**2. Organizational values**

Organizational values are defined in many ways, as often the values are divided or classified into different levels, classes and categories. Although not all authors agree on one definition of organizational values, there are still some agreed criteria, which are most often found to describe the values. According to Woodward and Shaffakat [2], there are some general elements in different approaches of values, like values are understood as standards and guiding principles, values are abstract and connected to many other concepts, values are learned and remain relatively stable over time, values exist in hierarchy and values influence people's choices. Generalizing the different views, the values are interpreted as beliefs, standards, principles and preferences, but different authors mostly agree that values play an important role in behaviour and are influenced by the external environment [3].

The definition of organizational level values is generally rewording of an individual level definition, that is, values in an organization are deeply ingrained principles that guide the actions of the organization [3]. They are "enduring beliefs" that specify a mode of conduct; they specify what is and is not acceptable behaviour within an organization or workgroup [4]. Still more clearly, Bell [5] defines organizational values as a set of acceptable or expected norms or bounds of behaviour for the individual members of an organization. Dose [6] brings in the aspect of decision-making—values are estimated standards according to which members of an organization make decisions what is "right" or why one alternative is preferred to another. Values are often defined as beliefs or guiding principles that are core to the organization and help steer the right actions [7]. Organizational values represent a form of consensus regarding the values that a social group or organization consider important for its aims and collective welfare [8].

on higher levels of value systems, then the real values are usually placed on the lower level

Previous conflict researches in Estonia and abroad have presented the most common causes of conflicts due to organizational issues (limited resources and their distribution, interdependency, differences in goals and in viewpoints, managerial mistakes, unclear status and communication problems). While analyzing conflicts, it is important to determine whether the conflict is solved or unsolved and then we discover which values have been used during the conflict solving and decision-making process. In addition to the main characteristics of conflict, three important aspects can also be brought out: conflict is always related to relationships, there are several parties in a conflict and there is a problem or main question that has caused the conflict. Up to now, there have been many investigations about organizational values and from the other hand also investigations about conflict management. But there is a gap in connecting these two phenomena. The authors of the present chapter proceed from the hypothesis that the real (shared) values of an organization reveal themselves in the behaviour and decisions of the managers and in how they manage conflicts. Knowing the people's real values, the organization can also increase the threat of potential conflicts and through that make conclusions to increase organizational success. The latest management theories already speak about the values as one of the factors determining organisation's success and conflict culture plays

Organizational values are defined in many ways, as often the values are divided or classified into different levels, classes and categories. Although not all authors agree on one definition of organizational values, there are still some agreed criteria, which are most often found to describe the values. According to Woodward and Shaffakat [2], there are some general elements in different approaches of values, like values are understood as standards and guiding principles, values are abstract and connected to many other concepts, values are learned and remain relatively stable over time, values exist in hierarchy and values influence people's choices. Generalizing the different views, the values are interpreted as beliefs, standards, principles and preferences, but different authors mostly agree that values play an important

The definition of organizational level values is generally rewording of an individual level definition, that is, values in an organization are deeply ingrained principles that guide the actions of the organization [3]. They are "enduring beliefs" that specify a mode of conduct; they specify what is and is not acceptable behaviour within an organization or workgroup [4]. Still more clearly, Bell [5] defines organizational values as a set of acceptable or expected norms or bounds of behaviour for the individual members of an organization. Dose [6] brings in the aspect of decision-making—values are estimated standards according to which members of an organization make decisions what is "right" or why one alternative is preferred to another. Values are often defined as beliefs or guiding principles that are core to the organization and help steer

role in behaviour and are influenced by the external environment [3].

[1]. So, our values are not always so ethical and people-oriented as we like to think.

an important role in achieving this target.

**2. Organizational values**

20 Organizational Conflict

Many organizations declare that they have their own and unique values but just having values in strategy or webpage is not enough. Just described or propagated organizational values by management are not the sign of healthy and successful organization. These organizational values are only formally espoused and sanctioned by top managers [9]. Propagated values are the values that managers regard to be right; real values are those that the managers factually use in their managerial practice, decision-making and conflict management [1]. There are many "ifs" before it can be said that values really lead organization to success. Individual and organizational values must be incongruence. Values must express in the behaviour and every activity in the organization must be in coherence with the same core or real values. As important is that individual and organizational values are incoherence. Several authors have emphasized that not only having implemented organizational values but also those values must be supported and applied by the managers and employees. Hyman et al. [10] contends that a positive perception of the values and beliefs of the top management by employees will lead to higher performance outcomes. Bergeron [11] concludes that individuals perceiving high congruity between organizational values and their own will feel more motivated. Congruity between the values of an employee and their organization will positively influence the employee's performance [12]. When employees know what the company values, they are more likely to make decisions that will support those values [13]. Shared values assist in creating unity in a team and lead to consistent behaviour [14]. In addition, when values are shared, management knows what kind of work and behaviour to expect [15]. The process of establishing and verifying common values requires open, honest communication and sharing of what is important to each individual [16, 17].

