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13 CONFLICT AT WORK

CHAPTER SCAN

Conflict at work is normal and inevitable, yet many people are unskilled at managing it. This chapter describes functional and dysfunctional conflict, and reviews the major causes of conflict in organizations. Defense mechanisms are natural reactions to interpersonal conflict. Both effective and ineffective techniques for managing conflict are described. Conflict management styles include avoiding, competing, accommodating, compromising, and collaborating.

LEARNING OBJECTIVES

After reading this chapter, you should be able to do the following:

1. Diagnose functional versus dysfunctional conflict.2. Identify the causes of conflict in organizations.3. Identify the different forms of conflict.4. Understand the defense mechanisms that individuals exhibit when they engage in

interpersonal conflict.5. Describe effective and ineffective techniques for managing conflict.6. Understand five styles of conflict management, and diagnose your own preferred style.

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Chapter 13: Conflict at Work

KEY WORDS

Chapter 13 introduces the following key terms:

conflictfunctional conflictdysfunctional conflictjurisdictional ambiguityinterorganizational conflictintergroup conflictintragroup conflictinterpersonal conflict intrapersonal conflictinterrole conflictintrarole conflictperson–role conflictfixation displacementnegativism compensation identificationrationalization flight/withdrawalconversionfantasy nonaction secrecy administrative orbiting due process nonactioncharacter assassination superordinate goal distributive bargaining integrative negotiation

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Chapter 13: Conflict at Work 259

THE CHAPTER SUMMARIZED

I. THINKING AHEAD: “Green Business” Stirs Things Up

II. THE NATURE OF CONFLICTS IN ORGANIZATIONS

Conflict is any situation in which incompatible goals, attitudes, emotions, or behaviors lead to disagreement or opposition between two or more parties. Most organizational members will admit that conflict is inevitable, and that not all conflict is negative. Studies have confirmed that individuals typically avoid conflict. Other studies have revealed that even when the "devil's advocate" provides creative, innovative ideas, he or she is the first individual to deselect from groups.

A. Importance of Conflict Management Skills for the Manager

Estimates suggest that managers spend about 21 percent of their time dealing with conflict. Conflict management skills are a major predictor of managerial success and are related to emotional intelligence (EQ). Stimulating functional conflict can result in better decisions and more innovative thinking.

B. Functional versus Dysfunctional Conflict

Functional conflict is healthy, constructive disagreement between two or more individuals. By contrast, dysfunctional conflict is a destructive disagreement. Many of the high-profile conflict situations are examples of dysfunctional conflict.

III. CAUSES OF CONFLICT IN ORGANIZATIONS

Conflict causes are categorized into structural factors and personal factors.

A. Structural Factors

Structural factors include specialization, interdependence, common resources, goal differences, authority relationships, status inconsistencies, and jurisdictional ambiguities. Jurisdictional ambiguity refers to unclear lines of responsibility in an organization. Such ambiguities may increase with team and groupwork, when conflict arises from confusion over group responsibilities.

B. Personal Factors

Personal factors include skills and abilities, personalities, perceptions, values and ethics, emotions, communication barriers and cultural differences. Communication barriers can be physical or value-related.


IV. GLOBALIZATION AND CONFLICT

Hofstede's cultural differences study is useful analyzing conflict approaches globally. Cultures high in individualism, like the United States, would have a natural conflict tendency with countries that are more collectivism-oriented. Even within countries, cultures have distinct differences. Research shows that some ethnic groups in the United States are more willing to cooperate than compete, which would resemble collectivist traditions.

V. FORMS OF CONFLICT IN ORGANIZATIONS

Organizations can have several forms of conflict, such as interorganizational, intergroup, interpersonal, and intrapersonal conflict.

A. Interorganizational Conflict

Interorganizational conflict occurs between two or more organizations. Competition can heighten this kind of conflict. The most straightforward example of this form of conflict might be a corporate takeover attempt.

B. Intergroup Conflict

Intergroup conflict occurs between groups or teams. It can have both positive and negative effects within each group.

C. Intragroup Conflict

Intragroup conflict occurs within groups or teams. Functional intragroup conflict can help

groups avoid groupthink.

D. Interpersonal Conflict

Interpersonal conflict occurs between two or more individuals. The conflict varies with the power relationships among individuals.

E. Intrapersonal Conflict

Intrapersonal conflict occurs within an individual. Interrole conflict occurs when a person experiences conflict among the multiple roles in his or her life. Intrarole conflict is conflict about how to perform a single role. Person–role conflict occurs when an individual in a particular role is expected to perform behaviors that clash with his or her values.

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VI. INTRAPERSONAL CONFLICT

To avoid intrapersonal conflict (i.e., conflict within an individual), individuals should learn as much as they can about the values of the organization and they should utilize role analysis.

VII. INTERPERSONAL CONFLICT

To manage interpersonal conflict, it is helpful to understand power networks in organizations, defense mechanisms exhibited by individuals, and ways to cope with difficult people.

