Intergroup Conflict, The Structure of Organizations, Designing Effective Organizations

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  • 1. TOPICS TO BE DISCUSS:  INTERGROUP CONFLICT  THE STRUCTURE OF ORGANIZATIONS  DESIGNING EFFECTIVE ORGANIZATIONS INDUSTRIAL PSYCHOLOGY
  • 2. INTERGROUP CONFLICT Intergroup Conflict – refers to the overt expressions of hostility between groups and intentional interference with each other’s activities. Causes of Intergroup Conflict  Coordination of Work – the most common source of intergroup conflict among several different departments. 1. Sequential Task Interdependence a. Task Interdependence – the amount of reliance a work group has to put on other organizational units to complete its projects. October 2, 2013KAC - Industrial Psychology
  • 3. INTERGROUP CONFLICT b. Sequential Task Interdependence – the product (output) of one group becomes the raw material (input) of another group. 2. Reciprocal Task Interdependence – some outputs of each group become inputs of the other group. 3. Task Ambiguity – Lack of clarity over job responsibilities. 4. Differences in Work Orientation – the ways in which employees go about their work and deal with others. October 2, 2013KAC - Industrial Psychology
  • 4. INTERGROUP CONFLICT  Organizational Reward Systems – The way in which an organization monitors group performance and distributes resources (e.g. money, equipment). 1. Resource Interdependence – Frequently, groups are relatively interdependent of each other in getting their work done but compete with each other for resources. 2. Conflicting Reward Systems – Sometimes the ways in which reward systems in organizations are designed create a situation in which one group can only accomplish its goal at the expense of other groups. October 2, 2013KAC - Industrial Psychology
  • 5. INTERGROUP CONFLICT 3. Competition as a Motivational Strategy – Managers sometimes use competition between groups as a way of motivating workers. The rationale behind this strategy is that people will produce more under pressure, and that competition between groups is healthy for the organization. The Dynamics of Intergroup Conflict  Changes within each group 1. Loyalty to group becomes more important. 2. There is increased concern for task accomplishment. October 2, 2013KAC - Industrial Psychology
  • 6. INTERGROUP CONFLICT 3. Leadership in the group becomes more autocratic. 4. The organization and structure of the work group become more rigid. 5. Group cohesiveness increases.  Changes in relations between groups 1. There are distortions of perception, both about one’s own group and about the other group. a. Perception of one’s group is highly selective: people see only the best aspects of their own group and deny any weaknesses in their own groups performance. October 2, 2013KAC - Industrial Psychology
  • 7. INTERGROUP CONFLICT b. Perception of the other groups is systematically distorted: groups see only the worst parts of the other groups and deny other groups’ positive accomplishment. 2. Interaction and communication between groups decrease. 3. There is a shift from a problem-solving orientation toward other groups to a win-lose orientation. a. There is a much clearer distinction drawn between the groups, resulting in a “we-they” rather than a “we- versus-the-problem” orientation. October 2, 2013KAC - Industrial Psychology
  • 8. INTERGROUP CONFLICT b. All exchanges with the other groups are evaluated in terms of victory or defeat. c. The groups tend to see the problem only from their own point of view, rather than in terms of the needs of both groups. d. The parties emphasize the benefits of winning the conflict in the short run and tend to ignore the long- term consequences of the conflict for the relationship between the groups. 4. There is increased hostility toward the rival group. October 2, 2013KAC - Industrial Psychology
  • 9. INTERGROUP CONFLICT Strategies groups use to gain power 1. Contracting – refers to the negotiation of a quid pro quo (this for that) agreement between two groups (e.g. collective bargaining agreement between unions and the management). 2. Co-opting – occurs when a group gives some of its leadership positions to members of other groups or includes them in its policy-making committees. 3. Forming coalition – two or more groups cooperate or combine their resources in order to increase their power over groups not in their coalition. October 2, 2013KAC - Industrial Psychology
