CHAPTER 11: CONFLICT AND NEGOTIATION IN THE WORKPLACE

Conflict - the process in which one party perceives that its interests are being opposed or
negatively affected by another party.
Task conflict - a type of conflict in which people focus their discussion around the issue while
showing respect for people who have other points of view.
Relationship conflict - a type of conflict in which people focus on characteristics of other
individuals, rather than on the issues, as the source of conflict.
6 main conditions that cause conflict in organizational settings:

1. INCOMPATIBLE GOALS. Goal incompatibility occurs when the goals of one person or
department seem to interfere with another person’s or department’s goals.
2. DIFFERENTIATION—differences among people and work units regarding their training,
values, beliefs, and experiences.
3. INTERDEPENDENCE. All conflict is caused to some extent by interdependence,
because conflict exists only when one party perceives that its interests are being
opposed or negatively affected by another party.
4. SCARCE RESOURCES. Resource scarcity generates conflict because each person or
unit requiring the same resource necessarily undermines others who also need that
resource to fulfill their goals.
5. AMBIGUOUS RULES. Ambiguous rules—or the complete lack of rules—breed conflict.
This occurs because uncertainty increases the risk that one party intends to interfere
with the other party’s goals.
6. COMMUNICATION PROBLEMS. Conflict often occurs due to the lack of opportunity,
ability, or motivation to communicate effectively.
Win–win orientation - the belief that conflicting parties will find a mutually beneficial solution to
their disagreement.
Win–lose orientation - the belief that conflicting parties are drawing from a fixed pie, so the
more one party receives, the less the other party will receive.
Interpersonal Conflict-Handling Styles
1. Problem solving. Problem solving tries to find a solution that is beneficial for both
parties. This is known as the win–win orientation because people using this style believe
the resources at stake are expandable rather than fixed if the parties work together to
find a creative solution.
2. Forcing. Forcing tries to win the conflict at the other’s expense. People who use this
style typically have a win–lose orientation—they believe the parties are drawing from a
fixed pie, so the more one party receives, the less the other party will receive.
3. Avoiding. Avoiding tries to smooth over or evade conflict situations altogether. A
common avoidance strategy is to steer clear of the coworkers associated with the
conflict.
4. Yielding. Yielding involves giving in completely to the other side’s wishes, or at least
cooperating with little or no attention to your own interests.
5. Compromising. Compromising involves looking for a position in which your losses are
offset by equally valued gains.
Superordinate goals - goals that the conflicting parties value and whose attainment requires
the joint resources and effort of those parties.
Three ways to reduce interdependence among employees and work unit:
1. Create buffers. A buffer is any mechanism that loosens the coupling between two or
more people or work units.
2. Use integrators. Integrators are employees who coordinate the activities of work units
toward the completion of a shared task or project.
3. Combine jobs. Combining jobs is both a form of job enrichment and a way to reduce
task interdependence.
Third-party conflict resolution - any attempt by a relatively neutral person to help conflicting
parties resolve their differences.
Types of Third-Party Intervention:
1. Arbitration—Arbitrators have high control over the final decision, but low control over
the process.
2. Inquisition—Inquisitors control all discussion about the conflict. Like arbitrators,
inquisitors have high decision control because they determine how to resolve the
conflict.
3. Mediation—Mediators have high control over the intervention process. In fact, their
main purpose is to manage the process and context of interaction between the disputing
parties.
Negotiation - the process whereby two or more conflicting parties attempt to resolve their
divergent goals by redefining the terms of their interdependence.
They adopt a win–lose orientation when taking the view that one party necessarily loses when
the other party gains. In negotiations, this is called the distributive approach because the
negotiator believes those involved in the conflict must distribute portions from a fixed pie. The
opposing view is a win–win orientation, known as the integrative or mutual gains approach to
negotiations. This approach exists when negotiators believe the resources at stake are
expandable rather than fixed if the parties work creatively together to find a solution.
The initial offer point—each party’s opening offer to the other side—requires careful
consideration because it can influence the negotiation outcome. The target point is your
realistic goal or expectation for a final agreement. The resistance point in the bargaining zone
model is the point beyond which you will make no further concessions.
Best alternative to a negotiated settlement (BATNA) - the best outcome you might achieve
through some other course of action if you abandon the current negotiation.

