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Organizational Behavior
Eighteenth Edition, Global Edition
Chapter 17
Organizational Change and Stress Management
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Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.
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Welcome to this Organizational Behavior course that uses the 18th edition of the textbook, Organizational Behavior by Robbins and Judge. This is considered among the most widely used OB textbooks in the world. Robbins and Judge are recognized as definitive aggregators of OB concepts, applications, and practices. The course and this book will provide you with a resource that will benefit you throughout your degree program and your professional life.
Chapter 18: Organizational Change and Stress Management
1
Learning Objectives (1 of 2)
17.1 Contrast the forces for change and planned change.
17.2 Describe ways to overcome resistance to change.
17.3 Compare the four main approaches to managing organizational change.
17.4 Demonstrate three ways of creating a culture for change.
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After studying this chapter, you should be able to:
Contrast the forces for change and planned change.
Describe ways to overcome resistance to change.
Compare the four main approaches to managing organizational change.
Demonstrate three ways of creating a culture for change.
2
Learning Objectives (2 of 2)
17.5 Identify the potential environmental, organizational, and personal sources of stress at work and the role of individual and cultural differences.
17.6 Identify the physiological, psychological, and behavioral symptoms of stress at work.
17.7 Describe individual and organizational approaches to managing stress at work.
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Additional objectives for this chapter.
Identify the potential environmental, organizational, and personal sources of stress at work and the role of individual and cultural differences.
Identify the physiological, psychological, and behavioral symptoms of stress at work.
Describe individual and organizational approaches to managing stress at work.
3
Contrast the Forces for Change and Planned Change (1 of 2)
Exhibit 17-1 Forces for Change
| Force | Examples |
| Nature of the workforce | More cultural diversity Aging population Increased immigration and outsourcing |
| Technology | Faster, cheaper, and more mobile computers and handheld devices Emergence and growth of social-networking sites Deciphering of the human genetic code |
| Economic shocks | Rise and fall of global housing market Financial sector collapse Global recession |
| Competition | Global competitors Mergers and consolidations Increased government regulation of commerce |
| Social trends | Increased environmental awareness Liberalization of attitudes toward gay, lesbian, and transgender employees More multitasking and connectivity |
| World politics | Rising health care costs Negative social attitudes toward business and executives Opening of new markets worldwide |
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Organizations face a dynamic and changing environment. This requires adaptation. Exhibit 18-1 summarizes six specific forces that are acting as stimulants for change.
First is the nature of the workforce. Almost every organization must adjust to a multicultural environment, demographic changes, immigration, and outsourcing. Second, technology is changing jobs and organizations. It is not hard to imagine the very idea of an office becoming an antiquated concept in the near future. Third are economic shocks. These led to the elimination, bankruptcy, or acquisition of some of the best-known U.S. companies, including Bear Stearns, Merrill Lynch, Lehman Brothers, Countrywide Financial, Washington Mutual, and Ameriquest. Tens of thousands of jobs were lost and may never return.
The fourth force is that competition is changing. Competitors are as likely to come from across the ocean as from across town. Successful organizations will be fast on their feet, capable of developing new products rapidly and getting them to market quickly. In other words, they’ll be flexible and will require an equally flexible and responsive workforce. Fifth is the fact that social trends don’t remain static either. Consumers who are otherwise strangers now meet and share product information in chat rooms and blogs. Companies must continually adjust product and marketing strategies to be sensitive to changing social trends, as Liz Claiborne did when it sold off fashion brands (such as Ellen Tracy), deemphasized large vendors such as Macy’s, and streamlined operations and cut staff. Consumers, employees, and organizational leaders are more sensitive to environmental concerns, also, as “green” practices are quickly becoming expected rather than optional.
And last but not least is world politics. A global context for OB is required. No one could have imagined how world politics would change in recent years. We’ve seen a major set of financial crises that have rocked global markets, a dramatic rise in the power and influence of China, and dramatic shakeups in government across the Arab world. Throughout the industrialized world, businesses—particularly in the banking and financial sectors—have come under new scrutiny.
4
Contrast the Forces for Change and Planned Change (2 of 2)
Change involves making something different.
When change is an intentional, goal-oriented activity it is planned change.
There are two goals of planned change:
Improve the ability of the organization to adapt to changes in its environment.
Change employee behavior.
Change agents are those responsible for managing change activities.
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Change involves making things different. Some organizations treat all change as an accidental occurrence; however, change as an intentional, goal-oriented activity is planned change. There are two goals of planned change: one is to improve the ability of the organization to adapt to changes in its environment; the other is to change employee behavior.
Who in organizations are responsible for managing change activities, otherwise known as change agents? Change agents can be managers, employees of the organization, or outside consultants. Many change agents fail because of organizational resistance to change.
5
Overcoming Resistance to Change (1 of 4)
Exhibit 17-2 Sources of Resistance to Change
Individual Sources
Habit—To cope with life’s complexities, we rely on habits or programmed responses. But when confronted with change, this tendency to respond in our accustomed ways becomes a source of resistance.
Security—People with a high need for security are likely to resist change because it threatens their feelings of safety.
Economic factors—Changes in job tasks or established work routines can arouse economic fears if people are concerned that they won’t be able to perform the new tasks or routines to their previous standards, especially when pay is closely tied to productivity.
Selective information processing—Individuals are guilty of selectively processing information in order to keep their perceptions intact. They hear what they want to hear, and they ignore information that challenges the world they’ve created.
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Change isn’t always welcome. In fact, our egos are fragile, and we often see change as threatening. These reactions can sap the organization of vital energy when it is most needed. However, resistance to change can be positive if it leads to open discussion and debate. Keep in mind though, that resistance to change does not necessarily surface in standardized ways: it can be overt, implicit, immediate, or deferred.
As shown in Exhibit 18-2, there are five individual sources of resistance.
First is individual sources habits. To cope with life’s complexities, we rely on habits or programmed responses. But when confronted with change, this tendency to respond in our accustomed ways becomes a source of resistance.
Second is security. People with a high need for security are likely to resist change because it threatens their feelings of safety.
Third are economic factors. Changes in job tasks or established work routines can arouse economic fears if people are concerned that they won’t be able to perform the new tasks or routines to their previous standards, especially when pay is closely tied to productivity.
Fourth is the fear of the unknown. Change substitutes ambiguity and uncertainty for the unknown.
And fifth is selective information processing. Individuals are guilty of selectively processing information in order to keep their perceptions intact. They hear what they want to hear, and they ignore information that challenges the world they’ve created.
There are also five major sources of organizational resistance.
First is structural inertia. Organizations have built-in mechanisms to produce stability; this structural inertia acts as a counterbalance to sustainability.
Second is limited focus of change. Organizations are made up of a number of interdependent subsystems. Changing one affects the others.
Third is group inertia. Group norms may act as a constraint.
Fourth is the threat to expertise. Changes in organizational patterns may threaten the expertise of specialized groups.
Fifth is the threat to established power relationships. Redistribution of decision-making authority can threaten long-established power relationships.
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Overcoming Resistance to Change (2 of 4)
[Exhibit 17-2 Continued]
Organizational Sources
Structural inertia—Organizations have built-in mechanisms—such as their selection processes and formalized regulations—to produce stability. When an organization is confronted with change, this structural inertia acts as a counterbalance to sustain stability.
Limited focus of change—Organizations consist of a number of interdependent subsystems. One can’t be changed without affecting the others. So limited changes in subsystems tend to be nullified by the larger system.
Group inertia—Even if individuals want to change their behavior, group norms may act as a constraint.
Threat to expertise—Changes in organizational patterns may threaten the expertise of specialized groups.
Threat to established power relationships—Any redistribution of decision-making authority can threaten long-established power relationships within the organization.
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Change isn’t always welcome. In fact, our egos are fragile, and we often see change as threatening. These reactions can sap the organization of vital energy when it is most needed. However, resistance to change can be positive if it leads to open discussion and debate. Keep in mind though, that resistance to change does not necessarily surface in standardized ways: it can be overt, implicit, immediate, or deferred.
As shown in Exhibit 18-2, there are five individual sources of resistance.
First is individual sources habits. To cope with life’s complexities, we rely on habits or programmed responses. But when confronted with change, this tendency to respond in our accustomed ways becomes a source of resistance.
Second is security. People with a high need for security are likely to resist change because it threatens their feelings of safety.
Third are economic factors. Changes in job tasks or established work routines can arouse economic fears if people are concerned that they won’t be able to perform the new tasks or routines to their previous standards, especially when pay is closely tied to productivity.
Fourth is the fear of the unknown. Change substitutes ambiguity and uncertainty for the unknown.
And fifth is selective information processing. Individuals are guilty of selectively processing information in order to keep their perceptions intact. They hear what they want to hear, and they ignore information that challenges the world they’ve created.
There are also five major sources of organizational resistance.
First is structural inertia. Organizations have built-in mechanisms to produce stability; this structural inertia acts as a counterbalance to sustainability.
Second is limited focus of change. Organizations are made up of a number of interdependent subsystems. Changing one affects the others.
Third is group inertia. Group norms may act as a constraint.
Fourth is the threat to expertise. Changes in organizational patterns may threaten the expertise of specialized groups.
Fifth is the threat to established power relationships. Redistribution of decision making authority can threaten long-established power relationships.
7
Overcoming Resistance to Change (3 of 4)
Overcoming Resistance to Change
Communication
Participation
Building support and commitment
Develop positive relationships
Implementing changes fairly
Manipulation and cooptation
Selecting people who accept change
Coercion
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Eight tactics can help change agents deal with resistance to change.
First, resistance to change can be reduced through communicating to help employees see the logic of a change. It fights the effects of misinformation and poor communication: if employees receive the full facts and clear up misunderstandings, resistance should subside.
Second, it is difficult for individuals to resist a change decision in which they participated. Prior to making a change, those opposed can be brought into the decision process, assuming they have the expertise to make a meaningful contribution. Keep in mind, though, that this creates the potential for a poor solution and great time consumption.
