ORGANIZATIONAL CULTURE

Course: MGT321
Sec-04

Presented by:

Tanzeena Anwar: 992-146-030

Kaiser Chowdhury: 011-279-030
Syed Mazharul Hannan: 011-287-030
Md. Shams Afzal: 013-023-030
Shahed Ahmed Khan: 013-043-030

Prepared for:

Samy Ahmed
Lecturer: School of Business
North South University

Date of Submission: August 04, 2002

Table of Contents:
Page No:
1. Acknowledgements………………………………………………… 3
2. Executive summary………………………………………………… 4
3. What is Culture? …………………………………………………… 5
4. What is organizational culture……………………………………… 7
5. Different types of culture…………………………………………… 8
6. Different organization has different culture………………………. 9
7. An example: Chrysler (1994)……………………………………… 10
8. Why assessing organizational culture………………………………. 11
9. Components of organizational culture……………………………… 12
10. What types of behavior does culture control……………………… 15
11. How is culture developed, reinforced, and changed?…………… 17
12. The Dynamics of Organizational Culture………………………… 19
13. Why culture change is so hard…………………………………… 21
14. The Leaders role in creating culture……………………………… 21
15. What role does management plays in determining culture……… 23
16. Role definitions…………………………………………………… 24
17. Core values: the foundation of the role…………………………… 25
18. Role Analysis……………………………………………………… 25
19. Mentors………………………………………………………………. 28
20. Globalist……………………………………………………………… 29
21. Causes of Conflict…………………………………………………… 30
22. Conflict handling Styles…………………………………………….. 32
23. Conclusion…………………………………………………………… 34
24. Reference & Web addresses…………………………………………. 35

2
Acknowledgement:

First of all we are grateful to Almighty Allah for enabling us to work on this report
and for making the circumstances favorable to accomplish our task.

We also wish to thank our honorable faculty Mr. Samy Ahmed for assigning the

topic (Organizational Culture) to our group and giving us the opportunity to prepare the

report for him.

This report could not have been written without the generous expert assistance of

Tanvir Siddiqui.

We also wish to thank and give the due respect to our family and friends for their

cordial support and help they offered through out the process of preparing the whole report.

3
Executive Summary:

"Culture is one of the most precious things a company has, so you must work
harder on it than anything else."
- Herb Kelleher, CEO Southwest Airlines

Culture is the 'Operating System' of an organization. It is the living, dynamic interplay of

all of the shared beliefs, values, norms, and practices that are operating both

consciously and unconsciously within an organization. Culture guides what people

consider important and how they think, act, feel and work.

Certain aspects of culture are not directly perceptible, but nonetheless they drive and

are reflected in the actions taken by an organization. Unless these beliefs and attitudes

are surfaced and addressed, they can allow well-intentioned people to inadvertently

undermine the continued success of the organization. Being successful means having a

strong, integrated culture that supports your vision, strategy and goals.

____________________

4
What is Culture?

Just as families and communities have unique looks and feels, organizations have distinct
images, internal operations, and methods of doing business that determine who they are and

how they are perceived by others. All of these factors are the bases for the formation of a

"culture" which has the same impact internally that ethnicity or religion has in social groups.

 "The way we do things” is the most common and efficient definition of culture.

Although this is an expedient definition it misses many powerful underlying concepts

including: Cultures are collective beliefs that in turn shape behavior. They are a form

of a shared paradigm

 Cultures are based on a foundation of historical continuity. The potential loss of

continuity in part explains the resistance to change.

 Cultures are defined by, and subsequently define symbols.

 Although cultures resist change, they are constantly changing. This paradoxical

condition limits the speed of change and consumes large quantities of energy.

 Cultures are more probabilistic than deterministic.

The impact of culture on behavior has been postulated for many years and its impact

continues to be demonstrated. For example, 103 human resource professionals at major U.S.

based organizations were asked to identify the most important factors influencing the

management development programs in their organizations. Four factors were mentioned by

over two-thirds of the respondents:

5
  The chief officer’s vision and values.

 The organization’s strategic plan.

 The operation need of the line organization.

 The organization’s culture.

Culture provides the frame of reference, or context, of communicative events. This context

has two aspects, the external and the internal, meaning the social or individual frame of

reference.

