4. 4
The Nature of Power and Politics
POWER
The ability of one person or group to cause
another person or group to do something they
otherwise might not have done.
ORGANIZATIONAL POLITICS
Activities in which managers engage to increase
their power and to pursue goals that favor their
individual and group interests.
5. 5
COALITION
A group of managers who have similar interests and join forces to achieve their
goals.
POLITICAL DECISION MAKING
Decision making characterized by active disagreement over which
organizational goals to pursue and how to pursue them.
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Sources Of Individual Power
Individual Power
1. Formal Power.
2. Informal Power.
Formal Power
The power that originates from a person’s position in the
organisation.
Informal power
The power that stems from personal characteristics such as
personality, skills and capability.
7. 7
Sources OF Formal Individual Power
1. LEGITIMATE POWER.
2. REWARD POWER.
3. COERCIVE POWER.
4. INFORMATION POWER.
8. 8
FORMAL INDIVIDUAL POWER
Power that originates from a person’s position in an organizetion.
LEGITIMATE POWER
The power to control and use organizational resources to accomplish
organizational goals.
REWARD POWER
The power to give pay raises, promotion, praise, interesting projects, and other
rewards to subordinates.
COERCIVE POWER
The power to give or withhold punishment.
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Sources of Functional and Divisional Power
Functional or divisional power
1. Ability to control uncertain contingencies
2. Irreplaceability
3. Centrality
4. Ability to control and generate resources
Ability to control uncertain contingencies
A contingency is an event or problem that might occur and therefore must be
planned for, by having the people and resources in place to deal with it should the
event arise.
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Irreplaceability
A function or division gains power when it is irreplaceable, that is, when no other function or
division can perform its activities.
Centrality
The power of a function or division also stems from its centrality in an organization, that
is, how vital or crucial its activities are to the operation of the entire organization and the
degree to which it is positioned to gain access to important information from other
functions.
Ability to Control and Generate Resources
The ability to control and generate resources for an organization is another source of
functional and divisional power and a principal source of power of top managers
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Tactics for Increasing Individual Power
Managers can use many kinds of political tactics to increase their power, become
experts at political decision making, and increase their chances of obtaining their
goals.
Political tactics such as:
1. Tapping the sources of functional and divisional power
2. Recognizing who has power
3. Controlling the agenda
4. Bringing in an outside expert
5. Building coalitions and alliances
13. 13
RECOGNIZING WHO HAS POWER
Another way to increase personal power is to develop the ability to recognize who has
power in the organization, then armed with this knowledge an aspiring manager knows
which managers they need to influence and impress.
There are five factors to consider when measuring the relative power of
different managers in an organization
1. Sources of Power
2. Consequences of Power
3. Symbols of Power
4. Personal Reputations
5. Representational Indicators
15. 15
Organizational Conflict
Definition : The struggle that arises when the goal-directed behavior of one person or
group blocks the goal directed behavior of another person or group.
Graph Shwoing the effect of conflict on organizational performance.
16. 16
Sources of Organizational Conflict
Differentiation
Differentiation in an organization occurs when employees and tasks are split up into different
subunits or groups, such as functions and divisions, so they can produce goods and services
more effectively. For example, each different group can focus on its specific tasks and so can
work to continuously increase its performance. The splitting of the organization into functions
or divisions produces conflict.
17. 17
Task Relationships
Task relationships generate conflict between people and groups because organizational
tasks are interrelated and affect one another. Overlapping authority, task
interdependence, and incompatible evaluation systems may stimulate conflict among
functions and divisions.
Scarcity of Resources
Competition for scarce resources produces conflict.62 Conflict over the allocation of
capital occurs among divisions and between divisions and corporate headquarters.
Budget fights can be fierce when resources are scarce.
18. 18
Pondy’s Model of Organizational Conflict
Stage 1: Latent conflict (sources of conflict)
Stage 2: Perceived conflict
Stage 3: Felt conflict
Stage 4: Manifest conflict
Stage 5: Conflict aftermath
19. 19
Latent Conflict
In the first stage of Pondy’s model, there is no actual conflict. The potential for conflict to
arise is present, but latent or under the surface, each of the sources of conflict that we just
discussed can cause it to suddenly or gradually emerge
Perceived Conflict
The stage of perceived conflict begins when one party—individual or group—becomes
aware that its goals are thwarted by the actions of another party. Each party searches for
the origins of the conflict, defines why the conflict is emerging, analyzes the events that
led to its occurrence,
Felt Conflict
During the stage of felt conflict, the parties in conflict develop negative, antagonistic
feelings about each other. For example, groups or functions close ranks, develop an
“us-versus-them” attitude, and each blames the other group for starting the problem.
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Manifest Conflict
In the stage of manifest conflict, the hostility between the parties in conflict leads them to
engage in openly aggressive behaviors as both parties try to hurt each other and thwart
each other’s goals. Manifest conflict can take many forms. Heated arguments and quarrels,
and even physical violence between people and groups, is one outcome.
Conflict Aftermath
Sooner or later, conflict in an organization is resolved in one way or another—
someone gets fired, dysfunctional groups are broken up, or the organization and its
divisions are restructured, as happened at Pfizer in the opening case. Although
conflict may seem to disappear for a while, it is likely that the source of the original
conflict will result in more problems later.
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Negotiation: Resolving Conflict
NEGOTIATION: A process in which
groups with conflicting interests meet
together to make offers, counteroffers,
and concessions to each other in an
effort to resolve their differences.
23. 23
1. A manager meets with both the employees in conflict and forcefully outlines the way their
behavior is affecting the way they perform their jobs and other members of the
department. Each employee then is asked to express their thoughts and feelings about
the conflict to open up the conflict so that the manager, and both employees, understand
the facts of the conflict and each other’s different positions.
2. 2. The manager summarizes the dispute between the employees in a written form,
creating a report that carefully matches both sides of the case to identify the main factors
in dispute. For example, if the dispute is about one employee not pulling his or her weight
or performing substandard work, each employee’s explanation of events is noted carefully.
Individual-Level Conflict Management
If the conflict is due to a basic disagreement about how the work should
be performed, or about the performance of another person, managers can
use a step-by-step negotiation approach to help resolve a dispute
between employees.
The steps in the process are as follows:
24. 24
3. The manager discusses the facts in the report with each employee separately acting as a
neutral third party; the manager uses the fact-finding report to work out a solution each
employee can accept, going back and forth between the employees until they can accept
a common solution.
4. The manager meets with both employees to discuss the agreement and get their
commitment to resolving the dispute. Each employee also agrees to meet with the
manager should subsequent problems arise
25. 25
Group-level conflict management is aimed at changing the attitudes and behaviors of
groups and departments in conflict. Managers can physically separate work groups,
deny them the opportunity to interact face to face, and thus eliminate the potential for
direct conflict
Group-Level Conflict Management
Direct negotiations between groups are held either with or without a third-party
negotiator—an outsider skilled in handling bargaining and negotiation.78 The third
party facilitates the bargaining process to help the parties in dispute find a solution to
their problem.
A third party who plays the role of mediator takes a neutral stance and works with the
parties to reconcile their differences. If the parties still cannot find an equitable solution, a
third party known as an arbiter takes control who, after considering the evidence, has the
power to impose a solution on the parties that they must accept