Managing Conflict, Politics,and Negotiation

chapter seventeen

McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

Learning Objectives

1. Explain why conflict arises, and identify the types and sources of conflict in organizations.

2. Describe conflict management strategies that managers can use to resolve conflict effectively.

3. Understand the nature of negotiation and why integrative bargaining is more effective than distributive negotiation.

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Learning Objectives

4. Describe ways in which managers can promote integrative bargaining in organizations

5. Explain why managers need to be attuned to organizational politics, and describe the political strategies that managers can use to become politically skilled.

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Organizational Conflict

Organizational Conflict└ The discord that arises when goals, interests or

values of different individuals or groups are incompatible and those people block or thwart each other’s efforts to achieve their objectives.

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Organizational Conflict

Conflict is inevitable given the wide range of goals for the different stakeholder in the organization

Conflict can also exist between departments and divisions that compete for resources

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The Effect of Conflict on Organizational Performance

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Types of Conflict

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Figure 17.2

Types of Conflict

Interpersonal Conflict└ Conflict between individuals due to differences in

their goals or values. Intragroup Conflict

└ Conflict within a group, team or department

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Types of Conflict

Intergroup Conflict└ Conflict between two or more teams, groups or

departments.└ Managers play a key role in resolution of this

conflict Interorganizational Conflict

└ Conflict that arises across organizations.

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Sources of Conflict

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Sources of Conflict

Different Goals and Time Horizons└ Different groups have differing goals and focus.

Overlapping Authority└ Two or more managers claim authority for the

same activities which leads to conflict between the managers and workers.

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Sources of Conflict

Task Interdependencies└ One member of a group or a group fails to finish a

task that another member or group depends on, causing the waiting worker or group to fall behind.

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Sources of Conflict

Different Evaluation or Reward Systems└ A group is rewarded for achieving a goal, but

another interdependent group is rewarded for achieving a goal that conflicts with the first group.

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Sources of Conflict

Scarce Resources└ Managers can come into conflict over the

allocation of scare resources. Status Inconsistencies

└ Some individuals and groups have a higher organizational status than others, leading to conflict with lower status groups.

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Conflict Management Strategies

Functional Conflict Resolution└ Handling conflict by

compromise or collaboration between parties.

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Conflict Management Strategies

Compromise└ each party is concerned about not only their goal

accomplishment but also the goal accomplishment of the other party and is willing to engage in a give-and-take exchange to reach a reasonable solution.

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Conflict Management Strategies

Collaboration└ both parties try to satisfy their goals by coming up

with an approach that leaves them both better off and does not require concessions on issues that are important to either party.

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Conflict Management Strategies

Accommodation └ An ineffective conflict-handling approach in which

one party, typically with weaker power, gives in to the demands of the other, typically more powerful, party.

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Conflict Management Strategies

Avoidance └ An ineffective conflict handling approach in which

the parties try to ignore the problem and do nothing to resolve their differences.

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Conflict Management Strategies

Competition └ An ineffective conflict handling approach in which

each party tries to maximize its own gain and has little interest in understanding the other party’s position and arriving at a solution that will allow both parties to achieve their goals.

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Strategies Focused on Individuals

Increasing awareness of the sources of conflict Increasing diversity awareness and skills Practicing job rotation or temporary

assignments Using permanent transfers or dismissals when

necessary

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Strategies Focused on the Whole Organization

Changing an organization’s structure or culture

Altering the source of conflict

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Negotiation

Negotiation└ method of conflict resolution in which the parties

consider various alternative ways to allocate resources to come up with a solution acceptable to all of them.

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Negotiation

Third-party negotiator └ An impartial individual with expertise in handling

conflicts and negotiations who helps parties in conflict reach an acceptable solution.

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Third-party Negotiators

Mediators └ facilitates negotiations but no authority to impose

a solution Arbitrator

└ can impose what he thinks is a fair solution to a conflict that both parties are obligated to abide by

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Example – NC Association of Family Mediators

The North Carolina Association of Professional Family Mediators ("NCAPFM") is the state-wide professional organization for family mediators.

Most members have private practices for providing mediation services to the public.

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Distributive Negotiation

Distributive negotiation└ Parties perceive that they have a “fixed pie” of

resources that they need to divide└ Take a competitive adversarial stance└ See no need to interact in the future└ Do not care if their interpersonal relationship is

damaged by their competitive negotiation

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Integrative Bargaining

Integrative bargaining└ Parties perceive that they might be able to

increase the resource pie by trying to come up with a creative solution to the conflict

└ View the conflict as a win-win situation in which both parties can gain

└ Handled through collaboration or compromise

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Strategies to Encourage Integrative Bargaining

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Table 17.1

Strategies to Encourage Integrative Bargaining

Superordinate goals └ goals that both parties agree to regardless of the

source of their conflict

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Organizational Politics

Organizational Politics└ The activities managers engage in to increase

their power and to use power effectively to achieve their goals or overcome resistance or opposition.

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Organizational Politics

Political strategies└ Tactics that managers use to increase their power

and to use power effectively to influence and gain the support of other people while overcoming resistance or opposition.

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The Importance of Organizational Politics

Politics└ Can be viewed negatively when managers act in

self-interested ways for their own benefit.└ Also a positive force that can bring about needed

change when political activity allows a manager to gain support for needed changes that will advance the organization.

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Political Strategies for Increasing Power

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Figure 17.4

Political Strategies for Gaining and Maintaining Power

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Strategies

Controlling Uncertainty Reduce uncertainty for others in the firm

Making Oneself Irreplaceable

Develop valuable special knowledge or skills

Being in a Central Position

Have decision-making control over the firm’s crucial activities and resources

Generating Resources Hire skilled people or find financing when it is needed

Building Alliances Develop mutually beneficial relations with others inside and outside the organization

Political Strategies for Exercising Power

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Figure 17.5

Strategies for Exercising Power

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Strategies

Relying on Objective Information

Providing objective information causes others to feel the manager’s course of action is correct.

Bringing in an Outside Expert

Using an expert’s opinion to lend credibility to manager’s proposal

Controlling the Agenda Influencing which alternatives are considered or even whether a decision is made

Making Everyone a Winner

Making sure that everyone whose support is needed benefits personally from providing that support.