A. Power Networks

Power relationships include equal versus equal (a horizontal balance of power), high versus low (powerful versus less powerful), and high versus middle versus low (conflicts typically felt by middle managers).

B. Defense Mechanisms

Over fifty percent of responses to criticism are defensive. Defense mechanisms are common reactions to frustration associated with conflict. They are categorized as aggressive (fixation, displacement, negativism), compromise (compensation, identification, rationalization), and withdrawal (flight, conversion, fantasy) mechanisms. Fixation refers to a situation in which an individual continues a dysfunctional behavior that obviously will not resolve the conflict. Displacement means directing anger toward someone who is not the source of the conflict. Negativism is active or passive resistance. Compensation occurs when an individual tries to make up for an inadequacy by putting increased energy into another activity. Identification occurs when one individual patterns his or her behavior after another’s. Rationalization is trying to justify one’s behavior by constructing bogus reasons for it. Flight is the act of physically escaping a conflict, while withdrawal involves psychological escape. Conversion is a process whereby emotional conflicts become expressed in physical symptoms. Fantasy is an escape by daydreaming.

VIII. CONFLICT MANAGEMENT STRATEGIES AND TECHNIQUES

Conflict may be managed through either cooperative or competitive strategies. One of the best known approaches to conflict management is the win–lose analogy. The cooperative (win–win) strategy is the most time consuming. The competitive approach (win–lose) often results in damage to both parties.


A. Ineffective Techniques

Most individuals do not deal directly with conflict in the work situation. The nonaction approach is to do nothing, hoping that the conflict will disappear. Secrecy, or trying to keep a conflict out of view of most people, only creates suspicion. Administrating orbiting is delaying action on a conflict by buying time. Due process nonaction is a procedure that is set up to address conflicts that is so costly and time consuming, or even personally risky, that no one will use this avenue. Character assassination is attempting to label or discredit one's opponent.

B. Effective Techniques

Effective techniques include appealing to superordinate goals, expanding resources, changing personnel, changing structure, and confronting and negotiating. A superordinate goal is an organizational goal that is more important to both parties in a conflict than their individual or group goals. Expanding resources simply means providing additional resources in situations where resources are scarce. Changing personnel may be appropriate when conflict is prolonged and severe. Changing structure can occur through the creation of an integrator, or liaison, role or by implementing cross-functional teams. Negotiation is a joint process of finding a mutually acceptable solution to a complex conflict. Distributive bargaining is an approach in which the goals of one party are in direct conflict with the goals of the other party. Integrative negotiation is an approach in which the parties’ goals are not seen as mutually exclusive and in which the focus is on making it possible for both sides to achieve their objectives.

IX. CONFLICT MANAGEMENT STYLES

A. Avoiding

Avoiding is a deliberate decision to take no action on a conflict. It may be useful for situations that are temporary or to give hot tempers time to cool off. However, if a supervisor uses this style too frequently, employees begin to bypass the individual and label him or her as unable to solve problems.

B. Accommodating

Accommodating is the style that is most frequently used with family and friends. It involves concern that the other party’s goals be met but relatively little concern with meeting one’s own goals. Accommodating may be appropriate when you find you are wrong or when you are attempting to create an obligation for future reciprocation.

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C. Competing

Competing is an assertive, uncooperative style that may be appropriate in an emergency or when you know you are right and are willing to satisfy your own interests at the expense of the other party.

D. Compromising

The compromising style involves each party giving up something to reach a solution to the conflict. Compromises are not optimal solutions.

E. Collaborating

Collaborating is the win–win style that involves open and thorough discussion of the conflict to arrive at a solution that is satisfactory to both parties.

X. MANAGERIAL IMPLICATIONS: Creating a Conflict-Positive Organization

Dean Tjosvold proposes that organizations should build and create an environment for conflict positive situations. He views this approach as adding a creative and innovative edge that is needed in organizations. This approach involves four steps: (1) value diversity and confront differences; (2) seek mutual benefits, and unite behind cooperative goals; (3) empower employees to feel confident and skillful; and (4) take stock to reward success and learn from mistakes.

XI. LOOKING BACK: Can Green Business Keep Patagonia in the Black?


CHAPTER SUMMARY

· Conflict management skills are keys to management success. The manager's task is to stimulate functional conflict and prevent or resolve dysfunctional conflict.

· Structural causes of conflict include specialization, interdependence, common resources, goal differences, authority relationships, status inconsistencies, and jurisdictional ambiguities.

· Personal factors that lead to conflict include differences in skills and abilities, personalities, perceptions, or values and ethics; emotions; communication barriers; and cultural differences. The increasing diversity of the workforce and globalization of business have potential to increase conflict arising from these differences.

· The levels of conflict include interorganizational, intergroup, interpersonal, and intrapersonal.

