Politics involves those activities or behaviors through which power is
developed and used in organizational settings. Power is a property of
the system at rest; politics is the study of power in action. An
individual, subunit or department may have power within an
organizational context at some period of time; politics involves the
exercise of power to get something accomplished, as well as those
activities which are undertaken to expand the power already
possessed or the scope over which it can be exercised.
In other words, from this definition it is clear that political behavior is
activity that is initiated for the purpose of overcoming opposition or
resistance. In the absence of opposition, there is no need for political
activity. Moreover, it should be remembered that political activity
need not necessarily be dysfunctional for organization-wide
effectiveness. In fact, many managers often believe that their
political actions on behalf of their own departments are actually in
the best interests of the organization as a whole. Finally, we should
note that politics, like power, is not inherently bad. In many
instances, the survival of the organization depends on the success of
a department or coalition of departments challenging a traditional
but outdated policy or objective. That is why an understanding of
organizational politics, as well as power, is so essential for managers.
REASONS FOR POLITICAL BEHAVIOR
1. Ambiguous goals. When the goals of a department or
organization are ambiguous, more room is available for politics.
As a result, members may pursue personal gain under the guise
of pursuing organizational goals.
2. Limited resources. Politics surfaces when resources are scarce
and allocation decisions must be made. If resources were
ample, there would be no need to use politics to claim one’s
“share.”
3. Changing technology and environment. In general, political
behavior is increased when the nature of the internal
technology is nonroutine and when the external environment is
dynamic and complex. Under these conditions, ambiguity and
uncertainty are increased, thereby triggering political behavior
by groups interested in pursuing certain courses of action.
4. Nonprogrammed decisions. A distinction is made between
programmed and nonprogrammed decisions. When decisions
are not programmed, conditions surrounding the decision
problem and the decision process are usually more ambiguous,
which leaves room for political maneuvering. Programmed
decisions, on the other hand, are typically specified in such
detail that little room for maneuvering exists. Hence, we are
likely to see more political behavior on major questions, such as
long-range strategic planning decisions.
5. Organizational change. Periods of organizational change also
present opportunities for political rather than rational
behavior. Efforts to restructure a particular department, open a
new division, introduce a new product line, and so forth, are
invitations to all to join the political process as different
factions and coalitions fight over territory.

NEGOTIATION

Strategic discussion intended to resolve an issue in a way that

both parties find acceptable.
 Principles of effective negotiation
• Preparation: Thorough preparation is essential for a successful
negotiation.
• Build rapport and trust
• Focus on interests, not positions
• Be willing to make concessions
• Remain adaptable and open-minded

Negotiation tactics:
• Avoid getting emotional: Strong emotions can signal desperation
rather than strength.
• Understand your opponents: Before understanding your opponents'
pressure, targets, and needs, you can learn about their negotiating
approach.
• Develop problem-solving skills: Negotiation is based on problem-
solving. Developing problem-solving skills can help you develop
better negotiation skills.

Some challenges to effective negotiation include:

• Rushing
• Lack of information and proper planning
• Closed mind
• Poor communication
• Overthinking the power dynamics
• Using short-term negotiation tactics with long-term suppliers

TYPES OF NEGOTIATION

Integrative negotiation:Also known as principled negotiation, this is

a format where parties work together to create an agreement that's
valuable to both parties and that leaves them happy with the
outcome.
Distributive bargaining:This is a type of negotiation where each
party tries to get the best possible outcome for themselves. It's
often used in contract negotiations, and can help each side get what
they want.
Multiparty negotiation:This is a type of bargaining where more than
two parties negotiate toward an agreement. For example,
bargaining between multiple department leaders in a large
company.
Collaborative negotiation:This is about seeking an equitable and fair
agreement which will foster a positive and long-term relationship.
Managing organizational change involves navigating through various
processes, strategies, and frameworks to effectively implement
changes within an organization while minimizing resistance and
maximizing employee engagement. Here's a detailed breakdown of
the topic:

Understanding Organizational Change:

Organizational change refers to any alteration in an organization's
structure, processes, culture, or strategies.
Change can be driven by internal factors (e.g., new leadership,
restructuring, technological advancements) or external factors (e.g.,
market shifts, regulatory changes, economic conditions).

Types of Organizational Change:

Strategic Change: Involves major shifts in an organization's mission,
vision, or goals.
Structural Change: Involves changes in the organizational hierarchy,
departments, reporting lines, or workflows.
 Technological Change:Involves adopting new technologies or
systems to improve efficiency, productivity, or competitiveness.
Cultural Change: Involves altering the organization's values, norms,
beliefs, and behaviors.
Process Change: Involves revising or redesigning existing processes
or introducing new ones.
Models and Frameworks for Managing Change:
Kotter's 8-Step Change Model:Developed by John Kotter, this
model outlines a step-by-step approach to implementing change,
starting with creating a sense of urgency and ending with anchoring
the change in the organizational culture.
Lewin's Change Management Model: Developed by Kurt Lewin, this
model consists of three stages: unfreezing (preparing the
organization for change), changing (implementing the change), and
refreezing (stabilizing the change).
ADKAR Model: Focuses on individual change by addressing
Awareness, Desire, Knowledge, Ability, and Reinforcement.
McKinsey 7S Framework:Analyzes seven interdependent factors
(strategy, structure, systems, shared values, style, staff, skills) to
assess organizational effectiveness and readiness for change.

Challenges in Managing Organizational Change:

Resistance to Change: Employees may resist change due to fear of
the unknown, loss of job security, or disruptions to routine.
Communication Issues: Inadequate communication about the
reasons for change, its implications, and the expected outcomes can
lead to confusion and resistance.
 Lack of Leadership Support: Without visible support from top
management, employees may perceive change efforts as insincere or
unimportant.
Employee Engagement: Involving employees in the change process,
soliciting their feedback, and addressing their concerns can enhance
buy-in and commitment to the change.

Strategies for Successful Change Management

Clear Communication: Transparent and consistent communication
about the need for change, its objectives, and the expected impact
on employees and the organization.
Stakeholder Involvement: Engage key stakeholders, including
employees at all levels, in the change process to gather insights,
address concerns, and foster ownership.
Training and Development: Provide training and resources to equip
employees with the skills and knowledge needed to adapt to the
change.
Change Champions: Identify and empower change champions or
influencers within the organization to advocate for the change and
support their peers.
Celebrating Milestones: Recognize and celebrate achievements and
milestones throughout the change process to maintain morale and
motivation.

Evaluation and Continuous Improvement:

- Regularly assess the progress of change initiatives against
predefined metrics and objectives.
 - Solicit feedback from employees and stakeholders to identify
areas for improvement and make necessary adjustments.
- Foster a culture of continuous learning and adaptation to ensure
the organization remains agile and responsive to future changes.

Successfully managing organizational change requires a combination

of strategic planning, effective communication, stakeholder
engagement, and a commitment to continuous improvement. By
employing the right frameworks and strategies, organizations can
navigate through transitions more smoothly and emerge stronger
and more resilient.