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Unit_-_3_Org._Dcn._making_in_changing_env_.pdf
1. ORGANIZATIONAL
CHANGE & DESIGN
MBA III sem : Core
Unit 3: Org. Decision
making in Changing Env.
Course Instructor:
B. G. Bhattacharya
Purbanchal University
Nepal
2. DECISION MAKING
S-1
Decision-making can be regarded as the cognitive process resulting
in the selection of a belief or a course of action among several
alternative possibilities. Every decision-making process produces a
final choice that may or may not prompt action. Decision-making is the
study of identifying and choosing alternatives based on the values and
preferences of the decision maker. Decision-making is one of the
central activities of management and is a huge part of any process
of implementation.
3. DECISION MAKING
S-2
Decision = choice
made from available
alternatives
Decision Making =
process of identifying
problems and
opportunities and
resolving them
4. DECISION MAKING
S-3
Categories of decision
Programmed Decision
Routine, virtually automatic decision making that follows
established rules or guidelines.
Managers have made the same decision many times
before
Little ambiguity involved
5. DECISION MAKING
S-4
Categories of decision
Non-Programmed Decisions
Non-routine decision made in response to unusual or
novel opportunities and threats.
The are no rules to follow since the decision is new.
Decisions are made based on information, and a
manager‘s intuition, and judgment.
6. DECISION MAKING
S-5
Certainty, Risk, Uncertainty, Ambiguity
Certainty
● all the information the decision maker needs is fully available
Risk
● decision has clear-cut goals
● good information is available
● future outcomes associated with each alternative are subject to chance
Uncertainty
● managers know which goals they wish to achieve
● information about alternatives and future events is incomplete
● managers may have to come up with creative approaches to alternatives
Ambiguity
● by far the most difficult decision situation
● goals to be achieved or the problem to be solved is unclear
● alternatives are difficult to define
● information about outcomes is unavailable
9. DECISION MAKING
S-8
1. Define Needs or
Wants
2. Analyze Your
Resources
3. Identify Your
Options
4. Gather Information
5. Evaluate Your
Options
6. Make a Decision
7. Plan How to Reach
Your Goal
Seven Steps in Decision Making
10. DECISION MAKING
S-9
Styles of Decision Making
4 Directive style
Analytical style
Conceptual style
Behavioral style
11. DECISION MAKING
S-10
Directive Style
People who prefer simple, clear-cut solutions to
problems
Make decisions quickly
May consider only one or two alternatives
Efficient and rational
Prefer rules or procedures
12. DECISION MAKING
S-11
Analytical Style
Complex solutions based on as much data as they can
gather
Carefully consider alternatives
Base decision on objective, rational data from
management control systems and other sources
Search for best possible decision based on information
available
13. DECISION MAKING
S-12
Conceptual Style
Consider a broad amount of information
More socially oriented than analytical style
Like to talk to others about the problem and possible
solutions
Consider many broad alternatives
Relay on information from people and systems
Solve problems creatively
14. DECISION MAKING
S-13
Behavioral Style
Have a deep concern for others as individuals
Like to talk to people one-on-one
Understand their feelings about the problem and the
effect of a given decision upon them
Concerned with the personal development of others
May make decisions to help others achieve their goals
15. DECISION MAKING
S-14
Six steps in the managerial decision making process
Recognition of
Decision
Requirement
Diagnosis
and Analysis
of Causes
Development
of
Alternatives
Selection of
Desired
Alternative
Implementation
of Chosen
Alternative
Evaluation
and
Feedback
Decision
Making
Process
16. LEARNING
S-15
Learning is the act
of acquiring new, or
modifying and
reinforcing existing
knowledge, skills,
behaviors, values,
or preferences, and
may involve synthe-
sizing different
types of information
17. LEARNING
S-16
• Learning may be viewed
as a process, rather than a
collection of factual and
procedural knowledge.
• Learning produces
changes in the organism
and the changes produced
are relatively permanent.
18. LEARNING
S-17
1. ―a persisting change in human performance or
performance potential . . . (brought) about as a
result of the learner‘s interaction with the
environment” (Driscoll, 1994, pp. 8-9).
2. ―the relatively permanent change in a person‘s
knowledge or behavior due to experience‖
(Mayer, 1982, p. 1040).
3. ―an enduring change in behavior, or in the capacity
to behave in a given fashion, which results from
practice or other forms of experience‖
(Shuell, 1986, p. 412).