· Individuals engaged in interpersonal conflict often display aggressive, compromise, or withdrawal defense mechanisms.

· Ineffective techniques for managing conflict include nonaction, secrecy, administrative orbiting, due process nonaction, and character assassination.

· Effective techniques for managing conflict include appealing to superordinate goals, expanding resources, changing personnel, changing structure, and confronting and negotiating.

· In negotiating, managers can use a variety of conflict management styles, including avoiding, accommodating, competing, compromising, and collaborating.

· Managers should strive to create a conflict-positive organization – one that values diversity, empowers employees, and seeks win–win solutions to conflicts.

REVIEW QUESTIONS: SUGGESTED ANSWERS

1. Discuss the differences between functional and dysfunctional conflict. Why should a manager understand conflict?

Functional conflict is a healthy, constructive disagreement that can improve relationships and produce innovation. Dysfunctional conflict is unhealthy, diverts attention from goal achievement, and is characterized by threats and deception. The task of the manager is to diagnose conflict as functional or dysfunctional, and encourage functional conflict while preventing or resolving dysfunctional conflict.

2. Identify the structural and personal factors that contribute to conflict.

Structural factors include specialization, interdependence, common resources, goal differences, authority relationships, status inconsistencies, and jurisdictional ambiguities. Personal factors contributing to conflict are differences in skills and abilities, personalities, perceptions, or values and ethics; emotions; communication barriers; and cultural differences.

3. Discuss the four major forms of conflict in organizations.

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Interorganizational conflict is the least damaging to the organization, and may even have a solidifying effect on organizational members. Intergroup conflict occurs between two or more groups in an organization, and affects group members much the same way interorganizational conflict affects organizational members. Intragroup conflict occurs within an organizational group, where there are differences in goals or approaches. Interpersonal conflict occurs between two or more individuals, and intrapersonal conflict occurs within a single individual.

4. What defense mechanisms do people use in interpersonal conflict?

Common aggressive defense mechanisms are fixation, displacement, and negativism. The three compromise mechanisms are compensation, identification, and rationalization. Withdrawal mechanisms include flight or withdrawal, conversion, and fantasy.

5. What are the most effective techniques for managing conflict at work? What are some ineffective techniques?

Superordinate goals encourage groups to work through conflicts and resolve issues. Expanding resources allows problem solvers to devote more energy to solving the problem. By changing the personnel or structure, the problem receives a fresh, open look. Nonaction is an ineffective technique that is rarely successful because most problems do not simply melt away. Secrecy eventually mushrooms, like Watergate, and the Exxon spill. Administrative orbiting buys time, but leads to frustration among those who are truly interested in resolution of the problem. Occasionally due process results in nonaction. The lengthy process established to "hear" a problem often defeats the individuals who are most concerned.

6. Identify and discuss five styles of conflict management.

Avoiding is low on assertiveness and cooperativeness. The accommodating style shows concern for others’ goals but not your own. Competing is assertive and uncooperative. Compromising requires that both sides give up something to resolve the issue. The collaborating style is assertive and cooperative and focuses on achieving a “win–win” solution to the conflict.


DISCUSSION AND COMMUNICATION QUESTIONS: SUGGESTED ANSWERS

1. What causes you the most conflict at work or school?

Answers are surprising similar, and are often time–management problems. Students should be encouraged to accept their responsibility in managing these conflicts.

2. Identify the different intragroup, interrole, intrarole, and person–role conflicts that you experience.

Some of the roles mentioned might be family, parent, friend, athlete, employee, and student. Person–role conflict is apparent with students who work and attend school full-time, and find themselves asking which role should take precedence.

3. Which defense mechanism do you see people exhibiting most frequently? Why do you think this is the case? How can you manage this type of reaction to a conflict?

Rationalization is likely to be the most common response, although students may identify other mechanisms as well. Managers can be prepared for employees’ responses and work toward helping them uncover their feelings about a conflict.

4. Are you comfortable with your preferred conflict management style? Would you consider modifying it?

Individuals whose preferred conflict management style is avoidance or accommodation have the most to gain by testing other approaches.

5. Think of a person with whom you have had a recent conflict. Write a letter to this person, attempting to resolve the conflict. Use the concepts from the chapter to accomplish your objective. Be sure to address whether the conflict is functional or dysfunctional, what styles each party has used, effective strategies for resolving the conflict, and ineffective strategies that should be avoided.

Students should be encouraged to use specific examples from the conflict to support their description of it and their recommendations for dealing with it more effectively.

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ETHICS QUESTIONS: SUGGESTED ANSWERS

1. What kind of ethical conflicts have you experienced at school or work? At home?

Students may be aware of the avoidance approach when they have heard of copied tests, copied computer disks, or plagiarized papers. They may also have experienced accommodation. Students should be able to state what levels of conflict their examples represent.

2. Is it ethical to avoid a conflict?

Definitely. If there is a personal relationship that is more valuable than the issue, or the issue is temporary, it is reasonable to avoid the conflict. We do this everyday, intuitively.

