1. Chapter 12: Conflict, Power, and Politics
Joanna DiFazio
Jamie McGill
Ryan Watson

2. Purpose of this Chapter
To discuss the nature of conflict and use of power and politics to manage and reduce conflict among groups.

3. Agenda Define Intergroup Conflict Sources of Conflict
Rational vs. Political model
Power and Authority
Vertical Sources of Power
Horizontal Sources of Power
Summary
Class Exercise

4. Class Discussion - Case Study

5. Intergroup Conflict in Organizations
Intergroup Conflict (IC): behaviour that occurs among organizational groups when individuals identify with one group and perceive that other groups may block their group’s goal achievement.
Intergroup Conflict requires 3 ingredients:
Group identification
Observable group differences
Frustration

6. Sources of Conflict
Specific organizational characteristics can generate conflict.
These sources of intergroup conflict are:
Goal incompatibility
Differentiation
Limited Resources
Task Interdependence

7. Sources of Conflict: Goal Incompatibility
Greatest cause of intergroup conflict in organizations.*
Achievement of one department’s goals interfere with another department’s goals.

8. Goal Incompatibility Example

9. So What? How do we fix this?
Align department goals with organizational goals
Integrative devices
Confrontation and negotiation

10. EGSS Link Goal Incompatibility Conflict
Environment: Low Uncertainty & Low-moderate Uncertainty
Goals: Overall performance and productivity
Strategy: Low-cost leadership (Focused), Defender/Reactor
Structure: Mechanistic

11. Sources of Conflict: Differentiation
Differentiation: departments or divisions within an organization that often differ in values, attitudes and standards of behaviour.
Functional specialization first, then influence by department leads to conflict.
Example: Subcultures

12. So What?
How do we fix this?
Member rotation
Integrative devices

13. EGSS Link Differentiation Conflict
Environment: Simple + Unstable and Complex + Unstable
Goal: Resources, innovation, creativity, and employee development
Strategy: Differentiation (Focused), Analyzer/Prospector
Structure: Organic

14. Sources of Conflict: Limited Resources
Limited Resources: competition between groups for what members perceive as limited resources.
Groups want to increase their own resources: hence conflict.
Examples: Inflating budgets, working behind the scenes to obtain resources
Resources are seen as symbol of power.

15. So What? How do we fix this? Build coalitions and expand networks
Make a direct appeal
Create/Reduce dependency

16. EGSS Link Limited Resources
Environment: Simple + Unstable and Complex + Unstable
Goal: Resources, innovation, creativity, and employee development
Strategy: Differentiation (Focused), Analyzer/Prospector
Structure: Organic

17. Sources of Conflict: Task Interdependence
Task Interdependence: refers to dependence of one unit on another for materials, resources, or information.
3 Types:
pooled interdependence
sequential interdependence
reciprocal interdependence
As interdependence increases, potential for conflict increases!

18. So What? How do we fix this? Coping with uncertainties
Reduce dependency
Member rotation
Create integrative devices

19. EGSS Link Task Interdependence Conflict
Environment: Low Uncertainty & Low-moderate Uncertainty
Goals: Overall performance and productivity
Strategy: Low-cost leadership (Focused), Defender/Reactor
Structure: Mechanistic

20. Question
Based on the sources of conflict, which one(s) do you think contribute to creating a toxic culture?
Goal incompatibility
Differentiation
Limited Resources
Task Interdependence

21. Rational vs. Political Model
The degree of goal incompatibility, differentiation, task interdependence, and conflict over limited resources determines whether a rational or political model of behaviour is used within the organization to accomplish goals.
The rational model where behavior is not random or accidental
Goals are clear and choices are made logically
The political model involves push and pull debate regarding goals
Organization groups have separate interests and goals

22. Rational vs. Political Model – Exhibit 12.2

23. Power and Authority
What is the difference between power and authority?
AUTHORITY
POWER
Right to do something
Ability to do something
Derived from organization position
Derived from many sources
Always flows downward – can be delegated
Flows in all directions
Legitimate
Maybe illegitimate
Narrow term
Broad concept

24. Power and Authority
Power: the potential ability of one department to influence other departments to carry out orders.
Intangible and difficult to measure
Can be exercised in vertical or horizontal directions
Authority: a force for achieving desired outcomes
But only as prescribed by the formal chain of command and reporting relationships

25. Vertical Sources of Power
Formal Position – legitimate power accrued to top positions
Resources – resources can be used as a tool for power
Control of Information – information is a primary business source
Network Centrality – being centrally located in the organization and having access
People – loyal executives/managers

26. Horizontal Sources of Power
Relationships across departments, divisions, units
Strategic Contingencies – groups most responsible for key organization issues
Power Sources – five power sources that departments may possess

27. Horizontal Sources of Power

28. EGSS Summary Goal Incompatibility Differentiation Limited Resources
Task Interdependence
Environment
Simple + Stable Complex + Stable
Simple + Unstable Complex + Unstable
Simple & Unstable
Complex & Unstable
Simple + Stable Complex + Stable
Goals
Overall Performance
Productivity
Market Share
Employee Development
Resources
Innovation & Creativity
Strategies
Low-Cost Leadership (Focus)
Defender/Reactor
Differentiation (Focus)
Prospector/Analyzer
Structure
Mechanistic
Organic

29. Methods to Overcome Conflict
Sources of Conflict
Methods
Goal Incompatibility
Aligning department goals with organization goals
Integrative devices
Confrontation and negotiation
Differentiation
Member rotation
Limited Resources
Build coalitions and expand networks
Make a direct appeal
Reduce dependency
Task Interdependence
Coping with uncertainties

30. Case Study Questions Based on the Case
What is Toyota's External Environment?
What is Toyota's Goal?
What is Toyota's Strategy?
What is Toyota's Structure?
Based on the EGSS what are some potential misalignments in relation to conflict and power?
How would you solve these misalignments?

31. THANK YOU