Cognitive Culture:

The internal or individual, cultural frame of reference is called the Cognitive Culture. This is

the individual's cultural understanding, self-concept, concept of relationships, roles and

procedures.

Social Culture:

The external or Social Culture is created by relationships of the component individuals in

their social interaction. How stable, rigid or flexible this social system is depends on many

complicated factors.

When humans meet, they have communicative events. The communicative events involve the

exchange of culture.

The Social Culture occurs when we engage in interpersonal encounters. The encounters in

turn clarify, affirm or modify, the Cognitive Culture. The term Social Culture refers to the

6
full range of informal and formal structure in these encounters and relationships, including

group identification.

What is Organizational Culture?

Culture drives the organization and its actions. It is somewhat like "the operating system" of
the organization. It guides how employees think, act and feel. It is dynamic and fluid, and it is

never static. A culture may be effective at one time, under a given set of circumstances and

ineffective at another time. There is no generically good culture. There are however, generic

patterns of health and pathology.

Basically, organizational culture is the personality of the organization. Culture is comprised

of the assumptions, values, norms and tangible signs (artifacts) of organization members and

their behaviors. Members of an organization soon come to sense the particular culture of an

organization. For example, the culture of a large, for-profit corporation is quite different than

that of a hospital which is quite different that that of a university. You can tell the culture of

an organization by looking at the arrangement of furniture, what they brag about, what

members wear, etc. -- similar to what you can use to get a feeling about someone's

personality.

Where does it come from?

The culture of an organization can derive key features from the larger culture in which it is
embedded. In other words, American organizations tend to be different from Japanese

7
companies because they are embedded in different national cultures. Similarly, organizations

in certain industries may have a discernable cultural style that

derives from the industry.

Another important influence on organizational culture is the professional culture of the more

powerful players. Orgs are made up of functional occupations: lawyers, traders, etc. who goes

to school and get degrees like MBAs where they teach you a certain way of doing things and

looking at things.

 A surgeon and a nurse can meet in the operating room and interact just fine because of

professional training

Cultural items also diffuse through personal contacts: social networks.

 Mortgage traders separated from others, and developed own culture

 Lewis understands of markets and style came from his friends Alexandre and dash

riprock.

Different types of culture:

There are different types of culture just like there are different types of personality.

Researcher Jeffrey Sonnenfeld identified the following four types of cultures.

AcademyCulture

Employees are highly skilled and tend to stay in the organization, while working their way up

8
the ranks. The organization provides a stable environment in which employees can

development and exercises their skills. Examples are universities,

hospitals, large corporations, etc.

BaseballTeamCulture

Employees are "free agents" who have highly prized skills. They are in high demand and can

rather easily get jobs elsewhere. This type of culture exists in fast-paced, high-risk

organizations, such as investment banking, advertising, etc.

ClubCulture

The most important requirement for employees in this culture is to fit into the group. Usually

employees start at the bottom and stay with the organization. The organization promotes from

within and highly values seniority. Examples are the military, some law firms, etc.

FortressCulture

Employees don't know if they'll be laid off or not. These organizations often undergo massive

reorganization. There are many opportunities for those with timely, specialized skills.

Examples are savings and loans, large car, companies etc.

Different organizations have different cultures:

Conversations often refer to different organizations having different cultures. For the

average person - "culture" may mean that they perceive the organization they are involved

with to be:

9
  Pushy, harsh and authoritarian.

 Very political with traps and pitfalls for people to fall into if they are not .

 Rule and ritual bound.

 Cold and separated.

 Brisk, dynamic, opportunistic.

 Exploitative, all take and no give.

 Caring and genuinely interested in people as people.

An Example: Cultural change at Chrysler (1994)

Many companies have turned themselves around, converting imminent bankruptcy into
prosperity. Some did it through financial gimmickry, but the ones who have become stars did

it by changing their own culture.

Few remember that companies like British Air or Volvo once had a poor reputation. That's a

credit to their drastic changes in customer (and employee) satisfaction, quality, and profits.

The underlying causes of many companies' problems are not in the structure, CEO, or staff;

they are in the social structure and culture. Because people working in different cultures act

and perform differently, changing the culture can allow everyone to perform more effectively

and constructively. This applies to colleges and schools as much as it applies to businesses.

