MGT6430 Organization Development

• Housekeeping• News• Conflict

• Myths about conflict• Costs/benefits• Sources of conflict• Levels of conflict• Resolution

• Next week: OD Techniques

Beliefs about conflict…

• Conflict is generally negative and destructive• It is better to ignore small problems• Recognizing conflict can make it increase• Problems will work themselves out• Conflict is the result of bad management• There are usually single, simple causes of conflict

What are your associations to the word, “conflict ” ?

The Cost of Conflict

• Over 65% of performance problems result from strained relationships rather than skill or motivation problems • The amount of managerial time spent dealing with conflict was 30% in 1976 and 42% in 1996 • Amount of time wasted during conflict can be as high as 50% of gross salary, defending, avoiding & venting • Chronic unresolved conflict is a decisive factor in 50% of people leaving, and 90% of involuntary terminations • Projected costs should include estimates of wasted time, reduced decision quality, loss of skilled employees, restructuring, sabotage, lowered motivation, lost work time, and health costs, loss of innovation & initiative.

When it really gets bad…

• In 1994 18 million cases were filed in US courts at a cost of $300 billion

• 20% of Fortune 500 executives’ time is spent on litigation related activities

• Average cost is $80,ooo per case for wrongful discharge and employment related suits

Outcomes of Conflict: The Good, Bad and Ugly

• clarify important issues & concerns• abilities and potentials surface• motivate people to do better• provide creative, constructive, innovative ideas• stimulate energy• require new decisions & rules• generate changes to prevent future disputes• facilitate understanding of people & problem• increase trust and improve relationships

The good…

• consumes time & energy• takes people away from primary tasks• promotion of self interest at expense of organization• stress induced illness• lower morale, sabotage, polarization, job dissatisfaction, loss of productivity, apathy, etc.

and the Bad & Ugly…

• Wehr’s Conflict Map

• Hocker & Wilmot Conflict Assessment Guide

• Thomas Kilmann Conflict Mode Instrument

Thomas-Kilmann Conflict Mode Instrument:5 styles of conflict

Teambuilding & conflict style

awareness

Types of conflict

Level of conflict

• Your styles• Interaction of

styles• Implications of

styles• Plan for dealing

with conflict

• Data• Interests• Structural• Values• Relationships

• Problem to solve• Disagreement• Contest• Fight/flight• intractable

What you need to know

Conflict Management Skills

Resolution options

Conflict Analysis

• Concisely describe the conflict situation (who, what, sources of conflict, stage, symptoms, etc.)

• Describe the dynamics of the situation that enabled the conflict to emerge and prevented it from resolution (history, norms, stakeholders, crises, etc.)

• Identify what efforts toward resolution were attempted (what worked and didn’t, why?)

• What would you recommend (do what, with whom, your rationale)