When employees’ fear and anxiety are high, counseling and therapy, new-skills training, or a short paid leave of absence may facilitate adjustment.
When managers or employees have low emotional commitment to change, they favor the status quo and resist it. So firing up employees can also help them emotionally commit to the change rather than embrace the status quo.
People are more willing to accept changes if they trust the managers implementing them. Research suggests that if managers are able to facilitate positive relationships, they may be able to overcome resistance to change even among those who ordinarily don’t like changes.
One way organizations can minimize negative impact is to make sure change is implemented fairly. As we saw in Chapter 7, procedural fairness is especially important when employees perceive an outcome as negative, so it’s crucial that employees see the reason for the change and perceive its implementation as consistent and fair.
Manipulation refers to covert influence attempts, twisting and distorting facts to make them appear more attractive, withholding undesirable information, and creating false rumors to get employees to accept a change. Cooptation is a form of both manipulation and participation. It seeks to “buy off” the leaders of a resistance group by giving them a key role in the change decision. Both manipulation and cooptation are relatively inexpensive and easy ways to gain support. The tactics can backfire if the targets become aware that they are being tricked or used.
Research suggests the ability to easily accept and adapt to change is related to personality—some people simply have more positive attitudes about change than others. In addition, an impressive body of evidence shows organizations can facilitate change by selecting people predisposed to accept it. Besides selecting individuals who are willing to accept changes, it is also possible to select teams that are more adaptable.
Last on the list of tactics is coercion, the application of direct threats or force on the resisters. If management really is determined to close a manufacturing plant whose employees don’t acquiesce to a pay cut, the company is using coercion. Other examples are threats of transfer, loss of promotions, negative performance evaluations, and a poor letter of recommendation. The advantages and drawbacks of coercion are approximately the same as for manipulation and cooptation.
8
Overcoming Resistance to Change (4 of 4)
The Politics of Change
Change threatens the status quo, making it an inherently political activity.
Politics suggests the impetus for change is more likely to come from:
Outside change agents.
Employees new to the organization who have less invested in the status quo.
Managers slightly removed from the main power structure.
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When considering the politics of change, the first observation is that change threatens the status quo, making it an inherently political activity. Politics suggests the impetus for change is more likely to come from outside change agents, employees new to the organization (who have less invested in the status quo), or managers slightly removed from the main power structure.
Managers who have spent their entire careers with a single organization and eventually achieve a senior position in the hierarchy are often major impediments to change. Change itself is a very real threat to their status and position, yet, they may be expected to implement changes. By acting as change agents, they can convey to stockholders, suppliers, employees, and customers that they are addressing problems and adapting to a dynamic environment.
Of course, as you might guess, when forced to introduce change, these longtime power holders tend to implement incremental changes. Radical change is too threatening. This explains why boards of directors that recognize the imperative for rapid and radical change frequently turn to outside candidates for new leadership.
9
Approaches to Managing Organizational Change (1 of 7)
Approaches to managing change:
Lewin’s Three-Step Model (Exhibit 18-3)
Kotter’s Eight-Step Plan for Implementing Change (Exhibit 18-5)
Action Research
Organizational Development
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The four main approaches to managing change are Lewin’s Three-Step Model (Exhibit 18-3), Kotter’s Eight-Step Plan for Implementing Change (Exhibit 18-5), Action Research, and Organizational Development. Let’s look at each of them.
10
Approaches to Managing Organizational Change (2 of 7)
Exhibit 17-3 Lewin’s Three-Step Change Model
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In Lewin’s Three-Step Model, shown here in Exhibit 18-3, he argued that successful change in organizations should follow three steps.
Unfreezing the status quo.
Movement to a new state.
Refreezing the new change to make it permanent.
The status quo can be considered to be an equilibrium state.
11
Approaches to Managing Organizational Change (3 of 7)
Exhibit 17-4 Unfreezing the Status Quo
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To move from this equilibrium—to overcome the pressures of both individual resistance and group conformity—unfreezing is necessary as shown here in Exhibit 18-4. The driving forces, which direct behavior away from the status quo, can be increased. The restraining forces, which hinder movement from the existing equilibrium, can be decreased. A third alternative is to combine the first two approaches.
Companies that have been successful in the past are likely to encounter restraining forces because people question the need for change. Similarly, research shows that companies with strong cultures excel at incremental change but are overcome by restraining forces against radical change.
Once the change has been implemented, the new situation needs to be refrozen so that it can be sustained over time. Unless this last step is taken, there is a very high chance that the change will be short-lived and that employees will attempt to revert to the previous equilibrium state. The objective of refreezing is to stabilize the new situation by balancing the driving and restraining forces.
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Approaches to Managing Organizational Change (4 of 7)
Exhibit 17-5 Kotter’s Eight-Step Plan for Implementing Change
| 1. Establish a sense of urgency by creating a compelling reason for why change is needed. |
| 2. Form a coalition with enough power to lead the change. |
| 3. Create a new vision to direct the change and strategies for achieving the vision. |
| 4. Communicate the vision throughout the organization. |
| 5. Empower others to act on the vision by removing barriers to change and encouraging risk taking and creative problem solving. |
| 6. Plan for, create, and reward short-term “wins” that move the organization toward the new vision. |
| 7. Consolidate improvements, reassess changes, and make necessary adjustments in the new programs. |
| 8. Reinforce the changes by demonstrating the relationship between new behaviors and organizational success. |
Source: Based on J. Kotter, Leading Change (Boston, MA: Harvard Business School, 1996).
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Kotter’s Eight-Step Plan for Implementing Change is illustrated here in Exhibit 18-5.
John Kotter of the Harvard Business School built on Lewin’s three-step model to create a more detailed approach for implementing change. Kotter began by listing common mistakes managers make when trying to initiate change. They may fail to create a sense of urgency about the need for change, to create a coalition for managing the change process, to have a vision for change and effectively communicate it, to remove obstacles that could impede the vision’s achievement, to provide short-term and achievable goals, and to anchor the changes into the organization’s culture. They may also declare victory too soon.
Kotter then established eight sequential steps to overcome these problems. Notice how Kotter’s first four steps essentially extrapolate Lewin’s “unfreezing” stage. Steps 5–7 represent “movement,” and the final step works on “refreezing.” So, Kotter’s contribution lies in providing managers and change agents with a more detailed guide for successfully implementing change.
13
Approaches to Managing Organizational Change (5 of 7)
Action research: a change process based on the systematic collection of data and selection of a change action based on what the analyzed data indicate.
Five steps: Diagnosis, Analysis, Feedback, Action, and Evaluation.
Provides at least two specific benefits:
It is problem-focused.
It reduces resistance to change.
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Action research is a change process based on the systematic collection of data and then selection of a change action based on what the analyzed data indicate. The process consists of five steps: diagnosis, analysis, feedback, action, and evaluation. These steps closely parallel the scientific method.
Diagnosis begins by gathering information about problems, concerns, and needed changes from members of the organization. Analysis of information is synthesized into primary concerns, problem areas, and possible actions. Action research includes extensive involvement of the people who will be involved in the change program, so feedback requires sharing with employees what has been found from steps one and two and the development of a plan for the change. Action is the step where the change agent and employees set into motion the specific actions to correct the problems that were identified, and evaluation is the final step to assess the action plan’s effectiveness. Using the initial data gathered as a benchmark, any subsequent changes can be compared and evaluated.
Action research provides at least two specific benefits for an organization. First, it is problem-focused: the change agent objectively looks for problems and the type of problem determines the type of change of action. Second, resistance to change is reduced: once employees have actively participated in the feedback stage, the change process typically takes on a momentum of its own.
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Approaches to Managing Organizational Change (6 of 7)
Organizational development (OD): a collection of change methods that try to improve organizational effectiveness and employee well-being.
OD methods value human and organizational growth, collaborative and participative processes, and a spirit of inquiry.
Focuses on how individuals make sense of their work environment.
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Organizational development (OD) is a collection of change methods that try to improve organizational effectiveness and employee well-being. The OD methods value human and organizational growth, collaborative and participative processes, and a spirit of inquiry. Contemporary OD borrows heavily from postmodern philosophy in placing heavy emphasis on the subjective ways in which people see their environment. The focus is on how individuals make sense of their work environment. The change agent may take the lead in OD, but there is a strong emphasis on collaboration.
15
Approaches to Managing Organizational Change (7 of 7)
The six interventions for change agents are:
Sensitivity training
Survey feedback
Process consultation (PC)
Team building
Intergroup development
Appreciative inquiry (AI)
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There are six interventions that change agents might consider using. They are: sensitivity training, survey feedback, process consultation (PC), team building, intergroup development, and appreciative inquiry (AI).
Sensitivity training can go by a variety of names including laboratory training, groups, or T-groups (training groups)—but all refer to a thorough, unstructured group interaction wherein participants discuss themselves and their interactive processes, loosely directed by a professional behavioral scientist. Survey’s generally probe perceptions held by employees. Everyone can participate in survey feedback, in which a questionnaire is usually completed by a manager and all of his or her subordinates. Data from the survey are calculated for an individual’s “family” (work group). Feedback and discussions should lead to implications.
Third is process consultation (PC). An outside consultant works with clients to understand the process events managers must deal with, and then coaches his or her client through the problem. This is similar to sensitivity training in its assumption that interpersonal involvement is important to highlight. Next is team building, which uses high-interaction group activities to increase trust and openness among team members, improve coordinative efforts, and increase team performance. Team building typically includes goal-setting, development of interpersonal relations among team members, role analysis to clarify each member’s role and responsibilities, and team process analysis.
Fifth is intergroup development. Since a major area of concern in OD is dysfunctional conflict among groups, intergroup development seeks to change groups’ attitudes, stereotypes, and perceptions about each other. Here, training sessions closely resemble diversity training (in fact, diversity training largely evolved from intergroup development in OD), except rather than focusing on demographic differences, they focus on differences among occupations, departments, or divisions within an organization.
