13-1©2005 Prentice Hall 13: Power, Politics, Conflict, and Negotiation Chapter 13: Power, Politics, Conflict, and Negotiation Understanding And Managing Organizational Behavior 4th Edition JENNIFER GEORGE & GARETH JONES

13-2 ©2005 Prentice Hall Opening Case: A Power Struggle at Gucci  Domenico De Sole (CEO) hired Tom Ford as head designer in1990  Conflict over who should lead company in 2004 –Tom and Dom OR –Serge Weinberg – head of parent company PPR  Tom and Dom left in March 2004

13-3 ©2005 Prentice Hall The Nature of Power and Politics  Power –Principal means of directing and controlling organizational goals and activities –Ability to get others to do something they might not otherwise do  Organizational politics –Activities designed to increase power

13-4 ©2005 Prentice Hall The Good Side of Power  Improve decision making quality  Promote change  Encourage cooperation  Promote new organizational goals

13-5 ©2005 Prentice Hall Figure 13.1 Sources of Individual Power  Formal power –Legitimate power –Reward power –Coercive power –Information power  Informal power –Expert power –Referent power –Charismatic power

13-6 ©2005 Prentice Hall Figure 13.2 Sources of Functional and Divisional Power  Ability to control uncertain contingencies  Irreplaceability  Centrality  Ability to control and generate resources

13-7 ©2005 Prentice Hall Tactics for Increasing Individual Power  Tapping the sources of functional and divisional power  Recognizing who has power  Controlling the agenda  Bringing in an outside expert  Building coalitions and alliances

13-8 ©2005 Prentice Hall Factors of Relative Power  Sources of power  Consequences of power  Symbols of power  Personal reputations  Representational indicators

13-9 ©2005 Prentice Hall What is Organizational Conflict? Self-interested struggle that arises when the goal-directed behavior of one person or group blocks the goal-directed behavior of another person or group

13-10 ©2005 Prentice Hall Sources of Conflict  Differentiation –Differences in functional orientations –Status inconsistencies  Task relationships –Overlapping authority –Task interdependencies –Incompatible evaluation systems  Scarcity of resources

13-11 ©2005 Prentice Hall Figure 13.5 Pondy’s Model of Organizational Conflict  Stage 1 – Latent conflict  Stage 2 – Perceived conflict  Stage 3 – Felt conflict  Stage 4 – Manifest conflict  Stage 5 – Conflict aftermath

13-12 ©2005 Prentice Hall Forms of Manifest Conflict  Open aggression  Violence  Infighting  Sabotage  Physical intimidation  Lack of cooperation

13-13 ©2005 Prentice Hall Negotiation  Initial offer  Counteroffers  Concession  Compromise

13-14 ©2005 Prentice Hall Individual-Level Conflict Management  Manager meets with employees in conflict. All understand facts of conflict  Manager summarizes dispute in written form  Manager discusses facts in report with each employee separately and works out a common solution  Manager gets commitment to resolving dispute

13-15 ©2005 Prentice Hall Group-Level Conflict Management  Compromise  Collaboration  Accommodation  Avoidance  Competition

13-16 ©2005 Prentice Hall Promoting Compromise  Emphasize common goals  Focus on the problem, not the people  Focus on interests, not demands  Create opportunities for joint gain  Focus on what is fair

13-17 ©2005 Prentice Hall Union-Management Negotiations  Distributive bargaining  Attitudinal structuring