CHAPTER 12: LEADERSHIP IN ORGANIZATIONAL SETTINGS

Leadership - influencing, motivating, and enabling others to contribute toward the effectiveness
and success of the organizations of which they are members.
Shared leadership - the view that leadership is a role, not a position assigned to one person;
consequently, people within the team and organization lead each other.
Transformational leadership - a leadership perspective that explains how leaders change
teams or organizations by creating, communicating, and modeling a vision for the organization
or work unit and inspiring employees to strive for that vision.
Vision - is a positive image or model of the future that energizes and unifies employees. The
heart of transformational leadership is a strategic vision.
Managerial leadership - a leadership perspective stating that effective leaders help employees
improve their performance and well-being toward current objectives and practices.
One cluster, called Task-oriented leadership, includes behaviors that define and structure
work roles. Task-oriented leaders assign employees to specific tasks, set goals and deadlines,
clarify work duties and procedures, provide feedback on work quality, and plan work activities.
The other cluster represents people-oriented leadership. This cluster includes behaviors such
as listening to employees for their opinions and ideas, creating a pleasant physical work
environment, showing interest in staff, appreciating employees for their contributions, and
showing consideration of employee needs.
Servant leadership - the view that leaders serve followers, rather than vice versa; leaders help
employees fulfill their needs and are coaches, stewards, and facilitators of employee
development.
Path–goal leadership theory - a leadership theory stating that effective leaders choose the
most appropriate leadership style(s), depending on the employee and situation, to influence
employee expectations about desired results and their positive outcomes.
 Four Leadership Styles Are:
1. Directive. Directive leadership is the same as task-oriented leadership, described
earlier. This leadership style consists of clarifying behaviors that provide a psychological
structure for subordinates.
2. Supportive. Supportive leadership is the same as people-oriented leadership, described
earlier. This style provides psychological support for subordinates. The leader is friendly
and approachable; makes the work more pleasant; treats employees with equal respect;
and shows concern for the status, needs, and well-being of employees.
3. Participative. Participative leadership behaviors encourage and facilitate employee
involvement in decisions beyond their normal work activities. The leader consults with
his or her staff, asks for their suggestions, and carefully reflects on employee views
before making a decision. Participative leadership relates to involving employees in
decisions.
4. Achievement-oriented. This leadership style emphasizes behaviors that encourage
employees to reach their peak performance. The leader sets challenging goals, expects
employees to perform at their highest level, continuously seeks improvement in
employee performance, and shows a high degree of confidence that employees will
assume responsibility and accomplish challenging goals.
Situational leadership theory (SLT) - a commercially popular but poorly supported leadership
model stating that effective leaders vary their style (telling, selling, participating, delegating) with
the motivation and ability of followers.
Fiedler’s contingency model - a leadership model stating that leader effectiveness depends
on whether the person’s natural leadership style is appropriately matched to the situation (the
level of situational control).
Situational control - that is, the degree of power and influence that the leader possesses in a
particular situation.
Situational control is affected by three factors in the following order of importance:
1. Leader– member relations - refers to how much employees trust and respect the
leader and are willing to follow his or her guidance.
2. Task structure - refers to the clarity or ambiguity of operating procedures.
3. Position power - is the extent to which the leader possesses legitimate, reward, and
coercive power over subordinates.
Leadership substitutes - a theory identifying conditions that either limit a leader’s ability to
influence subordinates or make a particular leadership style unnecessary.
Implicit leadership theory - a theory stating that people evaluate a leader’s effectiveness in
terms of how well that person fits preconceived beliefs about the features and behaviors of
effective leaders (leadership prototypes) and that people tend to inflate the influence of leaders
on organizational events.
One aspect of implicit leadership theory states that everyone has leadership prototypes—
preconceived beliefs about the features and behaviors of effective leaders.
Authentic leadership - the view that effective leaders need to be aware of, feel comfortable
with, and act consistently with their values, personality, and self-concept.
Charismatic visionary - represents a cluster of concepts including visionary, inspirational,
performance orientation, integrity, and decisiveness.

CHAPTER 13: DESIGNING ORGANIZATIONAL STRUCTURES

Organizational structure - the division of labor as well as the patterns of coordination,

