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16-1
Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
Organizational Conflict, Politics, and Change
Organizational Conflict, Politics, and Change
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Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
Organizational ConflictOrganizational Conflict
Conflict exists in situations where goals, interests or values of people are incompatible and they block other’s efforts to achieve their goals.
Some level of conflict is inevitable given the wide range of goals in a firm. Some conflict is good for organizational performance. Too much causes managers to spend much time
responding to conflict.
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Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
Conflict and Organizational PerformanceConflict and Organizational Performance
Level of ConflictLowLow High
Low
High
Lev
el o
f O
rgan
izat
ion
alP
erfo
rman
ce
B
A C
Figure 16.1
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Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
Types of ConflictTypes of Conflict
Interpersonal Conflict: between individuals based on differing goals or values.
Intragroup Conflict: occurs within a group or team. Intergroup Conflict: occurs between 2 or more teams
or groups. Managers play a key role in resolution of this conflict
Interorganizational Conflict: occurs across organizations. Managers in one firm may feel another is not
behaving ethically.
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Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
Types of ConflictTypes of Conflict
ConflictConflictConflictConflict
InterpersonalInterpersonalInterpersonalInterpersonal IntragroupIntragroupIntragroupIntragroup IntergroupIntergroupIntergroupIntergroup Inter-Inter-organizationalorganizational
Inter-Inter-organizationalorganizational
Figure 16.2
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Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
Sources of ConflictSources of Conflict Different goals and time horizons: different groups
have differing goals.Production focuses on efficiency; Marketing on
sales. Overlapping authority: two or more managers
claim authority for the same activities.Leads to conflict between the managers and
workers. Task Interdependencies: one member of a group
fails to finish a task that another depends on.This makes the worker that is waiting fall behind.
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Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
Sources of ConflictSources of Conflict Incompatible Evaluation or reward system: workers are
evaluated for one thing, but are told to do something different.Groups rewarded for low cost but firm needs higher service.
Scarce Resources: managers can conflict over allocation of resources.When all resources are scarce, managers can fight over
allocations. Status inconsistencies: some groups have higher status than
others.Leads to managers feeling others are favored.
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Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
Sources of ConflictSources of Conflict
ConflictConflictConflictConflict
StatusStatusinconsistencyinconsistency
StatusStatusinconsistencyinconsistency
Different goalsDifferent goals& time horizons& time horizons
Different goalsDifferent goals& time horizons& time horizons
Scarce Scarce ResourcesResources
Scarce Scarce ResourcesResources
IncompatibleIncompatibleevaluation &evaluation &
RewardReward
IncompatibleIncompatibleevaluation &evaluation &
RewardReward
TaskTaskInterdependencyInterdependency
TaskTaskInterdependencyInterdependency
OverlappingOverlappingAuthorityAuthority
OverlappingOverlappingAuthorityAuthority
Figure 16.3
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Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
Resolving ConflictsResolving Conflicts
Functional Conflict Resolution: handle conflict by compromise or collaboration between parties.
Compromise: each party concerned about their goal accomplishment and is willing to engage in give and take to reach a reasonable solution.
Collaboration: parties try to handle conflict without making concessions by coming up with a new way to resolve differences.
Managers also need to address individual sources of conflict.
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Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
Managing Individual ConflictManaging Individual Conflict Increase awareness of the source of conflict
Can conflict source can be found and corrected? Increase diversity awareness and skills
Older workers may resent younger workers, or experience cultural differences.
Practice Job Rotation & Temporary assignmentsProvides a good view of what others face.
Use permanent transfers & dismissal if neededAvoids problem interaction.
Change organization’s structureConflict can signal the need to adjust the structure.
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Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
Conflict SolutionsConflict Solutions Alter the source of conflict:
If due to overlapping authority, managers fix the problem to change the source.
Negotiation: use when parties have equal power.Parties try and find a common ground by
considering various alternatives.Distributive negotiation: parties see there is a
fixed resource base. For them to gain, the other must lose.
Integrative negotiation: parties can increase total resources by coming up with a new solution. Information sharing, trust are common here.
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Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
Negotiation Strategies for Interactive Bargaining
Negotiation Strategies for Interactive Bargaining
Emphasize Superordinate Goals: these are goals both parties agree on. Keeps the big picture in focus.
Focus on the problem, NOT the people: don’t make it personal. It is easy to dwell on people’s shortcomings rather than
problems. Once this occurs, people resist negotiation.
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Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
Negotiation StrategiesNegotiation Strategies
Focus on interests, not demands: demands are what you want, interests are why you want them. Demands are confrontational and slow negotiations.
