Reference no: EM133373840

Case Study: This module introduces four concepts essential to a sound understanding of behaviour in organizations: power, influence, negotiation, and conflict. The exercise of power can direct a person's behaviour toward a specific objective. Although these objectives are generally in line with the organization's overall goals, some behaviours can best be explained through organizational politics. And although we tend to consider politics as generally negative, in some situations, organizational politics can serve a useful purpose. In this module, you will see that power involves influence: people exert power to influence others' behaviour, and even those with less power can exert some influence through countervailing power. With an understanding of the sources of power, and contingencies that may support or weaken its effects, you will be able to consider various strategies that can be used to gain power and to apply it effectively.

Organizations are not monolithic and often reflect a range of values, goals, and perceptions about what is appropriate in a given situation. Organizations are settings in which conflict between individuals or units can easily emerge. In this module, you will gain an understanding of the conditions that result in conflict. From a managerial perspective, you will be able to distinguish between different types of conflict, since some can have positive outcomes for the organization, whereas others will lead to counterproductive behaviour.

The module concludes with a focus on conflict resolution. Managers need to develop a repertoire of interpersonal conflict resolution styles and know when to apply them appropriately. On a macro level, managers need to understand how organizational policies can address systemic sources of conflict. Finally, negotiation is introduced as a technique for resolving an impasse over conflicting objectives with the help of a third party.

Chapter 10

6.1 The meaning of power

Through the exercise of power, managers have the potential to exert influence over the behavior of others. Influence through power, however, describes an interaction between two or more parties. To apply power effectively, you need to be aware that the other party can exercise countervailing power. In your organization, your immediate superior may have power over you by virtue of his or her position in the hierarchy, but what is your source of countervailing power?

Exhibit 10.2 on page 263 of the text integrates the variables that determine how power is exercised over others. To fully appreciate the process, you need to account for power sources and contingencies. Sources of power (legitimate, reward, coercive, expert, and referent) differ in various respects. Some, such as legitimate, reward, and coercive power, are associated with the position you hold in the organization. Others, such as expert or referent, are more closely associated with the characteristics of the individual. Individuals can take steps to enhance these personal sources of power.

6.2 Contingencies of power

There are four contingencies of power: substitutability, centrality, discretion, and visibility. These contingencies introduce characteristics of the situation that will either intensify or attenuate the level of influence an individual can exercise through power. In many cases, social networks can also serve as an important contingency by exposing the individual to information that increases expert power.

6.3 The power of social networks

Social networks describe relationships between people who are interdependent and generate power for each other through social capital. Social network dynamics reinforce certain sources of power both directly and indirectly by strengthening some contingencies of power. Gaining more power can have positive consequences, such as empowerment, for example. But researchers have also identified negative consequences or the dark side of social networks

6.4 Influencing others

In organizations of all types, individuals exert influence to change the behaviour of subordinates, peers, and even superiors. You can likely recall instances of trying to change the perceptions or decisions of your immediate supervisor or boss. Influence is considered to be a legitimate organizational activity and needs to be distinguished from power. While power represents your potential to change someone else's attitudes or behaviours, influence refers to your actual attempts to do so. In this sense, organizational behaviour research has identified a consistent set of more common influence patterns, described in detail in the readings and outlined in Exhibit 10.4 (page 274).

6.5 Organizational politics

In organizations, political behaviour occurs when people (an individual or a group) use discretionary behaviour to promote personal objectives. Because the behaviour is discretionary, it is neither sanctioned nor prohibited. A number of contingencies support political behaviour. At the organizational level, these may include resource availability or periods of uncertainty and ambiguity. But personal characteristics also enter the equation. Some personality traits are more compatible with political behaviour.

Because politics refers to behaviour that is perceived to be self-serving, we generally hold negative attitudes about it. But consider whether perceived political behaviour may indeed have more noble motives - for example, behaviour with utilitarian outcomes, serving human rights, or promoting distributive justice. Another argument suggests that politics may be a legitimate managerial activity in organizations that are by definition integrations of diverse stakeholder interests. In other words, organizations do not have as much unity of purpose as we like to think, and, as a result, organizational politics may be a legitimate response to these conditions.

