Managing Conflict, Politics, and Negotiation

Chapter 17: Managing Conflict, Politics, and Negotiation.

Organizational Conflict

  • Definition: Organizational conflict is defined as the discord that arises when the goals, interests, or values of different individuals or groups are incompatible, and those individuals or groups block one another’s attempts to achieve their objectives.

  • Key Points:
      - Conflict is inevitable in organizations and can occur across various dimensions.
      - Not all conflicts are detrimental; they can lead to growth and improved performance in certain scenarios.

Types of Conflict in Organizations
  • Interpersonal Conflict: Conflict between individual employees due to differences in goals or values.

  • Intragroup Conflict: Conflict within a group, team, or department.

  • Intergroup Conflict: Conflict between two or more groups, teams, or departments.

  • Interorganizational Conflict: Conflict that occurs across different organizations.

Sources of Conflict in Organizations

  • Different Goals and Time Horizons: Groups within organizations often have differing objectives and timelines, leading to friction.

  • Overlapping Authority: When two or more managers claim authority over the same activities, conflict is likely to arise.

  • Task Interdependencies: Conflict may emerge if one member or group fails to complete their tasks, impeding others’ ability to proceed.

  • Different Evaluation or Reward Systems: Situations where one group is rewarded for a goal that conflicts with the objectives of another group can create discord.

  • Scarce Resources: Conflicts can occur among managers over limited resources available for projects and initiatives.

  • Status Inconsistencies: Variability in organizational status among individuals and groups can lead to resentment and conflict.

Conflict Management Strategies

  • Compromise: A solution where each party considers not only their own goals but also the other party's, leading to a middle-ground resolution.

  • Collaboration: Both parties work together to find a mutually beneficial solution without significant concessions.

  • Accommodation: A less effective strategy where a weaker party concedes to the demands of a stronger party, which can create feelings of dissatisfaction.

  • Competition: A counterproductive approach where each party maximizes their gain with little concern for the other party's position, often damaging interpersonal relationships.

  • Avoidance: Ignoring the conflict altogether, which rarely solves the underlying issues.

  • Problem-Solving Approach: Focuses on objective outcomes while aiming to sustain social relationships among conflicting parties.

Strategies Focused on Individuals
  • Increasing awareness of sources of conflict.

  • Enhancing diversity awareness and skills.

  • Implementing job rotation or temporary assignments to mitigate conflict.

  • Using permanent transfers or dismissals when necessary and justified.

Negotiation

  • Definition: A method of conflict resolution where the parties examine various alternatives to allocate resources satisfactorily.

  • Third-Party Negotiators: Individuals like mediators and arbitrators assist in the negotiation process.

Types of Third-Party Negotiators
  • Mediator: Facilitates negotiation but does not have the authority to impose a solution.

  • Arbitrator: Has the power to impose a resolution that both parties must accept.

Types of Negotiation
  • Distributive Negotiation:
      - Adversarial approach where parties compete for resources perceived as limited (the “fixed pie”).
      - Motivated to minimize their concessions while achieving the best possible outcome for themselves, even at the risk of damaging relationships.

  • Integrative Bargaining:
      - A cooperative form of negotiation where parties view the resources as expandable, seeking win-win solutions.
      - Focused on collaboration and compromise to achieve outcomes that benefit all involved.

Strategies to Encourage Integrative Bargaining
  • Superordinate Goals: Goals that both parties agree upon, independent of the reasons for their conflict.
      - Example: Hofbeck and Steinberg’s German restaurant model exemplifies aligning goals despite conflicting interests.

Negotiation Strategies for Integrative Bargaining
  • Emphasize superordinate goals.

  • Focus on solving the problem rather than attacking the people involved.

  • Prioritize interests over specific demands from each party.

  • Create innovative options for mutual gain.

  • Ensure outcomes are perceived as fair by all involved.

Organizational Politics Explained

  • Organizational Politics: Activities undertaken by managers to enhance their power and effectively navigate through challenges or opposition.

  • Political Strategies: Tactical maneuvers utilized by managers to garner support and influence others while managing resistance.

Importance of Organizational Politics
  • Can have both negative and positive implications:
      - Negative if serving solely self-interests.
      - Positive when used to enact necessary changes aligning with organizational goals.

Political Strategies for Increasing Power
  1. Controlling Uncertainty: Reducing uncertainty for others within the organization.

  2. Being Irreplaceable: Establishing unique knowledge or expertise.

  3. Central Positioning: Securing decision-making power over critical activities and resources.

  4. Generating Resources: Hiring skilled individuals or acquiring needed financing.

  5. Building Alliances: Forming beneficial relationships both internally and externally.

Political Strategies for Exercising Power
  1. Relying on Objective Information: Providing factual data to support decisions.

  2. Bringing in an Outside Expert: Utilizing expert opinions to lend credibility.

  3. Controlling the Agenda: Influencing what alternatives are discussed and the decisions made.

  4. Making Everyone a Winner: Ensuring that all involved parties gain benefits for their support.