Ch14 - Organisation theory design and change gareth jones

14- Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1

Organizational Theory, Design, and Change

Sixth EditionGareth R. Jones

Chapter 14

Managing Conflict, Power, and Politics


Learning Objectives

1. Describe the nature of organizational conflict, its sources, and the way it arises between stakeholders and subunits

2. Identify the mechanisms by which managers and stakeholders can obtain power and use that power to influence decision making and resolve conflict in their favor


Learning Objectives (cont.)3. Explain how and why individuals and

subunits engage in organizational politics to enhance their control over decision making and obtain the power that allows them to influence the change process in their favor

4. Appreciate the importance of managing an organization’s power structure to overcome organizational inertia, and to bring about the type of changing that promotes performance


What is Organizational Conflict? The clash that occurs when the

goal-directed behavior of one group blocks or thwarts the goals of another

Although conflict is often perceived as something negative, research suggests that some conflict can actually improve organizational effectiveness

Can overcome inertia and lead to learning and change


Figure 14.1: Cooperation and Competition Among Organizational Stakeholders


What is Organizational Conflict? (cont.)

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


Figure 14.2: Relationship Between Conflict and Organizational Effectiveness


Pondy’s Model of Organizational Conflict

Conflict is a process that consists of five sequential stages

Stage 1: Latent conflict: no outright conflict exists, but there is potential for conflict because of several latent factors Sources of conflict include:

Interdependence Difference in goals and priorities Bureaucratic factors Incompatible performance criteria Competition for scarce resources


Pondy’s Model of Organizational Conflict (cont.)

Stage 2: Perceived conflict: subunits become aware of conflict and begin to analyze it

Conflict escalates as groups battle over the cause of conflict

Stage 3: Felt conflict: subunits respond emotionally to each other, and attitudes polarize into “us-versus-them”

Cooperation between units decreases

What began as a small problem escalates into huge conflict


Pondy’s Model of Organizational Conflict (cont.) Stage 4: Manifest conflict:

subunits try to get back at each other

Fighting and open aggression Passive aggression – doing nothing Organizational effectiveness suffers

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

If sources of conflict are not resolved, the dispute will arise again

Conflict aftermath


Figure 14.3: Pondy’s Model of Organizational Conflict


Managing Conflict: Resolution Strategies Organizational conflict can escalate

rapidly and sour an organization’s culture

Managing conflict is an important priority

Organizations must balance the need to have some “good” conflict without letting it escalate into “bad” conflict

Choice of conflict-resolution method depends on the source of the problem


Managing Conflict: Acting at the Level of Structure Because task interdependence and

differences in goals produce conflict, alter the level of differentiation and integration to change relationships

Increase the number of integrating roles

Assign top managers to solve conflict

Rethink the hierarchy/reporting chain to make sure there is no loss of control


Managing Conflict: Acting at the Level of Individuals

Establish a procedural system that allows parties to air their grievances

Important for conflict between management and unions

Use a third-party negotiator Exchange/rotate/terminate individuals CEOs can also use their power to

resolve conflicts and motivate units to cooperate


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

Conflict and power are intimately related


Figure 14.4: Sources of Organizational Power


Sources of Organizational PowerAuthority: power that is

legitimized by the legal and cultural foundations on which an organization is based Empowerment: the deliberate

decentralization of authority

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


Sources of Organizational Power (cont.) Control over information:

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

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


Sources of Organizational Power (cont.) Centrality: the subunits that are

most central to resource flows have the ability to reduce the uncertainty facing other subunits

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


Sources of Organizational Power (cont.)

Unobtrusive power: controlling the premises of decision making

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


Using Power: Organizational Politics Organizational politics:

activities taken within organizations to acquire, develop, and use power and other resources to obtain one’s preferred outcomes in a situation in which there is uncertainty or disagreement about choices


Using Power: Tactics for Playing Politics

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 one’s reputation or that of one’s function

Associating with powerful managers:supporting a powerful manager who is clearly on the way to the top


Using Power: Tactics for Playing Politics (cont.)

Building and managing coalitions Forming relationships with stakeholders

and other subunits around some common issue

Skills in coalition building are important Influencing decision making

Must be circumspect in the use of power Controlling the agenda

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

Bringing in an outside expert Use supposedly neutral outsiders to

support the views of the coalitions


Costs and Benefits of Organizational Politics

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


Costs and Benefits of Organizational Politics (cont.)

If balance of power does not encourage allocation of resources to where value is created, the organization suffers

If powerful managers can suppress views against their interests, debates become restricted, checks and balances fade, bad conflict increases, and organizational inertia increases


Figure 14.5: Maintaining a Balance of Power

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Ch14 - Organisation theory design and change gareth jones