ORGANIZATIONAL CONFLICT AND POLITICS. Intergroup Conflict in Organizations 2 Groups may be dispersed across the organization Intergroup conflict requires.

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

DifferentiationDifferentiation

Task Task InterdependenceInterdependence

• Different values/beliefs• Explains cross-cultural and

generational conflict

• Conflict increases with interdependence

• Higher risk that parties interfere with each other

IncompatibleIncompatibleGoalsGoals

• 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 isGoal 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): 104-14; and Victoria L. Crittenden, Lorraine R. Gardiner, and Antonie Stam, “Reducing Conflict Between Marketing and Manufacturing,” Industrial Marketing Management 22 (1993): 299-309.

Ambiguous RulesAmbiguous Rules

Communication Communication ProblemsProblems

• Creates uncertainty, threatens goals• Without rules, people rely on politics

• Increases stereotyping • Reduces motivation to communicate• Escalates conflict when arrogant

Scarce Scarce ResourcesResources

• 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.

Uncooperative Cooperative

Unassertive

Assertive

Two basic aspects of all conflict handling modes

Uncooperative Cooperative

Unassertive

Assertive

Compromising

Avoiding Accommodating

Competing Collaborating

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