6.6 The meaning and consequences of conflict

Is conflict good or bad? This topic focuses on the universal nature of conflict and its importance in daily life. People are social animals, and we depend on each other to satisfy our needs. This dependence provides a rich setting for all manner of conflicts, both between us and within us. Naturally, our focus is on conflict in organizational contexts from a managerial perspective.

For example, one of the icons of management is the late Alfred P. Sloan. Under his guidance, General Motors became one of the largest industrial corporations in the world. His book, My Years with General Motors, is a classic in management literature. Whenever an important issue was raised, Sloan expected vigorous debate and discussion. If consensus was reached too rapidly, he would defer the matter to a later date.

What do you think of Sloan's approach? Have you seen it adopted by anyone you know? And what conditions are necessary to make it work?

Sloan's approach is an example of constructive conflict. We know that as long as conflict stays within the realm of issues and does not become relationship conflict, it can benefit the organization. There is ample evidence that vigorous dissent creates a better understanding of complex systems, prevents groupthink, and generates decisions that are effective in the long run. This is the premise that underlies democracy, effective management, and innovative scientific enquiries. Sloan had the self-confidence and leadership to sustain long and acrimonious discussions, as well as the genius to resolve different opinions expressed by powerful people. It takes an extraordinary person need to do this.

Chapter 11

6.7 The emerging view: Task and relationship conflict

Task conflict, also called constructive conflict, occurs when people focus their discussion around the issue or task at hand while showing respect for people with other points of view. This type of conflict debates the merits and limitations of different positions so ideas and recommendations can be clarified, redesigned, and tested for logical soundness.

In contrast, relationship conflict focuses on interpersonal differences between or among the adversaries. It is important to separate task from relationship conflict but is not always easy. Relationship conflict can be addressed by using three strategies: emotional intelligence, cohesive teams, and supportive team norms.

6.8 Conflict process model

The text introduces a conflict process model (Exhibit 11.2, page 293) which builds a relationship between sources of conflict and several variables that mediate the process as it leads to either positive or negative outcomes for the organization. It is important to clearly understand these variables: sources of conflict, conflict perceptions and emotions, manifest conflict, and conflict outcomes. At a critical stage in this process, conflict typically escalates, and it can become increasingly difficult to separate constructive from relationship conflict.

6.9 Interpersonal conflict handling styles

When the conditions arise to cause conflict in your organization, you will likely take some kind of action. Exhibit 11.3 on page 297 of the text summarizes five interpersonal conflict handling styles:

Problem-solving, or finding a mutually beneficial solution
Avoiding, or minimizing interaction between conflicting parties
Forcing, or winning at the other's expense
Yielding, or giving in to the other side
Compromising, or reaching a middle ground
6.10 Structural approaches to conflict management

Managers need to be skilled at resolving interpersonal conflict and sensitive to the organizational-level changes required to reduce or eliminate conditions which make conflict more likely to emerge. If you return for a moment to the sources of conflict in Exhibit 11.2 (page 293), you will see the link more clearly between these sources of conflict and the structural interventions that can be used to address them.

6.11 Resolving conflict through negotiation

One final approach to conflict management is the process of negotiation. Negotiation is compatible with the compromising and problem-solving styles of interpersonal conflict, and is also applicable to resolving conflicts between units or between organizations trying to collaborate on a particular initiative. The word negotiation likely brings to mind resolving labour disputes and even political disputes. The processes are similar, and the contingencies need to be well understood and accounted for to achieve a positive outcome.

When negotiations or other interventions fail to resolve a conflict, what recourse may be available? Third-party intervention can be considered as a last resort. In labour conflicts, for example, third-party interventions are built into the legally sanctioned process that both sides must adhere to. Think about situations at work where you have been engaged in a process with the interventions described in Exhibit 11.5 (page 302) - mediation, inquisition, and arbitration.

Personal focus:

As you work through this module, you may recall experiences in which you thought about how much power you had or needed. Other situations may have involved organizational politics or a conflict between you and someone else, or between your unit and another unit in the organization. These experiences will give you an excellent reference point for the concepts covered in this module. Ask yourself these

Questions:

• What aspects of the situation affected how you were able to exercise power?
• Have you ever encountered organizational politics which had positive or negative effects on the organization?
• What are the typical sources of conflict in your organization?
• How are conflicts usually resolved in your organization?