This document discusses sources of conflict between marketing and manufacturing departments in organizations. The key areas of potential goal conflict are customer satisfaction for marketing versus production efficiency for manufacturing. These conflicts can arise over issues like product line breadth, new product introduction, production scheduling, and inventory levels. When conflict is low, organizations tend to follow a rational model with consistent goals and an emphasis on efficiency. But when conflict is high, a political model may be more accurate, with shifting coalitions, bargaining between interests, and ambiguity around information. Power within organizations can come from formal positions, resources, networks, and satisfying strategic contingencies. The document also outlines strategies for negotiating conflicts and increasing or sharing power between groups.

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Chapter Thirteen
Conflict, Power and Politics

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Marketing – Manufacturing
Areas of Potential Goal Conflict
MARKETING VS. MANUFACTURING
Operative goal is Operative goal is
Goal Conflict customer satisfaction production efficiency
Conflict Area Typical Comment Typical Comment
Breadth of product line: “Our customers “The product line is too
demand variety.” broad, all we get are
short, uneconomical runs.”
New product introduction: “New products are our “Unnecessary design changes
lifeblood.” are prohibitively expensive.”
Production scheduling: “We need faster response. “We need realistic customer
Lead times are too long.” commitments that don’t
change like the wind direction
Physical distribution: “Why don’t we ever have “We can’t afford to keep huge
the right merchandise inventories.”
in inventory?”
Quality: “Why can’t we have “Why must we always offer
reasonable quality options that are too
at low cost?” expensive and offer little
customer utility?”
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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Sources of Conflict and Use of
Rational vs. Political Model
Sources of
Potential
Inter-group
Conflict
Goal
Incompatibility
Differentiation
Task
Interdependence
Limited
Resources
Consistent across
participants
Centralized
Orderly, logical,
rational
Norm of efficiency
Extensive,
systematic, accurate
When Conflict Is
Low,
Rational 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
When Conflict Is
High,
Political Model
describes
organization
Goals
Power and
Control
Decision
Process
Rules and
Norms
Information
Organization
Variables

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Individual vs. Organizational
Power
 Legitimate power
 Reward power
 Coercive power
 Expert power
 Referent power

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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

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Vertical Sources of Power
 Formal Position
 Resources
 Control of Decision Premises and Information
 Network Centrality

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125
150
175
200
225
250
275
300
325
350
Co. B Co. C Co. I Avg.
Sales
Production
R&D
Finance
Horizontal Sources of Power
High
Power
Low
Power
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.

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Strategic Contingencies That Influence
Horizontal Power Among Departments
Dependency
Financial Resources
Centrality
Nonsubstitutability
Coping with Uncertainty
Department Power

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Power and Political Tactics in
Organizations
Tactics for Increasing
the Power Base Political Tactics for Using
Power
Tactics for Enhancing
Collaboration
1. Enter areas of high
uncertainty
1. Build coalitions 1. Create integration
devices
2. Create dependencies 2. 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
expertise
4. Practice member
rotation
5. Make preferences explicit,
but keep power implicit
5. Create superordinate
goals

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 Win-Win Strategy
1. Define the conflict as a
mutual problem
2. Pursue joint outcomes
3. Find creative agreements
that satisfy both groups
4. Use open, honest, and
accurate communication
5. Avoid threats
6. Communicate flexibility
 Win-Lose Strategy
1. Define the conflict as a
win-lose situation
2. Pursue self outcomes
3. Force other group into
submission
4. Use deceitful, inaccurate
communication
5. Use threats
6. Communicate rigidity
Negotiating Strategies
Source: Adapted from David W. Johnson and Frank P. Johnson,
Joining Together: Group Theory and Group Skills (Englewood Cliffs,
N. J.: Prentice-Hall, 1975), 182-83.