Last is appreciative inquiry (AI), or participation. This type of OD brings to light the positive, rather than the conflict. AI asks participants to look forward and project the future based on the positive components of an organization. The AI process consists of four steps—discovery, dreaming, design, and
destiny—often played out in a large-group meeting over a 2- or 3-day time period and overseen by a trained change agent.
16
Creating a Culture for Change (1 of 8)
Managing a Paradox
There is no such thing as a separate discipline of “change management” because all management is dealing with constant change and adaptation.
Learning
Organizing
Performing
Belonging
Managers can learn a few lessons from paradox theory, which states the key paradox in management is that there is no final optimal status for an organization.
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We’ve considered how organizations can adapt to change. But recently, some OB scholars have focused on a more proactive approach—how organizations can embrace change by transforming their cultures. In this section, we review three such approaches: managing a paradox, stimulating an innovative culture, and creating a learning organization.
Let’s begin with managing a paradox. In a paradox situation, we are required to balance tensions across various courses of action. There is a constant process of finding a balancing point, a dynamic equilibrium, among shifting priorities over time. From this perspective, there is no such thing as a separate discipline of “change management” because all management is dealing with constant change and adaptation.
The idea of paradox sounds abstract, but more specific concepts have begun to emerge from a growing body of research. Several key paradoxes have been identified. Learning is a paradox because it requires building on the past while rejecting it at the same time. Organizing is a paradox because it calls for setting direction and leading while requiring empowerment and flexibility. Performing is a paradox between creating organization-wide goals to concentrate effort and recognizing the diverse goals of stakeholders inside and outside the organization. And finally, belonging is a paradox between establishing a sense of collective identity and acknowledging our desire to be recognized and accepted as unique individuals.
Managers can learn a few lessons from paradox theory, which states the key paradox in management is that there is no final optimal status for an organization. The first lesson is that as the environment and members of the organization change, different elements take on more or less importance. There is some evidence that managers who think holistically and recognize the importance of balancing paradoxical factors are more effective, especially in generating adaptive and creative behavior in those they are managing.
17
Creating a Culture for Change (2 of 8)
Stimulating a Culture of Innovation
Innovation: a more specialized kind of change, is a new idea applied to initiating or improving a product, process, or services.
Innovations can range from small incremental improvements, such as netbook computers, to radical breakthroughs, such as Nissan’s electric Leaf car.
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Innovation, a more specialized kind of change, is a new idea applied to initiating or improving a product, process, or services. All innovations imply change, but not all changes necessarily introduce new ideas or lead to significant improvements. Innovations can range from small incremental improvements, such as netbook computers, to radical breakthroughs, such as Nissan’s electric Leaf car.
18
Creating a Culture for Change (3 of 8)
Sources of Innovation:
Structural variables are the most studied potential source of innovation.
Organic structures positively influence innovation.
Innovation-contingent rewards positively influence integration.
Innovation is nurtured when there are slack resources.
Inter-unit communication is high in innovative organizations.
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The sources of innovation are varied. Structural variables are the most studied potential source of innovation. First, organic structures positively influence innovation because they facilitate flexibility, adaptation and cross-fertilization. Second, innovation-contingent rewards positively influence innovation - when creativity is rewarded, firms tend to become more innovative—especially when employees are given feedback on their performance in addition to autonomy in doing their jobs. Third, innovation is nurtured where there are slack resources. And finally, inter-unit communication is high in innovative organizations – there is a high use of committees, task forces, cross-functional teams, and other mechanisms that facilitate interaction.
19
Creating a Culture for Change (4 of 8)
Innovative organizations tend to have similar cultures:
They encourage experimentation.
They reward both successes and failures.
They celebrate mistakes.
Managers in innovative organizations recognize that failures are a natural by-product of venturing into the unknown.
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Innovative organizations tend to have similar cultures. They encourage experimentation, reward both successes and failures, and celebrate mistakes. Managers in innovative organizations recognize that failures are a natural by-product of venturing into the unknown.
20
Creating a Culture for Change (5 of 8)
Innovative organizations:
Actively promote the training and development of their members so they keep current.
Offer high job security so employees don’t fear getting fired for making mistakes.
Encourage individuals to become champions of change.
Once a new idea is developed, idea champions actively and enthusiastically promote it, build support, overcome resistance, and ensure it’s implemented.
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Within the human resources category, innovative organizations actively promote the training and development of their members so they keep current, offer high job security so employees don’t fear getting fired for making mistakes, and encourage individuals to become champions of change. Once a new idea is developed, idea champions actively and enthusiastically promote it, build support, overcome resistance, and ensure it’s implemented.
Champions have common personality characteristics: extremely high self-confidence, persistence, energy, and a tendency to take risks. They also display characteristics associated with transformational leadership—they inspire and energize others with their vision of an innovation’s potential and their strong personal conviction about their mission. They are also good at gaining the commitment of others. Idea champions have jobs that provide considerable decision-making discretion; this autonomy helps them introduce and implement innovations. People in collectivist cultures prefer appeals for cross-functional support for innovation efforts; people in high power distance cultures prefer champions to work closely with those in authority to approve innovative activities before work is begun; and the higher the uncertainty avoidance of a society, the more champions should work within the organization’s rules and procedures to develop the innovation. These findings suggest that effective managers will alter their organization’s championing strategies to reflect cultural values. So, for instance, although idea champions in Russia might succeed by ignoring budgetary limitations and working around confining procedures, champions in Austria, Denmark, Germany, or other cultures high in uncertainty avoidance will be more effective by closely following budgets and procedures.
21
Creating a Culture for Change (6 of 8)
Exhibit 17-6 Characteristics of a Learning Organization
| 1. There exists a shared vision that everyone agrees on. |
| 2. People discard their old ways of thinking and the standard routines they use for solving problems or doing their jobs. |
| 3. Members think of all organizational processes, activities, functions, and interactions with the environment as part of a system of interrelationships. |
| 4. People openly communicate with each other (across vertical and horizontal boundaries) without fear of criticism or punishment. |
| 5. People sublimate their personal self-interest and fragmented departmental interests to work together to achieve the organization’s shared vision. |
Source: Based on P. M. Senge, The Fifth Discipline: The Art and Practice of the Learning Organization, 2nd ed. (New York: Random House, 2006).
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A learning organization is an organization that has developed the continuous capacity to adapt and change. All organizations learn, whether they consciously choose to or not; it is a fundamental requirement for their sustained existence.
Exhibit 18-6 summarizes the five basic characteristics of a learning organization. It’s one in which people put aside their old ways of thinking, learn to be open with each other, understand how their organization really works, form a plan or vision everyone can agree on, and work together to achieve that vision.
Proponents of the learning organization envision it as a remedy for three fundamental problems of traditional organizations: fragmentation, competition, and reactiveness. First, fragmentation based on specialization creates “walls” and “chimneys” that separate different functions into independent and often warring fiefdoms. Second, an overemphasis on competition often undermines collaboration. Managers compete to show who is right, who knows more, or who is more persuasive. Divisions compete when they ought to cooperate and share knowledge. Team leaders compete to show who the best manager is. And third, reactiveness misdirects management’s attention to problem solving rather than creation. The problem solver tries to make something go away, while a creator tries to bring something new into being. An emphasis on reactiveness pushes out innovation and continuous improvement and, in its place, encourages people to run around “putting out fires.”
22
Creating a Culture for Change (7 of 8)
What can managers do to make their firms learning organizations?
Establish a strategy.
Redesign the organization’s structure.
Reshape the organization’s culture.
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What can managers do to make their firms learning organizations? First, establish a strategy. Management needs to make explicit its commitment to change, innovation, and continuous improvement. Second, redesign the organization’s structure. The formal structure can be a serious impediment to learning. Flattening the structure, eliminating or combining departments, and increasing the use of cross-functional teams reinforces interdependence and reduces boundaries. Third, reshape the organization’s culture. To become a learning organization, managers must demonstrate by their actions that taking risks and admitting failures are desirable. That means rewarding people who take chances and make mistakes. And management needs to encourage functional conflict. “The key to unlocking real openness at work,” says one expert on learning organizations, “is to teach people to give up having to be in agreement. You have to bring paradoxes, conflicts, and dilemmas out in the open, so collectively we can be more intelligent than we can be individually.”
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Creating a Culture for Change (8 of 8)
Organizational Change and Stress
Research shows that organizational changes incorporating OB knowledge of how people react to stressors may yield more effective results than organizational changes that are only objectively managed through goal-setting.
The role of leadership is critical.
Changes are stressful because employees perceive aspects to be threatening.
Employees need to see the changes as fair.
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Researchers are increasingly studying the effects of organizational change on employees. We are interested in determining the specific causes and mitigating factors of stress in order to learn how to manage organizational change effectively. The overall findings are that organizational changes incorporating OB knowledge of how people react to stressors may yield more effective results than organizational changes that are only objectively managed through goal-setting. Not surprisingly, the role of leadership is critical. A recent study found that transformational leaders can help shape employee affect so employees stay committed to the change and do not perceive it as stressful. Another study indicated that a positive orientation toward change before specific changes are planned will predict how employees deal with new initiatives.
Often, organizational changes are stressful because employees perceive aspects of the changes as threatening. These employees are more likely to quit, partially in reaction to their stress. To reduce the perception of threat, employees need to see the organizational changes as fair. Research indicates that those who have a positive change orientation before changes are planned are less likely to perceive of changes as unfair or threatening.
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Stress at Work (1 of 4)
Exhibit 17-7 Work Is a Top Source of Stress
| What area of your life causes you the most stress? | Blank |
| Area | Causes Most Stress |
| Financial worries | 64% |
| Work | 60% |
| Family responsibilities | 47% |
| Health concerns | 46% |
Source: Based on “Stress in America: Paying with Our Health,” American Psychological Association, February 4, 2015, http://www.apa.org/news/press/releases/stress/2014/stress-report.pdf.
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What is stress? Stress is a dynamic condition in which an individual is confronted with an opportunity, constraint, or demand related to what he or she desires and for which the outcome is perceived to be both uncertain and important. Exhibit 18-7 shows work is, for most people, the most important source of stress in life.