  • 10. INTERGROUP CONFLICT 4. Influencing decision criteria – Top management often cannot make decisions about resource allocation among groups using strictly rational criteria. 5. Controlling information – Gaining access to sensitive information and then limiting other groups’ access to it increases the power of the information-rich group vis-à- vis other sub-units. 6. Forcing and pressure tactics – Pressure tactics – to force others to give in represent the most competitive, or hostile strategy a group can use to gain power. October 2, 2013KAC - Industrial Psychology
  • 11. INTERGROUP CONFLICT Consequences of Winning or Losing a Conflict  Effects of Success 1. The most systematic change in the perception of the winning group is a stronger belief in the negative stereotype of the losing group. 2. Winning re-affirms both the group’s positive self-image and its negative evaluation of the other group. 3. The winning group becomes much more concerned with the satisfaction and needs of individual members. 4. The work atmosphere become more casual, more complacent. October 2, 2013KAC - Industrial Psychology
  • 12. INTERGROUP CONFLICT 4. Group cohesiveness and group cooperation are likely to increase as well. 5. At least in the short run, the concern for work and task accomplishment decreases. The winning group has little reason to re-examine its operations and little incentive to think about ways of improving.  Effects of Failure 1. The losing group respond to failure by attempting to deny the reality of losing. A lot of energy is put into finding excuses for the loss. October 2, 2013KAC - Industrial Psychology
  • 13. INTERGROUP CONFLICT 2. It is unlikely that the losing group will simply admit that other groups were better and more deserving, and that nothing would have changed the results of the conflict. 3. The losing group also experiences a noticeable decline in the quality of interpersonal relationship. Unresolved conflicts come to the surface as different factions of the group blame each other for the loss. 4. There is lower group cohesiveness, less cooperation, and less concern for individual members’ needs. October 2, 2013KAC - Industrial Psychology
  • 14. INTERGROUP CONFLICT 5. However, if the group gets over its initial disappointment and anger and accept its loss realistically, there can be some positive changes in the way it operates. It is force to evaluate its own strength and weaknesses. The group reorganize to become more effective, and commit itself to working even harder in the future. Managing Intergroup Conflict “Come, let us reason together” “Put your foot down when you need to stand” “Turn the other cheek” October 2, 2013KAC - Industrial Psychology
  • 15. INTERGROUP CONFLICT Strategies used to resolve intergroup conflict 1. Avoidance – Keeping the conflict from coming into the open at all. 2. Defusion – Keeping the conflict in abeyance and “cooling” the emotions of the parties involved. 3. Containment – allowing some conflict to surface but tightly controlling which issues are discussed and the manner in which they are discussed. 4. Confrontation – Openly airing all the issues of the conflict and trying to find a mutually satisfactory solution. October 2, 2013KAC - Industrial Psychology
  • 16. INTERGROUP CONFLICT  Conflict Avoidance Strategy 1. Ignoring the conflict – is characterized by the absence of behavior: the executive avoids dealing with the dysfunctional aspects of the conflict. 2. Imposing a solution – means forcing the conflicting parties to accept a solution devised by a higher-level manager.  Conflict Defusion Strategies 1. Smoothing – A manager may choose to smooth over the conflict, playing down its importance and magnitude. October 2, 2013KAC - Industrial Psychology
  • 17. INTERGROUP CONFLICT 2. Appealing to Superordinate Goals – The managers diverts attention from the current conflict to the overarching aims that both groups share.  Organizational Survival – the most frequently used superordinate goal. If the sub-units do not cooperate sufficiently, the continued existence of larger organization is severely jeopardized.  Conflict Containment Strategies 1. Bargaining – is a form of compromise; two groups exchange concessions until a compromise solution is reached. October 2, 2013KAC - Industrial Psychology
  • 18. INTERGROUP CONFLICT  Tacit Communication – Each party signals a willingness to be flexible in exchanging concessions, without actually making an explicit offer or promise. 2. Structuring the Interaction between Groups a. Decreasing the amount of direct interaction between the groups in the early stages of conflict resolution. b. Decreasing the amount of time between problem- solving meetings. c. Decreasing the formality of the presentation issues. d. Limiting the application of historical precedents. e. Using third-party mediators. October 2, 2013KAC - Industrial Psychology
