(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