MGMT920 Autumn2013 Lectures Lecture 10

14-Copyright 2007 Prentice Hall 1

Chapter 14

Managing Conflict, Power, and Politics


Learning Objectives1. 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


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


What is Organizational Conflict?

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


Relationship Between Conflict and Organizational Effectiveness


Pondy’s Model of Organizational Conflict


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 a 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


Managing Conflict 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


What factors of the organization would lead to more conflict?


Managing Conflict: Resolution Strategies

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


Managing Conflict: Resolution Strategies (cont.)

Acting at the level of attitudes and 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


How to win in a conflict ?


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, how?


Sources of Organizational Power


Sources of Organizational PowerAuthority: power that is

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

Control over resources: as the organization needs resources, those who have control over the resources have more power

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


Sources of Organizational Power (cont.)

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

Centrality: the subunits that are most central to resource flows have the ability to reduce the uncertainty facing other subunits e.g. faculty at UOWD

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


How to use power ?


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


Tactics for playing Politics Tactics for playing politics to increase

power 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


Tactics for playing Politics (cont.)Tactics for using power

Building coalitions Forming relationships with stakeholders

and other subunits around some common issue

Influencing decision making 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


Costs and Benefits of Organizational Politics

Benefits of organizational politics 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

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


Costs of organizational politics If powerful managers can suppress

views against their interests, debates become restricted, checks and balances fade, bad conflict increases, and organizational inertia increases

Individual goals may get satisfied at the cost of organizational goals

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MGMT920 Autumn2013 Lectures Lecture 10