communication, workflow, and formal power that direct organizational activities.
Division of labor - refers to the subdivision of work into separate jobs assigned to different
people.
Larger organizations also encourage coordination through informal communication by assigning
liaison roles to employees, who are expected to communicate and share information with
coworkers in other work units. Where coordination is required among several work units,
companies create integrator roles. These people are responsible for coordinating a work
process by encouraging employees in each work unit to share information and informally
coordinate work activities.
Coordinating mechanism takes three distinct forms:
1. Standardized processes. Quality and consistency of a product or service can often be
improved by standardizing work activities through job descriptions and procedures.
2. Standardized outputs. This form of standardization involves ensuring that individuals
and work units have clearly defined goals and output measures (e.g., customer
satisfaction, production efficiency).
3. Standardized skills. When work activities are too complex to standardize through
processes or goals, companies often coordinate work effort by ensuring that job
incumbents have the necessary knowledge and skills.
Span of control (also called span of management) - the number of people directly reporting
to the next level above in the hierarchy.
Centralization - the degree to which formal decision authority is held by a small group of
people, typically those at the top of the organizational hierarchy.
Decentralize; that is, they disperse decision authority and power throughout the organization.
Formalization - the degree to which organizations standardize behavior through rules,
procedures, formal training, and related mechanisms.
Mechanistic structure - an organizational structure with a narrow span of control and a high
degree of formalization and centralization
Organic structure - an organizational structure with a wide span of control, little formalization,
and decentralized decision making.
The organizational chart represents the fourth element in the structuring of organizations, called
departmentalization. Departmentalization specifies how employees, and their activities are
grouped together. Departmentalization establishes the chain of command—the system of
common supervision among positions and units within the organization. Departmentalization
focuses people around common mental models or ways of thinking, such as serving clients,
developing products, or supporting a particular skill set. Departmentalization encourages
specific people and work units to coordinate through informal communication.
Functional structure - an organizational structure in which employees are organized around
specific knowledge or other resources.
Divisional structure (sometimes called the multidivisional or M-form structure) - an
organizational structure in which employees are organized around geographic areas, outputs
(products or services), or clients.
The geographic divisional structure organizes employees around distinct regions of the
country or world. The product/service divisional structure organizes employees around
distinct outputs. The client divisional structure organizes employees around specific
customer groups.
Team-based organizational structure - an organizational structure built around self-directed
teams that complete an entire piece of work.
Matrix structure - an organizational structure that overlays two structures (such as a
geographic divisional and a product structure) in order to leverage the benefits of both.
Network structure - an alliance of several organizations for the purpose of creating a product
or serving a client.
Core competency - is a knowledge base that resides throughout the organization and provides
a strategic advantage.
Technology - refers to the mechanisms or processes an organization relies on to make its
products or services.
Task variability - refers to how predictable the job duties are from one day to the next.
Task analyzability - refers to how much the job can be performed using known procedures and
rules.
Organizational strategy - the way the organization positions itself in its environment in relation
to its stakeholders, given the organization’s resources, capabilities, and mission.

CHAPTER 14: ORGANIZATIONAL CULTURE

Organizational culture - the values and assumptions shared within an organization

Values - are stable, evaluative beliefs that guide our preferences for outcomes or courses of
action in a variety of situations.
Shared values - which are values that people within the organization or work unit have in
common and place near the top of their hierarchy of values.
Shared assumptions—a deeper element that some experts believe is the essence of
corporate culture. Shared assumptions are nonconscious, taken-for-granted perceptions or ideal
prototypes of behavior that are considered the correct way to think and act toward problems and
opportunities.
Espoused values—the values that corporate leaders hope will eventually become the
organization’s culture, or at least the values they want others to believe guide the organization’s
decisions and actions.
An organization’s culture is defined by its  enacted values, not its espoused values. Values are
enacted when they actually guide and influence decisions and behavior.
Dominant culture - that is, the values and assumptions shared most consistently and widely by
the organization’s members.
Organizations are composed of subcultures located throughout their various divisions,
geographic regions, and occupational groups. Some subcultures enhance the dominant culture
by espousing parallel assumptions and values. Others differ from but do not conflict with the
dominant culture. Still others are called countercultures because they embrace values or
assumptions that directly oppose the organization’s dominant culture.
Artifacts - the observable symbols and signs of an organization’s culture.
Rituals - the programmed routines of daily organizational life that dramatize the organization’s
culture.
Ceremonies - planned displays of organizational culture, conducted specifically for the benefit
of an audience.
One popular management book, Built to Last, suggests that successful companies are
“cultlike” (although not actually cults, the authors are careful to point out).
The strength of an organization’s culture - refers to how widely and deeply employees hold
the company’s dominant values and assumptions.
Potential Benefits and Contingencies of Culture Strength:
1. Control system. Organizational culture is a deeply embedded form of social control that
influences employee decisions and behavior.
2. Social glue. Organizational culture is the social glue that bonds people together and
makes them feel part of the organizational experience.
3. Sense making. Organizational culture helps employees make sense of what goes on
and why things happen in the company.
Adaptive culture - an organizational culture in which employees are receptive to change,
including the ongoing alignment of the organization to its environment and continuous
improvement of internal processes.
Bicultural audit - a process of diagnosing cultural relations between companies and
determining the extent to which cultural clashes will likely occur.
Assimilation - occurs when employees at the acquired company willingly embrace the cultural
values of the acquiring organization.
Attraction–selection–attrition (ASA) - theory a theory that states that organizations have a
natural tendency to attract, select, and retain people with values and personality characteristics
that are consistent with the organization’s character, resulting in a more homogeneous
organization and a stronger culture.
Organizational socialization - the process by which individuals learn the values, expected
behaviors, and social knowledge necessary to assume their roles in the organization.
Effective socialization supports newcomers’ organizational comprehension. It accelerates
development of an accurate cognitive map of the physical, social, strategic, and cultural
dynamics of the organization.
Psychological contract - the individual’s beliefs about the terms and conditions of a reciprocal
exchange agreement between that person and another party (typically an employer).
Transactional contracts are primarily short-term economic exchanges. Relational contracts,
on the other hand, are rather like marriages; they are long-term attachments that encompass a
broad array of subjective mutual obligations.
Reality shock - the stress that results when employees perceive discrepancies between their
preemployment expectations and on-the-job reality.
STAGES OF ORGANIZATIONAL SOCIALIZATION
1. The preemployment socialization stage encompasses all the learning and adjustment
that occurs before the first day of work. In fact, a large part of the socialization
adjustment process occurs during this stage.
2. Encounter. This is the stage in which newcomers test how well their preemployment
expectations fit reality.
3. Role Management. Role management, the third stage of organizational socialization,
really begins during preemployment socialization, but it is most active as employees
make the transition from newcomers to insiders.
Realistic job preview (RJP) - a method of improving organizational socialization in which job
applicants are given a balance of positive and negative information about the job and work
context.

