mgmt920 autumn2013 lectures lecture 10
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14-Copyright 2007 Prentice Hall 1
Chapter 14
Managing Conflict, Power, and Politics
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Learning Objectives1. Describe the nature of
organizational conflict, its sources, and the way it arises between stakeholders and subunits
2. Identify the mechanisms by which managers and stakeholders can obtain power and use that power to influence decision making and resolve conflict in their favor
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Learning Objectives (cont.)3. Explain how and why individuals
and subunits engage in organizational politics to enhance their control over decision making and obtain the power that allows them to influence the change process in their favor
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What is Organizational Conflict? The clash that occurs when the
goal-directed behavior of one group blocks or thwarts the goals of another
Although conflict is often perceived as something negative, research suggests that some conflict can actually improve organizational effectiveness
Can overcome inertia and lead to learning and change
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What is Organizational Conflict?
Beyond a certain point, conflict becomes a cause for organizational decline Conflict leads to inability to reach
consensus and indecision Too much time spent on bargaining
rather than acting swiftly to resolve problems
On balance, organizations should be open to conflict and recognize its value
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Relationship Between Conflict and Organizational Effectiveness
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Pondy’s Model of Organizational Conflict
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Pondy’s Model of Organizational Conflict
Conflict is a process that consists of five sequential stages
Stage 1: Latent conflict: no outright conflict exists, but there is a potential for conflict because of several latent factors Sources of conflict include:
Interdependence Difference in goals and priorities Bureaucratic factors Incompatible performance criteria Competition for scarce resources
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Managing Conflict Organizational conflict can escalate
rapidly and sour an organization’s culture
Managing conflict is an important priority Organizations must balance the need
to have some “good” conflict without letting it escalate into “bad” conflict
Choice of conflict resolution method depends on the source of the problem
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What factors of the organization would lead to more conflict?
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Managing Conflict: Resolution Strategies
Acting at the level of structure Because task interdependence and
differences in goals produce conflict, alter the level of differentiation and integration to change relationships
Increase the number of integrating roles
Assign top managers to solve conflict
Rethink the hierarchy/reporting chain
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Managing Conflict: Resolution Strategies (cont.)
Acting at the level of attitudes and individuals Establish a procedural system that
allows parties to air their grievances Important for conflict between
management and unions Use a third-party negotiator Exchange/rotate/terminate individuals CEOs can also use their power to
resolve conflicts and motivate units to cooperate
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How to win in a conflict ?
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What is Organizational Power? Organizational power: the
ability of one person or group to overcome resistance by others to achieve a desired objective or result
Conflict and power are intimately related, how?
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Sources of Organizational Power
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Sources of Organizational PowerAuthority: power that is
legitimized by the legal and cultural foundations on which an organization is based
Control over resources: as the organization needs resources, those who have control over the resources have more power
Control over information: access to strategic information and the control of the information are sources of considerable power
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Sources of Organizational Power (cont.)
Nonsubstitutability: if no one else can perform the tasks that a person or subunit performs, that person or subunit is nonsubstitutable
Centrality: the subunits that are most central to resource flows have the ability to reduce the uncertainty facing other subunits e.g. faculty at UOWD
Control over uncertainty: a subunit that can actually control the principal sources of uncertainty has significant power
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How to use power ?
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Using Power: Organizational Politics
Organizational politics: activities taken within organizations to acquire, develop, and use power and other resources to obtain one’s preferred outcomes in a situation in which there is uncertainty or disagreement about choices
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Tactics for playing Politics Tactics for playing politics to increase
power Increasing indispensability: become
indispensable to the organization Increasing nonsubstitutability: develop
specialized skills or knowledge that enables one to control a crucial contingency facing the organization
Increasing centrality: accept responsibilities that enhance one’s reputation or that of one’s function
Associating with powerful managers:supporting a powerful manager who is clearly on the way to the top
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Tactics for playing Politics (cont.)Tactics for using power
Building coalitions Forming relationships with stakeholders
and other subunits around some common issue
Influencing decision making By setting the agenda, managers can
control the issues and problems to be considered
Bringing in an outside expert Use supposedly neutral outsiders to
support the views
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Costs and Benefits of Organizational Politics
Benefits of organizational politics Establish a balance of power in which
alternative views and solutions can be offered and considered by all parties and dissenting views can be heard
Balance of power should shift over time toward the party that can best manage the uncertainty and contingencies confronting the organization
If balance of power does not encourage allocation of resources to where value is created, the organization suffers
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Costs of organizational politics If powerful managers can suppress
views against their interests, debates become restricted, checks and balances fade, bad conflict increases, and organizational inertia increases
Individual goals may get satisfied at the cost of organizational goals
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