3. How can you stimulate conflict in an ethical manner?

Managers can stimulate conflict in an ethical manner by encouraging group members to consider alternative solutions through the use of creative problem solving or appointing a devil’s advocate. Functional conflict stimulates change and innovation, and this is certainly ethical.

4. Evaluate the following techniques in terms of their implications for ethical behavior: nonaction, secrecy, administrative orbiting, and changing personnel.

All of these strategies have the potential to be unethical. Failure to take action can cause employees to engage in unethical behavior if they become frustrated with the inaction. Secrecy may result in similar frustration and unethical behavior on the part of employees. Administrative orbiting is a form of dishonesty. Administrative orbiting can happen with sexual harassment charges when the informed individual does not want to take action on the situation. Due process nonaction is an underhanded way of forcing people not to seek justice. Changing personnel can be unethical if it unfairly damages an individual's career.

5. Suppose an employee comes to you with a sexual harassment complaint. You know that your company has a policy in place, but the policy is so complicated and risky that it is hardly worth using. What should you do?

Expedite the process if possible. One of the most important values of expeditious processes is that it is easier to establish the facts of the situation when the situation is still recent. In addition, it is less painful for all individuals involved.

6. In what situations is the competing style of conflict management appropriate? What unethical behaviors might be associated with this style? How can these behaviors be avoided?

Competing is appropriate when emergencies exist or when you know that you are right. However, this style has the potential to encourage sabotage, deceit, and a "win at all costs" mentality. Such behaviors can be avoided by creating a culture that rewards cooperative rather than competitive behaviors.CHALLENGES


13.1 ASSESS YOUR TEAM’S CONFLICT

Students can examine and discuss the types of conflict and conflict management techniques they have experienced in groups of which they have been members.

13.2 WHAT IS YOUR CONFLICT-HANDLING STYLE?

Following completion of the challenge, students could be put into groups in class based on their primary conflict-handling style. In the groups have students discuss how they typically handle conflict, encourage them to use specific examples of conflict situations they have experienced. Each group can share with the class a summary of its typical approach to handling conflict. Discuss the similarities and differences between groups as you cover class material on the conflict-handling styles.

EXPERIENTIAL EXERCISES

13.1 CONFLICTS OVER UNETHICAL BEHAVIOR

Instructor's Notes:

This exercise provides a list of behaviors that employees might engage in when working for a company. Students are requested to answer each of the 18 questions in terms of the best indicator of the frequency with which they would engage in the behavior. After this is completed, they are to re-examine the questions in light of their beliefs about whether their coworkers would engage in the behavior, and put an X next to that category. The third time they review the questions, they should indicate with a check mark if management should monitor this category of behavior. It is useful to ask students for the extremes in their check marks between their own and what they believe their coworkers would do. Another way to gather issues is to ask for the categories that were checked either number 1 or number 5. Remind students to be as honest as possible, rather than answering the way they believe they should answer.

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13.2 THE WORLD BANK GAME: AN INTERGROUP NEGOTIATION

Adapted from N. H. Berkowitz and H. A. Hornstein, "World Bank: An Intergroup Negotiation," in J. W. Pfeiffer and J. E. Jones, (eds.), The 1975 Handbook for Group Facilitators (San Diego, Pfeiffer & Company), 58-62.

Instructor’s Notes

Goals: To experience the conflict between advantages of cooperation and advantages of competition in a mixed-motive dilemma; to explore some dynamics of trust between groups; to practice negotiation skills.

Group size: No more than ten participants per team. Two teams can be formed to compete against each other, with the instructor serving as banker and the remaining students designated as observers. (Alternatively, several pairs can be conducted simultaneously, with each team competing against one other team, and one student serving as banker for every two competing teams).Materials: · Twenty 3" x 5" cards for each team, each card with a marked side (X covering the entire

side) and an unmarked side. (Playing cards may be used as substitutes).· A copy of the World Bank Record Sheet for each team (these appear in the textbook).· A copy of the World Bank Banker's Instruction Sheet for each banker.

Physical Setting: Teams competing against each other are located close to each other, but their meetings are private. Their negotiators also need a private place to meet briefly several times.

Process:1. The banker forms pairs of teams. (There must be an even number of teams).2. Participants should read the World Bank General Instructions, and the banker responds to

questions.3. If there are two teams, the instructor serves as banker. If there are more than two teams,

additional bankers (one for each additional pair of teams) are appointed. Bankers are briefed about their roles and given a copy of the World Bank Banker's Instruction Sheet.

4. Teams have ten minutes to organize themselves and plan their strategies. Before play begins, each team must select a negotiator, representative, team recorder, and treasurer.

5. The banker signals the beginning of round one to each team.6. The bankers call the game to a close at an appropriate time.


