Heat the oil in a large skillet over medium-high heat. Coat cube steak pieces with flour, and shake off the excess. Fry steak pieces in the hot oil just until browned on each side and there are some juices in the pan. Remove with a slotted spoon and set aside.
Stir together the onion soup mix and 1 tablespoon of flour; sprinkle into the skillet. Cook and stir over medium heat until it starts to brown. Gradually mix in the water to make a gravy. Return the cube steak to the pan, and season with salt, pepper, and garlic salt. Cover, and simmer over low heat for about 1 hour.