Chapter 12: Conflict, Power, and Politics Joanna DiFazio Jamie McGill Ryan Watson

Purpose of this Chapter To discuss the nature of conflict and use of power and politics to manage and reduce conflict among groups.

Agenda Define Intergroup Conflict Sources of Conflict Rational vs. Political model Power and Authority Vertical Sources of Power Horizontal Sources of Power Summary Class Exercise

Class Discussion - Case Study

Intergroup Conflict in Organizations Intergroup Conflict (IC): behaviour that occurs among organizational groups when individuals identify with one group and perceive that other groups may block their group’s goal achievement. Intergroup Conflict requires 3 ingredients: Group identification Observable group differences Frustration

Sources of Conflict Specific organizational characteristics can generate conflict. These sources of intergroup conflict are: Goal incompatibility Differentiation Limited Resources Task Interdependence

Sources of Conflict: Goal Incompatibility Greatest cause of intergroup conflict in organizations.* Achievement of one department’s goals interfere with another department’s goals.

Goal Incompatibility Example

So What? How do we fix this? Align department goals with organizational goals Integrative devices Confrontation and negotiation

EGSS Link Goal Incompatibility Conflict Environment: Low Uncertainty & Low-moderate Uncertainty Goals: Overall performance and productivity Strategy: Low-cost leadership (Focused), Defender/Reactor Structure: Mechanistic

Sources of Conflict: Differentiation Differentiation: departments or divisions within an organization that often differ in values, attitudes and standards of behaviour. Functional specialization first, then influence by department leads to conflict. Example: Subcultures

So What? How do we fix this? Member rotation Integrative devices

EGSS Link Differentiation Conflict Environment: Simple + Unstable and Complex + Unstable Goal: Resources, innovation, creativity, and employee development Strategy: Differentiation (Focused), Analyzer/Prospector Structure: Organic

Sources of Conflict: Limited Resources Limited Resources: competition between groups for what members perceive as limited resources. Groups want to increase their own resources: hence conflict. Examples: Inflating budgets, working behind the scenes to obtain resources Resources are seen as symbol of power.

So What? How do we fix this? Build coalitions and expand networks Make a direct appeal Create/Reduce dependency

EGSS Link Limited Resources Environment: Simple + Unstable and Complex + Unstable Goal: Resources, innovation, creativity, and employee development Strategy: Differentiation (Focused), Analyzer/Prospector Structure: Organic

Sources of Conflict: Task Interdependence Task Interdependence: refers to dependence of one unit on another for materials, resources, or information. 3 Types: pooled interdependence sequential interdependence reciprocal interdependence As interdependence increases, potential for conflict increases!

So What? How do we fix this? Coping with uncertainties Reduce dependency Member rotation Create integrative devices

EGSS Link Task Interdependence Conflict Environment: Low Uncertainty & Low-moderate Uncertainty Goals: Overall performance and productivity Strategy: Low-cost leadership (Focused), Defender/Reactor Structure: Mechanistic

Question Based on the sources of conflict, which one(s) do you think contribute to creating a toxic culture? Goal incompatibility Differentiation Limited Resources Task Interdependence

Rational vs. Political Model The degree of goal incompatibility, differentiation, task interdependence, and conflict over limited resources determines whether a rational or political model of behaviour is used within the organization to accomplish goals. The rational model where behavior is not random or accidental Goals are clear and choices are made logically The political model involves push and pull debate regarding goals Organization groups have separate interests and goals

Rational vs. Political Model – Exhibit 12.2

Power and Authority What is the difference between power and authority? AUTHORITY POWER Right to do something Ability to do something Derived from organization position Derived from many sources Always flows downward – can be delegated Flows in all directions Legitimate Maybe illegitimate Narrow term Broad concept

Power and Authority Power: the potential ability of one department to influence other departments to carry out orders. Intangible and difficult to measure Can be exercised in vertical or horizontal directions Authority: a force for achieving desired outcomes But only as prescribed by the formal chain of command and reporting relationships

Vertical Sources of Power Formal Position – legitimate power accrued to top positions Resources – resources can be used as a tool for power Control of Information – information is a primary business source Network Centrality – being centrally located in the organization and having access People – loyal executives/managers

Horizontal Sources of Power Relationships across departments, divisions, units Strategic Contingencies – groups most responsible for key organization issues Power Sources – five power sources that departments may possess

Horizontal Sources of Power

EGSS Summary Goal Incompatibility Differentiation Limited Resources Task Interdependence Environment Simple + Stable Complex + Stable Simple + Unstable Complex + Unstable Simple & Unstable Complex & Unstable Simple + Stable Complex + Stable Goals Overall Performance Productivity Market Share Employee Development Resources Innovation & Creativity Strategies Low-Cost Leadership (Focus) Defender/Reactor Differentiation (Focus) Prospector/Analyzer Structure Mechanistic Organic

Methods to Overcome Conflict Sources of Conflict Methods Goal Incompatibility Aligning department goals with organization goals Integrative devices Confrontation and negotiation Differentiation Member rotation Limited Resources Build coalitions and expand networks Make a direct appeal Reduce dependency Task Interdependence Coping with uncertainties

Case Study Questions Based on the Case What is Toyota's External Environment? What is Toyota's Goal? What is Toyota's Strategy? What is Toyota's Structure? Based on the EGSS what are some potential misalignments in relation to conflict and power? How would you solve these misalignments?

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