12-1

Michael A. Hitt

C. Chet Miller

Adrienne Colella

Chapter 12 Conflict, Conflict,

Negotiation, Negotiation, Power, and Power, and

PoliticsPolitics

Slides by Ralph R. Braithwaite

12-2

Green ConflictGreen Conflict

Exploring Behavior in Action

Michael Dell

Do you think companies are becoming more aware of the impact of their businesses on the environment?

Can the goals of environmental and conservation groups be compatible with the goals of businesses? Why or why not?

What are the upside gains for businesses that become more environmentally friendly? What are the consequences if they don’t?

12-3

Knowledge ObjectivesKnowledge Objectives1. Explain how conflict can be either functional or dysfunctional,

and distinguish among various types of conflict.2. Discuss common causes of conflict.3. Describe conflict escalation and the various outcomes of

conflict.4. Explain how people respond to conflict and under what

circumstances each type of response is best.5. Understand how organizations can manage conflict.6. Describe the basic negotiation process, strategies, and

tactics.7. Explain why organizations must have power to function, and

discuss how people gain power in organizations.8. Define organizational politics and the tactics used to carry out

political behavior.

12-4

The Nature of ConflictThe Nature of Conflict

DysfunctionalDysfunctionalConflictConflict

ConflictConflict

FunctionalFunctionalConflictConflict

12-5

Effects of ConflictEffects of Conflict

Adapted from Exhibit 12-1: Effects of Conflict

Effects onEffects onIndividualsIndividuals

Effects onEffects onBehaviorBehavior

Effects onEffects on Interpersonal InterpersonalRelationshipsRelationships

12-6

Functional ConsequencesFunctional Consequences

Facilitation of Facilitation of ChangeChange

Improved Improved Problem Problem SolvingSolving

Enhanced Enhanced Morale and Morale and CohesionCohesion

Spontaneity in Spontaneity in CommunicationCommunication

Stimulation of Stimulation of CreativityCreativity

Potential Potential Benefits of Benefits of

ConflictConflict

12-7

Types of ConflictTypes of Conflict

SubstantiveSubstantiveConflictConflict

SubstantiveSubstantiveConflictConflict

ProceduralProceduralConflictConflict

ProceduralProceduralConflictConflict

PersonalPersonalConflictConflict

PersonalPersonalConflictConflict

12-8

Effects of Types of Conflict on Effects of Types of Conflict on Task PerformanceTask Performance

Adapted from Exhibit 12-2: The Effects of Different Types of Conflict on Task Performance

Degree of Conflict

Ta

sk P

erfo

rma

nc

e

High

LowLow High

Substantive Conflict

Personal Conflict

Procedural Conflict

12-9

Causes of ConflictCauses of Conflict

ConflictConflict

Structural Factors

Communication

Cognitive Factors

Individual Characteristics

History

12-10ExperiencingStrategic OB

Un-UnitedUn-United

What were some of the conflicts that United was experiencing even before September 11, 2001?

What could Jim Goodwin, United’s CEO, have done differently?

How would you characterize the relationship between union and management? What could each side have done to more effectively deal with the issues the organization was experiencing?

Do you think United will survive?

12-11ExperiencingStrategic OB

Rosie vs. DonaldRosie vs. Donald

What was your reaction to the escalating conflict between Rosie O’Donnell and Donald Trump?

Was anything ever resolved between the two of them?

Do you agree that “each of the parties harmed the other but did equal harm to themselves”?

What has been your experience with escalating conflict?

12-12

Conflict EscalationConflict Escalation

12-13

Conflict OutcomesConflict Outcomes

Degree of Satisfaction of Party B’s Concern

Lose-WinLose-Win

Win-WinWin-WinD

eg

r ee

of

Sa t

isfa

c ti o

n

of

Pa r

t y A

’s C

on

ce

rn

Low High

High

Lose-LoseLose-Lose

Win-LoseWin-Lose

Adapted from Exhibit 12-3: Possible Conflict Outcomes

CompromiseCompromise

12-14

Cooperativeness

CompetingCompeting

AvoidingAvoiding AccommodatingAccommodating

CollaboratingCollaborating

CompromisingCompromising

Ass

erti

ven

ess

Low High

High

Responses to ConflictResponses to Conflict

12-15

NegotiationNegotiationA process by which parties with different preferences and interests attempt to agree on a solution.