10
In the early 1990s, Chrysler had terrible customer service and press relations, with a

history of innovation but a present of outdated products. Its market share was falling, and its

fixed costs and losses were high. Bob Lutz, then the president, wanted Chrysler to become

the technology and quality leader in cars and trucks -- a clear, globally applicable vision. A

program of cultural change, Customer One, was built around it.

The results were impressive: overhead was cut by $4.2 billion in less than four years, the

stock price has quadrupled, and the company reversed its slide into bankruptcy and

became profitable. A completely new and competitive line of cars or trucks has appeared

each year since. New engines produce more fuel economy and power as new cars provide

more comfort, performance, and space. They did this with the same people, but working

in different ways.

Why assessing organization’s culture?

Understanding and assessing your organization's culture can mean the difference between
success and failure in today's fast changing business environment. On the other hand, senior

management often has a view of the organization's culture that is based more on hope than a

view grounded in objective fact.

The concept of culture is particularly important when attempting to manage organization-

wide change. Practitioners are coming to realize that, despite the best-laid plans,

organizational change must include not only changing structures and processes, but also

changing the corporate culture as well

11
If the organization wants to maximize its ability to attain its strategic objectives, it must

understand if the prevailing culture supports and drives the actions necessary to achieve its

strategic goals. Cultural assessment can enable a company to analyze the gap between the

current and desired culture. Developing a picture of the ideal and then taking a realistic look

at the gaps is vital information that can be used to design interventions to close the gaps and

bring specific elements of culture into line. If your competitive environment is changing fast,

your organizational culture may also need to change.

Components of Organizational culture:

There are 2 components of organizational culture:

1) Formal component
2) Informal component

Formal Component of the Organizational Culture:

This concept is not included in standard discussions of organizational culture. This is difficult

to understand because of the significant influence these formal components of an

12
organization's structure play in defining the acceptability of specific and general behaviors in

an organization.

Mission/Vision

The mission or vision is the broadest definition of the reason the organization exists. It

provides an overall yardstick against which all organizational activity can be judged for

consistent contribution to a single purpose.

Policies:

Policies are broad statements designed to be guides to behavioral decisions within the

organization. Policies tend to be written in such a way as to provide considerable leeway in

interpretation and specific implementation. Example: The organization believes in open

communication with its constituencies.

Procedures:

Procedures are designed to provide a more specific guidance to behavior decisions. Example:

External communication should be submitted to the information officer for dissemination to

external media.

Rules:

These are specific definers of behavior. Example: No production or assembly employees will

speak to media persons in the plant. In addition to these formal components, the dimensions

of an organization also affect the behavior of people as members of the organization. The

firm's strategy, size, environment, internal structure, technology, and management styles

influence the degree and type of communication occurring in the organization. Several ways

13
have been suggested to define these variables. Two of them are Fisher's Stages of

organizational development and Mintzberg's typology of structures.

Informal Component of the Organizational Culture:

The second component of the organization culture is the informal component. This is the

concept that most often is the focus of definitions of organizational culture. These are

intangible or tangible manifestations of shared values among members of the organization.

The individual elements of the informal component range from those that a very specific in

their expression of the value involved to those are non-specific and are general guides to

acceptable behavior.

Artifacts:

Material objects made to facilitate expression of culture. Example: The "Ford is job one"

signs in the assembly plants.

Symbols: Any object, act, event, quality, or relation that serves to convey meaning, usually

represents another thing. Example: The McAllen High School Bulldog.

Rites:

Relatively elaborate dramatic planned events. Example: the annual Christmas Party.

Ceremonies:

A system of rites connected by a single occasion or event. Example: an annual awards

banquet where service awards, longevity awards, or other awards are distributed.

Stories:

Narrative based on true events. Example: Stories of how the founder of the company did

some particular thing that sets the tone for activity, such as the FedEx story.

14
What types of behavior does culture control?

 Innovation versus Stability- The degree to which organizational members are

encouraged to be innovative, creative and to take risks.

 Strategic versus Operational Focus- The degree to which the members of the

management team focus on the long term big picture versus attention to detail.

