(Conflict, Power and Politics (Chapter Twelve

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1 Chapter Twelve Conflict, Power and Politics Thomson Learning © 2004 

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Marketing - Manufacturing Areas of Potential Goal Conflict “Our customers "The product line is too demand variety.” broad, all we get are short, uneconomical runs.” "New products are our “Unnecessary design changes lifeblood.” are prohibitively expensive| Breadth of product line: New product introduction: Production schedul “We need faster response. “We need realistic customer Lead times are too long, ‘commitments that don’t change like the wind directi Physical distribution: “Why don’t we ever have "We can’t afford to keep huge| the right merchandise ventories.”| in inventory?” Quality: “Why can't we have “Why must we always offer reasonable quality options that are too at low cost?" expensive and offer little Sorc, tase on Benson 5, Sap, "Cun Mating wd Manufacturing tnd Vietoda Crittenden, Lane R Gardner tod Annie sind OSON Learning ‏سه‎ ee ee ea ee eee © 2004 13-2 

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Sources of Conflict and Use of Rational vs. Political Model When Conflict Is High, Political Model describes organization Inconsistent, pluralistic within the organization Decentralized, shifting coalitions and interest groups Disorderly, result of bargaining and interplay among interests Free play of market forces, conflict is legitimate and expected Ambiguous, information used and withheld strategically 13-3 Organization Variables Goals Power and Control Decision Process Rules and Norms, Information When Conflict Is Low, Rational Model describes organization Consistent across participants Centralized Orderly, logical, rational Norm of efficiency Extensive, systematic, accurate Thomson Learning © 2004 Sources of Potential Inter-group Conflict Goal Incompatibility Differentiation Task Interdependenc Limited Resources 

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Individual vs. Organizational Power = Legitimate power = Reward power =" Coercive power =" Expert power = Referent power Thomson Learning © 2004 

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Power vs. Authority = POWER " Ability to influence others to bring about desired outcomes =" AUTHORITY = Flows down the vertical hierarchy = Prescribed by the formal hierarchy " Vested in the position held Thomson Learning © 2004 

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Vertical Sources of Power = Formal Position = Resources = Control of Decision Premises and Information = Network Centrality Thomson Learning © 2004 

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Horizontal Sources of Power BSales Production OR&D OFinance 13-7 350 High Power 

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Strategic Contingencies That Influence Horizontal Power Among Departments Thomson Learning © 2004 

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Power and Political Tactics in Organizations Tactics for Tactics for Increasing the Political Tactics for Enhancing Power Base Using Power Collaboration 1. Enter areas of high | 1. Build coalitions 1. Create integration uncertainty devices 2. Create 2. Expand networks 2. Use confrontation dependencies and negotiation 3. Provide resources | 3. Control decision 3. Schedule inter-group premises consultation 4. Satisfy strategic | 4. Enhance legitimacy __| 4. Practice member contingencies and expertise rotation 5. Make preferences 5. Create explicit, but keep power | superordinate goals implicit Thomson Learning © 2004 13-9 

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Negotiating Strategies Win-Lose Strategy Define the conflict as a win-lose situation Pursue self outcomes Force other group into submission Use deceitful, inaccurate communication Use threats Communicate rigidity 13-10 Win-Win Strategy ۰ Define the conflict as a 1 mutual problem Pursue joint outcomes 2 Find creative 3. agreements that satisfy both groups 4 Use open, honest, and accurate communication 5 Avoid threats 6 Communicate flexibility Thomson Learning © 2004 

