The Relationship Between Conflict and Organizational Effectiveness FIGURE 14-2 The Relationship Between Conflict and Organizational Effectiveness Level of conflict A Low High Organizational effectiveness 4

Organizational Theory Pondy’s Model of Conflict Stage 1: Latent conflict—no outright conflict exists, but there is a potential for conflict because of several factors. According to Pondy, all conflict arises because differentiation leads to the establishment of subunits that have different goals and perceptions. 5

Organizational Theory Pondy’s Model of Conflict Stage 1: Latent conflict—sources of conflict: Interdependence Differences in goals and priorities Bureaucratic factors Incompatible performance criteria Competition for resources 6

Sources of Organizational Power FIGURE 14-4 Sources of Organizational Power Authority Control over resources Centrality Unobtrusive power uncertainty information Nonsubstitutability Functional or Divisional Power 16

Organizational Theory The 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 6