  • 19. INTERGROUP CONFLICT  Conflict Confrontation Strategies 1. Integrative Problem Solving – is a conflict resolution strategy that attempts to find a solution that reconciles, or integrates, the needs of both parties. 2. Redesigning the Organization – can be an effective intergroup conflict resolution strategy, especially when the sources of conflict come from the coordination of work among different departments of divisions.  Methods of reducing conflict: (1) Self contained work groups; (2) Lateral relations; (3) Task forces; and (4) Integrator roles. October 2, 2013KAC - Industrial Psychology
  • 20. THE STRUCTURE OF ORGANIZATIONS Organizational Structure – the formal arrangement of operations and activities within an organization. Three Interrelated Goals 1. Define lines of responsibility and authority within corporation. 2. Help channel the flow of information in companies. 3. Help achieve coordination of the work activities of different individual employees. October 2, 2013KAC - Industrial Psychology
  • 21. THE STRUCTURE OF ORGANIZATIONS Four Types of Organizational Structure 1. Functional Organization – is one in which employees are grouped together on the basis of primary skill. Advantages: 1. Encourages technical expertise. 2. Reduces duplication of activities. Disadvantages: 1. Fosters narrow perspective in the functional groups. 2. Makes it difficult to coordinate interdepartmental activities. October 2, 2013KAC - Industrial Psychology
  • 22. THE STRUCTURE OF ORGANIZATIONS 2. Divisional Organization – In divisional structures, employees are grouped together in one of three ways: a. Product division – group together all the people needed to produce a product or provide a service. b. Geographical division – all the employees in the same geographical area report to the same general manager. c. Customer division – group together all the people needed to produce a product or provide a service to a specific set of customers. October 2, 2013KAC - Industrial Psychology
  • 23. THE STRUCTURE OF ORGANIZATIONS Advantages: 1. Improves decision making. 2. Fixes accountability for profits and production. 3. Increase coordination of functional departments. Disadvantages: 1. Increase difficulty in allocating corporate staff support. 2. Losses some economies of scale. 3. Foster little cooperation among divisions. October 2, 2013KAC - Industrial Psychology
  • 24. THE STRUCTURE OF ORGANIZATIONS 3. Lateral Relations – a set of structural devices that encourage coordination among individuals and groups in different work units. Five Lateral Relations a. Dotted-line supervision – gives corporate staff officers some indirect supervisory control over their counterparts in the divisions. b. Liaison Roles – has the responsibility for coordinating the work of two units. October 2, 2013KAC - Industrial Psychology
  • 25. THE STRUCTURE OF ORGANIZATIONS c. Temporary Task Force – is a committee formed to solve a short-run problem involving several different work units. d. Permanent Team – is a group of organization members from different work units who meet regularly to address issues or problems of common interest. Also called a manpower review committee. e. Integrating Managers – Their job is to coordinate all the functional activities on a project on a full-time basis. October 2, 2013KAC - Industrial Psychology
  • 26. THE STRUCTURE OF ORGANIZATIONS 4. Matrix Structure – The identifying feature of a matrix structure is that employees report to two supervisors rather than to the traditional single supervisor. There is a dual, rather than a single, chain of command. Two Variants of the Matrix Structure  Project Management Matrix a. Functional Managers – (e.g. VP for Engineering, VP for Manufacturing) are responsible for the hiring and development of technically competent employees in each functional area. October 2, 2013KAC - Industrial Psychology
  • 27. THE STRUCTURE OF ORGANIZATIONS b. Project Managers – (e.g. plane project managers, weapons system project manager) are responsible for coordinating the activities of people from different functional areas who are working on the same project.  Geography-by-Product Matrix a. Merchandise general managers – (e.g. GM of furniture, GM of appliances) are responsible for choosing items that will be popular in the market and for purchasing those items at the lowest possible prices. October 2, 2013KAC - Industrial Psychology
  • 28. THE STRUCTURE OF ORGANIZATIONS b. Regional-level general managers – (e.g. GM of Metropolitan New York, GM of greater Boston). Their main duty is to be responsive to the consumer tastes and income levels of their particular communities. Advantages: 1. Reinforces and broadens technical excellence. 2. Facilitates efficient use of resources. 3. Balances conflicting objectives of the organization. October 2, 2013KAC - Industrial Psychology