Create new options for joint gain: focusing on interests allows for new ideas to come forth. Perhaps there is a new solution that can solve the issue.
Focus on what is fair: emphasizing fairness allows both parties to give a bit and agree.
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Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
Organizational PoliticsOrganizational Politics
Organizational politics are the activities managers engage in to increase their power and use it to achieve their goals. Political strategies: specific tactics used to increase
power and use it effectively. Politics can be negative, but also is a positive force
allowing needed change.Everyone throughout the firm engages in politicsPolitical activity allows a manager to gain support for an
idea.
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Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
Political Strategies for Increasing PowerPolitical Strategies for Increasing Power
ControlControlUncertaintyUncertainty
ControlControlUncertaintyUncertainty
BeBeIrreplaceableIrreplaceable
BeBeIrreplaceableIrreplaceable
Be in a centralBe in a centralpositionposition
Be in a centralBe in a centralpositionposition
GenerateGenerateResourcesResources
GenerateGenerateResourcesResources
BuildBuildAlliancesAlliances
BuildBuildAlliancesAlliances
Increase a Increase a manager’smanager’spower inpower in
thetheorganizationorganization
Increase a Increase a manager’smanager’spower inpower in
thetheorganizationorganization
Figure 16.4
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Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
Strategies for Increasing PowerStrategies for Increasing Power Control Uncertainty: managers who can reduce uncertainty
for the firm increase power.
Be Irreplaceable: develop valuable special knowledge or skills.
Be in a Central Position: managers have crucial control over the firm’s activities. They increase their power and can influence others.
Generate Resources: managers who can hire skilled people or find financing.
Build Alliances: develop mutually beneficial relations with others inside and outside the organization.
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Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
Strategies for Exercising PowerStrategies for Exercising Power
ObjectiveObjectiveInformationInformation
ObjectiveObjectiveInformationInformation
OutsideOutsideExpertsExperts
OutsideOutsideExpertsExperts
Control theControl theAgendaAgenda
Control theControl theAgendaAgenda
Everyone isEveryone isa Winnera Winner
Everyone isEveryone isa Winnera Winner
Help Help ManagersManagersUse TheirUse Their
PowerPowerEffectivelyEffectively
Help Help ManagersManagersUse TheirUse Their
PowerPowerEffectivelyEffectively
Figure 16.5
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Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
Strategies for Exercising PowerStrategies for Exercising Power
Rely on Objective Information: impartial information causes others to feel the manager’s course of action is correct.
Bring in an Outside Expert: lends credibility to manager’s proposal (when the expert agrees).
Control the Agenda: influence those issues included (and those dropped) from the decision process.
Make Everyone a Winner: everyone whose support is needed benefits personally from providing that support.
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Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
Relationship Between Conflict, Politics and Change
Relationship Between Conflict, Politics and Change
Signal managers Signal managers change ischange isneededneeded
Signal managers Signal managers change ischange isneededneeded
Organizational Organizational changechange
Organizational Organizational changechange
Change altersChange altersgoals of differentgoals of differentgroups causing groups causing
conflict & politicsconflict & politics
Change altersChange altersgoals of differentgoals of differentgroups causing groups causing
conflict & politicsconflict & politics
OrganizationalOrganizationalconflict & politicsconflict & politics
OrganizationalOrganizationalconflict & politicsconflict & politics
Figure 16.6
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Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
Managing Organizational ChangeManaging Organizational ChangeAssess need for change: recognize a problem exists and find
its source. Look inside and outside the firm for sources.
Decide on the change to make: determine the ideal future state. Decide exactly what the future company will look like. What obstacles need to be changed to get there.
Implement the change: a top-down change is quickest, bottom-up is more gradual. Bottom-up is more effective at eliminating obstacles.
Evaluate Change: was it successful? Benchmark (compare) your change to others.
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Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000
Steps in the Organizational Change Process
Steps in the Organizational Change ProcessFigure 16.7
Assess need forAssess need forchangechange
Find source of problemFind source of problem
Assess need forAssess need forchangechange
Find source of problemFind source of problem
Decide on theDecide on the changechange
Identify obstaclesIdentify obstacles
Decide on theDecide on the changechange
Identify obstaclesIdentify obstacles
Implement ChangeImplement ChangeTop-down orTop-down orBottom-upBottom-up
Implement ChangeImplement ChangeTop-down orTop-down orBottom-upBottom-up
Evaluate ChangeEvaluate ChangeIs it successful?Is it successful?
Benchmark to othersBenchmark to others
Evaluate ChangeEvaluate ChangeIs it successful?Is it successful?
Benchmark to othersBenchmark to others