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Remaining MGMT 321 Calendar. 11/10 Pre-examination review 11/15 Examination Three (12,13,14,16,17,18) 11/17 Team Presentations #4 and #1 11/22 Team Presentations #2, #5, #3; journals due 11/29 Pre-final examination review One 12/1 Pre-final examination review Two 12/6 Study day
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Remaining MGMT 321 Calendar 11/10 Pre-examination review 11/15 Examination Three (12,13,14,16,17,18) 11/17 Team Presentations #4 and #1 11/22 Team Presentations #2, #5, #3; journals due 11/29 Pre-final examination review One 12/1 Pre-final examination review Two 12/6 Study day 12/8 Final Examination at 8:00 a.m.
Overview • What causes conflict? • What tolerate it? • How can we resolve it? • How (and why) should we create collaboration and avoid compromise? • How can political skills be useful?
Organizational Conflict Organizational Conflict • Groups with conflicting goals or values block each other’s efforts, creating inefficiency and ineffectiveness • Wide range of goals pursued by different stakeholders makes conflict inevitable • That’s useful because controlled conflict forces exploration of alternative strategies
Sources of Conflict • Different Goals and Time Horizons Different groups can have differing goals and differing timetables for achieving them • Overlapping Authority (two dogs/one fire plug) Two or more managers claim authority for the same activity, leading to conflict between them and their teams (Ford story)
Sources of Conflict • Task Interdependencies A team member or a group fails to finish a task that another member or group needs to proceed; output falls and anger climbs • Different Evaluation/Reward System Rewarding the achievements of two different groups with conflicting goals creates confusion
Sources of Conflict (envy) • Scarce Resources Managers fight over the allocation of scarce resources such as budgets and people • Status Inconsistencies Some individuals and groups have a higher organizational status than others – for example, line versus staff -- producing envy and conflict: TMS pension (defined benefit) vs.TME pension (defined contribution)
Conflict Management Strategies Conflict Resolution • Compromise (Equal Pain): each party is willing to sacrifice something to achieve the goals • Collaboration (Equal Gain): parties try to avoid mutual sacrifice by resolving the issue with a new and better third way that benefits both
Ineffective Conflict Resolution Strategies • Accommodation: one party simply gives in to the other party (DOORMAT) • Avoidance: two parties try to ignore the problem and do nothing to resolve the disagreement (WON’T DANCE)
Stupid Conflict Resolution Strategies Competition – each party tries to maximize its own gain and has little interest in understanding the other’s position (SCREW YOU)
Strategies Focused on Individuals • Increase respect for diversity and awareness of the sources of conflict • Improve relational skills with training • Practice job rotation • Last resort: move or fire the problem
Strategies Focused on the Whole Organization • Change culture to make uncontrolled conflict unacceptable
Negotiation Negotiation A method of conflict resolution in which two parties of equal power try to find an acceptable solution by either compromising or collaborating
Negotiation Third-party negotiator: an impartial expert who facilitates discussion and helps conflicting parties reach an acceptable solution
Third-party Negotiators • Mediator – facilitates negotiations, but has no authority to impose a solution • Arbitrator – facilitates discussion, but can develop and impose a fair solution both parties must accept
Negotiation Strategies for Integrative Bargaining Distributive negotiation • The parties see the conflict as win-or-lose because they believe resources are fixed; have a zero-sum mentality – “If you win, I lose.” • Usually leads to compromise (equal pain)
Negotiation Strategies for Integrative Bargaining Integrativenegotiation • Parties increase total resources by forging a new and creative solution • Leads to win-win collaboration
Negotiating Tips Find middle ground by: • Focusing on problem, not people • Dealing with needs, not demands (they always will demand more than they need) • Making them see what unites (not what divides) them
Organizational Politics • Organizational Politics • Accumulating power with which to overcome opposition and achieve goals • Political strategies • How to accumulate power
The Importance of Organizational Politics Politics (The art of the possible) Just because it’s possible doesn’t mean it’s passable • Negative if managers act only for their own benefit • Positive when used to advance organizational goals and benefit everyone • Leaders learn to persuade, not command!