Chapter 13 - Conflict, Power, and Politics PDF

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12th Ed. Chp 13...

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Chapter 13 - Conflict, Power, and Politics This chapter discusses the nature of conflict and the use of power and political tactics to manage and reduce conflict among individuals and groups. It explores the nature of intergroup conflict, characteristics of organizations that contribute to conflict, the use of a political versus a rational of organization to manage conflicting interests, and some tactics for reducing conflict and enhancing collaboration. It also examines individual and organizational power, the vertical and horizontal sources of power for managers and other employees as well as how power is used to attain organizational goals. This chapter also examines the trend toward empowerment and sharing power with lower-level employees. The final part of this chapter looks at politics as a mechanism of power and influence to achieve organizational goals, how managers can increase their power and various political tactics for using power to influence others and accomplish desired goals. A merger gone terribly awry. ➔ During the summer of 2013, executives from Omnicom and Publicis Groupe SA announced in Paris that the companies would be merging to create the largest advertising agency in the world. ➔ By the close of 2013 the deal hadn’t been finalized. ➔ The company couldn’t agree on who would be the acquirer and who would be acquired. ➔ Both CEOs had strong personalities, and communicating details about the merger grew increasingly complicated. ➔ By May of 2014, the deal fell apart because of disagreements over roles and responsibilities. Each side wanted to have more power. ★ Blackberry suffered due to infighting over the strategic goals of the company. Individuals and groups use power and political activity to handle their differences and manage the inevitable conflicts that arise. Too much conflict can be harmful to an organization. But, it can also be a positive force because it: 1. Challenges the status quo 2. Encourages new ideas and approaches 3. Leads to needed change ⭐ Conflict is not necessarily a negative force. It results from normal human interaction. ★ Within organizations, individuals and groups frequently have different interests and goals they wish to achieve Managers can effectively use power and politics to manage conflict, get the most out of employees, enhance job satisfaction and team identification, achieve important goals, and realize high organizational performance. This chapter looks at the nature of conflict & the use of power and political tactics to manage and reduce conflict among individuals and groups.

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Interdepartmental Conflict in Organizations Intergroup conflict among departments and groups in organizations and requires the following three ingredients 1. Group identification - employees have to perceive themselves as part of an identifiable group or department 2. Observable group differences - groups may be located on different floors, different social or educational backgrounds, work in different departments 3. Frustration - if one group achieves its goal, the other will not; it will be blocked. Doesn’t need to be severe and only needs to be anticipated to set off conflict. Intergroup conflict will appear when one group tries to advance its position in relation to other groups and can be defined as:

Intergroup Conflict - The behavior that occurs among organizational groups when participants identify with one group and perceive that other groups may block their group’s goal achievement or expectations.

Conflict - groups clash directly, that they are in fundamental opposition. Competition - rivalry among groups in the pursuit of a common prize, whereas conflict presumes direct interference with goal achievement. ⭐⭐ Conflict is like competition but more severe !! ⭐⭐ Intergroup conflict within an organization can occur horizontally across departments or vertically between different ➔ For example the production department may have a dispute with the quality control department because new quality procedures reduce production efficiency. ➔ R&D often conflict with finance managers because finance managers’ pressure to control costs reduces funding for R&D projects. ➔ Vertical conflict may occur when employees clash with bosses about new work methods, reward systems, or job assignments. ➔ Unions vs. management ➔ Franchise owners vs HQ - Many fast food franchise owners have clashed with their perspective HQ because of the increase of company-owned stores in neighborhoods that compete directly with franchisees. ➔ Conflict can occur between different divisions or business units within an organization, such as between the trading and investment banking division and the retail banking division at Morgan Stanley. ◆ Traders and investment banking employees have typically looked down on the retail business, seeing themselves as the ‘elite’ of wall street. ◆ Banks are under pressure by shareholders to increase profits by finding ways for retail and investment banking to cooperate. Morgan Stanley has made a number

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of changes intended to increase collaboration and communication between the two divisions. ➔ Conflicts between regional and business division managers, different divisions, or between divisions and HQ are common in the global arena due to the complexities of international business.

Sources of Conflict The sources of intergroup conflict are goal incompatibility, differentiation, task interdependence, and limited resources. Characteristics of organizational relationships: ➔ Organizational structure ➔ Contingency factors of environment ➔ Size ➔ Technology ➔ Strategy and goals ⭐ These characteristics in turn help shape the extent to which a rational model of behavior versus a political model of behavior is used to accomplish objectives. Goal Incompatibility - The goals of each department reflect the specific objectives members are trying to achieve. The achievement of one department’s goals often interferes with another department’s goals, leading to conflict. ➔ University police have a goal of creating security so they lock all the gates on the weekends. However this impedes researcher’s progress. But, if scientists come and go as they please, then security is ignored and campus police goals are not being met. ➔ The IT department is frequently in conflict with managers of business departments. Business managers want new devices or new systems without fully understanding that the CIO needs to ensure that they don’t jeopardize the security of the organization’s overall IT systems. ⭐⭐ Marketing and manufacturing conflict is greatest b/c these departments are frequently at odds. Marketing strives to increase the breadth of the product line to meet customer taste for variety. This translates to short production runs for manufacturing leading to higher costs. Typical areas of goal conflict between the two departments are: quality control, cost control and new products or services.

