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Chapter 14 Conflict, Power, and Politics

Organization Theory and Design

Thirteenth Edition

Richard L. Daft

Chapter

Learning Objectives

Identify organizational characteristics that can cause intergroup conflict.

Compare and contrast the rational and the political models of organization.

Describe the vertical sources of power in organizations.

Explain the concept of strategic contingencies as it relates to horizontal power in organizations.

Define politics and explain why political activity is necessary.

Identify tactics for increasing and for using power.

Interdepartmental Conflict in Organizations

Intergroup conflict requires three ingredients:

Group identification

Observable group differences

Frustration

This type of conflict is similar to competition but more severe

Intergroup conflict can occur horizontally across departments or vertically between different levels of the organization

Sources of Conflict

Sources of intergroup conflict are:

Goal incompatibility

Differentiation

Task interdependence

Limited resources

Marketing-Manufacturing Areas of Potential Goal Conflict

	MARKETING Versus MANUFACTURING
Goal Conflict	Operative Goal Is Customer Satisfaction	Operative Goal Is Production Efficiency
Conflict Area	Typical Comment	Typical Comment
1. Breadth of product line	“Our customers demand variety.”	“The product line is too broad—all we get are short, uneconomical runs.”
2. New product introduction	“New products are our lifeblood.”	Unnecessary design changes are prohibitively expensive.”
3. Product scheduling	“We need faster response. Our customer lead times are too long.”	“We need realistic commitments that don’t change like wind direction.”
4. Physical distribution	“Why don’t we ever have the right merchandise in inventory?”	We can’t afford to keep huge inventories.”
5. Quality	“Why can’t we have reasonable quality at lower cost?”	“Why must we always offer options that are too expensive and offer little customer utility?”

Rational Versus Political Model

The rational model is an ideal that is not fully achievable in the real world, though managers strive to use rational processes whenever possible

Goals are clear, and choices are made logically

The political model involves the push and pull of debate to decide goals and reach decisions

This is how organizations operate much of the time because purely rational procedures do not work for many circumstances

Sources of Conflict and Use of Rational versus Political Model

Top 10 Problems from Too Much Conflict

Tactics for Enhancing Collaboration

Tactics for enhancing collaboration include:

Create integration devices, such as labor-management teams

Use confrontation and negotiation

Schedule intergroup consultation, such as workplace mediation

Practice member rotation

Create shared mission and superordinate goals

Negotiation Strategies

Win-Lose Strategy

Define the problem as a win-lose situation.

Pursue own group’s outcomes.

Force the other group into submission.

Be deceitful, inaccurate, and misleading in communicating the group’s needs, goals, and proposals.

Use threats (to force submission).

Communicate strong commitment (rigidity) regarding one’s position.

Win-Win Strategy

Define the conflict as a mutual problem.

Pursue joint outcomes.

Find creative agreements that satisfy both groups.

Be open, honest, and accurate in communicating the group’s needs, goals, and proposals.

Avoid threats (to reduce the other’s defensiveness).

Communicate flexibility of position.

Power and Organizations

Power is the potential ability of one person or department to influence other people

When referring to the influence of a single person, power can be categorized as either hard or soft:

Individual hard power includes legitimate power, reward power, and coercive power

Personal soft power includes expert power and referent power

Organizational power is the result of structural characteristics

Power Versus Authority

Authority achieves desired outcomes but only as prescribed by the formal hierarchy and reporting relationships:

Authority is vested in organizational positions

Authority is accepted by subordinates

Authority flows down the vertical hierarchy

Authority is exercised downward along the hierarchy while power can be exercised upward, downward, and horizontally

Vertical Sources of Power

Formal position is the legitimate power accrued to top positions

Resources can be used as a tool for power

Control of information, a primary business resource, can influence how decisions are made

Network centrality—being centrally located in the organization and having access to critical information and people—provides more effectiveness and influence

Loyal and supportive managers help top executives achieve their goals for the organization

Information Flow for IT System Decision at Clark Ltd.

An Illustration of Network Centrality

The Power of Empowerment

Empowerment is power sharing, the delegation of power or authority to subordinates

Empowering employees enables them to act more freely to accomplish their jobs:

Employees receive information about company performance

Employees have knowledge and skills to contribute to company goals

Employees have the power to make substantive decisions

Horizontal Sources of Power

Horizontal power pertains to relationships across departments, divisions, or other units

It is not defined by the formal hierarchy or the organization chart

Departments involved with strategic contingencies tend to have greater power than departments not involved in such events and activities

Such departments have one or more power sources: interdepartmental dependency, financial resources, centrality, nonsubstitutability, and coping with uncertainty

Ratings of Power Among Departments in a Technology Firm

Strategic Contingencies That Influence Horizontal Power Among Departments

Political Processes in Organizations

Politics is the use of power to influence decisions toward goals

Organizational politics involve activities to acquire, develop, and use power to influence others

Politics is a mechanism for arriving at consensus when there is high uncertainty and disagreement over goals or priorities

The domains of political activity in most organizations are:

Structural change

Management succession

Resource allocation

Using Soft Power and Politics

Managers can rely on “hard power” which stems from a person’s position of authority

Effective managers often use “soft power” which is based on personal characteristics and building relationships

Power and Political Tactics in Organizations

Tactics for Increasing the Power Base

Enter areas of high uncertainty.

Create dependencies.

Provide scarce resources.

Satisfy strategic contingencies.

Political Tactics for Using Power

Build coalitions and expand networks.

Assign loyal people to key positions.

Control decision premises.

Enhance legitimacy and expertise.

Make a direct appeal.

Create a higher purpose.

Organizational Design Essentials (slide 1 of 2)

Managers use power and politics to manage and resolve conflict.

Although conflict and political behavior can be used for beneficial purposes, managers should enhance collaboration so that conflict between groups does not become too strong.

Individuals in organizations may use sources of hard or soft power, but power in organizations is also the result of structural characteristics.

Sources of power can be vertical or horizontal.

Organizational Design Essentials (slide 2 of 2)

Politics is often needed to achieve the legitimate goals of a department or organization.

Managers need political skills to exercise soft as well as hard power.

Tactics for increasing power include entering areas of high uncertainty, creating dependencies, providing scarce resources, and satisfying strategic contingencies.

Managment

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