Some established definitions of LEARNING:
19. LEARNING
S-18
What are Learning Styles?
Information enters your brain three
main ways: sight, hearing and touch,
which one you use the most is called
your Learning Style.
Visual Learners learn by sight
Auditory Learners learn by hearing
Tactile Learners (kinesthetic) learn
by touch
21. LEARNING
S-20
Human learning may occur as part of education
personal development, schooling, or training.
It may be goal-oriented and may be aided by
motivation.
The study of how learning occurs is part of
educational psychology, neuropsychology,
learning theory, and pedagogy.
22. LEARNING
S-21
Human learning may occur as part of education
personal development, schooling, or training.
It may be goal-oriented and may be aided by
motivation.
The study of how learning occurs is part of
educational psychology, neuropsychology,
learning theory, and pedagogy.
24. LEARNING
S-23
Organizational Learning
Managers seek to improve a employee‘s desire and ability to
understand and manage the organization and its task
environment so as to raise effectiveness.
The Learning Organization
Managers try to maximize the people‘s ability to behave
creatively to maximize organizational learning.
27. LEARNING
S-26
Theories of Learning:
There are 6 (six) basic theories of Learning -
Behaviorism
Cognitivism
Social Learning Theory
Social Constructivism
Multiple Intelligences
Brain-Based Learning
31. KNOWLEDGE MANAGEMENT
S-30
Knowledge management (KM) is the
process of capturing, developing,
sharing, and effectively using
organizational knowledge. It refers to a
multi-disciplined approach to achieving
organizational objectives by making the
best use of knowledge.
32. KNOWLEDGE MANAGEMENT
S-31
• Knowledge Management, (KM) is a concept and a term
that arose approximately two decades ago, roughly in
1990.
• Quite simply one might say that it means organizing an
organization's information and knowledge holistically, but
that sounds a bit wooly, and surprisingly enough, even
though it sounds overbroad, it is not the whole picture.
• Very early on in the KM movement, Davenport (1994)
offered the still widely quoted definition:
"Knowledge management is the process of capturing,
distributing, and effectively using knowledge."
33. KNOWLEDGE MANAGEMENT
S-32
• The definition of Davenport has the virtue of being simple,
stark, and to the point. A few years later, the Gartner Group
created another second definition of KM, which is perhaps
the most frequently cited one (Duhon, 1998):
• "Knowledge management is a discipline that promotes an
integrated approach to identifying, capturing, evaluating,
retrieving, and sharing all of an enterprise's information
assets. These assets may include databases, documents,
policies, procedures, and previously un-captured expertise
and experience in individual workers."
• Both definitions share a very organizational, a very
corporate orientation. KM, historically at least, is primarily
about managing the knowledge of and in organizations.
35. KNOWLEDGE MANAGEMENT
S-34
• Knowledge management efforts typically focus on
organizational objectives such as improved performance,
competitive advantage, innovation, the sharing of lessons
learned, integration and continuous improvement of the
organization.
• KM efforts overlap with organizational learning and may be
distinguished from that by a greater focus on the
management of knowledge as a strategic asset and a focus
on encouraging the sharing of knowledge.
• It is seen as an enabler of organizational learning and a
more concrete mechanism than the previous abstract
research.
36. KNOWLEDGE MANAGEMENT
S-35
KM Objectives:
The graph below shows the results of a recent IDC study in which corporations
cited various objectives for knowledge management efforts:
37. KNOWLEDGE MANAGEMENT
S-36
Explicit, Implicit and Tacit Knowledge
• In the KM literature, knowledge is most commonly categorized as
either explicit or tacit (that which is in people's heads). This charac-
terization is however rather too simple, but a more important point,
and a criticism, is that it is misleading. A much more nuanced and
useful characterization is to describe knowledge as explicit, implicit,
and tacit.
• Explicit: information or knowledge that is set out in tangible form.
• Implicit: information or knowledge that is not set out in tangible
form but could be made explicit.
• Tacit: information or knowledge that one would have extreme
difficulty operationally setting out in tangible form.