Variations:1. To increase collaboration, the design may be altered as follows: (a) reduce the number of

moves in each round to five; (b) require negotiation after each move; or (c) increase the penalty for an attack.

2. To increase competition, the design may be altered as follows: (a) increase the number of moves in each round to ten; (b) make negotiations more difficult and costly by assessing a fee; (c) remove the penalty for an attack; or (d) multiply the payoff threefold for move four, and fivefold for the final move.

3. To focus on the negotiation process, all negotiations may take place in a neutral location in the presence of all parties to the negotiation, e.g., both teams may observe. The number of negotiators may also be increased to two from each team.

Limitations: This game sometimes generates feelings of betrayal and resentment that disrupt relationships and affect subsequent classes. These issues should be addressed directly and there should be ample opportunity for persons to talk through their feelings.

WORLD BANK BANKER'S INSTRUCTION SHEET

As banker, your tasks during this experiment are to synchronize the timing between your two teams and to monitor the rules set forth in the World Bank General Instructions.

1. After each one and a half minute move, call for a private report from each team's representative.

2. Thirty seconds later, indicate the beginning of the next move, announce a three-minute negotiation session, or signal that an attack has been declared. (An attack immediately ends each round).

3. Following moves three and six, direct the negotiators to a prearranged site out of view of both teams for a compulsory negotiation session. (This session must be limited to a maximum of three minutes).

4. At the end of a round (after the seventh move or an attack), give each team's recorder the information needed about the status of the other team's weapons to complete the records for that round and prepare for the next round. (Note that there may be an attack after the seventh move also).

5. Have team members complete the World Bank Questionnaire at the end of the game.

As banker, you have the following responsibility:

1. Collect penalties from the treasurers.2. Make payments directly to treasurers.3. Transfer funds from one treasurer to another.

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ALTERNATIVE EXPERIENTIAL EXERCISE

A CASE FOR CONSTRUCTIVE CONFRONTATION

Instructor's Notes:

This exercise is good to do with the entire class, rather than as a group exercise, although it is appropriate for either approach. The answers to the exercise are as follows:

1. Reject solution: This approach will probably elicit a defense mechanism for a response. This is also a win–lose strategy, with a competitive approach of you're wrong, I'm right.

2. Reject solution: Fred might resort to the superagreeables coping tactic.3. Reject solution: This is avoidance.4. Amend solution: This is the best solution of the choices.5. Reject solution: This is ineffective and combines secrecy and administrative orbiting.


A CASE FOR CONSTRUCTIVE CONFRONTATIONAdapted from Conrad Jackson, The University of Alabama, Huntsville.

There have been complaints recently about Fred among several of his coworkers for wasting their time by dropping by their office and engaging them in "conversations" (actually Fred does most of the talking) about various things (usually not work-related). It is difficult to interrupt one of his stories, and he usually takes vaguely polite hints that "the conversation is over" as an expression of interest in what he is saying. ("Well, Fred, that's great. Let me know how that new bowling ball works out."----"Yeah, I've already bowled a couple of games with it. I went Sunday afternoon. You should see all the professional people who go bowling on Sundays. I met this one guy ....etc.."). Even you endure these interruptions from time to time. Fred's work is generally good in quality, and adequate in quantity. He puts in a full workday, but doesn't work as many hours per week as some of the others in the department.

Discuss the pros and cons of confronting Fred in each of the following ways:

· For each rejected item, substantiate your opinion by referencing Chapter 13 of your text. · Modify, or write an approach that would be optimal, and list as many of the issues that you

can discover from the chapter.

1. Send Fred a memo stating that "some people have complained about him 'visiting' too much." Admonish him to be careful to not waste his own time or anyone else's.

2. Call Fred into your office. Tell him that it has come to your attention that he's been "chatting" with other people in the office a good bit. Tell him that everyone looks pretty busy right now. Ask him if he's sure he is not taking up too much of their time.

3. Drop by Fred's office while walking around. Ask him how things are going. Make a big deal about "I had better get out of here and let you get back to work. I know all of you guys have a lot of work to do."

4. The next time Fred interrupts you with one of his stories, cut him off by saying "Fred, I hate to interrupt your story, but I'm really busy right now. I run into this problem with you every now and then. I'm reluctant to cut you off, but sometimes I need to let you know that I am in the middle of something important."

5. Send around a memo saying, "It has come to my attention that some of the people in this department are beginning to spend too much time "chatting" with each other during work time. We are all very busy these days, so let me ask you all to take special care to not interrupt one another unnecessarily."

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MBTI EXERCISE

Exercise Learning Objectives:

a. Ask students to explore the idea that the majority of conflicts are based on miscommunication.b. Students should understand that conflict resolution will be different for different people.

Exercise Overview:

1. Students should have taken the MBTI or the short version in Chapter 3.

2. Students will be formed into "S" and "N" dyads where you have one "S" and one "N" student in each dyad. In those cases where the class has more of one type than another, use the next letter "T" or "F" to form the dyads. In this case, put one "ST" with an "SF" or one "NT" with an "NF".