Stress is not necessarily bad in and of itself. Individuals often use stress positively to rise to the occasion and perform at or near their maximum.
Recently, researchers have argued that challenge stressors—or stressors associated with workload, pressure to complete tasks, and time urgency—operate quite differently from hindrance stressors—or stressors that keep you from reaching your goals (for example, red tape, office politics, confusion over job responsibilities, etc.). Although research is just starting to accumulate, early evidence suggests challenge stressors produce less strain than hindrance stressors.
Researchers have sought to clarify the conditions under which each type of stress exists. It appears that employees who have a stronger affective commitment to their organization can transfer psychological stress into greater focus and higher sales performance, whereas employees with low levels of commitment perform worse under stress. And when challenge stress increases, those with high levels of organizational support have higher role-based performance, but those with low levels of organizational support do not.
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Stress at Work (2 of 4)
OB POLL Many Employees Feel Extreme Stress
Source: Based on J. Hudson, “High Stress Has Employees Seeking Both Wellness and Employee Assistance Help,” ComPsych Corporation press release, November 12, 2014, http://www.compsych.com/press-room/press-releases-2014/818-nov-12-2014.
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Do you feel stressed? If so, join the crowd. This OB poll shows that many employees feel extreme stress.
26
Stress at Work (3 of 4)
Exhibit 17-8 A Model of Stress from
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As the model in Exhibit 18-8 shows, there are three categories of potential stressors: environmental, organizational, and personal.
Environmental uncertainty influences stress levels among employees in an organization. Political uncertainties in some countries can be stress inducing. Technological uncertainty can cause stress because new innovations can make an employee’s skills and experience obsolete in a very short period of time.
Next are organizational factors, like pressures to avoid errors or complete tasks in a limited time period, work overload, a demanding and insensitive boss, and unpleasant coworkers. Task demands are factors related to a person’s job, including the design of the individual’s job (autonomy, task variety, degree of automation), working conditions, and the physical work layout. Role demands relate to pressures that are a function of the role an individual plays in an organization. (Role conflicts create expectations that may be hard to reconcile or satisfy. Role overload is experienced when the employee is expected to do more than time permits. Role ambiguity is created when role expectations are not clearly understood.) Interpersonal demands are pressures created by other employees. Lack of social support from colleagues and poor interpersonal relationships can cause stress, especially among employees with a high social need. A rapidly growing body of research has also shown that negative coworker and supervisor behaviors, including fights, bullying, incivility, racial harassment, and sexual harassment, are especially strongly related to stress at work.
Next are personal factors, which are factors in the employee’s personal life like family issues, personal economic problems, and inherent personality characteristics. National surveys consistently show that people hold family and personal relationships dear.
Four individual difference variables moderate the relationship between potential stressors and experienced stress: perception, job experience, social support, and personality. First, perception moderates the relationship between a potential stress condition and an employee’s reaction to it. Stress potential doesn’t lie in objective conditions; it lies in an employee’s interpretation of those conditions. Next is job experience. The evidence indicates that experience on the job tends to be negatively related to work stress. Voluntary turnover is more probable among people who experience more stress. Social support is the relationships with coworkers or supervisors that can buffer the impact of stress. Social support acts as a palliative, mitigating the negative effects of even high-strain jobs. Next is personality traits. Perhaps the most widely studied personality trait in stress is neuroticism, discussed in Chapter 5. As you might expect, neurotic individuals are more prone to experience psychological strain. Evidence suggests that neurotic individuals are more prone to believe there are stressors in their work environments, so part of the problem is that they believe their environments are more threatening. They also tend to select less adaptive coping mechanisms, relying on avoidance as a way of dealing with problems rather than attempting to resolve them. Workaholism is another personal characteristic related to stress levels. Workaholics are people obsessed with their work; they put in an enormous number of hours, think about work even when not working, and create additional work responsibilities to satisfy an inner compulsion to work more.
27
Stress at Work (4 of 4)
Cultural Differences
Research suggests the job conditions that cause stress show some differences across cultures.
For example, U.S. employees are stressed by a lack of control, whereas Chinese employees are stressed by job evaluations and lack of training.
Research also shows that stress is equally bad for employees of all cultures.
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Research suggests the job conditions that cause stress show some differences across cultures. One study revealed that whereas U.S. employees were stressed by a lack of control, Chinese employees were stressed by job evaluations and lack of training.
It doesn’t appear that personality effects on stress are different across cultures, however. One study of employees in Hungary, Italy, the United Kingdom, Israel, and the United States found Type A personality traits (see Chapter 5) predicted stress equally well across the countries. A study of 5,270 managers from 20 countries found individuals from individualistic countries such as the United States, Canada, and the United Kingdom experienced higher levels of stress due to work interfering with family than did individuals from collectivist countries like Asia and Latin America. The authors proposed that this may occur because, in collectivist cultures, working extra hours is seen as a sacrifice to help the family, whereas in individualistic cultures, work is seen as a means to personal achievement that takes away from the family.
Evidence suggests that stressors are associated with perceived stress and strains among employees in different countries. In other words, stress is equally bad for employees of all cultures.
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Consequences of Stress at Work (1 of 2)
Consequences of Stress
Physiological Symptoms: research supports the link between job stress and poor health.
Psychological Symptoms: job dissatisfaction is an obvious cause of stress.
Behavioral Symptoms: reductions in productivity, absence, turnover, as well as changes in eating habits, increased smoking and/or consumption of alcohol, rapid speech, fidgeting, and sleep disorders.
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What are the consequences of stress? Symptoms of stress can be categorized as physiological, psychological, or behavioral.
Most early concern with stress was directed at physiological symptoms because most researchers were specialists in the health and medical sciences. Their work led to the conclusion that stress could create changes in metabolism, increase heart and breathing rates and blood pressure, bring on headaches, and induce heart attacks. Evidence now clearly suggests stress may have harmful physiological effects. One study linked stressful job demands to increased susceptibility to upper-respiratory illnesses and poor immune system functioning, especially for individuals with low self-efficacy. A long-term study conducted in the United Kingdom found that job strain was associated with higher levels of coronary heart disease. Still another study conducted with Danish human services workers found that higher levels of psychological burnout at the work-unit level were related to significantly higher levels of sickness absence. Many other studies have shown similar results linking work stress to a variety of indicators of poor health.
The psychological symptoms caused by stress are simple: job-related stress can cause job-related dissatisfaction, and job dissatisfaction is the simplest and most obvious psychological effect of stress. Multiple and conflicting demands—lack of clarity as to the incumbent’s duties, authority, and responsibilities—increase stress and dissatisfaction. The less control people have over the pace of their work, the greater the stress and dissatisfaction.
Next are behavioral symptoms. Research on behavior and stress has been conducted across several countries and over time, the relationships appear relatively consistent. Behavior-related stress symptoms include reductions in productivity, absence, and turnover, as well as changes in eating habits, increased smoking or consumption of alcohol, rapid speech, fidgeting, and sleep disorders. A significant amount of research has investigated the stress-performance relationship.
29
Consequences of Stress at Work (2 of 2)
Exhibit 17-9 The Proposed Inverted-U Relationship between Stress and Job Performance
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The most widely studied pattern of the relationship between stress and job performance is the inverted U, shown here in Exhibit 18-9. The logic underlying the figure is that low to moderate levels of stress stimulate the body and increase its ability to react. Individuals then often perform their tasks better, more intensely, or more rapidly. But too much stress places unattainable demands on a person, which result in lower performance. In spite of the popularity and intuitive appeal of the inverted-U model, it doesn’t get a lot of empirical support. So we should be careful of assuming it accurately depicts the stress–performance relationship.
30
Managing Stress at Work (1 of 11)
Managing Stress
Because low to moderate levels of stress can be functional and lead to higher performance, management may not be concerned when employees experience stress at these levels.
What management may consider to be “a positive stimulus that keeps the adrenaline running” is very likely to be seen as “excessive pressure” by the employee.
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Because low to moderate levels of stress can be functional and lead to higher performance, management may not be concerned when employees experience them. Employees, however, are likely to perceive even low levels of stress as undesirable. It’s not unlikely, therefore, for employees and management to have different notions of what constitutes an acceptable level of stress on the job. What management may consider to be “a positive stimulus that keeps the adrenaline running” is very likely to be seen as “excessive pressure” by the employee.
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Managing Stress at Work (2 of 11)
Individual Approaches
An employee can take personal responsibility for reducing stress levels.
Individual strategies include:
Time-management techniques.
Increased physical exercise.
Relaxation training.
Expanded social support networks.
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An employee can take personal responsibility for reducing stress levels. Individual strategies that have proven effective include time-management techniques, increased physical exercise, relaxation training, and expanded social support networks.
An understanding and utilization of basic time-management principles can help individuals better cope with tensions created by job demands. A few of the best-known time-management principles are: making daily lists of activities to be accomplished; prioritizing activities by importance and urgency; scheduling activities according to the priorities set; knowing your daily cycle and handling the most demanding parts of your job when you are most alert and productive; and avoiding electronic distractions like frequently checking e-mail, which can limit attention and reduce efficiency. These time-management skills can help minimize procrastination by focusing efforts on immediate goals and boosting motivation even in the face of tasks that are less desirable.
Physicians have recommended noncompetitive physical exercise, such as aerobics, walking, jogging, swimming, and riding a bicycle, as a way to deal with excessive stress levels. These activities increase lung capacity, lower the at-rest heart rate, and provide a mental diversion from work pressures, effectively reducing work-related levels of stress.
Individuals can also teach themselves to reduce tension through relaxation techniques such as meditation, hypnosis, and deep breathing. The objective is to reach a state of deep physical relaxation, in which you focus all your energy on release of muscle tension. Deep relaxation for 15 or 20 minutes a day releases strain and provides a pronounced sense of peacefulness, as well as significant changes in heart rate, blood pressure, and other physiological factors. A growing body of research shows that simply taking breaks from work at routine intervals can facilitate psychological recovery and reduce stress significantly and may improve job performance, and these effects are even greater if relaxation techniques are employed.