 Outcome versus Process Orientation- The degree to which management focuses on

outcomes, goals and results rather than on techniques, processes, or methods used to

achieve these results. Task Versus Social Focus- The relative emphasis on effect of

decisions on organizational members and relationships over task accomplishment at

all costs

 Team versus Individual orientation- the degree to which work activities are

organized around teams rather than individuals

 Customer Focus versus Cost Control- The degree to which managers and

employees are concerned about customer satisfaction and Service rather than

minimizing costs

 Internal verses External Orientation- the degree to which the organization focuses

on and is adaptive to changes in its environment

 Basis for commitment of organizational members- What is the dominant source of

motivation that characterize organizational members and on which manager’s focus? 

Is there a strong:

1. Instrumental Orientation- focus is on pay and equity

15
2. Status Orientation- focus is on titles, status symbols, allocation of

credit and recognition

3. Internal Standard Orientation- focus is on achievement, challenge

and individual growth

4. Goal Orientation- focus is on service to customers, clients, and

quality

 Power Distance- The psychological distance between organizational members

at various levels.  The degree of

 Deference to authority, the rigidity of chain of command, and the

formality of interaction.

 Conformity versus Individuality- The degree to which individuality is

encouraged and tolerated

 Ad hockery versus Planning- Focus on emergent versus deliberate

development of mission and strategy.

 Centralized versus Decentralized decision making- The degree to lower

level employees are encouraged to make and implement decisions without

approval from top management

 Cooperation versus Competition- Degree to which cooperativeness and team

spirit is encouraged versus individual competition and political posturing.

16
How is Culture Developed, Reinforced, and Changed?

It is often said in organizations that, “we need to change the culture around here.”  What is
usually meant is that someone desires a behavioral change.  In other words, then defining the

culture by its results. What they mean is that they want to change a behavioral pattern such as

employees to paying more attention to customers, or those they want managers to come to

meetings on time, or some other set of behaviors.  While these patterns of behavior can be

changed by changing the organization's structure (rule, regulations, rewards systems),

changing these behaviors through culture involves changing the underlying mechanisms that

drive these behavioral patterns: namely norms, social values, identify structure, or mental

model.  Since these underlying culture control mechanisms are often taken for granted and

subconscious in nature, they are difficult to change.  Changing structure by changing a rule

and its enforcement mechanism is rather simple when compared to changing a social value. 

Culture is resistant to change because many of the cultural control mechanism become

internalized in the minds of organizational members, which are what makes culture such

strong control mechanism.  Changing culture often means that members have to change their

entire social identify.  Sometimes the statuses of various roles or identities change causing

even more resistance on the part of high statusroleholders.

    While changing behavior by changing structure may have more appeal because it appears

easier, in many cases this type of change is not successful because managers have not

changed the underlying culture and they find that the culture and structure are in conflict.  So

how can a manager attempt to change culture.  While it is difficult, the key lies in symbolic

action, that is, dealing with important symbols of values, norms and assumptions.  Here are

some general guidelines:

17
Changing Social Values:

 Role Modeling- People looks to leaders for queues about what is important in an

organization.  The most important thing a leader can do is act in a manner consistent

with the desired social value.  When it comes to instilling culture values, “do as a say

not as I do” does not work very well.  When organizational members observe a leader

making a personal sacrifice for a value, it sends a strong message that this value is

important. 

 In reacting to crises, leaders can send strong messages about values and assumptions. 

When a leader supports new values in the face of crisis, when emotions often run

high, he or she communicates that this value is very important.

Changing Mental Model and Basic Assumptions:

 In most cases, individuals making decisions and solving problems

do not question their basic assumptions (underlying mental

models).  They simply use them, without thinking, and arriving at a

decision or solution to their problem.  If the solution does not work,

they mostly likely question the inputs to their decision and attempt

to make a better decision next time.  This is called single loop

learning.

In some cases, the individual or group actually begins to question the basic assumptions and

models underlying the decision.  This is called double loop learning.  It is through double

loop learning that changes in shared mental models take place.  When attempting to change

18
the shared mental models of a group, it is important to take time out from the day-to-day

problem solving process to outline, challenge, and agree on changes to the share mental

model.

