Managing Conflict, Power, and Politics

Teacher: Yao-sheng Liao Student: Cheng-chang Chen

Figure 14.1: Cooperation and Competition Among Organizational Stakeholders

Figure 14-2: Relationship Between Conflict and Organizational Effectiveness

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What is Organizational Conflict? (1/3)

Organizational Conflict: The clash that occurs when the goal-directed behavior of one group blocks or thwarts the goals of another Because the goals, preferences, and interest of stakeholder groups differ, conflict is inevitable in organization

What is Organizational Conflict? (2/3)

Some conflict is good for organization and can improve organizational effectiveness

Can overcome inertia and lead to organizational learning and change Can improve decision making and allow an organization to better change and adapt to its environment

What is Organizational Conflict? (3/3)

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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Outline-4

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Pondys Model of Organizational Conflict (1/5)

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

According to Pondy, all organization conflict arises from vertical and horizontal differentiation

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Pondys Model of Organizational Conflict (2/5)

Sources of conflict include:

Interdependence: Subunits desire of autonomy leads to conflict Difference in goals and priorities: Once goals become incompatible, the potential for conflict arises Bureaucratic factors: A classic type of bureaucratic conflict occurs between staff and line function Incompatible performance criteria: The organizations way of monitoring, evaluating, and rewarding different subunits bring them into conflict Competition for scarce resources: When resources are scarce, subunit have to compete for them
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Pondys Model of Organizational Conflict (3/5)

Stage 2: Perceived conflict: subunits begin to define why the conflict is emerging and begin to analyze the events that have led up to it

Conflict escalates as groups battle over the cause of the problem

Stage 3: Felt conflict: each subunit develops a us-versus-them mentality that puts the blames for the conflict squarely on the other subunit

If nothing is done to solve it, small problem will escalates into huge conflict
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Pondys Model of Organizational Conflict (4/5)

Stage 4: Manifest conflict: one subunit gets back at another subunit by attempting to thwart its goals

Open aggression Passive aggression doing nothing Manager need to do all they can prevent from reaching the manifest stage, for two reasons: (1) breakdown in communication; (2) aftermath of conflict

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Pondys Model of Organizational Conflict (5/5)

Stage 5: Conflict aftermath: conflict is resolved in some way

conflict is resolved in some way, often by the decision of some senior manager If sources of conflict are not resolved, the aftermath will sour future working relationships, and the organizational culture is poisoned by permanently uncooperative relationships

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Figure 14-3: Pondys Model of Organizational Conflict

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Outline-6

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Managing Conflict: Resolution Strategies (1/3)

Organizational conflict can escalate rapidly and sour an organizations culture

Managing conflict is an important priority

Organizations must balance the need to have some good conflict without letting it escalate into bad conflict The method an organization choose to manage the conflict depends on the source of the problem Conflict can be resolved by two ways: (1)changing organizations structure; (2) changing the attitudes of individuals or replacing the individuals themselves
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Managing Conflict: Resolution Strategies (2/3)

Acting at the level of structure

Because task interdependence and differences in goals are two major sources of conflict, altering the level of differentiation and integration to change task relationships is one way to resolve it Increase the number of integrating roles Assign top managers the responsibility for solving conflicts between divisions Make sure the design of an organizations hierarchy of authority is in line with its current needs Good organizational design should minimizes the conflict
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Managing Conflict: Resolution Strategies (3/3)

Acting at the level of attitudes and individuals

Establish procedures for airing grievances

Important for conflict between management and unions

Bargaining and negotiation Exchange/rotate/terminate individuals Replace members of top management CEOs can also use their power to resolve conflicts and motivate units to cooperate
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Outline-7

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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

The possession of power is an important determinant for conflict resolving Conflict and power are intimately related. Individual and groups use their power to influence decision making Power can come from many different sources

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Outline-8

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Figure 14-4: Sources of Organizational Power

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Sources of Organizational Power(1/7)

Authority: power that is legitimized by the legal and cultural foundations on which an organization is based

A managers exercises a legal right to control resources Superiors hold on power by restricting the information they give to subordinates to make a decision Managers have to realize the difference between decentralization and loss Empowerment: the deliberate decentralization of authority
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Sources of Organizational Power(2/7)

Control over resources: as the organization controls more and more resources in its environment, power within an organization comes from the control of resources

Power is not a fixed quantity Money or capital is the ultimate organizational resource The ability to generate financial resources is a source of power, too

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Sources of Organizational Power(3/7)

Control over information: access to strategic information and the control of the information are sources of considerable power

The control of information is the source of the power of many people or subordinate Those who control over critical information can own the most power

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Sources of Organizational Power(4/7)

Nonsubstitutability: if no one else can perform the tasks that a person or subunit performs, that person or subunit is nonsubstitutable

Only it can provide the resources that other subunit or organization requires

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Sources of Organizational Power(5/7)

Centrality: the subunits that are most central to resource flows have the ability to reduce the uncertainty facing other subunits

An organizations strategy is a crucial determinant of which subunit is central in an organization

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Sources of Organizational Power(6/7)

Control over uncertainty: a subunit that can actually control the principal sources of uncertainty has significant power

Changes in contingencies facing the organization alter which subunits have this power

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Sources of Organizational Power(7/7)

Unobtrusive power: controlling the premises of decision making

Another important source power stems from the power of the dominant coalition Unobtrusive power: the power flowing from the ability to control the premises behind decision making The power of a coalition resides in its ability to control the assumptions, goals, norms, or values that managers use to judge alternative solutions to a problem
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Outline-9

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Using Power: Organizational Politics (1/6)

Organizational politics: activities taken within organizations to acquire, develop, and use power and other resources to obtain ones preferred outcomes in a situation in which there is uncertainty or disagreement about choices

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Outline-10

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Using Power: Organizational Politics (2/6)

Tactics for playing politics(1/3)

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 ones reputation or that of ones function Associating with powerful managers:

supporting a powerful manager who is clearly on the way to the top

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Using Power: Organizational Politics (3/6)

Tactics for playing politics(2/3)

Building and managing coalitions

Forming relationships with stakeholders and other subunits around some common issue Skills in coalition building are important Must be circumspect in the use of power

Influencing decision making

Controlling the agenda

By setting the agenda, managers can control the issues and problems to be considered

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Using Power: Organizational Politics (4/6)

Tactics for playing politics(3/3)

Bringing in an outside expert

Use supposedly neutral outsiders to support the views of the coalitions

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Outline-11

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Using Power: Organizational Politics (5/6)

Costs and benefits of organizational politics(1/2)

To manage organizational politics and gain its benefits, an organization must 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

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Using Power: Organizational Politics (6/6)

Costs and benefits of organizational politics(2/2)

If balance of power does not encourage allocation of resources to where value is created, the organizational effectiveness suffers If powerful managers can suppress views against their interests, debates become restricted, checks and balances fade, bad conflict increases, and organizational inertia increases
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Figure 14-5: Maintaining a Balance of Power

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Summary

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Summary

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