  • 29. THE STRUCTURE OF ORGANIZATIONS Disadvantages: 1. Increases the number of power conflicts. 2. Increases confusion and stress for two-boss employees. 3. Impedes decision making. Overall Assessment: Making the Matrix Work 1. Dual Human Resource Management Responsibilities. 2. Selection for Conflict Management Skills. 3. Changes in Group Decision Making. October 2, 2013KAC - Industrial Psychology
  • 30. DESIGNING EFFECTIVE ORGANIZATIONS Two factors that aided Japan in its phenomenal growth 1. Japan has a modern, efficient production technology. Japanese companies spend great sums of money on research and development; since World War II, they have invested heavily in designing and purchasing the most technologically advanced equipment in the world. 2. Japan has done an excellent job in reading its business environment, in forecasting how changes in the worldwide economy, political events, and consumer preferences might affect its own industries. October 2, 2013KAC - Industrial Psychology
  • 31. DESIGNING EFFECTIVE ORGANIZATIONS Classical Theories of Organization Design  Bureaucracy – Advocated by Max Weber. It meant an organization run strictly by principles of rationality and efficiency. Principles of Classical Management 1. Division of Work – each member of the organization should have a very clearly defined job duties and that no two employees’ job duties should overlap. 2. Utility of Command – states that no member of an organization should be responsible for more than one superior. October 2, 2013KAC - Industrial Psychology
  • 32. DESIGNING EFFECTIVE ORGANIZATIONS 3. Authority and responsibility  Authority is the right to give orders;  Responsibility is accountability for getting a job completed. 4. Scalar Chain – all communication from the top of the organization must pass through each successive level of subordinates until it reaches the appropriate lower level and vice-versa. 5. Limited Span of Control – the number of subordinates who should report to a single supervisor. 20 (first-line managers), 8 (middle managers), 4 (executives). October 2, 2013KAC - Industrial Psychology
  • 33. DESIGNING EFFECTIVE ORGANIZATIONS 6. Line-Staff Relationships  Line Personnel – (e.g. manufacturing and sales) perform the major functions of the organization.  Staff Personnel – (e.g. corporate law and public relations) provide support, service, and advice to line officials. 7. Use of rules – employees can get their work done more efficiently and more quickly if they have routine guidelines they can follow. 8. Impersonality – ill will and inefficiency occur in organizations when exceptions to rules are made for the friends and relatives of employees and executives. October 2, 2013KAC - Industrial Psychology
  • 34. DESIGNING EFFECTIVE ORGANIZATIONS 9. Technocracy – means “rule by technically competent”. Only people who have demonstrated adequate technical training should be hired by organizations. 10. Written Communication – All administrative rules, acts and decisions should be recorded in writing. 11. Continuous Employment – employers should not be able to fire employees for arbitrary or capricious reasons, only for demonstrated incompetence or failure to follow rules. Therefore personnel can expect to be continuously employed as long as they perform satisfactorily. October 2, 2013KAC - Industrial Psychology
  • 35. DESIGNING EFFECTIVE ORGANIZATIONS Assessment of Classical Management Principles 1. Bureaucracies typically insure uniformity and predictability in the quality of their products. 2. Bureaucracies are generally most effective in those organizations that provide only a limited range of goods and services. 3. Bureaucratic rules can lead to insensitive treatment of subordinates and clients. 4. Bureaucracies do not quickly assimilate the influx of new technology; they are slow to innovate. October 2, 2013KAC - Industrial Psychology
  • 36. DESIGNING EFFECTIVE ORGANIZATIONS  Two reasons why bureaucracies are slow to adopt new technology. a. There is an information flow problem. b. There is a decision-making problem. 5. Bureaucracies have trouble dealing with unanticipated problems and new issues; they are not flexible and adaptable in changing environments. Technology and Structure  Technology – is the tools and equipment used to transform raw materials into finished products. October 2, 2013KAC - Industrial Psychology
  • 37. DESIGNING EFFECTIVE ORGANIZATIONS  Technology – the transformation process by which mechanical equipment and intellectual skills are used to produce the organization’s goods and services. Types and Examples of Technology by: Joan Woodward, a British Industrial Sociologists 1. Unit Technology – the organization transforms raw materials to meet the particular preferences of the customer. The unit of production is made to order for the customers. October 2, 2013KAC - Industrial Psychology