As we have noted, friends, family, or work colleagues can provide an outlet when stress levels become excessive. Expanding your social support network provides someone to hear your problems and offer a more objective perspective on a stressful situation than your own.
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Managing Stress at Work (3 of 11)
Organizational Approaches
Several organizational factors that cause stress are controlled by management.
Task and role demands can be modified or changed.
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Several organizational factors that cause stress—particularly task and role demands—are controlled by management and thus can be modified or changed. Let’s look at some of the strategies that management can use.
33
Managing Stress at Work (4 of 11)
Strategies include:
Better selection and placement, and training.
Goal-setting.
Redesigning jobs.
Employee involvement.
Organizational communication.
Employee sabbaticals.
Wellness programs.
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Strategies to consider include improved employee selection and job placement, training, realistic goal-setting, redesign of jobs, increased employee involvement, improved organizational communication, employee sabbaticals, and corporate wellness programs. Let’s talk more about each of these.
34
Managing Stress at Work (5 of 11)
Selection and Placement
Individuals with little experience or an external locus of control tend to be more prone to stress.
Selection and placement decisions should take these facts into consideration.
Training can increase an individual’s self-efficacy and thus lessen job strain in these situations.
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Certain jobs are more stressful than others but, as we’ve seen, individuals differ in their response to stressful situations. We know individuals with little experience or an external locus of control tend to be more prone to stress. Selection and placement decisions should take these facts into consideration. Obviously, management shouldn’t restrict hiring to only experienced individuals with an internal locus, but such individuals may adapt better to high-stress jobs and perform those jobs more effectively.
35
Managing Stress at Work (6 of 11)
Goal-setting
Goals can reduce stress as well as provide motivation.
Employees who are highly committed to their goals and see purpose in their jobs experience less stress.
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We discussed goal-setting in Chapter 7. Individuals perform better when they have specific and challenging goals and receive feedback on their progress toward these goals. Goals can reduce stress as well as provide motivation. Employees who are highly committed to their goals and see purpose in their jobs experience less stress because they are more likely to perceive stressors as challenges rather than hindrances. Specific goals perceived as attainable clarify performance expectations. In addition, goal feedback reduces uncertainties about actual job performance. The result is less employee frustration, role ambiguity, and stress.
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Managing Stress at Work (7 of 11)
Redesigning Jobs
Redesigning jobs to give employees more responsibility, more meaningful work, more autonomy, and increased feedback can reduce stress because these factors give employees greater control over work activities and lessen dependence on others.
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Redesigning jobs to give employees more responsibility, more meaningful work, more autonomy, and increased feedback can reduce stress because these factors give employees greater control over work activities and lessen dependence on others. But as we noted in our discussion of work design, not all employees want enriched jobs. The right redesign for employees with a low need for growth might be less responsibility and increased specialization. If individuals prefer structure and routine, reducing skill variety should also reduce uncertainties and stress levels.
37
Managing Stress at Work (8 of 11)
Employee involvement
Role stress is detrimental to a large extent because employees feel uncertain about goals, expectations, how they’ll be evaluated, and the like.
Giving employees a voice in management decisions can increase employee control and reduce role stress.
Managers should consider increasing employee involvement in decision making.
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Role stress is detrimental to a large extent because employees feel uncertain about goals, expectations, how they’ll be evaluated, and the like. By giving these employees a voice in the decisions that directly affect their job performance, management can increase employee control and reduce role stress. Thus, managers should consider increasing employee involvement in decision making, because evidence clearly shows that increases in employee empowerment reduce psychological strain.
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Managing Stress at Work (9 of 11)
Organizational Communication
Increasing formal organizational communication with employees reduces uncertainty by lessening role ambiguity and role conflict.
Given the importance that perceptions play in moderating the stress-response relationship, management can also use effective communications as a means to shape employee perceptions.
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Increasing formal organizational communication with employees reduces uncertainty by lessening role ambiguity and role conflict. Given the importance that perceptions play in moderating the stress–response relationship, management can also use effective communications as a means to shape employee perceptions. Remember that what employees categorize as demands, threats, or opportunities at work is an interpretation, and that interpretation can be affected by the symbols and actions communicated by management.
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Managing Stress at Work (10 of 11)
Employee sabbaticals
Some employees need an occasional escape from the frenetic pace of their work.
These sabbaticals—ranging in length from a few weeks to several months—allow employees to travel, relax, or pursue personal projects that consume time beyond normal vacations.
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Some employees need an occasional escape from the frenetic pace of their work. Companies including Genentech, American Express, Intel, General Mills, Microsoft, Morningstar, DreamWorks Animation, and Adobe Systems have begun to provide extended voluntary leaves. These sabbaticals—ranging in length from a few weeks to several months—allow employees to travel, relax, or pursue personal projects that consume time beyond normal vacations. Proponents say they can revive and rejuvenate workers who might otherwise be headed for burnout.
40
Managing Stress at Work (11 of 11)
Corporate wellness programs
Typically provide workshops to help people quit smoking, control alcohol use, lose weight, eat better, and develop a regular exercise program.
Focus on the employee’s total physical and mental condition.
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Our final suggestion is organizationally supported wellness programs. These typically provide workshops to help people quit smoking, control alcohol use, lose weight, eat better, and develop a regular exercise program; they focus on the employee’s total physical and mental condition. Some help employees improve their psychological health as well. A meta-analysis of 36 programs designed to reduce stress (including wellness programs) showed that interventions to help employees reframe stressful situations and use active coping strategies appreciably reduced stress levels. Most wellness programs assume employees need to take personal responsibility for their physical and mental health and that the organization is merely a means to that end.
41
Implications for Managers (1 of 3)
Consider that, as a manager, you are a change agent in your organization. The decisions you make and your role-modeling behaviors will help shape the organization’s change culture.
Your management policies and practices will determine the degree to which the organization learns and adapts to changing environmental factors.
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The need for change has been implied throughout this text. For instance, think about attitudes, motivation, work teams, communication, leadership, organizational structures, human resource practices, and organizational cultures. Change was an integral part in our discussion of each. If environments were perfectly static, if employees’ skills and abilities were always up to date and incapable of deteriorating, and if tomorrow were always exactly the same as today, organizational change would have little or no relevance to managers. But the real world is turbulent, requiring organizations and their members to undergo dynamic change if they are to perform at competitive levels. Coping with all these changes can be a source of stress, but with effective management, challenge can enhance engagement and fulfillment, leading to the high performance that, as you’ve discovered in this text, is one major goal of the study of organizational behavior (OB).
Managers should:
Consider that, as a manager, you are a change agent in your organization. The decisions you make and your role-modeling behaviors will help shape the organization’s change culture.
Your management policies and practices will determine the degree to which the organization learns and adapts to changing environmental factors.
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Implications for Managers (2 of 3)
Some stress is good. Increasing challenges brought by autonomy and responsibility at work will lead to some stress, but they will also increase feelings of accomplishment and fulfillment. Hindrance stressors like bureaucracy and interpersonal conflicts, on the other hand, are entirely negative and should be eliminated.
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In addition, managers should know:
Some stress is good. Increasing challenges brought by autonomy and responsibility at work will lead to some stress, but they will also increase feelings of accomplishment and fulfillment. Hindrance stressors like bureaucracy and interpersonal conflicts, on the other hand, are entirely negative and should be eliminated.
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Implications for Managers (3 of 3)
You can help alleviate harmful workplace stress for your employees by accurately matching work-loads to employees, providing employees with stress-coping resources, and responding to employee concerns.
You can identify extreme stress in your employees when performance declines, turnover increases, health-related absenteeism increases, and engagement declines. Stay alert for early indicators and be proactive.
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Finally:
You can help alleviate harmful workplace stress for your employees by accurately matching work-loads to employees, providing employees with stress-coping resources, and responding to their concerns.
You can identify extreme stress in your employees when performance declines, turnover increases, health-related absenteeism increases, and engagement declines. However, by the time these symptoms are visible, it may be too late to be helpful, so stay alert for early indicators and be proactive.
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Learning Objectives (1 of 2)
17.1 Contrast the forces for change and planned change.
17.2 Describe ways to overcome resistance to change.
17.3 Compare the four main approaches to managing organizational change.
17.4 Demonstrate three ways of creating a culture for change.
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After studying this chapter, you should be able to:
Contrast the forces for change and planned change.
Describe ways to overcome resistance to change.
Compare the four main approaches to managing organizational change.
Demonstrate three ways of creating a culture for change.
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Learning Objectives (2 of 2)
17.5 Identify the potential environmental, organizational, and personal sources of stress at work and the role of individual and cultural differences.
17.6 Identify the physiological, psychological, and behavioral symptoms of stress at work.
17.7 Describe individual and organizational approaches to managing stress at work.
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Additional objectives for this chapter.
Identify the potential environmental, organizational, and personal sources of stress at work and the role of individual and cultural differences.
Identify the physiological, psychological, and behavioral symptoms of stress at work.
Describe individual and organizational approaches to managing stress at work.
46
Questions?
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Organizational Behavior
Eighteenth Edition, Global Edition
Chapter 18
Conflict and Negotiation
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Welcome to this Organizational Behavior course that uses the 18th edition of the textbook, Organizational Behavior by Robbins and Judge. This is considered among the most widely used OB textbooks in the world. Robbins and Judge are recognized as definitive aggregators of OB concepts, applications, and practices. The course and this book will provide you with a resource that will benefit you throughout your degree program and your professional life.
Chapter 14: Conflict and Negotiation
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Learning Objectives
18.1 Describe the three types of conflict and the three loci of conflict.
18.2 Outline the conflict process.
18.3 Contrast distributive and integrative bargaining.
18.4 Apply the five steps of the negotiation process.
18.5 Show how individual differences influence negotiations.
18.6 Assess the roles and functions of third-party negotiations.
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After studying this chapter, you should be able to:
Describe the three types of conflict and the two loci of conflict.
Outline the conflict process.
Contrast distributive and integrative bargaining.