The Dynamics of organizational culture:

The dynamics of organizational culture as an integral part of the process of compassion,

conflict, and choice can be captured in a general systems model. These components and

relationships are displayed in the general systems model depicted below.

 Input takes the form of pressures from the environment, resources available,

and the history of the organization.

 Output takes the form of objectives, actual results, and desirable results.

Foremost of the organizational objectives, and perhaps the least obvious, is the nature

of the organization itself, i.e., who it is, it’s “being.” More obvious are organizational

performance objectives. Less obvious than either being or performance objectives are

that the organization should have position objectives and learning objectives as well.

  Position objectives answer the questions, once the organization has achieved

its performance objectives, where does it want to be? What does it want to be able to

accomplish next?

19
  Learning objectives answer the questions, what will we learn as we go

through the process? How will we have increased our organizational capability? What

new things will we be able to do when we are through finally, the transformational

process itself changes the organization’s situation, and the output changes both the

process and the situation. Feedback loops represent the impact of the transformation

process and output on the organization itself and its environment. Assessment of

organizational success

is less a matter of determining whether desired objectives were achieved than

determining whether desirable results occurred.

Why Culture change is so hard?

20
“It must be considered that there is nothing more difficult to carry out, nor more doubtful

to success, nor more dangerous to handle, than to initiate a new order of things." —

Niccolo Machiavelli, The Prince

By utilizing the results of the CAT and identifying the gaps between the existing
culture and the ideal culture, we are able to tailor a focused change program that is

client-specific and results-oriented. We work with the leadership of an organization to

identify the quick wins, symbolic actions and substantive actions needed to create the

Culture of Choice.

Culture change is often perceived to be difficult even when there is a clear and

urgent need to change. Cultures are products of their success-what becomes part of

a culture are the practices and policies that have worked in the past. Because

something has been successful, there is a natural reluctance to tamper with it. The

CAT helps an organization determine what is still helping them to be successful and

objectively informs them of aspects of culture that may be hindering its current

success or increasing the risk of failure in the future.

The Leader’s role in creating culture:

Whether you like it or not, as a leader, you are also:

 A model

 A tone setter

 A symbol of who gets ahead

 A guardian or a designated change agent

21
  A product of the culture

Whether you like it or not, as a leader, you are largely responsible for your

organization's culture. You need to understand the nature of that culture, how it is

created, and how it can be changed

In order to change the culture, as a leader you must:

 Create and foster a vision of a new future

 Face up to behaviors, values and norms in current culture that must change

 Initiate and lead the change

 Create a willingness to separate from the past

 Sell key stakeholders and build shared ownership through organization-wide

participation

 Communicate the changes and new cultural messages

 Create a sense of urgency and excitement

 Model the behavior that supports the new vision

 Reward behavior which supports the new vision

 Maintain focus on the goal

 Sustain momentum

 Bring in resources who uniquely add value to the change effort by modeling new

ways to act, think and view things

When organizations grow, their cultures tend to change in several predictable ways:

 Organizations become less leader-centric

22
  Many small, entrepreneurial organizations are highly leader-centric.

The power of this leader makes authority highly centralized--power resides in one

individual. The organization feels stable and secure--it has a clear leader.

The leader's ego makes him feel special and he feels his organization is special. So he

tries to project an image.

What Role does “Management” plays in determining

organizational culture?

Management plays a critical role in determining the culture of an organization. The values,
beliefs and outlook of the person at the top filter down through all levels and create an

operational environment that affects all staff members.

Promotions and the "chain of command" are determined by how closely aligned individuals

are with the prevailing norms of the organization as determined by management. 

This means that changes or improvements to existing methods need "buy-ins" from

management or they are, in most cases, doomed to failure. While change is sometimes

painful and difficult, managers who understand the need to constantly renew the

organization position themselves for success in the marketplace of the 21st century.

Role Definitions:

23
  Each role is a combination of leadership process & managing effort.

How do traditional roles or job roles get defined? For a job there may be a formal and
systematic attempt to define the duties and responsibilities, the scope of authority and

discretion of a jobholder. Thus we may have some form of job description of formalized

discussion about the scope of a role.

