Chapter 12: Conflict, Power,

and Politics

JOANNA DIFAZIO

JAMIE MCGILL

RYAN WATSON

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Purpose of this Chapter

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

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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

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Class Discussion - Case Study4

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

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Sources of Conflict

Specific organizational characteristics can generate conflict.

These sources of intergroup conflict are:

1. Goal incompatibility

2. Differentiation

3. Limited Resources

4. Task Interdependence

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Sources of Conflict: Goal Incompatibility

Greatest cause of intergroup conflict in organizations.*

Achievement of one department’s goals interfere with another department’s goals.

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Goal Incompatibility Example

So What?

How do we fix this?

Align department goals with organizational goals

Integrative devices

Confrontation and negotiation

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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

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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

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So What?

How do we fix this?

Member rotation

Integrative devices

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EGSS Link

Differentiation Conflict

Environment: Simple + Unstable and Complex + Unstable

Goal: Resources, innovation, creativity, and employee development

Strategy: Differentiation (Focused), Analyzer/Prospector

Structure: Organic

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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

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So What?

How do we fix this?

Build coalitions and expand networks

Make a direct appeal

Create/Reduce dependency

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EGSS Link

Limited Resources

Environment: Simple + Unstable and Complex + Unstable

Goal: Resources, innovation, creativity, and employee development

Strategy: Differentiation (Focused), Analyzer/Prospector

Structure: Organic

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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!

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So What?

How do we fix this?

Coping with uncertainties

Reduce dependency

Member rotation

Create integrative devices

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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

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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

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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

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Rational vs. Political Model – Exhibit 12.2

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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

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What is the difference between power and authority?

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

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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

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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

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Horizontal Sources of Power27

EGSS Summary

Goal Incompatibility

Differentiation Limited Resources Task Interdependence

Environment Simple + StableComplex + Stable

Simple + Unstable Complex + Unstable

Simple & UnstableComplex & Unstable

Simple + Stable Complex + Stable

Goals Overall PerformanceProductivity

Market Share

Employee Development Resources

Innovation & Creativity

Employee DevelopmentResources

Innovation & Creativity

Overall PerformanceProductivity

Strategies Low-Cost Leadership (Focus)Defender/Reactor

Differentiation (Focus) Prospector/Analyzer

Differentiation (Focus)Prospector/Analyzer

Low-Cost Leadership (Focus)

Defender/Reactor

Structure Mechanistic Organic Organic Mechanistic

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Methods to Overcome Conflict

Sources of Conflict Methods

Goal Incompatibility Aligning department goals with organization goalsIntegrative devicesConfrontation and negotiation

Differentiation Member rotationIntegrative devices

Limited Resources Build coalitions and expand networksMake a direct appealReduce dependency

Task Interdependence Coping with uncertaintiesIntegrative devicesMember rotationReduce dependency

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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?

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THANK YOU

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