Organizational Conflict Management

Organizational Conflict

Module 4

Sreenath B.Roll No.45


• The clash that occurs when the goal-directed behavior of one group blocks the goals of another.

• Stakeholders compete for the resources that an organization produces.

• Shareholders want dividends, employees want raises. • An organization must manage both cooperation and

competition among stakeholders to grow and survive. • All stakeholders have a common goal of organizational

survival, but not all goals are identical. • Organizational conflict occurs when a stakeholder

group pursues its interests at the expense of other stakeholders.


• Given the different goals of stakeholders, organizational conflict is inevitable.

• Conflict is associated with negative images, such as unions getting angry and violent, but some conflict can improve effectiveness.

• When conflict passes a certain point, it hurts an organization.

The Relationship Between Conflict &

Organizational Effectiveness

Level of conflict

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Low High

High

Low

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eff

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How can conflict improve effectiveness?

• Conflict can overcome inertia and introduce change, because conflict requires an organization to re-assess its views.

• Different views are considered, and the quality of decision-making is improved.

• Beyond a certain point, conflict hurts the organization and causes decline.

• Managers spend time bargaining, rather than making decisions.

• An organization in decline cannot afford to spend time on decision-making, because it needs a quick response to recover its position.

• Groups battle for their interests, no agreement is reached, and the organization floats along, falling prey to inertia.

Pondy’s Model of Organizational Conflict

• Pondy’s model shows conflict as a process of five sequential stages. i.e. latent conflict, perceived conflict, felt conflict, manifest conflict, and conflict aftermath.

• Stage 1: Latent conflict– no outright conflict exists, but there is a potential for

conflict because of several factors.– According to Pondy, all conflict arises because

differentiation leads to the establishment of subunits that have different goals and perceptions.

• Sources of Latent conflict: 1.Interdependence 2.Differences in goals and priorities

3.Bureaucratic factors 3.Incompatible performance criteria

5.Competition for resources

Sources of Latent conflict1. Interdependence:• As organizations grow and differentiate, subunits

want autonomy. Marketing wants to design advertising.

• Desires for autonomy conflict with the organization’s aspirations for cooperation.

• As task interdependence increases—that is, moves from pooled to sequential to reciprocal—the potential for conflict increases.

• Conflict occurs at the individual, functional, and divisional levels.

• If functions were not interdependent, conflict would not exist. Functions would simply perform their tasks.

• Eg: Manufacturing would not care what engineering did.

Sources of Latent conflict2. Differences in goals and priorities exist among

different functions. • Manufacturing wants to lower costs. Marketing

wants to increase sales. • Incompatible goals create conflict.3. Bureaucratic factors: Status inconsistencies can result in conflict.

Line functions often clash with staff functions.4. Incompatible performance criteria for subunits

lead to conflict. • If an organization rewards cost control,

engineering does not comply with marketing’s request for a new product design.

Sources of Latent conflict5. Competition for scarce resources leads to

conflict. Subunits compete for their share of resources.

• Increased funding allows a division to grow.


• Stage 2: Perceived conflict —subunits become aware of conflict and begin to analyze it.

• Conflict escalates as groups battle over the cause of conflict.

• When a subunit perceives its goals to be obstructed, conflict enters the second stage.

• Each group seeks the source of the conflict and finds reasons for problems.

• Marketing blames poor sales on poor manufacturing quality.

• Manufacturing says that marketing is not advertising effectively. Conflict escalates as subunits fight over the origin of the problem.


• Stage 3: Felt conflict—subunits respond emotionally to each other, and attitudes polarize.

• Subunits develop polarized attitudes of us-versus-them. Cooperation between subunits declines as well as organizational effectiveness.

• Conflict escalates as subunits argue, and small problems escalate to huge, difficult-to-manage, conflicts.

• Stage 4: Manifest Conflict—subunits try to get back at each other.

• Subunits deliberately impede other subunits. People aggressively promote their own interests at the expense of others.

• Fighting and open aggression are common, and organizational effectiveness suffers.


• Once conflict is manifest, coordination between managers and subunits deteriorates, resulting in a decline in effectiveness.

• Managers should prevent conflict from reaching the manifest stage to avoid a communication breakdown and a poor conflict aftermath.

• Stage 5: Conflict aftermath—conflict is resolved in a way that leaves subunits feeling combative or cooperative.

• Every conflict has a conflict aftermath that influences conflict resolution in the future.

• If resolved before the manifest stage, conflict will result in a positive aftermath.

• If conflict resolution takes a long time or doesn’t occur, future relationships and the culture will be damaged.

Managing Conflict: Conflict Resolution Strategies

• Managing conflict is a priority, because conflict impairs organizational culture.

• Culture is an important way to control behavior. • Organizations must balance the need for conflict

to overcome inertia and promote learning with the prevention and escalation of harmful conflict.

• Conflict management techniques depend on problem source.

• An organization reduces conflict by structural and attitudinal changes.

Acting at the Level of Structures• Managers can resolve conflict by changing task relationships:

1.An organization may change organizational structures. – A functional structure causes problems, such as communication

and measurability problems.– A product structure assigns overhead costs more accurately. A

functional structure does not reflect the contributions of various functions to a product.

– A product team structure speeds up product development.

2. Increasing integration can overcome conflicts over resources & subunit orientations. Integrating mechanisms include task forces, teams, and integrating roles.

3. Flattening the hierarchy and decentralizing authority give employees decision-making power and makes them accountable.

• Authority relationships must be defined. Conflict is reduced because employees know their superiors.

Acting at the Level of Attitudes & Individuals

• Different divisions and functions have different ideas about accomplishing organizational goals.

• They can establish procedures to voice complaints. Procedures play a large role in managing conflicts between managers and unions.

• Bargaining consists of attitudinal structuring, a process to convince management and labor they have much in common.

• A third-party negotiator, such as a senior manager in an integrating role or an outside consultant, can mediate.

• Rotating employees, a tool used by the Japanese, manages conflict by changing attitudes.

Acting at the Level of Attitudes & Individuals

• Long held attitudes may necessitate a change in those mired in conflict through transfer, promotion, or firing.

• Top-management may be replaced to overcome inertia and change attitudes.

• The CEO influences attitudes by setting the values and culture, influencing the attitudes of other managers, and having the power to resolve subunit conflict.

• Strong CEOs listen to opinions and build consensus. • Weak CEOs fail to manage conflict, so strong coalitions

fight for their goals at the expense of the weaker subunits.

• As fighting escalates, conflict becomes harmful.

Thank You

Documents

Organizational Conflict Management