3. The students in these dyads will individually write a set of instructions on a common issue and then compare with their partner.

4. The instructor should review "S/N" differences in Myers-Briggs, paying particular attention to the differences to the manner in which each type explains issues.

Exercise Description:

a. Form "S" and "N" dyads as described in the exercise overview. Form as many groups as you need so that everyone is in a group. If after forming the dyads you have one "extra" student, you may either have the student help you observe and report this group activity or form one team.

b. Each student should write a set of instructions on "how to register for fall classes." The instructor should read the following instruction: "Each of you is to write a set of instructions for an incoming freshman on how to register for fall classes." DO NOT amplify these instructions and do not allow students to use any reference material--this is done from memory. DO NOT give any clarification. If the instructor gives clarifying information, the major benefit of this exercise will be lost--i.e., how we "hear" instructions. We suggest you allow 10 to 15 minutes for this.

c. Ask students to read their instructions to their partner. Ask their partners to listen attentively. Ask each student to read his or her instructions before you allow them to discuss the differences.

d. After reading the instructions to each other, ask the students to discuss these questions:

1. What, if any, differences are apparent in the two sets of instructions?

2. As the receiver of the other's instructions, what were the things that helped you? What were the things that confused you? What other information would you need in order to register?


3. What recommendations would you give the writer to improve his or her communications?

e. Ask two students to be the recorders--one for large newsprint and one on regular notebook paper.

f. Depending on time, ask each person in the class to share their recommendations and have one recorder list them on large flip chart paper and the other recorder list them on notebook paper.

What the instructor should expect:

a. "Ss" will most likely give very detailed step-by-step instructions. These instructions will most likely be numbered and would generally be representative of the actual registration sequence.

b. "Ns" will most likely give less detailed instructions and may even skip several steps in the process. Their instructions would most likely be representative of the process used but without most of the actual steps.

Instructor's Summary:

One of the major issues involved in conflict is the actual discussion of the facts and circumstances surrounding the situation in conflict. We've noticed in this exercise that we all gather and relate information differently.

Misinformation or poor communication is the single largest reason for conflict. If we can take the time to try to understand the "facts" as seen by the other person, we should be able to resolve most of our conflicts and at the same time learn from each other.

Properly managed conflict is healthy because the creative tension that happens forces us to grow and to learn. Conflict is in fact a normal part of life. Successfully managing conflict means that you choose the right conflict management style appropriate to the situation. Most of us use only one or two preferred conflict management styles and, unfortunately, that style only works in certain cases.

Know how you collect and receive information and remember that other people may collect and receive information differently. Clarify the facts, stay issue-focused, maintain an open mind and you will learn, grow, and have more fulfilling relationships.

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EXTRA EXPERIENTIAL EXERCISES

The following exercises to supplement the material in the textbook can be obtained from:

Marcic, Dorothy, Seltzer, Joseph, & Vaill, Peter. Organizational Behavior: Experiences and Cases, 6th Ed. South Western College Publishing Company, 2001.

Border Dispute. p. 133-134. Time: 50 minutes minimum.Purpose: To develop both competitive and collaborative behavior.

Management of Differences. p. 121-130. Time: 45 minutes.Purpose: To determine which style of conflict resolution students use.

Fandt, Patricia M. Management Skills: Practice and Experience. West Publishing Company, 1994.

In-Basket Exercise 4: Defending Decisions When Challenged. p. 393.

In-Basket Exercise 5: Resolving Conflicts. p. 451.

CASE QUESTIONS: SUGGESTED ANSWERS

A FAMILY FEUD AT BINION’S HORSHOE CLUB

1. From your perspective, was the conflict among the Horseshoe Club heirs functional or dysfunctional?

In discussing this question, the students can use Table 13.1 as a point of departure. This table identifies the positive (or functional) and negative (or dysfunctional) consequences of conflict.

Students may be inclined to describe the conflict as dysfunctional, citing, in particular, the lawsuit that Brenda filed in order to wrest control of the casino from Jack. However, legal action could be considered to be a quite feasible approach for rescuing the Horseshoe Club because of the problems created by Jack and Ted. Under Jack’s leadership, the Horseshoe Club had a devastating, nine-month long strike; received a $1 million fine for lax cash control; and had large net losses of $13 million in 1996. Ted had the licensing problems with the Nevada State Gaming Control Board. If, as a result of the legal action, the Horseshoe Club returns to profitability, adheres to all the regulations of the Nevada State Gaming Control Board, and effectively serves its other stakeholders (including gambling patrons and employees), then the lawsuit could ultimately have positive consequences. The point should be emphasized that conflict that is dysfunctional in the short term may become functional in the long term.

2. What structural factors and personal factors were likely causes of the conflict at the


Horseshoe Club?

