Michael A. Hitt

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Conflict, Power, and Politics
Chapter 12

• Michael A. Hitt
• C. Chet Miller
• Adrienne Colella

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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.

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Knowledge Objectives

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

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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

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Diversification Strategy and Structure

• Effects on Interpersonal Relationships
• Distrust
• Misunderstandings
• Inability to see others perspective
• Questioning of others intentions
• Changed attitudes towards others

• Effects on Individuals
• Anger
• Hostility
• Frustration
• Stress
• Guilt
• Low job satisfaction
• Embarrassment

• Effects on Behavior
• Reduced motivation and productivity
• Avoidance of other party
• Emotional venting
• Threats
• Aggression (psychological or physical)

Adapted from Exhibit 12-1 Potential Negative
Effects of Conflict on Individuals, Interpersonal
Relationships, and Behavior
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Diversification Strategy and Structure

• Effects on Interpersonal Relationships
• Changed amount of power
• Changed quality of communication
• Changed amount of communication

Effects on Individuals

• Effects on Behavior
• Quitting
• Absenteeism
• Biased perceptions
• Stereotyped thinking
• Increased commitment to ones position
• Demonizing others

Adapted from Exhibit 12-1 Potential Negative
Effects of Conflict on Individuals, Interpersonal
Relationships, and Behavior
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Functional Conflict
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Types of 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
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Effects of Conflict on Task Performance
Task Conflict
Relationship Conflict
Process Conflict
Task Performance
Degree of Conflict
Adapted from Exhibit 12-2 The Effects of
Different Types of Conflict on Task Performance
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Causes of Conflict
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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

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Causes of Conflict

• Individual characteristics
• Personality
• Value differences
• Goals
• History
• Past performance
• Previous interactions

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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

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Conflict Outcomes
Degree of Satisfaction of Party As Concern
Degree of Satisfaction of Party Bs Concern
Adapted from Exhibit 12-3 Possible Conflict
Outcomes
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Responses to Conflict
Cooperativeness
Assertiveness
Adapted from Exhibit 12-3 Possible Conflict
Outcomes
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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?

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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?

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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

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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

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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 others 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 others ability to concentrate.
Adapted from Exhibit 12-4 Conflict Management
Tactics
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Conflict Management Tactics
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
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Negotiation

• 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

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Power

• 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

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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

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Organizational Politics

• Organizational politics
• Behavior that is directed toward furthering ones
  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

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Political Tactics

1. Rational persuasion

Use logical arguments or factual information to
persuade targets that the persuaders 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 targets 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.

1. Consultation

1. Personal appeal

1. Ingratiation

1. Inspirational appeal

1. Exchange

1. Coalition

1. Legitimizing

1. Pressure

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Political Skill

• Political skill
• The ability to effectively understand others at
  work and to use this knowledge to enhance ones
  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