Apply the five steps of the negotiation process.
Show how individual differences influence negotiations.
Assess the roles and functions of third-party negotiations.
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Three Types of Conflict and Three Loci of Conflict (1 of 5)
Conflict: a process that begins when one party perceives that another party has negatively affected, or is about to negatively affect, something that the first party cares about.
If no one is aware of a conflict, then it is generally agreed no conflict exists.
Also needed to begin the conflict process are opposition or incompatibility and interaction.
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We define conflict as a process that begins when one party perceives that another party has negatively affected, or is about to negatively affect, something that the first party cares about. Common to most is the idea that conflict is a perception. If no one is aware of a conflict, then it is generally agreed no conflict exists. Also needed to begin the conflict process are opposition or incompatibility and interaction.
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Three Types of Conflict and Three Loci of Conflict (2 of 5)
Contemporary perspectives differentiate types of conflict based on their effects.
Functional conflict supports the goals of the group and improves its performance.
Conflicts that hinder group performance are dysfunctional or destructive forms of conflict.
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Contemporary perspectives differentiate types of conflict based on their effects. Functional conflict supports the goals of the group and improves its performance. Conflicts that hinder group performance are dysfunctional or destructive forms of conflict.
51
Three Types of Conflict and Three Loci of Conflict (3 of 5)
Exhibit 18-1 Conflict and Unit Performance from
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Exhibit 14-1 provides an overview of the effect of levels of conflict. Next, we’ll discuss the types of conflict and the loci of conflict.
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Three Types of Conflict and Three Loci of Conflict (4 of 5)
Types of Conflict
Researchers have classified conflicts into three categories:
Task conflict relates to the content and goals of the work.
Relationship conflict focuses on interpersonal relationships.
Process conflict is about how the work gets done.
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Researchers have classified conflicts into three categories: task, relationship, or process. Task conflict relates to the content and goals of the work. Relationship conflict focuses on interpersonal relationships. Process conflict is about how the work gets done.
Studies demonstrate that relationship conflicts, at least in work settings, are almost always dysfunctional. It appears that the friction and interpersonal hostilities inherent in relationship conflicts increase personality clashes and decrease mutual understanding, which hinders the completion of organizational tasks.
Of the three types, relationship conflicts also appear to be the most psychologically exhausting to individuals. This type of conflict can also be very problematic for employees who are new to the organization, since newcomers rely on coworkers to learn information about the job.
While scholars agree that relationship conflict is dysfunctional, there is considerably less agreement as to whether task and process conflicts are functional.
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Three Types of Conflict and Three Loci of Conflict (5 of 5)
Loci of Conflict
Another way to understand conflict is to consider its locus, or where the conflict occurs.
There are three basic types:
Dyadic conflict is conflict between two people.
Intragroup conflict occurs within a group or team.
Intergroup conflict is conflict between groups or teams.
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Another way to understand conflict is to consider its locus, or where the conflict occurs. Here, too, there are three basic types: dyadic conflict is conflict between two people; intragroup conflict occurs within a group or team; and intergroup conflict is conflict between groups or teams.
Nearly all the literature on task, relationship, and process conflict considers intragroup conflict (within the group). That makes sense given that groups and teams often exist only to perform a particular task. However, it doesn’t necessarily tell us about the other loci of conflict. Another intriguing question about loci is whether conflicts interact or buffer one another. Intense intergroup conflict can be quite stressful to group members and might well affect the way they interact. Thus, understanding functional and dysfunctional conflict requires not only that we identify the type of conflict; we also need to know where it occurs.
54
Outline the Conflict Process (1 of 10)
Exhibit 18-2 The Conflict Process
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The conflict process has five stages: potential opposition or incompatibility, cognition and personalization, intentions, behavior, and outcomes.
As shown in Exhibit 14-2, in Stage I, potential opposition or incompatibility is present. Here, communication as a source of conflict represents those opposing forces that arise from semantic difficulties, misunderstandings, and “noise” in the communication channels. The potential for conflict increases when either too little or too much communication takes place. The term structure includes variables such as size, degree of specialization, jurisdictional clarity, member-goal compatibility, leadership styles, reward systems, and the degree of dependence. Personal variables include personality, emotions, and values. People high in the personality traits of disagreeableness, neuroticism, or self-monitoring are prone to tangle with other people more often, and to react poorly when conflicts occur. Emotions can also cause conflict even when they are not directed at others.
In Stage II, the potential for opposition or incompatibility becomes actualized. Because a disagreement is a perceived conflict, however, does not mean it is personalized. It is at the felt conflict level, when individuals become emotionally involved, that they experience anxiety, tension, frustration, or hostility. Stage II is important for two reasons: because it’s where conflict issues tend to be defined, where the parties decide what the conflict is about; and because emotions play a major role in shaping perceptions and therefore our reactions to the conflict.
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Three Types of Conflict and Three Loci of Conflict (3 of 10)
Intentions: decisions to act in a given way.
Competing
Collaborating
Avoiding
Accommodating
Compromising
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Stage III involves intentions, or decisions to act in a given way that intervene between people’s perceptions and emotions and their overt behavior. Why are intentions separated out as a distinct stage? Merely one party attributing the wrong intentions to the other escalates a lot of conflicts. One way to identify the primary conflict-handling intentions is to think about them along two dimensions. First is cooperativeness or the degree to which one party attempts to satisfy the other party’s concerns. Second is assertiveness, which is the degree to which one party attempts to satisfy his or her own concerns.
Five conflict-handling intentions can be identified: competing, collaborating, avoiding, accommodating, and compromising. Keep in mind that intentions are not always fixed. They might change because of reconceptualization or because of an emotional reaction. However, individuals have preferences among the five conflict-handling intentions.
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Outline the Conflict Process (4 of 10)
Exhibit 18-3 Conflict-Intensity Continuum
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Stage IV is where conflicts become visible. The behavior stage includes the statements, actions, and reactions made by the conflicting parties. These conflict behaviors are usually overt attempts to implement each party’s intentions. At the lower part of the continuum, conflicts are characterized by subtle, indirect, and highly controlled forms of tension. Conflict intensities escalate as they move upward along the continuum until they become highly destructive. If a conflict is dysfunctional, what can the parties do to de-escalate it? Or, conversely, what options exist if conflict is too low and needs to be increased?
57
Outline the Conflict Process (5 of 10)
Exhibit 18-4 Conflict Management Techniques
| Conflict-Resolution Techniques | Blank |
| Problem solving | Meeting face to face for the purpose of identifying the problem and resolving it through open discussion. |
| Superordinate goals | Creating a shared goal that cannot be attained without the cooperation of each of the conflicting parties. |
| Expansion of resources | Expanding the supply of a scarce resource (for example, money, promotion, opportunities, office space). |
| Avoidance | Withdrawing from or suppressing the conflict. |
| Smoothing | Playing down differences while emphasizing common interests between the conflicting parties. |
| Compromise | Having each party to the conflict give up something of value. |
| Authoritative command | Letting management use its formal authority to resolve the conflict and then communicating its desires to the parties involved. |
| Altering the human variable | Using behavioral change techniques such as human relations training to alter attitudes and behaviors that cause conflict. |
| Altering the structural variables | Changing the formal organization structure and the interaction patterns of conflicting parties through job redesign, transfers, creation of coordinating positions, and the like. |
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This brings us to techniques of conflict management. Exhibit 14-5 lists the major resolution and stimulation techniques that allow managers to control conflict levels. Under ideal conditions, a person’s intentions should translate into comparable behaviors.
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Outline the Conflict Process (6 of 10)
[Exhibit 18-4 Continued]
| Conflict-Stimulation Techniques | Blank |
| Communication | Using ambiguous or threatening messages to increase conflict levels. |
| Bringing in outsiders | Adding employees to a group whose backgrounds, values, attitudes, or managerial styles differ from those of present members. |
| Restructuring the organization | Realigning work groups, altering rules and regulations, increasing interdependence, and making similar structural changes to disrupt the status quo. |
| Appointing a devil’s advocate | Designating a critic to purposely argue against the majority positions held by the group. |
Source: Based on S. P. Robbins, Managing Organizational Conflict: A Nontraditional Approach (Upper Saddle River, NJ: Prentice Hall, 1974): 59–89.
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The continuation of Exhibit 14-5 shows the remainder of the major resolution and stimulation techniques that allow managers to control conflict levels. Recall that under ideal conditions, a person’s intentions should translate into comparable behaviors.
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Outline the Conflict Process (7 of 10)
Stage V: Outcomes
Conflict is constructive when it…
Improves the quality of decisions, stimulates creativity and innovation, encourages interest and curiosity, provides the medium through which problems can be aired and tensions released, and fosters an environment of self-evaluation and change.
Conflict is destructive when it…
Breeds discontent, reduces group effectiveness, and threatens the group’s survival.
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Outcomes, which is Stage V of Exhibit 14-2, may be functional, that is, improving group performance, or dysfunctional in hindering it.
Conflict is constructive when it improves the quality of decisions, when it stimulates creativity and innovation, when it encourages interest and curiosity, when it provides the medium through which problems can be aired and tensions released, and when it fosters an environment of self-evaluation and change. Conflict can improve the quality of decision making. Conflict is an antidote for groupthink. Conflict challenges the status quo, furthers the creation of new ideas, promotes reassessment of group goals and activities, and increases the probability that the group will respond to change.
The destructive consequences of conflict on the performance of a group or an organization are generally well known: Uncontrolled opposition breeds discontent, which acts to dissolve common ties and eventually leads to the destruction of the group. And, of course, a substantial body of literature documents how dysfunctional conflicts can reduce group effectiveness. Among the undesirable consequences are poor communication, reductions in group cohesiveness, and subordination of group goals to the primacy of infighting among members. All forms of conflict—even the functional varieties—appear to reduce group member satisfaction and trust. When active discussions turn into open conflicts between members, information sharing between members decreases significantly. At the extreme, conflict can bring group functioning to a halt and threaten the group’s survival.