12-16

Negotiation StrategiesNegotiation Strategies

DistributiveBargaining

IntegrativeBargaining

12-17

Negotiation TacticsNegotiation Tactics

Distributive Tactics

Integrative Tactics

Attitudinal Structuring Tactics

Adapted from Exhibit 12-4: Negotiation Tactics

12-18

The Negotiation ProcessThe Negotiation Process

PreparationPreparation

DeterminingDeterminingthe Negotiationthe Negotiation

ProcessProcess

Negotiating theNegotiating theAgreementAgreement

Closing theClosing theDealDeal

BATNA

12-19

ManagerialAdvice

Costly Conflict ResolutionCostly Conflict ResolutionSalary negotiations – classic case of conflict

• Do your homework

• Determine your BATNA

• Know what salary you want

• Never make vague counteroffers

• Avoid a hard stand – winner’s remorse

• Be realistic

• Be polite

• Never inflate past salary or experience

• Calculate benefits as part of the package

• Don’t play “hard to get” when little bargaining power

12-20

PowerPowerThe ability of those who hold it to achieve outcomes they desire. The ability of one person to get another person to do something that he or she would not normally do. Persuasion is often the exercise of power.

12-21

Bases of PowerBases of Power

Coercive Power

Reward PowerLegitimate Power

Referent Power

Expert Power

12-22

An Example of PowerAn Example of Power

Michael Eisner

• Eisner had a great deal of legitimate power.

• Eisner lavished attention on board members, important investors, Disney family members, and others.

• Eisner limited access to and controlled key information.

• Eisner divided those who might oppose him and made himself indispensable.

• Eisner restricted the power of others.

Did he use his power for the good of the organization?

12-23

Strategic Contingencies ModelStrategic Contingencies Model

• People need to identify strategic contingencies faced by an organization and gain control over them

• Anyone who can help reduce uncertainties faced by the organization will gain power

• People who are irreplaceable have power

• Power can result from controlling the decision process, either by setting parameters on the types of solutions that are acceptable or by controlling the range of alternatives to be considered

People and organizational units gain power by being able to address the major problems and issues faced by the organization.

12-24

Organizational PoliticsOrganizational Politics• Behavior that is directed toward furthering one’s own

self-interests without concern for the interests or well-being of others

• Goal of political behavior is to exert influence on others

• Most managers and associates (70%) feel they have been harmed by political behavior of others

• Fewer managers and associates (45%) feel they have gained power and influence by acting politically

12-25

Levels of PoliticsLevels of Politics

An associate who usespolitics to suit his or herbest interests – takingsole credit for a group

project for example

IndividualIndividual

Often in the formof coalitions – a

group whose membersact together toactively pursue

a common interest

GroupGroup

12-26

Political TacticsPolitical Tactics

ConsultationConsultationRationalRationalPersuasionPersuasion

PersonalPersonalAppealAppeal IngratiationIngratiation

InspirationalInspirationalAppealAppeal

ExchangeExchangeCoalitionCoalitionLegitimizingLegitimizing

PressurePressure

12-27

Political SkillPolitical Skill

• Find it easy to imagine themselves in others’ positions or see their points of view

• Can understand situations, determine the best response and adjust their behavior accordingly

• Develop large networks and are known by many people

• Easily gain cooperation of others

• Make others feel at ease

The ability to effectively understand others at work and to use this knowledge to enhance one’s own objectives. People with strong political skills:

12-28

The Strategic LensThe Strategic Lens

1. Can you describe a situation in which conflict was functional (i.e., had positive outcomes)? If so, in what ways was the conflict functional?

2. A strategic leader must use power in many actions that he or she takes. In what ways can he or she exercise this power to achieve positive outcomes?

3. How can knowledge of conflict, negotiations, power, and politics in organizations help you be more successful in your career? Please be specific.

12-29

QuestionsQuestions