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12-1
Michael A. Hitt
C. Chet Miller
Adrienne Colella
Chapter 12 Conflict, Conflict,
Negotiation, Negotiation, Power, and Power, and
PoliticsPolitics
Slides by Ralph R. Braithwaite
12-2
Green ConflictGreen Conflict
Exploring Behavior in Action
Michael Dell
Do you think companies are becoming more aware of the impact of their businesses on the environment?
Can the goals of environmental and conservation groups be compatible with the goals of businesses? Why or why not?
What are the upside gains for businesses that become more environmentally friendly? What are the consequences if they don’t?
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Knowledge ObjectivesKnowledge Objectives1. 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.5. Understand how organizations can manage conflict.6. Describe the basic negotiation process, strategies, and
tactics.7. Explain why organizations must have power to function, and
discuss how people gain power in organizations.8. Define organizational politics and the tactics used to carry out
political behavior.
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The Nature of ConflictThe Nature of Conflict
DysfunctionalDysfunctionalConflictConflict
ConflictConflict
FunctionalFunctionalConflictConflict
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Effects of ConflictEffects of Conflict
Adapted from Exhibit 12-1: Effects of Conflict
Effects onEffects onIndividualsIndividuals
Effects onEffects onBehaviorBehavior
Effects onEffects on Interpersonal InterpersonalRelationshipsRelationships
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Functional ConsequencesFunctional Consequences
Facilitation of Facilitation of ChangeChange
Improved Improved Problem Problem SolvingSolving
Enhanced Enhanced Morale and Morale and CohesionCohesion
Spontaneity in Spontaneity in CommunicationCommunication
Stimulation of Stimulation of CreativityCreativity
Potential Potential Benefits of Benefits of
ConflictConflict
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Types of ConflictTypes of Conflict
SubstantiveSubstantiveConflictConflict
SubstantiveSubstantiveConflictConflict
ProceduralProceduralConflictConflict
ProceduralProceduralConflictConflict
PersonalPersonalConflictConflict
PersonalPersonalConflictConflict
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Effects of Types of Conflict on Effects of Types of Conflict on Task PerformanceTask Performance
Adapted from Exhibit 12-2: The Effects of Different Types of Conflict on Task Performance
Degree of Conflict
Ta
sk P
erfo
rma
nc
e
High
LowLow High
Substantive Conflict
Personal Conflict
Procedural Conflict
12-9
Causes of ConflictCauses of Conflict
ConflictConflict
Structural Factors
Communication
Cognitive Factors
Individual Characteristics
History
12-10ExperiencingStrategic OB
Un-UnitedUn-United
What were some of the conflicts that United was experiencing even before September 11, 2001?
What could Jim Goodwin, United’s CEO, have done differently?
How would you characterize the relationship between union and management? What could each side have done to more effectively deal with the issues the organization was experiencing?
Do you think United will survive?
12-11ExperiencingStrategic OB
Rosie vs. DonaldRosie vs. Donald
What was your reaction to the escalating conflict between Rosie O’Donnell and Donald Trump?
Was anything ever resolved between the two of them?
Do you agree that “each of the parties harmed the other but did equal harm to themselves”?
What has been your experience with escalating conflict?
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Conflict OutcomesConflict Outcomes
Degree of Satisfaction of Party B’s Concern
Lose-WinLose-Win
Win-WinWin-WinD
eg
r ee
of
Sa t
isfa
c ti o
n
of
Pa r
t y A
’s C
on
ce
rn
Low High
High
Lose-LoseLose-Lose
Win-LoseWin-Lose
Adapted from Exhibit 12-3: Possible Conflict Outcomes
CompromiseCompromise
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Cooperativeness
CompetingCompeting
AvoidingAvoiding AccommodatingAccommodating
CollaboratingCollaborating
CompromisingCompromising
Ass
erti
ven
ess
Low High
High
Responses to ConflictResponses to Conflict
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NegotiationNegotiationA process by which parties with different preferences and interests attempt to agree on a solution.
12-17
Negotiation TacticsNegotiation Tactics
Distributive Tactics
Integrative Tactics
Attitudinal Structuring Tactics
Adapted from Exhibit 12-4: Negotiation Tactics
12-18
The Negotiation ProcessThe Negotiation Process
PreparationPreparation
DeterminingDeterminingthe Negotiationthe Negotiation
ProcessProcess
Negotiating theNegotiating theAgreementAgreement
Closing theClosing theDealDeal
BATNA
12-19
ManagerialAdvice
Costly Conflict ResolutionCostly Conflict ResolutionSalary negotiations – classic case of conflict
• Do your homework
• Determine your BATNA
• Know what salary you want
• Never make vague counteroffers
• Avoid a hard stand – winner’s remorse
• Be realistic
• Be polite
• Never inflate past salary or experience
• Calculate benefits as part of the package
• Don’t play “hard to get” when little bargaining power
12-20
PowerPowerThe ability of those who hold it to achieve outcomes they desire. The ability of one person to get another person to do something that he or she would not normally do. Persuasion is often the exercise of power.
12-21
Bases of PowerBases of Power
Coercive Power
Reward PowerLegitimate Power
Referent Power
Expert Power
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An Example of PowerAn Example of Power
Michael Eisner
• Eisner had a great deal of legitimate power.
• Eisner lavished attention on board members, important investors, Disney family members, and others.
• Eisner limited access to and controlled key information.
• Eisner divided those who might oppose him and made himself indispensable.
• Eisner restricted the power of others.
Did he use his power for the good of the organization?
12-23
Strategic Contingencies ModelStrategic Contingencies Model
• People need to 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
• People who are irreplaceable have power
• Power can result from controlling the decision process, either by setting parameters on the types of solutions that are acceptable or by controlling the range of alternatives to be considered
People and organizational units gain power by being able to address the major problems and issues faced by the organization.
12-24
Organizational PoliticsOrganizational 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 (70%) feel they have been harmed by political behavior of others
• Fewer managers and associates (45%) feel they have gained power and influence by acting politically
12-25
Levels of PoliticsLevels of Politics
An associate who usespolitics to suit his or herbest interests – takingsole credit for a group
project for example
IndividualIndividual
Often in the formof coalitions – a
group whose membersact together toactively pursue
a common interest
GroupGroup
12-26
Political TacticsPolitical Tactics
ConsultationConsultationRationalRationalPersuasionPersuasion
PersonalPersonalAppealAppeal IngratiationIngratiation
InspirationalInspirationalAppealAppeal
ExchangeExchangeCoalitionCoalitionLegitimizingLegitimizing
PressurePressure
12-27
Political SkillPolitical Skill
• Find it easy to imagine themselves in others’ positions or see their points of view
• Can understand situations, determine the best response and adjust their behavior accordingly
• Develop large networks and are known by many people
• Easily gain cooperation of others
• Make others feel at ease
The ability to effectively understand others at work and to use this knowledge to enhance one’s own objectives. People with strong political skills:
12-28
The Strategic LensThe Strategic Lens
1. Can you describe a situation in which conflict was functional (i.e., had positive outcomes)? If so, in what ways was the conflict functional?
2. A strategic leader must use power in many actions that he or she takes. In what ways can he or she exercise this power to achieve positive outcomes?
3. How can knowledge of conflict, negotiations, power, and politics in organizations help you be more successful in your career? Please be specific.