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Outline the Conflict Process (8 of 10)
Managing Functional Conflict
One of the keys to minimizing counterproductive conflicts is recognizing when there really is a disagreement.
Many apparent conflicts are due to people using different language to discuss the same general course of action.
Successful conflict management recognizes these different approaches.
Attempts to resolve them by encouraging open, frank discussion focused on interests rather than issues.
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Managing functional conflict isn’t easy. But, if managers recognize that in some situations conflict can be beneficial, what can they do to manage conflict effectively in their organizations?
One of the keys to minimizing counterproductive conflicts is recognizing when there really is a disagreement. Many apparent conflicts are due to people using different language to discuss the same general course of action. For example, someone in marketing might focus on "distribution problems,” while someone from operations will talk about “supply chain management” to describe essentially the same issue. Successful conflict management recognizes these different approaches and attempts to resolve them by encouraging open, frank discussion focused on interests rather than issues (we’ll have more to say about this when we contrast distributive and integrative bargaining styles).
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Outline the Conflict Process (9 of 10)
Groups that resolve conflicts successfully discuss differences of opinion openly.
The most disruptive conflicts are those that are never addressed directly.
Managers need to emphasize shared interests in resolving conflicts.
Groups with cooperative conflict styles and an underlying identification to group goals are more effective than groups with a more competitive style.
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Groups that resolve conflicts successfully discuss differences of opinion openly and are prepared to manage conflict when it arises.
The most disruptive conflicts are those that are never addressed directly. An open discussion makes it much easier to develop a shared perception of the problems at hand; it also allows groups to work toward a mutually acceptable solution.
Managers need to emphasize shared interests in resolving conflicts, so groups that disagree with one another don’t become too entrenched in their points of view and start to take the conflicts personally. Groups with cooperative conflict styles and a strong underlying identification to the overall group goals are more effective than groups with a more competitive style.
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Outline the Conflict Process (10 of 10)
Differences across countries in conflict resolution strategies may be based on collectivistic tendencies and motives.
Collectivist cultures see people as deeply embedded in social situations.
They will avoid direct expression of conflicts, preferring indirect methods for resolving differences of opinion.
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Differences across countries in conflict resolution strategies may be based on collectivistic tendencies and motives. Collectivist cultures see people as deeply embedded in social situations, whereas individualist cultures see them as autonomous. As a result, collectivists are more likely to seek to preserve relationships and promote the good of the group as a whole. They will avoid direct expression of conflicts, preferring indirect methods for resolving differences of opinion. Collectivists may also be more interested in demonstrations of concern and working through third parties to resolve disputes, whereas individualists will be more likely to confront differences of opinion directly and openly.
Some research does support this theory. Compared to collectivist Japanese negotiators, their more individualist U.S. counterparts are more likely to see offers from their counterparts as unfair and to reject them. Another study revealed that whereas U.S. managers were more likely to use competing tactics in the face of conflicts, compromising and avoiding are the most preferred methods of conflict management in China. Interview data, however, suggests top management teams in Chinese high-technology firms prefer collaboration even more than compromising and avoiding.
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Contrast Distributive and Integrative Bargaining (1 of 6)
Negotiation is a process in which two or more parties exchange goods or services and attempt to agree upon the exchange rate for them.
We use the terms negotiation and bargaining interchangeably.
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Negotiation is a process in which two or more parties exchange goods or services and attempt to agree upon the exchange rate for them. We use the terms negotiation and bargaining interchangeably. Although we commonly think of the outcomes of negotiation in one-shot economic terms, every negotiation in organizations also affects the relationship between the negotiators and the way the negotiators feel about themselves. Depending on how much the parties are going to interact with one another, sometimes maintaining the social relationship and behaving ethically will be just as important as achieving an immediate outcome of bargaining.
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Contrast Distributive and Integrative Bargaining (2 of 6)
Exhibit 18-5 Distributive versus Integrative Bargaining
| Bargaining Characteristic | Distributive Bargaining | Integrative Bargaining |
| Goal | Get as much of the pie as possible | Expand the pie so that both parties are satisfied |
| Motivation | Win–lose | Win–win |
| Focus | Positions (“I can’t go beyond this point on this issue.”) | Interests (“Can you explain why this issue is so important to you?”) |
| Interests | Opposed | Congruent |
| Information sharing | Low (Sharing information will only allow other party to take advantage.) | High (Sharing information will allow each party to find ways to satisfy interests of each party.) |
| Duration of relationship | Short term | Long term |
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There are two general approaches to negotiation – distributive bargaining and integrative bargaining. Exhibit 14-6 shows that the two types of bargaining differ in their goals, motivation, focus, interests, information sharing, and duration.
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Contrast Distributive and Integrative Bargaining (3 of 6)
Exhibit 18-6 Staking Out the Bargaining Zone
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An example of distributive bargaining is buying a car. You go out to see the car. It is great and you want it. The owner tells you the asking price. You do not want to pay that much. The two of you then negotiate over the price. The most identifying feature of distributive bargaining is that it operates under zero-sum conditions.
Exhibit 14-7 shows that the essence of distributive bargaining is negotiating over who gets what share of a fixed pie. By fixed pie, we mean a set amount of goods or services to be divvied up. When the pie is fixed, or the parties believe it is, they tend to bargain distributively.
In contrast to distributive bargaining, integrative bargaining assumes that one or more of the possible settlements can create a win–win solution. Integrative bargaining is preferable to distributive bargaining because the former builds long-term relationships. Integrative bargaining bonds negotiators and allows them to leave the bargaining table feeling they have achieved a victory. Distributive bargaining, however, leaves one party a loser. It tends to build animosity and deepen divisions when people have to work together on an ongoing basis.
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Contrast Distributive and Integrative Bargaining (4 of 6)
Research shows that when you’re engaged in distributive bargaining, one of the best things you can do is make the first offer, and make it an aggressive one.
Shows power.
Establishes an anchoring bias.
Another distributive bargaining tactic is revealing a deadline.
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When engaged in distributive bargaining, research consistently shows one of the best things you can do is make the first offer, and make it an aggressive one. One reason for this is that making the first offer shows power; individuals in power are much more likely to make initial offers, speak first at meetings, and thereby gain the advantage.
Another reason, the anchoring bias, was mentioned in Chapter 6. People tend to fixate on initial information. A savvy negotiator sets an anchor with the initial offer, and scores of negotiation studies show that such anchors greatly favor the person who sets it.
Another distributive bargaining tactic is revealing a deadline. Negotiators who reveal deadlines speed concessions from their negotiating counterparts, making them reconsider their position. And although negotiators don’t think this tactic works, in reality, negotiators who reveal deadlines do better.
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Contrast Distributive and Integrative Bargaining (5 of 6)
Exhibit 18-7 Integration of Two Bargaining Strategies within One Negotiation Episode
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Exhibit 14-7 illustrates how the two bargaining strategies can be utilized within the same negotiation episode. Early on in the episode, integrative strategies can be used, while later in the episode, distributive strategies can be used.
Why don’t we see more integrative bargaining in organizations? The answer lies in the conditions necessary for this type of negotiation to succeed, including: parties who are open with information and candid about their concerns; a sensitivity by both parties to the other’s needs; the ability to trust one another; and a willingness by both parties to maintain flexibility. These conditions don’t exist in most organizations.
Employees’ personal characteristics and perceived accountability also play a role in whether negotiators come to an integrative solution. The use and effectiveness of negotiation strategies may depend on regulatory focus of the parties involved and accountability to a third party, such as a supervisor. Individuals are also more likely to use integrative bargaining when the other party expresses emotional ambivalence.
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Contrast Distributive and Integrative Bargaining (6 of 6)
Compromise might be your worst enemy in negotiating a win-win agreement.
The reason is that compromising reduces the pressure to bargain integratively.
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Finally, you should realize that compromise might be your worst enemy in negotiating a win–win agreement. The reason is that compromising reduces the pressure to bargain integratively. After all, if you or your opponent caves in easily, it doesn’t require anyone to be creative to reach a settlement. Thus, people end up settling for less than they could have obtained if they had been forced to consider the other party’s interests, trade-off issues, and be creative.
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Apply the Five Steps of the Negotiation Process
Exhibit 18-8 The Negotiation
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Exhibit 14-8 shows a simplified model of the negotiation process as made up of five steps: (1) preparation and planning, (2) definition of ground rules, (3) clarification and justification, (4) bargaining and problem-solving, and (5) closure and implementation.
When it comes to preparation and planning, first, do your homework. What is the nature of the conflict? What is the history leading up to this negotiation? Who is involved, and what are their perceptions of the conflict? What do you want from the negotiation? What are your goals? You also want to assess what you think are the other party’s goals. Once you have gathered your information, use it to develop a strategy. Determine your and the other side’s Best Alternative To a Negotiated Agreement, or BATNA. Your BATNA determines the lowest value acceptable to you for a negotiated agreement. Any offer you receive that is higher than your BATNA is better than an impasse.
Next, define the ground rules. Who will do the negotiating? Where will it take place? What time constraints, if any, will apply? To what issues will negotiation be limited? Will there be a specific procedure to follow if an impasse is reached? During this phase, the parties will also exchange their initial proposals or demands.
When initial positions have been exchanged, explain, amplify, clarify, bolster, and justify your original demands. This need not be confrontational. You might want to provide the other party with any documentation that helps support your position.
The essence of the negotiation process takes place in the bargaining and problem solving phase. This is the actual give-and-take in trying to hash out an agreement. Concessions will undoubtedly need to be made by both parties.
The final step is formalizing the agreement that has been worked out and developing any procedures that are necessary for implementation and monitoring. Major negotiations will require hammering out the specifics in a formal contract. For most cases, however, closure of the negotiation process is nothing more formal than a handshake.
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How Individual Differences Influence Negotiations (1 of 4)
Personality Traits in Negotiation
Can you predict an opponent’s negotiating tactics if you know something about his/her personality?
The evidence says “sort of.”
Moods/Emotions in Negotiation
Influence negotiation, but the way they do appears to depend on the type of negotiation.
