1. Michael A. Hitt C. Chet Miller Adrienne Colella Slides by R. Dennis Middlemist Michael A. Hitt C. Chet Miller Adrienne Colella Chapter 12 Conflict, Power, and Politics

2. Knowledge Objectives 1.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.

3. Knowledge Objectives 5.Understand how organizations can manage conflict. 6.Explain why organizations must have power to function, and discuss how people gain power in organizations. 7.Define organizational politics and the tactics used to carry out political behavior.

4. The Nature of Conflict Conflict – The process in which one party perceives that its interests are being opposed or negatively affected by another party Dysfunctional conflict – Conflict that is detrimental to organizational goals and objectives Functional conflict – Conflict that is beneficial to organizational goals and objectives

5. Diversification Strategy and Structure Effects on Individuals Anger Hostility Frustration Stress Guilt Low job satisfaction Embarrassment Adapted from Exhibit 12-1: Potential Negative Effects of Conflict on Individuals, Interpersonal Relationships, and Behavior Exhibit 12-1 Potential Negative Effects of Conflict on Individuals, Interpersonal Relationships, and Behavior Effects on Behavior Reduced motivation and productivity Avoidance of other party Emotional venting Threats Aggression (psychological or physical) Effects on Interpersonal Relationships Distrust Misunderstandings Inability to see other’s perspective Questioning of other’s intentions Changed attitudes towards others

6. Diversification Strategy and Structure Effects on Individuals Exhibit 12-1 Potential Negative Effects of Conflict on Individuals, Interpersonal Relationships, and Behavior Effects on Behavior Quitting Absenteeism Biased perceptions Stereotyped thinking Increased commitment to one’s position Demonizing others Effects on Interpersonal Relationships Changed amount of power Changed quality of communication Changed amount of communication Adapted from Exhibit 12-1: Potential Negative Effects of Conflict on Individuals, Interpersonal Relationships, and Behavior

7. Functional Conflict Potential Benefits of Conflict Facilitation of Change Improved Problem Solving Enhanced Morale and Cohesion More Spontaneous Communication Stimulation of Creativity

8. Types of Conflict Relationship Conflict Task Conflict Process Conflict Relationship conflict Conflict that arises out of personal differences between people, such as differing goals, values, or personalities Task conflict Conflict that involves work content and goals Process conflict Conflict that arises over responsibilities and how work should be completed

9. Effects of Conflict on Task Performance Degree of Conflict Task Performance High Low High Task Conflict Relationship Conflict Process Conflict Adapted from Exhibit 12-2: The Effects of Different Types of Conflict on Task Performance

10. Causes of Conflict Conflict Structural Factors Communication Cognitive Factors Individual Characteristics History

11. Causes of Conflict Structural factors – Increased specialization – Interdependence among parties – Physical layout – Centralization versus decentralization Communication Cognitive factors – Differing expectations – Perceptions of the other party

12. Causes of Conflict Individual characteristics – Personality – Value differences – Goals History – Past performance – Previous interactions

13. Conflict Escalation Conflict escalation – Process whereby a conflict grows increasingly worse over time Escalation of conflict is more likely when – Cultural differences exist between the parties – The parties have a history of antagonism – The parties have insecure self-images – Status differences between parties are uncertain – Parties have strong ties to each other – The parties do not identify with one another – One or both parties has the goal of beating the other party

14. Conflict Outcomes Degree of Satisfaction of Party B’s Concern Degree of Satisfaction of Party A’s Concern High Low High Adapted from Exhibit 12-3: Possible Conflict Outcomes CompromiseWin-LoseWin-WinLose-LoseLose-Win

15. Responses to Conflict Assertiveness Cooperativeness High Low High Adapted from Exhibit 12-3: Possible Conflict Outcomes CompromisingAccommodatingCollaboratingAvoidingCompeting

16. Conflict Resolution Steps Make a diagnosis – Diagnosis best carried out by third party not involved in the conflict – Is conflict functional or dysfunctional? – What is the cause of the conflict? – What are the expectations of the parties? Make Diagnosis