Chapter Twelve Conflict, Power and Politics Thomson Learning © 2004 13-1 Marketing – Manufacturing Areas of Potential Goal Conflict Goal Conflict Conflict Area MARKETING Operative goal is customer satisfaction Typical Comment VS. MANUFACTURING Operative goal is production efficiency Typical Comment Breadth of product line: “Our customers demand variety.” “The product line is too broad, all we get are short, uneconomical runs.” New product introduction: “New products are our lifeblood.” “Unnecessary design changes are prohibitively expensive.” Production scheduling: “We need faster response. “We need realistic customer Lead times are too long.” commitments that don’t change like the wind direction Physical distribution: Quality: “Why don’t we ever have “We can’t afford to keep huge the right merchandise inventories.” in inventory?” “Why can’t we have reasonable quality at low cost?” Sources: Based on Benson S. Shapiro, “Can Marketing and Manufacturing Coexist?” Harvard Business Review 55 (September-October 1977): 104-14; and Victoria L. Crittenden, Lorraine R. Gardiner, and Antonie Stam, “Reducing Conflict Between Marketing and Manufacturing,” Industrial Marketing Management 22 (1993): 299-309. Thomson Learning © 2004 “Why must we always offer options that are too expensive and offer little customer utility?” 13-2 Sources of Conflict and Use of Rational vs. Political Model Sources of Potential Inter-group Conflict When Conflict Is Low, Rational Model describes organization Consistent across participants Goal Incompatibility Centralized Organization Variables Goals Inconsistent, pluralistic within the organization Power and Control Decentralized, shifting coalitions and interest groups Differentiation Task Interdependence Limited Resources Orderly, logical, rational Norm of efficiency Extensive, systematic, accurate When Conflict Is High, Political Model describes organization Decision Process Rules and Norms Information Thomson Learning © 2004 Disorderly, result of bargaining and interplay among interests Free play of market forces, conflict is legitimate and expected Ambiguous, information used and withheld strategically 13-3 Individual vs. Organizational Power      Legitimate power Reward power Coercive power Expert power Referent power Thomson Learning © 2004 13-4 Power vs. Authority  POWER   Ability to influence others to bring about desired outcomes AUTHORITY    Flows down the vertical hierarchy Prescribed by the formal hierarchy Vested in the position held Thomson Learning © 2004 13-5 Vertical Sources of Power  Formal Position  Resources  Control of Decision Premises and Information  Network Centrality Thomson Learning © 2004 13-6 Horizontal Sources of Power High Power 350 325 300 275 250 225 200 175 150 125 Low Power Sales Produc tion R&D Financ e Co. B Co. C Co. I Thomson Learning © 2004 Source: Charles Perrow, “Departmental Power and Perspective in Industrial Firms,” in Mayer N. Zald, ed., Power in Organizations (Nashville, Tenn.: Vanderbilt University Press, 1970), 64. Avg. 13-7 Strategic Contingencies That Influence Horizontal Power Among Departments Dependency Financial Resources Centrality Department Power Nonsubstitutability Coping with Uncertainty Thomson Learning © 2004 13-8 Power and Political Tactics in Organizations Tactics for Increasing the Power Base Political Tactics for Using Power Tactics for Enhancing Collaboration 1. Enter areas of high uncertainty 1. Build coalitions 1. Create integration devices 2. Create dependencies 2. Expand networks 2. Use confrontation and negotiation 3. Provide resources 3. Control decision premises 3. Schedule inter-group consultation 4. Satisfy strategic contingencies 4. Enhance legitimacy and expertise 4. Practice member rotation 5. Make preferences explicit, but keep power implicit 5. Create superordinate goals Thomson Learning © 2004 13-9 Negotiating Strategies  1. 2. 3. 4. 5. 6. Win-Win Strategy Define the conflict as a mutual problem Pursue joint outcomes Find creative agreements that satisfy both groups Use open, honest, and accurate communication Avoid threats Communicate flexibility  5. Define the conflict as a win-lose situation Pursue self outcomes Force other group into submission Use deceitful, inaccurate communication Use threats 6. Communicate rigidity 1. 2. 3. 4. Thomson Learning © 2004 Source: Adapted from David W. Johnson and Frank P. Johnson, Joining Together: Group Theory and Group Skills (Englewood Cliffs, N. J.: Prentice-Hall, 1975), 182-83. Win-Lose Strategy 13-10