The structural factors that cause conflict include specialization, interdependence, common resources, goal differences, authority relationships, status inconsistencies, and jurisdictional ambiguities. Authority relationships and goal differences appear to be the primary structural factors contributing to the conflict situation at the Horseshoe Club. The problem with authority relationships can be traced back many years. Benny trained the sons in the casino business but kept the daughters out of it. Yet, when the sons and daughters inherited the family business upon their parents’ deaths, all four surviving Binion children were co-owners (though Jack held about twice as much stock as each of the other three). Essentially, the Binion children were partners in a business where one person owned a “larger portion of the pie” and was also president of the company. In that role as president, Jack made and implemented some decisions that produced questionable, if not detrimental, results for the Horseshoe Club. The other owners were not in a position to overturn Jack’s decisions—and this ultimately led to Brenda’s lawsuit. Differences in goals are evident in the allegations made in the lawsuit itself. The brothers—and Jack in particular—sought to grow the business by expanding the physical facilities and tightening up casino payouts. Furthermore, Ted compromised his involvement in the casino business due to actual and alleged violations of Gaming Control Board regulations. Jack also was interested in developing his own business ventures in the two riverboat casinos, and purportedly diverted resources from the family business to accomplish these goals. On the other hand, the sisters—and particularly Brenda—apparently had the goals of re-establishing the Horseshoe Club as a reputable and profitable casino business.

The personal factors that produce conflict include skills and abilities, personalities, perceptions, values and ethics, emotions, communications barriers, and cultural differences. Differences in perceptions and values and ethics are the personal factors which most likely exist in this situation. In particular, Becky and Jack seem to have quite different perceptions of the events that produced the conflict. Jack apparently believes that what he did was appropriate and necessary for the growth and success of the family’s business. Becky, however, perceived Jack’s actions as destroying the family’s business––as well as diverting resources from the family business to invest in the Louisiana and Mississippi riverboat casinos. With regard to values and ethics, Becky probably perceived Jack’s actions as unethical, whereas Jack did not. Moreover, additional values and ethics issues are raised by Ted’s drug use and alleged association with mobsters that led to licensing problems with the Gaming Control Board.

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3. How can the various forms of conflict—interorganizational, intergroup, interpersonal, intrapersonal (e.g., interrole, intrarole, and person—role)—be applied in analyzing the current and historical events at the Horseshoe Club?

Little, if any, evidence exists to demonstrate the presence of the interrole or intrarole forms of intrapersonal conflict. The case evidence does suggest, however, that interorganizational, intergroup, and interpersonal conflicts and the person—role form of intrapersonal conflict probably exist, as described below:

· Interorganizational conflict exists with respect to the Horseshoe Club’s violation of Gaming Control Board regulations regarding cash management.

· Intergroup conflict exists between the two Binion brothers and the two Binion sisters since they were opposed to each other in the effort to exercise control over the family business.

· Interpersonal conflict is currently evident among the Binion heirs as they jockey for ultimate control of the family business. Historically, interpersonal conflict may have existed among members of the Binion family since Benny trained the sons in the family business but not the daughters. Interpersonal conflict among Benny, Teddy Jane, Ted, and Jack may have existed when Jack was president. Jack was basically out of sight in an upstairs office while Ted managed the casino’s floor operations, Teddy Jane managed the cash, and Benny unofficially oversaw everything from the casino’s café. Interpersonal conflict is also reflected in Ted’s actions of removing his $5 million stash from the Horseshoe Casino’s safe due to mistrust of his sister. Finally, interpersonal conflict is evident in the suspicious and murderous relationships among Ted Binion, Sandy Murphy, and Rick Tabish.

· Person—role conflict would be most evident with regard to Benny and Ted. The Nevada State Gaming Control Board has a specific set of role expectations for casino operators. Neither Benny nor Ted fully conformed to those expectations. Instead, both engaged in activities that they apparently personally valued but which were inconsistent with the expectations of the Gaming Control Board.

4. What conflict management styles seem to be evident throughout the history of the Horseshoe Club?

Clearly, a competing style of conflict management is evident in recent years at the Horseshoe Club. The battle for control of the family business, as well as Brenda’s lawsuit and out of court settlement, attest to this conclusion. This competing style may have had its roots in the earlier years of the Horseshoe Club. Although Jack was president, Benny, Teddy Jane, and Ted actually ran the casino. At that time, Jack may have been more of an accommodator while the others were competitors. However, Jack began to assert himself as Benny became ill and then died; Jack then seemed to adopt a competing style of conflict resolution. Even earlier in the history of Binion’s Horseshoe Club, it might be argued that the seeds of a competing style of conflict resolution were sown when Benny indoctrinated his sons into the business but largely excluded his daughters from it.