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✸✸Goal incompatibility is probably the greatest cause of intergroup conflict in organizations. Differentiation - the differences in cognitive and emotional orientations among managers in different functional departments. Functional specialization requires people with specific education, skills, attitudes and time horizons. ➔ People join a sales forces b/c they have an aptitude for it → after becoming members, they are influenced by the departmental norms and values. %Departments / divisions differ in values, attitudes and standards of behaviors. These subculture differences lead to conflict. ➔ Examples the differences between a sales manager and an R&D scientist. SM is outgoing and warm. R&D is reserved and inclined only to discuss his current projects. SM may be annoyed by the fact that the scientist isn’t friendly and has more work autonomy. The scientist may be uncomfortable because the he perceives the SM as pushy and needing immediate answers to problems that take a long time to investigate. Task Interdependence - task interdependence refers to the dependence of one unit on another for materials, resources, or information. The three types that we discussed in Chapter 7 were pooled, sequential, and reciprocal interdependence. As interdependence increases, the potential for conflict increases as well. ➔ Pooled interdependence: conflict is at a minimum. ➔ Sequential and reciprocal interdependence require employees to spend time coordinating and sharing information - they must spend time coordinating and sharing information. Must communicate frequently. Differences in attitudes and goals will surface. ➔ Conflict will likely occur when agreement is not reached about coordination of services to each other. ➔ Greater interdependence = greater pressure for a response b/c departmental work has to wait on other departments. Limited Resources - competition for percieved limited resources among groups is another source of conflict. Examples: ➔ Money, facilities, staff, resources, human resources Groups want to increase their resources so they can achieve their goals. This creates conflict. Managers may develop strategies to obtain resources. Some strategies include: ➔ Inflating budgets ➔ Working behind the scenes Resources also symbolize power and influence within an organization Ability to obtain resources enhances prestige.

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Departments believe they have a legitimate claim on resources - exercising that claim causes conflict. Limited resource conflict occurs frequently between government, NGO, and membership organizations. ➔ Ex: many unions today fight each other for membership just as much, if not more than, they do corporate management. ➔ Conflict between the various branches of the U.S. armed forces arises as they fight for their share of a reduced military budget. ◆ Former U.S. defense secretary Chuck Hagel recommended cutting the U.S. Army to its smallest size since WWII. This and other cuts triggered the most intense conflict (between branches) in two decades. Typical defense budget breakdown as follows: ● 30% Air Force ● 30-35% Navy and Marine Corps ● 25% Army Marine officials proposed that they focus on quick response actions which they believe will be the type of military operations the U.S. will need in the coming years. Army are also developing the same strategy which would see retooling procedures such as placing Army helios on Navy ships. This puts the Army in direct conflict with the Marines. The Army Chief believes his branch needs to deploy troops quickly in the opening days of a military conflict. The Marine Chief believes that America doesn’t need a second land army nor a second Marine Corps. Rational Versus Political Model The degree of goal incompatibility, differentiation, interdependence, and competition for limited resources determines whether a rational or political model of behavior is used within the organization. Rational Model ➔ When goals are in alignment, there is little differentiation, departments are characterized by pooled interdependence, and resources seem abundant, managers can use a rational model of organization. ➔ It’s an idealistic model that isn’t fully achievable in the real world. ➔ Managers strive to use the model whenever possible ➔ In a rational organization behavior isn’t random or accidental. ➔ Goals are clear and choices are logical ➔ When a decision is needed, the goal is defined, alternatives are defined, choice with the highest probability of success is chosen ➔ Characterized by centralized power & control, extensive information systems, and efficiency orientation. Political Model

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➔ ➔ ➔ ➔ ➔ ➔ ➔ ➔

Differences are great Organization groups have separate interests, goals and values Disagreement and conflict are common Power and influence are needed to reach decisions Groups will engage in the push and pull of debate to decide goals and reach decisions, Information is ambiguous and incomplete. The political model describes the way organizations operate much of the time. It prevails because b/c each department has different interests it wants met and different goals it wants to achieve. ➔ Purely rational procedures don’t work for many circumstances.

Both models are used in an organization and neither characterizes things fully. Each will be used some of the time. Managers strive to adopt rational procedures but find that politics is needed to accomplish objectives. When managers fail to effectively apply the political model conflict can escalate and prevent the organization from achieving important outcomes. Example: ➔ Premio Foods - the CEO and VP of operations tried to use a rational model but discovered that a political model was needed. ➔ The VP suggested implementing a new computerized system that would overhaul the company’s outdated method of forecasting and ordering. Would require changes in every department. ➔ Would save annual cash flow by 500,000 and reduce waste by 150,000 / year. ➔ Even though the numbers were clear the CEO hesitated because of strong objections from his senior managers. ➔ Eventually the CEO decided to implement the program. However, senior managers would show up late or skip meetings held by the VP about implementation altogether. This was because she failed to build a coalition to support the new system. ➔ CEO had to salvage the project by forming a team of senior managers to discuss the new system and get their input on how it should work. Most organizations have at least moderate conflict among departments or other organizational groups.