17. Conflict Resolution Steps Select appropriate conflict- management response – Determine situational factors – Have parties select response that will help them resolve the conflict – Competing, accommodating, avoiding, compromising, collaborating? Make Diagnosis Select conflict- management response

18. Conflict Resolution Steps Select appropriate conflict- resolution response – Those that can be used to achieve win-lose or lose win – Those that can be used to achieve win-win – Those that can be used to compromise or collaborate Make Diagnosis Select conflict- management response Select conflict- resolution tactics

19. Conflict Resolution Steps Implement resolution technique – Conflict situations are highly sensitive and require expertise for resolution – Often calls for the use of an experienced third party Follow up – Managers and associates must monitor the solution and follow up to ensure that the conflict has been, in fact, resolved Make Diagnosis Select conflict- management response Select conflict- resolution tactics Implement resolution technique Follow up

20. Conflict Management Tactics Win-Lose or Lose-Win Situation Tactics Convince the other that breaking off negotiations would be costly for the other or for yourself. Convince the other that you feel very committed to reaching your target outcome. Prevent the other from making a firm commitment to an outcome close to the other’s target. Allow the other to abandon his position without loss of face or other cost. Convince the other that your own target outcome is fair. Convince the other that their target outcome is unfair. Convince the other that important third parties favor your own target outcome. Use non-hostile humor to build positive affect. Distract the other to impair the other’s ability to concentrate. Adapted from Exhibit 12-4: Conflict Management Tactics Exhibit 12-4Conflict Management Tactics

21. Win-Win Situation Tactics Show the other that their concerns are important to you. Show the other that your target outcome is too important to compromise. Show the other that a win-win outcome is a possibility. Demonstrate that you are flexible with respect to various solutions. Insist on fair criteria for deciding among possible solutions. Make collaborative norms salient. Minimize use of behaviors or tactics that would cause negative emotions. Provide an emotionally supportive climate. Shield the other from emotional distractions. Adapted from Exhibit 12-4: Conflict Management Tactics Exhibit 12-4Conflict Management Tactics

22. Negotiation – A process by which parties with different preferences and interests attempt to agree on a solution – Often requires parties to compromise, thus changing their original positions – Parties must bargain in good faith – Requires managers to build their skills in negotiation – Power underlies all conflict situations, and is critical to resolving the conflict

23. Power – The ability of those who hold it to achieve outcomes they desire Bases of individual power – Legitimate power (formal authority) – Reward power – Coercive power – Expert power – Referent power

24. Power Strategic contingencies model of power – People and organizational units gain power by being able to address the major problems and issues faced by the organization 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 Be irreplaceable Control the decision process by – Setting parameters on the types of solutions that are acceptable – Control the range of alternatives to be considered

25. Organizational Politics Organizational 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 (79%) feel they have been harmed by political behavior of others – Fewer managers and associates (45%) feel they have gained poser and influence by acting politically

26. Political Tactics 1.Rational persuasion Political Tactics Use logical arguments or factual information to persuade targets that the persuader’s request will result in beneficial outcomes, ignoring potential disadvantages. Get the target to participate in the planning or execution of whatever the politician wants accomplished. Focus on the target’s loyalty or affection immediately prior to asking for her help in doing something. Make the target feel good by flattering or helping him. Appeal to the targets’ important values and ideals. Volunteer a favor in order to gain a favor in return. People with common interests join together to pursue their common interest. Make a request seem legitimate or official. Use threats, nagging, or demands to influence targets. 2.Consultation 3.Personal appeal 4.Ingratiation 5.Inspirational appeal 6.Exchange 7.Coalition 8.Legitimizing 9.Pressure

27. Political Skill Political skill – The ability to effectively understand others at work and to use this knowledge to enhance one’s own objectives People with strong political skill – Can imagine themselves in others’ position or see their point of view – Can understand situations, determine the best response and adjust their behavior accordingly – Develop large networks (known by many people) – Easily gain cooperation of others – Make others feel at ease