A key metric of good management, then, is that whether clear and consistent values have permeated the organization [18]. According to Collins [19], organizational values cannot be "set"; they can only be "discovered" because the organizational values do not "appear" but "reveal" in behaviour. In addition to right and implemented values (values that lead toward success and sustainability) in an organization, another important facet is the stability and longevity of such values, since it takes time for values to firmly root themselves. There is a strong link between financial performance and the alignment of an organization's cultural values with employees' personal values [20]. Companies with strong adaptive cultures based on shared values outperform other companies by a significant margin [21]. Employees who feel that an organization values the same things that they do will be more likely to have attachment to their organization [22], they are more likely to have positive attitudes and less likely to leave the organization [23], they feel more loyal and committed and identify more strongly with the organization [24] and the performance is going to improve [11, 12]. All those factors, in turn, are in positive correlation with organizational success [25].

During the two decades, researchers have connected the organizational values with different phenomena. Through those relationships, the concept of organizational values has become even stronger and important, having a clearer impact also on organizational success and sustainability. Values have an impact on different processes and characteristics in the organization. For example, employees' satisfaction and persistent organizational values emphasize the managers' job in shaping and enhancing values [26]; stronger internal culture and values create stronger company brand [20]; mismatch of personal and organizational values can be one of the key risk factors for the development of occupational burnout [27] and discrepancy between personal and organizational values can cause insecurity and disengagement, which may lead to job burnout with cynicism about the working environment as its core component [28]. A mismatch between organizational and individual values may lead an employee to leave an organization [29, 23].

"difference" [39]. Lewin had a wider view of conflict and he defined it as "a situation in which oppositely directed forces of about equal strength play upon a person simultaneously" [40]. Deutsch characterized conflict as existing whenever incompatible activities (opposing goals, claims, beliefs, values, wishes, actions, feelings, etc.) occur [41]. Psychologists and conflict scholars Pruitt and Kim developed the existing theories and described the conflict as arising from the perceived divergence of interest [42] (see also [43–46] for similar definitions). Coleman bases his views on the work of Follett, Lewin, Deutsch, and others [47]. He sees conflict not as a single event or situation occurring at a specific moment in time, but rather as a process unfolding in relationships over time [48, 49]. Accordingly, he defines the social conflict as a relational process influenced by the presence of incompatible activities [47].

Conflict in Organization: Indicator for Organizational Values

http://dx.doi.org/10.5772/intechopen.75496

23

Tjosvold emphasizes that conflict is a window to the drama of organisational life [50]. Organizational conflicts are always embedded in the prevailing organisational culture and depend on behavioral patterns and values that have been accepted and shared within the organization. For positive conflict culture, we need constructive communication patterns. Flink explored how various conflicts influence organizational performance and identified different dimensions of conflict—task versus relational, subjective versus objective and horizon-

According to the generally accepted opinion, conflict means misunderstanding and tension between parties. The terms "conflict management" and "conflict resolution" may have a negative undertone [52] and create an idea that conflict should be "wrestled into compliance or gotten rid of altogether." Interpretation of the term "conflict" affects the way a problem is solved [53] despite recognition that "the best time to handle people problems is before they become people problems" [54]. Usually, people do not believe that conflict might be a good thing. According to Lencioni, arguing and discussing issues (solving a conflict) tend to form stronger and healthier teams [55]. The conflict management is a major function of every organization [56]. Conflict solving style is directly linked to the microclimate of an organization [57].

From conflict theory, we know that according to their outcome, conflict can be constructive (where the solution of the conflict stimulates positive changes in the organization) or destructive (which have a detrimental effect, hindering organizational development and frequently resulting in a loss of control) [58, 59]. Similarly, conflicts can be divided into functional and

In addition to the main characteristics of a conflict, three important aspects can be identified: conflict is always related to relationships, there are several parties in a conflict and there is a

Empirical evidence shows that conflict is connected with emotions [63, 64], and these emotions define an individual's interpretation and reaction to the conflict situation [65]. Therefore, conflict leads to an emotional reaction, which, in turn, drives an individual's perceptions, atti-

The essential aspect is that each conflict, like most culturally based things, must be recognized, acknowledged and be managed. Resolving conflicts is beneficial to the company and makes a major contribution to a more positive environment at work, which significantly improves the employees' motivation and loyalty and the company's market position [58]. In addition,

problem or main question that has caused the conflict [58, 61, 62].

tude and behaviour, particularly the individual's perception of trust.

tal versus vertical [51].

dysfunctional conflicts [60].

Very often, the organizational values are defined by organizational culture and oppositely. One of the most influential researchers of organizational culture, Edgar Schein, brings out that organizational values are one of the key elements of organizational culture; according to them, we can understand and appreciate the culture of the organization itself, its specificity [30]. Organizational values determine organizational behaviour and culture [31]. Values are important in the organization because the resemblance in the perception of the same organizational values makes organizational culture effective and functioning [32]. Some researchers argue that only human can have values and organizations as such have no values, but because they are composed of people, their cultures are shaped by values that are shared in varying degrees [33]. Despite the wording, none doubts that values play an important role in the organizations. Bourne and Jenkins [9] conclude that "values have a long reach and a wide span of influence on critical processes and characteristics in organizations."