Beyond this - roles become defined through enactment i.e. a combination of

the role expectations of:

a. The role holder

b. Members of his/her role set

We have to explore the perceptions of others to determine what they define the

scope of the role to be. We may find considerable differences of view.

Our role(s) - in that they are defined - constrain us to act in certain ways. A formal

role may indeed present us with a script and a set of scenes to enact. Can it be that behavior

enacted especially for the role becomes "internalized", eventually becoming a natural part of

us, part of our personality? Think for example of doctors or lawyers or counselors.

Core values: The foundation of the Roles:

 Integrity with core values is necessary for each Leading Edge role.

 Awareness of the core values guiding behavior in a situation increases effectiveness.

24
 Conscious attention to core values is often appropriate but not necessary in all

circumstances.

 Guidance from core values is useful in ambiguous, complex circumstances

 Challenge from core values exists when we seek compromise or expediency and

ignore what we consider truly important

 Mastery of a role occurs when our core values remain intact despite the hardships we

face.

Role Analysis:

 Role Ambiguity:

Ambiguity is often felt where there is some uncertainty in the mind either of the role holder

or members of his/her set as to what the precise expectations of others are vis a vis the role

holder's role at any given time.

The ambiguity may stem from the role holder being unclear in his/her conception of his/her

role. For example in the work situation - the role holder may be uncertain about:

a. How his/her work is evaluated

b. Scope for advancement

c. Scope of responsibility

25
d. Others ‘expectations of his/her performance

The members of his/her role set may articulate the ambiguity directly or indirectly:

 being unclear about their expectations of the role holder

 having a different conception of the role than the role holder or others.

For example, in a work situation, the role holder may see herself as an expert, but members of

his/her role set may see her in the role of a junior member of staff.

 Role Incompatibility (Conflicting Expectations):

Where expectations of different members of the role set are incompatible - the role holder's

ethics, personal standards and values may be incompatible with what she/he is required to do

as part of his/her work role.

 Role Conflict (Conflicting Roles):

Everyone has a number of roles - but where two or more roles have to be carried out in the

same situation, role conflict may result.

 the career woman often finds she is expected to fulfill at one and the same time the

expectations attached to being a woman (feminine, gentle) and the expectations attached to a

male stereotype of successful executives (thrusting, go-getting, aggressive).

 the role of the father/husband may be in conflict with the role of manager

26
  Role Overload:

Role holder has too many roles to handle. Mother, father, nurse, lover, Girl Friday, trouble

shooter, manager, worker, mentor, word processor, multiple jobs, too many projects or

contracts.

Does role overload come with downsizing, lean organizations and "empowerment"?

 Role Under load:

Individual feels that the definition of his/her role is out of line with his/her self-concept. A

new graduate recruit may feel she/he is given a job (role) far below his/her capabilities. They

see the role content perhaps as being too routine, menial, insufficiently challenging. They are

not stretched enough.

They want more "role" discretion, freedom of movement and more recognition by

others of their "status".

How can these problems be resolved? If role enrichment (see Herzberg "job enrichment" is

possible, then does enrichment for one mean redistribution of role elements for others?

 Role Stress:

Role incompatibility or conflict may lead to role stress

 the role holder experiences tension - low morale - becomes morose - loss of libido.

27
 May result in sickness and debilitate performance, quality of working life.

How far is role stress a result of poor job design, role overload? What are the obligations and

duties of management in respect of an employee who is experiencing such roles stress that

the job is debilitating for them?

 Are there health and safety and hence contract of employment implications?

Mentor:

MOTIVATES OTHERS AND ASSISTS THEIR PROFESSIONAL

DEVELOPMENT.

 motivating others

 Understanding individual development needs

 Creating learning opportunities

Mentoring:

The process of forming and maintaining intensive and lasting developmental relationships

between a variety of developers (i.e., people who provide career and psychosocial support)

and a junior person (the protégé, if male; or protégée if female).

Functions of Mentoring:

28
- Sponsorship

- Exposure and visibility

- Coaching

- Protection

- Challenging assignments

Psychosocial Functions

- Role modeling

- Acceptance and confirmation

- Counseling

Globalist:

OPERATES ACROSS CULTURES AND CONSOLIDATES DIFFERENT

PERSPECTIVES.

