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• Organizational ConflictOrganizational ConflictThe discord that arises when goals, interests or The discord that arises when goals, interests or
values of different individuals or groups are values of different individuals or groups are incompatible and those people block or thwart incompatible and those people block or thwart each other’s efforts to achieve their objectives.each other’s efforts to achieve their objectives.
Conflict is inevitable given the wide range of Conflict is inevitable given the wide range of goals for the different stakeholder in the goals for the different stakeholder in the organization.organization.
• Lack of conflict signals that management emphasizes Lack of conflict signals that management emphasizes conformity and stifles innovation.conformity and stifles innovation.
• Conflict is good for organizational performance although Conflict is good for organizational performance although excessive conflict causes managers to spend too much excessive conflict causes managers to spend too much time achieving their own ends.time achieving their own ends.
The Effect of Conflict on Organization PerformanceThe Effect of Conflict on Organization PerformanceThe Effect of Conflict on Organization PerformanceThe Effect of Conflict on Organization Performance
• Functional Conflict ResolutionFunctional Conflict ResolutionHandling conflict by compromise or Handling conflict by compromise or
collaboration between parties.collaboration between parties.• Compromise: each party is concerned about their Compromise: each party is concerned about their
goal accomplishment and is willing to engage in give-goal accomplishment and is willing to engage in give-and-take exchange to reach a reasonable solution.and-take exchange to reach a reasonable solution.
• Collaboration: parties try to handle the conflict without Collaboration: parties try to handle the conflict without making concessions by coming up with a new way to making concessions by coming up with a new way to resolve their differences that leaves them both better resolve their differences that leaves them both better off.off.
Managers also must address individual Managers also must address individual sources of conflict.sources of conflict.
Negotiation Strategies for Negotiation Strategies for Integrative BargainingIntegrative Bargaining
Negotiation Strategies for Negotiation Strategies for Integrative BargainingIntegrative Bargaining
• NegotiationNegotiationA method of conflict resolution in which two A method of conflict resolution in which two
when parties of equal power try to find an when parties of equal power try to find an acceptable solution by considering various acceptable solution by considering various alternatives to allocate resources to each alternatives to allocate resources to each other.other.
Distributive negotiationDistributive negotiation• The parties see the conflict as win-or-lose because they The parties see the conflict as win-or-lose because they
believe the resource base of the conflict is fixed.believe the resource base of the conflict is fixed.
Integrative negotiationIntegrative negotiation• Parties can increase total resources by coming up with Parties can increase total resources by coming up with
a new solution that is a win-win for both.a new solution that is a win-win for both.
• Organizational PoliticsOrganizational PoliticsThe activities managers engage in to The activities managers engage in to
increase their power and use it to achieve increase their power and use it to achieve their goals or overcome resistance or their goals or overcome resistance or opposition.opposition.
• Political strategiesPolitical strategiesSpecific tactics used to increase power and Specific tactics used to increase power and
use it effectively to influence and gain the use it effectively to influence and gain the support of other people while overcoming support of other people while overcoming resistanceresistance
The Importance of Organizational The Importance of Organizational PoliticsPolitics
The Importance of Organizational The Importance of Organizational PoliticsPolitics
• PoliticsPoliticsCan be viewed negatively when managers Can be viewed negatively when managers
act in self-interested ways for their own act in self-interested ways for their own benefit.benefit.
Is also a positive force that can bring about Is also a positive force that can bring about needed change when political activity allows needed change when political activity allows a manager to gain support for needed a manager to gain support for needed changes that will advance the organization.changes that will advance the organization.
• Assessing the Need for ChangeAssessing the Need for ChangeRecognizing that a problem exists and find its Recognizing that a problem exists and find its
source by looking inside and outside the firm.source by looking inside and outside the firm.
• Deciding on the change to make: determine Deciding on the change to make: determine the ideal future state.the ideal future state.Decide what the future company will look like Decide what the future company will look like
and what needs to be changed to get there.and what needs to be changed to get there.
• Implement the changeImplement the changeA top-down change is quickest, while bottom-A top-down change is quickest, while bottom-
up change approach is more gradual but up change approach is more gradual but more effective at eliminating obstacles.more effective at eliminating obstacles.