ORGANIZATIONAL CONFLICT AND POLITICS

Intergroup Conflict in Organizations 2  Groups may be dispersed across the organization  Intergroup conflict requires three ingredients: 1. Group Identification 2. Observable Group Differences 3. Frustration Conflict is similar to competition but more severe

Differentiation Task Interdependence Different values/beliefs Explains cross-cultural and generational conflict Conflict increases with interdependence Higher risk that parties interfere with each other IncompatibleGoals One party’s goals perceived to interfere with other’s goals more Sources of Conflict

Marketing – Manufacturing Areas of Potential Goal Conflict MARKETING VS. MANUFACTURING Operative goal is Operative goal is Goal Conflict customer satisfaction production efficiency Conflict Area Typical Comment Typical Comment Breadth of product line: “Our customers “The product line is too demand variety.” broad, all we get are short, uneconomical runs.” New product introduction: “New products are our “Unnecessary design changes lifeblood.” are prohibitively expensive.” Production scheduling: “We need faster response. “We need realistic customer Lead times are too long.” commitments that don’t change like the wind direction Physical distribution: “Why don’t we ever have “We can’t afford to keep huge the right merchandise inventories.” in inventory?” Quality: “Why can’t we have “Why must we always offer reasonable quality options that are too at low cost?” expensive and offer little customer utility?” Sources: Based on Benson S. Shapiro, “Can Marketing and Manufacturing Coexist?” Harvard Business Review 55 (September-October 1977): ; and Victoria L. Crittenden, Lorraine R. Gardiner, and Antonie Stam, “Reducing Conflict Between Marketing and Manufacturing,” Industrial Marketing Management 22 (1993):

Ambiguous Rules Communication Problems Creates uncertainty, threatens goals Without rules, people rely on politics Increases stereotyping Reduces motivation to communicate Escalates conflict when arrogant Scarce Resources Motivates competition for the resource Sources of Conflict (con’t)

Sources of Conflict and Use of Rational Versus Political Model 6

Interpersonal Approaches of approaching the other party in conflict situation  Each approach can be placed in a two dimensional grid Cooperativeness: Attempting to satisfy the other party’s concerns. Assertiveness: Attempting to satisfy one’s own concerns. Cooperativeness: Attempting to satisfy the other party’s concerns. Assertiveness: Attempting to satisfy one’s own concerns.

UncooperativeCooperative Unassertive Assertive Two basic aspects of all conflict handling modes

UncooperativeCooperative Unassertive Assertive Compromising AvoidingAccommodating CompetingCollaborating

Power and Organizations 10  Power is the potential ability of one person to influence other people  Individual versus Organizational Power  Legitimate Power  Reward Power  Coercive Power  Expert Power  Referent Power

Power versus Authority 11 Authority is more narrow than power  Defined by the formal hierarchy and reporting relationships 1) Authority is vested in organizational positions 2) Authority is accepted by subordinates 3) Authority flows down the vertical hierarchy  Power can be exercised upward, downward and horizontally  Authority is exercised downward along the hierarchy

Vertical Sources of Power 12  Formal Position – legitimate power accrued to top positions  Resources – resources can be used as a tool for power  Control of Decision Premises and information – constraints placed on decisions  Control of information can also be a source of power  Network Centrality – being centrally located in the organization and having access  People – loyal executives/managers

Illustration of Network Centrality 13

The Power of Empowerment 14  Power sharing, the delegation of power or authority to subordinates  Empowerment benefits:  Employees receive information about company performance  Employees have knowledge and skills to contribute to company goals  Employees have the power to make substantive decisions

Horizontal Sources of Power 15  Relationships across departments, divisions, units  Strategic Contingencies – groups most responsible for key organization issues  Power Sources – five power sources that departments may possess

Strategic Contingencies That Influence Horizontal Power among Departments 16

Political Processes in Organizations 17  Politics is the use of power to influence decisions toward goals  Organizational Politics - activities to acquire, develop, and use power to influence goals  Domains of political activity:  Structural Change  Management Succession  Resource Allocation

Power and Political Tactics in Organizations 18

Negotiating Strategies 19

Design Essentials 20 Conflict, power, and politics are natural outcomes of organizing There are two views for organizations: rational and political models There are vertical and horizontal sources of power Certain characteristics make some departments more powerful than others Managers need political skills Managers should enhance collaboration to reduce conflict