CHAPTER 15: ORGANIZATIONAL CHANGE

Force field analysis - Kurt Lewin’s model of systemwide change that helps change agents
diagnose the forces that drive and restrain proposed organizational change.
One side of the force field model represents the driving forces that push organizations toward
a new state of affairs. The other side is the restraining forces that maintain the status quo.
These restraining forces are commonly called “resistance to change” because they appear to
block the change process. Stability occurs when the driving and restraining forces are roughly in
equilibrium—that is, they are of approximately equal strength in opposite directions.
Unfreezing - the first part of the change process, in which the change agent produces
disequilibrium between the driving and restraining forces
Refreezing - the latter part of the change process, in which systems and structures are
introduced that reinforce and maintain the desired behaviors.
Learning not only helps employees perform better following the change; it also increases their
readiness for change by strengthening their belief about working successfully in the new
situation (called change self-efficacy).
They need the assistance of several people with a similar degree of commitment to the change.
Indeed, some research suggests that this group—often called a guiding coalition—may be the
most important factor in the success of public-sector organizational change programs.
A guiding coalition is a formally structured group, whereas change also occurs more informally
through social networks.
Social networks - are structures of people (e.g., departments, organizations) connected to
each other through one or more forms of interdependence
Viral change - process adopts principles found in word-of-mouth and viral marketing.
Design thinking - a human-centered, solution focused creative process that applies both
intuition and analytical thinking to clarify problems and generate innovative solutions.
Action research - a problem-focused change process that combines action orientation
(changing attitudes and behavior) and research orientation (testing theory through data
collection and analysis).
The Action Research Process
1. Form client–consultant relationship. Action research usually assumes that the
change agent originates outside the system (such as a consultant), so the process
begins by forming the client–consultant relationship.
2. Diagnose the need for change. Action research is a problem-oriented activity that
carefully diagnoses the problem to determine the appropriate direction for the change
effort.
3. Introduce intervention. This stage in the action research model applies one or more
actions to correct the problem.
4. Evaluate and stabilize change. Action research recommends evaluating the
effectiveness of the intervention against the standards established in the diagnostic
stage.
Appreciative inquiry - an organizational change strategy that directs the group’s attention
away from its own problems and focuses participants on the group’s potential and positive
elements
Positive organizational behavior - a perspective of organizational behavior that focuses on
building positive qualities and traits within individuals or institutions as opposed to focusing on
what is wrong with them.
Appreciative inquiry embraces five key principles:
1. Positive principle - focusing on positive events and potential produces more positive,
effective, and enduring change.
2. Constructionist principle - takes the position that conversations don’t describe reality;
they shape that reality.
3. Simultaneity principle - which states that inquiry and change are simultaneous, not
sequential.
4. Poetic principle - states that organizations are open books, so we have choices in how
they may be perceived, framed, and described.
5. Anticipatory principle - the fifth principle of appreciative inquiry, emphasizes the
importance of a positive collective vision of the future state.
The Four-D Model of Appreciative Inquiry:
1. Discovery—identifying the positive elements of the observed events or organization.
2. Dreaming stage - envisioning what might be possible in an ideal organization.
3. Designing - involves dialogue in which participants listen with selfless receptivity to
each other’s models and assumptions and eventually form a collective model for thinking
within the team.
4. Delivering (also known as destiny) - participants establish specific objectives and
direction for their own organization on the basis of their model of what will be.
Future search conferences - are large group interventions typically held over a few days in
which participants identify emerging trends and develop strategies for the organization to realize
potential under those future conditions.
Parallel learning structure - a highly participative social structure developed alongside the
formal hierarchy and composed of people across organizational levels who apply the action
research model to produce meaningful organizational change