Here are the top ten problems created when conflict becomes too strong within an organization 1. Communication break down

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2. Performance and productivity decrease 3. Resources and effort are wasted 4. Morale declines; ill will and bad feeling increase 5. Breakdowns in planning and coordination occur 6. Problems are not solved and processes are not implemented 7. Company loses its focus on customers and profits 8. Disputes and the use of negative politics increase 9. Job related stress and workplace tension increase 10. Employees see and follow a poor example set by managers Good managers strive to minimize conflict and prevent it from hurting organizational performance and goal attainment. Effective conflict management can have a direct, positive effect on team and organizational performance. Managers should consciously apply a variety of techniques to overcome conflict by stimulating cooperation and collaboration among departments to support the attainment of organizational goals. Tactics for Enhancing Collaboration include the following:

Tactics for Enhancing Collaboration 1. Create integration devices task forces, project managers and boundary spanners can be used as integration devices. Bring together representatives from conflicting departments in joint problemsolving teams - effective way to enhance collaboration b/c reps learn to understand each other’s point of view. Can be assigned to achieve cooperation and collaboration by meeting with members of the respective departments and exchanging information. The integrator must understand each group’s problems. Must move both toward a mutually acceptable solution. Teams and task forces reduce conflict/increase cooperation b/c they Labor Management integrate people from different departments. Teams - designed to increase worker participation and provide a cooperative model for solving union-management problems. Examples: International Speciality Products Corp. in Kentucky set up a leadership team of two managers and two union members. Each of plants 7 operating areas is jointly led by a management rep and a union rep. This system had lowered costs while increasing quality and profitability.

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2. Use confrontation and negotiation Confrontation - parties engaged in conflict directly engage one another and try to work out their differences. Negotiation - the bargaining process that often occurs during confrontation and enables the parties to systematically reach a solution. These techniques bring together appointed reps from the departments together to work out a serious dispute. This technique will involve some risk. There is no guarantee that conversations won’t veer off track or that emotions won’t get out of control. If members are able to resolve disagreements based on face-to-face interactions, they will gain a new respect for one another. Future collaboration becomes easier. This technique can create a solid foundation for permanent attitude change. They are successful when winmanagers create a: win situation - both sides adopt a positive attitude and strive to resolve the conflict in a way that will benefit each other. With a win-win situation you define the problem as mutual , communicating openly and avoiding threats. Understanding can be changed while the dispute is resolved. win-lose situation - each side tries to defeat one another. Creating a win-lose situation will result in a breakdown of negotiations. One type of negotiation tactic used to resolve disputes between employees and management is collective bargaining - Bargaining process accomplished through a union and results in an agreement that specifies each party’s responsibilities for the next two or three years. 3. Schedule intergroup consultation Used when interdepartmental conflict is severe and enduring and members are suspicious and uncooperative. Top management intervenes as third parties to help resolve the conflict or they bring in third party consultants. This process is called workplace mediation - a strong intervention to reduce conflict because it involves bringing the disputing parties together and allowing each side to present its version of the situation. The technique was developed by psychologists Robert Blake, Jane Mouton and Richard Walton. Department members attend a workshop which may last for several days, away from day-to-day work problems. This approach is similar to the organization development approach. Separate conflicting groups. Each group is invited to make a list of perceptions of itself and the other group. Group reps publicially share these perceptions. Groups discuss results together. Can be quite demanding for everyone involved. If handled correctly, these sessions can help departmental employees understand each other much better. Can lead to improved attitudes and better working relationships for years to come. 4. Create shared mission and superordinate goals. Another strategy is for management to create a shared mission and establish superordinate goals that require cooperation among departments. Organizations that have strong constructive cultures are likely to have a united cooperative workforce. Studies show that when employees from different departments see that their goals are linked, they will openly share resources and

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information. To be effect superordinate goals must be substantial and employees must have the time and incentives to work cooperatively. 5. Practice member rotation. Rotation - individuals from one department are asked to work in another department either temporary or on a permanent basis. The advantage: individuals become submerged in the values, attitudes, problems and goals of the other department. They can also explain the position, attitudes, values, problems and goals of their original department to their new colleagues. This enables frank accurate exchange of views and information. It works slowly to resolve conflict. Can eventually change the underlying attitudes and perceptions that promote conflict. ➔ Ben Harowitz, co-founder of venture capital firm Andereessen Harowitz, used what he calls the Freaky Friday Management Technique to solve a difficult conflict between the Sales engineering and CS departments. When the two departments went to war, Harowitz was at a loss. Both teams were made up of first-rate people. Both were led by excellent managers. After watching the movie Freaky Friday, he decided that he would have managers of both departments switch places. After a week in each other’s departments, both managers understood the core issues of the dispute and were able to quickly implement solutions.

Power and Organizations Power is an intangible force in an or...