  • 38. DESIGNING EFFECTIVE ORGANIZATIONS 2. Mass Production Technologies – standardized operating procedures are used to produce standardized products. The same technology and the same operations can be repeated over and over again. 3. Continuous Process Technology – the manufacture of chemicals, the production of pharmaceuticals, and the refining of oil are all examples of continuous process technology. Often involves the production of liquids or gaseous substances. October 2, 2013KAC - Industrial Psychology
  • 39. DESIGNING EFFECTIVE ORGANIZATIONS Contingency Theories of Technology have argued the following three propositions: 1. Woodward’s South Essex Study  The type of technology in the organization influences the types of organization structure that should be used. 2. The Aston Studies  Different departments and divisions of the organization use different technologies. 3. Jay Galbraith’s Theory of Organization Design  Different types of coordination and control systems are appropriate for different types of technology. October 2, 2013KAC - Industrial Psychology
  • 40. DESIGNING EFFECTIVE ORGANIZATIONS Environment and Structure  Environment – those factor external to the organization that influence the effectiveness of the firm’s day-to-day operations and its long-term growth.  Consider IBM as an example of an organization. What are the environmental factors that influence its day-to- day operations and long-term growth? (a) Economic conditions; (b) Demographic trends; (c) Advances in technology; (d) Changes in market conditions; (e) Legal climate; and (f) political conditions. October 2, 2013KAC - Industrial Psychology
  • 41. Demographic Trends Advances in Technology Market Conditions Legal Climate Political Conditions Economy DESIGNING EFFECTIVE ORGANIZATIONS O R G A N I Z A T I O N S October 2, 2013KAC - Industrial Psychology
  • 42. DESIGNING EFFECTIVE ORGANIZATIONS Dimensions of Organization Environments  Environments vary in how favorable or hostile they are. Favorable environments facilitate the organization’s growth; hostile environments impede it. 1. Environmental Stability – refers to how fast the environment is changing. a. Static Environment – are those that change very slowly. b. Dynamic Environment – are those that change very quickly. October 2, 2013KAC - Industrial Psychology
  • 43. DESIGNING EFFECTIVE ORGANIZATIONS 2. Environmental Complexity – refers to how many factors in the environment influence an organization. a. Simple Environment – if there are very few factors that influence an organization. b. Complex Environment – are those in which many factors can influence the organization’s operations. 3. Environment Uncertainty – refers to the amount of information managers have about important environment factors. a. Certain Environment – if managers have fairly complete information about environmental factors that influence major business decisions. October 2, 2013KAC - Industrial Psychology
  • 44. DESIGNING EFFECTIVE ORGANIZATIONS b. Uncertain Environment – if managers have very little information about environmental factors that influence their business decisions. Contingency Theories of Organizational Environment have argued the following three propositions: a. The type of environment of the organization influences the types of organization structure which should be used. b. Different departments and divisions of the organization have to respond to different environments. October 2, 2013KAC - Industrial Psychology
  • 45. DESIGNING EFFECTIVE ORGANIZATIONS c. Organizations should vary the strategies they use to adapt to their environments, depending upon how hostile their environments are.  Burns and Stalker: Mechanistic and Organic Structure  Mechanistic Structure – is basically what we have called bureaucracy. Have very formal hierarchies. Power and decision-making are centralized at the top of the organizations; orders and communication flow downward.  Organic Structure – is the antithesis of a bureaucracy. Its structure is flexible; there are fewer rules and division of labor. Communication is more informal.  Lawrence and Lorsch’s Contingency Theory October 2, 2013KAC - Industrial Psychology
  • 46. DESIGNING EFFECTIVE ORGANIZATIONS Coping with Organizational Environments  Reactive Strategies 1. Creation of special sub-units to deal with environmental forces. 2. Creation of corporate marketing or public relations departments. 3. Creation of boundary-spanning roles.  Proactive Strategies 1. Acquisition of new businesses and/or sale of existing businesses. 2. Diversification. 3. Political activity and trade association. October 2, 2013KAC - Industrial Psychology