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Organizational Conflict, Politics, and Change

Organizational Conflict, Politics, and Change

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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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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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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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Types of ConflictTypes of Conflict

ConflictConflictConflictConflict

InterpersonalInterpersonalInterpersonalInterpersonal IntragroupIntragroupIntragroupIntragroup IntergroupIntergroupIntergroupIntergroup Inter-Inter-organizationalorganizational

Inter-Inter-organizationalorganizational

Figure 16.2

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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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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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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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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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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 assignments Provides a good view of what others face.

Use permanent transfers & dismissal if needed Avoids problem interaction.

Change organization’s structure Conflict can signal the need to adjust the structure.

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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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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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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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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 politics Political activity allows a manager to gain support for an

idea.

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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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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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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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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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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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Managing Organizational ChangeManaging Organizational Change Assess 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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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