Conflict, Power And Politics 3u2m2a

Chapter Twelve Conflict, Power and Politics

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Marketing – Manufacturing Areas of Potential Goal Conflict Goal Conflict Conflict Area

MARKETING Operative goal is customer satisfaction Typical Comment

VS.

MANUFACTURING Operative goal is production efficiency Typical Comment

Breadth of product line:

“Our customers demand variety.”

“The product line is too broad, all we get are short, uneconomical runs.”

New product introduction:

“New products are our lifeblood.”

“Unnecessary design changes are prohibitively expensive.”

Production scheduling:

“We need faster response. Lead times are too long.”

“We need realistic customer commitments that don’t change like the wind direction

Physical distribution:

“Why don’t we ever have the right merchandise in inventory?”

“We can’t afford to keep huge inventories.”

Quality:

“Why can’t we have reasonable quality at low cost?”

Sources: Based on Benson S. Shapiro, “Can Marketing and Manufacturing Coexist?” Harvard Business Review 55 (September-October 1977): 104-14; and Victoria L. Crittenden, Lorraine R. Gardiner, and Antonie Stam, “Reducing Conflict Between Marketing and Manufacturing,” Industrial Marketing Management 22 (1993): 299-309.

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“Why must we always offer options that are too expensive and offer little customer utility?”

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Sources of Conflict and Use of Rational vs. Political Model Sources of Potential Inter-group Conflict

When Conflict Is Low, Rational Model describes organization Consistent across participants

Goal Incompatibility

Centralized

Organization Variables Goals Power and Control

Differentiation Task Interdependence Limited Resources

Orderly, logical, rational Norm of efficiency

Extensive, systematic, accurate

Decision Process Rules and Norms Information

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When Conflict Is High, Political Model describes organization Inconsistent, pluralistic within the organization Decentralized, shifting coalitions and interest groups Disorderly, result of bargaining and interplay among interests Free play of market forces, conflict is legitimate and expected Ambiguous, information used and withheld strategically

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Individual vs. Organizational Power     

Legitimate power Reward power Coercive power Expert power Referent power Thomson Learning © 2004

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Power vs. Authority 

POWER 



Ability to influence others to bring about desired outcomes

AUTHORITY   

Flows down the vertical hierarchy Prescribed by the formal hierarchy Vested in the position held Thomson Learning © 2004

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Vertical Sources of Power 

Formal Position



Resources



Control of Decision Premises and Information

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Network Centrality Thomson Learning © 2004

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Horizontal Sources of Power High Power

Low Power

350 325 300 275 250 225 200 175 150 125

Sales Production R&D Finance

Co. B

Co. C

Source: Charles Perrow, “Departmental Power and Perspective in Industrial Firms,” in Mayer N. Zald, ed., Power in Organizations (Nashville, Tenn.: Vanderbilt University Press, 1970), 64.

Co. I

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Avg.

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Strategic Contingencies That Influence Horizontal Power Among Departments Dependency

Financial Resources

Centrality

Department Power

Nonsubstitutability

Coping with Uncertainty Thomson Learning © 2004

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Power and Political Tactics in Organizations Tactics for Increasing the Power Political Tactics for Base Using Power

Tactics for Enhancing Collaboration

1. Enter areas of high uncertainty

1. Create integration devices

1. Build coalitions

2. Create dependencies2. Expand networks

2. Use confrontation and negotiation

3. Provide resources

3. Control decision premises

3. Schedule inter-group consultation

4. Satisfy strategic contingencies

4. Enhance legitimacy and 4. Practice member expertise rotation 5. Make preferences explicit, but keep power implicit Thomson Learning © 2004

5. Create superordinate goals

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Negotiating Strategies  1.

2. 3.

4.

5. 6.

Win-Win Strategy Define the conflict as a mutual problem Pursue t outcomes Find creative agreements that satisfy both groups Use open, honest, and accurate communication Avoid threats Communicate flexibility

Source: Adapted from David W. Johnson and Frank P. Johnson, ing Together: Group Theory and Group Skills (Englewood Cliffs, N. J.: Prentice-Hall, 1975), 182-83.



Win-Lose Strategy

5.

Define the conflict as a win-lose situation Pursue self outcomes Force other group into submission Use deceitful, inaccurate communication Use threats

6.

Communicate rigidity

1.

2. 3.

4.

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