COHESION CASE -- PART III


PROCTER & GAMBLE (C)

1. In your opinion, how might Alan Lafley respond to the challenges of globalization, diversity, technology, and ethics?

Lafley was described as “a forceful leader with a unique ability to energize the organization to achieve high goals. He has long been seen as a future P&G chief executive. He has led virtually every key part of the company’s business with distinction.” Lafley’s emphasis on goals, his ability to energize people in the pursuit of those goals, along with his record of successful leadership throughout all key aspects of P&G’s business, provide a strong signal that he will be very proactive in addressing each of the challenges.

2. How could Procter & Gamble’s executive team use knowledge about power, conflict resolution, and teamwork to deal with the challenge of global growth?

With the initial creation of the global business units, a significant shuffling of part of the leadership hierarchy took place. Five of the seven top GBU leadership positions went to people whose previous responsibilities had been in a different area of P&G’s operations. In addition, three of the seven assumed dual leadership rolestwo GBU executives also headed an MDO and one GBU executive also led one of the Corporate Functions. The remaining six MDO chiefs headed areas that were closely aligned to their previous job responsibilities at P&G. The top leadership position in each of the nine initial Corporate Functions as well as the top position in the Global Business Services unit was assumed by the person who had been responsible for that specific area prior to the Organization 2005 initiative. In late 2001, only 11 of the 22 executives who had led one or more of the original units of the four pillars remained one the executive committee in late 2001. Some of these individuals were leading different units than they had led originally.

Whether considering the initial structural arrangement of the Organization 2005 initiative or its subsequent realignment, some of the executives picked up new responsibilities and some continued with the same or similar responsibilities. Those who had new responsibilities may have had somewhat different bases of power from which to operate. Those with the same or similar responsibilities probably drew on their existing bases of power. All the leaders, however, must effectively use their power bases in influencing other people to do whatever is necessary for their organizational units to be successful.

Conflict will inevitably arise in a complex global business, even when operations are streamlined. Some of the conflict may result from people learning to work and adapt to the new structure. Part of the conflict may come from the interlocking interests of the GBUs and MDOs as the company tries to be global while serving local target markets. Another source of conflict could be the interface of global business services centers and corporate functions with the GBUs and MDOs. In all cases, top leadership must be cognizant of the source and nature of any conflict, and work vigorously to resolve the conflict in the overall best interests

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of Procter & Gamble.

As noted in the previous paragraph, P&G’s structural design requires extensive interaction and support among the four pillars (i.e., global business units, market development organizations, global business services centers, and corporate functions). Consequently, effective teamwork will be needed. The leaders of these different organizational units will need to model effective teamwork behaviors for their followers. Additionally, they will need to create new and/or refine existing policies, processes, and procedures to promote effective teamwork within their own units as well as among their units and other units.

3. Why is effective communication and effective leadership so crucial to managing a global company like Procter & Gamble?

The answer to the previous question emphasizes the need for effective interaction among the four pillars––global business units, market development organizations, global business services centers, and corporate functions—of the Organization 2005 initiative. Effective interaction, in turn, requires effective communication and leadership. Without either, a complex global company such as Procter & Gamble could too easily fall into disarray. In one sense, effective communication and leadership represent the mortar that bonds the individual structures together so that P&G can be a company that produces and markets various consumer products on a worldwide basis, while adapting to the needs of local target markets.

4. What role should leaders play in establishing and maintaining an ethical culture within a global company with a diverse workforce? What role should followers play in establishing and maintaining an ethical culture in such a company?

Followers take ethical cues from the leaders. Thus, leaders must set the ethical tone and standards for an organization. Leaders should clearly articulate their ethical values and use them to guide their actual business practices. Leaders should serve as role models for their followers, and should do everything in their power to support and reinforce follower behavior that is consistent with the company’s desired ethical culture.

The leaders’ values and behavior are not the only factors that influence the extent to which followers act in an ethical or unethical fashion. The followers’ personal standards and beliefs play a role as well. Situational factors––like the presence or absence of ethics training in the organization, the nature of the organization’s reward system, opportunities to engage in unethical acts, the presence or absence of a corporate code of ethics or code of conduct, etc.—can be influential too. Nonetheless, the leader still plays a crucial role in establishing an ethical (or unethical) culture for an organization.

When the organization operates globally, ethical attitudes and practices may vary from country to country as well as across diverse populations. Thus, the leaders and followers must be aware of local practices and customs while seeking to maintain consistent ethical


standards throughout the company.

This question also provides an excellent opportunity to explore the issue of an organization having a universal ethical standard versus adapting to local customs. Some students may argue that a global company’s leaders should set uniform ethical standards for all their operations throughout the world. Other students may favor an ethical approach that varies according to the beliefs and practices of the host country. In such a case, the organization’s leaders would establish and model “flexible” ethical guidelines. These two perspectives capture a fundamental ethical tension that leaders and followers will encounter in global business operations that employ a diverse workforce. Students should explore how they feel about this tension, and how, as followers and as leaders, they would likely react to it.

Role Plays

Additional role plays relevant to the material in this chapter are located in Appendix A of this instructor's manual.

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