 Appreciating cultures

 Bridging cultures

 Choosing a culture

Causes of Conflict:

SOME PRINCIPAL CAUSES OF CONFLICT IDENTIFIED:

29
• Communication failure

• Personality conflict

• Value differences

• Goal differences

• Methodological differences

• Substandard performance

• Lack of cooperation

• Differences regarding authority

• Differences regarding responsibility

• Competition over resources

• Non-compliance with rules

For purposes of analysis of the causes of conflict, it may be useful to identify three general

categories:

30
COMMUNICATION

• Semantic difficulties

Words do not mean the same things to everyone who hears or uses them.

If one person were to ask another to "level out the gravel" on a construction site, the words

"level out" could mean different things to both parties’. The differences in perceived meaning

are due to semantics.

If the communication is related to an activity that is critical to the organization, a semantic

misunderstanding can easily lead to conflict.

• Misunderstandings

• "Noise"

"Noise" in the communications process can take a number of forms. Most obviously, noise is

physical -- the parties in the organization cannot "hear" one another because too many people

are talking at once, there is a radio blaring in the background, or the construction workers on

the street are using a jackhammer.

Noise also comes in the form of distorted signals -- the fax message is misunderstood because

poor quality fax paper makes it difficult to read the letters on the page.

Conflict Handling Styles:

31
CONFRONTATION CONFRONTATION
 Demanding  Positive: may
apologies and be necessary
redress. when quick
decisions are
required.
 Negative: may
suppress or
intimidate.
AVOIDANCE AVOIDANCE
 Refusing to  Positive: when
acknowledge that a conflict is minor
problem exists. or when there is
 Reducing little chance of
interaction. winning.
 Negative:
failure to
address
important
issues.
ACCOMMODATION ACCOMMODATION

 Positive: useful
 Apologizing and when the
conceding the issue outcome is
to the other party. more useful to
the other party
or when
harmony is
important.
 Negative: may
lead to lack of
influence or

32
 recognition.
COMPROMISE COMPROMISE
 Bargaining until a  Positive: may
decision or solution be practical if
is reached. both parties
have equal
power or
strength.
 Negative:
expediency may
favor short-
term solutions.
COLLABORATION COLLABORATION
 Treats the need to  Requires
repair or maintain parties to recast
the relationship as a the conflict as a
problem both problem-solving
parties should be situation.
involved in.  The dilemma is
"depersonalized
" as the focus
becomes one of
solving the
problem as
opposed to
defeating the
other person(s).

Conclusion:

Finally we can conclude that only a strong organizational culture with determined
management and a controlled feedback mechanism would ensure the effective

implementation of the quality system. An organization's cultural norms are so all pervasive

that they are almost invisible, but if you would like to improve performance and profitability,

33
norms are one of the first places to look. Ask yourself what employee beliefs or attitudes,

including yours, relate to the question, "How are things done around here?" When you have

the answers, you'll be on the track to understanding your own corporate culture and its

relationship to organizational performance. The impact of culture on the bottom line is clear.

Harvard Business School professors John Kotter and James Heskett studied over 200

companies for several years and found that culture has a significant impact on a

firm's long-term economic performance and that the role of culture in determining

financial performance is becoming even greater in today's faster-changing, more competitive

business environment. Analysis shows that cultures that are aligned with their demands of

their business environment consistently outperform more organizations that are not aligned:

 571% higher gains in operating earnings

 417% higher returns on investment

 Stock prices increased 363%

This research shows that there is a direct positive relationship between the return to

shareholders and cultures that are more people-focused, develop a high performance ethic,

become more nimble and entrepreneurial and are more competitor-focused.

Reference & Website Addresses:

34
 Books:

1. Organizational Behavior (second edition)

By Robert P. Vecchio.

2. Organizational Behavior (sixth edition)

By Fred Luthans.

3. OB Understanding Life at Work (second edition)

By Gary Johns.

Websites Visited:

 www.geocities.com/athens/forum/1650/htmlobtoc02.html
 www.ethicaledge.com

 www.organizational-culture.com/ebook.htm

 www.mapnp.org/library/org_thry/culture/culture.htm

 www.pamij.com/barkdoll.html

 www.brunel.ac.uk

 And many other sites.

35
36