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Can you predict an opponent’s negotiating tactics if you know something about his or her personality? The evidence says “sort of.”
It suggests that overall agreeableness is weakly related to negotiation outcomes. Why is this the case? Because the degree to which agreeableness, and personality more generally, affects negotiation outcomes depends on the situation. The importance of being extraverted in negotiations, for example, will very much depend on how the other party reacts to someone who is assertive and enthusiastic. Research also suggests intelligence predicts negotiation effectiveness, but, as with personality, the effects aren’t especially strong.
Moods and emotions influence negotiation, but the way they do appears to depend on the type of negotiation. It appears that negotiators in a position of power or equal status who show anger negotiate better outcomes because their anger induces concessions from their opponents. Anxiety also appears to have an impact on negotiation. For example, one study found that individuals who experienced more anxiety about a negotiation used more deceptions in dealing with others. Another study found that anxious negotiators expect lower outcomes from negotiations, respond to offers more quickly, and exit the bargaining process more quickly, which leads them to obtain worse outcomes.
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How Individual Differences Influence Negotiations (2 of 4)
Culture in Negotiations
Do people from different cultures negotiate differently?
Yes, they do.
People generally negotiate more effectively within cultures than between them.
In cross-cultural negotiations, it is especially important that the negotiators be high in openness.
People are more likely to use certain negotiation strategies depending on what culture they belong to.
Negotiators need to be especially aware of the emotional dynamics in cross-cultural negotiation.
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Do people from different cultures negotiate differently? The simple answer is the obvious one: yes, they do.
First, it appears that people generally negotiate more effectively within cultures than between them. For example, a Colombian is apt to do better negotiating with a Colombian than with a Sri Lankan. Second, it appears that in cross-cultural negotiations, it is especially important that the negotiators be high in openness. Third, people are more likely to use certain negotiation strategies depending on what culture they belong to. For example, people from China and Qatar are more likely to use a competitive negotiation strategy than people from the United States. Finally, because emotions are culturally sensitive, negotiators need to be especially aware of the emotional dynamics in cross-cultural negotiation.
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How Individual Differences Influence Negotiations (3 of 4)
Gender Differences in Negotiations
Men and women negotiate differently and these differences affect outcomes.
There is some merit to the popular stereotype that women are more cooperative, pleasant, and relationship-oriented in negotiations than are men.
These gender differences can be lessened at both the organizational and individual level.
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Men and women negotiate differently and these differences affect outcomes. A popular stereotype is that women are more cooperative, pleasant, and relationship-oriented in negotiations than are men. There is some merit to this. Men tend to place a higher value on status, power, and recognition, whereas women tend to place a higher value on compassion and altruism. Moreover, women do tend to value relationship outcomes more than men, and men tend to value economic outcomes more than women. These differences affect both negotiation behavior and negotiation outcomes.
Compared to men, women tend to behave in a less assertive, less self-interested, and more accommodating manner. However, the disparity goes even further than that. Because of the way women approach negotiation, other negotiators seek to exploit female negotiators by, for example, making lower salary offers.
So what can be done to change this troublesome state of affairs? First, organizational culture plays a role here. If an organization, even unwittingly, encourages a predominantly competitive model for negotiators, this will tend to increase gender-stereotypic behaviors (men negotiating competitively, women negotiating cooperatively), and it will also increase backlash when women go against stereotype. Second, at an individual level, women cannot directly control male stereotypes of women. Fortunately, such stereotypes are fading. However, women can control their own negotiating behavior.
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How Individual Differences Influence Negotiations (4 of 4)
OB POLL Men Ask More
Source: Based on A. Gouveia, “Why Americans Are Too Scared to Negotiate Salary,” San Francisco Chronicle, April 3, 2013, downloaded May 30, 2013, from http://www.sfgate.com/jobs/.
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This OB Poll shows that men and women negotiate differently, are treated differently by negotiation partners, and then have different negotiation outcomes.
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Roles and Function of Third-party Negotiations (1 of 2)
Negotiating in a social context:
Reputation: the way other people think and talk about you.
Develop a trustworthy reputation – competence and integrity.
Relationships: think about what’s best for the other party and the relationship as a whole.
Repeated negotiations built on trust provide more options.
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To really understand negotiations in practice, then, we must consider the social factors of reputation and relationships.
Your reputation is the way other people think and talk about you. When it comes to negotiation, having a reputation for being trustworthy matters. In short, trust in a negotiation process opens the door to many forms of integrative negotiation strategies that benefit both parties. The most effective way to build trust is to behave in an honest way across repeated interactions. Then, others feel more comfortable making open-ended offers with many different outcomes. This helps to achieve win–win outcomes, since both parties can work to achieve what is most important to themselves while still benefitting the other party.
What type of characteristics help a person develop a trustworthy reputation? A combination of competence and integrity. Negotiators higher in self-confidence and cognitive ability are seen as more competent by negotiation partners. They are also considered better able to accurately describe a situation and their own resources, and more credible when they make suggestions for creative solutions to impasses.
Individuals who have a reputation for integrity can also be more effective in negotiations.
They are seen as more likely to keep their promises and present information accurately, so others are more willing to accept their promises as part of a bargain. Finally, individuals who have higher reputations are better liked and have more friends and allies—in other words, they have more social resources, which may give them more understood power in negotiations.
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Roles and Function of Third-party Negotiations (2 of 2)
When individuals or group representatives reach a stalemate and are unable to resolve their differences through direct negotiations, they may turn to a third party.
A mediator
An arbitrator
A conciliator
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When individuals or group representatives reach a stalemate and are unable to resolve their differences through direct negotiations, they may turn to a third party.
A mediator is a neutral third party who facilitates a negotiated solution by using reasoning and persuasion, suggesting alternatives, and the like. They are widely used in labor-management negotiations and in civil court disputes. Their settlement rate is approximately 72%. The key to success – the conflicting parties must be motivated to bargain and resolve their conflict, intensity cannot be too high, and the mediator must be perceived as neutral and non-coercive.
An arbitrator is a third party with the authority to dictate an agreement. It can be voluntary (requested) or compulsory (forced on the parties by law or contract). The big plus of arbitration over mediation is that it always results in a settlement.
A conciliator is a trusted third party who provides an informal communication link among parties. This role was made famous by Robert Duval in the first Godfather film. Comparing its effectiveness to mediation has proven difficult. Conciliators engage in fact-finding, interpreting messages, and persuading disputants to develop agreements.
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Implications for Managers (1 of 3)
Choose an authoritarian management style in emergencies, when unpopular actions need to be implemented, and when the issue is vital to the organization’s welfare. Be certain to communicate your logic when possible to make certain employees remain engaged and productive.
Seek integrative solutions when your objective is to learn, when you want to merge insights from people with different perspectives, when you need to gain commitment by incorporating concerns into a consensus, and when you need to work through feelings that have interfered with a relationship.
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While many people assume conflict lowers group and organizational performance, this assumption is frequently incorrect. Conflict can be either constructive or destructive to the functioning of a group or unit. Levels of conflict can be either too high or too low to be constructive. Either extreme hinders performance. An optimal level is one that prevents stagnation, stimulates creativity, allows tensions to be released, and initiates the seeds of change without being disruptive or preventing coordination of activities.
Managers should:
Choose an authoritarian management style in emergencies, when unpopular actions need to be implemented (such as cost cutting, enforcement of unpopular rules, and discipline), and when the issue is vital to the organization’s welfare. Be certain to communicate your logic when possible to make certain employees remain engaged and productive.
Seek integrative solutions when your objective is to learn, when you want to merge insights from people with different perspectives, when you need to gain commitment by incorporating concerns into a consensus, and when you need to work through feelings that have interfered with a relationship.
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Implications for Managers (2 of 3)
You can build trust by accommodating others when you find you’re wrong, when you need to demonstrate reasonableness, when other positions need to be heard, when issues are more important to others than to yourself, when you want to satisfy others and maintain cooperation, when you can build social credits for later issues, to minimize loss when you are outmatched and losing, and when employees should learn from their own mistakes.
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Managers should also: Build trust by accommodating others when you find you’re wrong, when you need to demonstrate reasonableness, when other positions need to be heard, when issues are more important to others than to yourself, when you want to satisfy others and maintain cooperation, when you can build social credits for later issues, to minimize loss when you are outmatched and losing, and when employees should learn from their own mistakes.
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Implications for Managers (3 of 3)
Consider compromising when goals are important but not worth potential disruption, when opponents with equal power are committed to mutually exclusive goals, and when you need temporary settlements to complex issues.
Distributive bargaining can resolve disputes, but it often reduces the satisfaction of one or more negotiators because it is confrontational and focused on the short term. Integrative bargaining, in contrast, tends to provide outcomes that satisfy all parties and build lasting relationships.
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Finally:
Consider compromising when goals are important but not worth potential disruption, when opponents with equal power are committed to mutually exclusive goals, and when you need temporary settlements to complex issues.
Distributive bargaining can resolve disputes, but it often reduces the satisfaction of one or more negotiators because it is confrontational and focused on the short term. Integrative bargaining, in contrast, tends to provide outcomes that satisfy all parties and build lasting relationships.
Make sure you set aggressive negotiating goals and try to find creative ways to achieve the objectives of both parties, especially when you value the long-term relationship with the other party. That doesn’t mean sacrificing your self-interest; rather, it means trying to find creative solutions that give both parties what they really want.
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Learning Objectives
18.1 Describe the three types of conflict and the three loci of conflict.
18.2 Outline the conflict process.
18.3 Contrast distributive and integrative bargaining.
18.4 Apply the five steps of the negotiation process.
18.5 Show how individual differences influence negotiations.
18.6 Assess the roles and functions of third-party negotiations.
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After studying this chapter, you should be able to:
Describe the three types of conflict and the two loci of conflict.
Outline the conflict process.
Contrast distributive and integrative bargaining.
Apply the five steps of the negotiation process.
Show how individual differences influence negotiations.
Assess the roles and functions of third-party negotiations.
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Questions?
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