38. KNOWLEDGE MANAGEMENT
S-37
Knowledge Management
Tacit Knowledge Explicit Knowledge
Knowledge
Information
Data
Tacit
This type of knowledge
exists in people‘s heads,
not articulated or
documented
Explicit
– This type of knowledge
can be
» Processed by information
systems
» Codified and recorded
» Archived and protected
Knowledge Hierarchy
40. KNOWLEDGE MANAGEMENT
S-39
Knowledge requires Capture, Organization,
Access and Leverage
OLD WAY
Capture form is
written, auditory or graphical
representations
Organization is via tables of
content, indexes, classificati
on systems used by
publishers, libraries, etc
Access when physical body
goes to where the
knowledge is located…a
library, a company, a
research laboratory, a
school
Tacit knowledge rarely
tapped
Leverage is a sum game
NEW WAY
Capture from is digits in
cyberspace
Organization via software
programs designed upon
engineering principles,
mathematical equations,
word associations in
cyberspace 24/7/365
Access wherever the
physical bodies link via
computers
Tacit knowledge tapped
using many different
technological tools
Leverage is exponential,
multiples upon multiples
41. KNOWLEDGE MANAGEMENT
S-40
Creates knowledge
through new ways of
doing things
Identifies and captures
new knowledge
Places knowledge into
context so it is usable
Stores knowledge in
repository
Reviews for accuracy
and relevance
Makes knowledge
available at all times to
anyone
44. S-43
● Focuses on its users.
● Practioners summarize, contextualize, value-judge, rank, synthesize,
edit and facilitate to make information and knowledge accessible
between people within or outside their organization. It concerns with
the social interactions with sharing and use of knowledge.
● KM is largely based on tacit interpretation that relate to human
behavior and interchange.
KNOWLEDGE MANAGEMENT
45. S-44
KNOWLEDGE MANAGEMENT
Knowledge Management is a very
important aspect of Management Science
these days. This lecture presentation
includes some basic slides only on KM to
cover up your examination requirements. I
would advice students to go through the
additional attachment sent to your mails
on KM to enhance and enlighten your
concept on this very practical emerging
aspect of management.
46. S-45
KM AND INFORMATION TECHNOLOGY
Many organizations employ IT in one form or another to manage their
knowledge. It is primarily used to store and transfer explicit forms of
knowledge. However, IT is not just about computers. Tools such as video-
conferencing may also be useful for the transmission of tacit knowledge as
it is, in crude terms, a form of socialization. Capturing tacit knowledge and
then storing it in repositories is vital for effective KM. Many organizations
have developed sophisticated methods for storing their intellectual capital,
including patenting knowledge assets to protect trade secrets.
47. S-46
INFORMATION MANAGEMENT
● Focuses on information as a resource or collection.
● Practitioners select, describe, classify, index, and abstract this information to make it
more accessible within and outside the organization.
● IM is concerned to provide transparent and standardized access using technology by
storing and organize information.
48. S-47
KM AND INFORMATION TECHNOLOGY
What is KMS?
Knowledge Management Systems (KMS) are the integra-
tion of technologies and mechanisms that are developed to
support KM processes.
Social/Structural mechanisms (e.g., mentoring and retreats,
etc.) for promoting knowledge sharing.
Leading-edge information technologies (e.g., Web-based
conferencing) to support KM mechanisms.
Knowledge management systems is the synergy between
social/structural mechanisms and latest technologies.
49. S-48
KM AND INFORMATION TECHNOLOGY
SHARE
KNOWLEDGE
DISTRIBUTE
KNOWLEDGE
CREATE
KNOWLEDGE
CAPTURE, CODI
FY KNOWLEDGE
GROUP
COLLABORATION
SYSTEMS
OFFICE
AUTOMATION
SYSTEMS
ARTIFICIAL
INTELLIGENCE
SYSTEMS
KNOWLEDGE
WORK
SYSTEMS
NETWORKS
DATABASES
PROCESSORS
SOFTWARE
50. S-49
KM AND INFORMATION TECHNOLOGY
• The survey conducted to establish the uses of technology to support
a knowledge management strategy brought out some interesting
facts which are mentioned below:
• Almost 90% of the organizations surveyed used an Intranet
extensively or to a certain extent as a means of sharing knowledge.
• GroupWare is also reported as being used to share information at a
lesser rate of just under 70%.
• Online information sources and the Internet generally, are also
widely used (around 60%).
• Other forms of technology currently in use or planned to be used in
KM include CD Rom utilization and Video-conferencing, Electronic
bulletin boards, Expert systems, Search and retrieval agents, Data
warehousing/mining and document repositories or document
management systems.
52. S-51
KM AND INFORMATION TECHNOLOGY
• It is argued that KM is about mobilizing the intangible assets of an
organization, which are of greater significance in the context of
organizational change than its tangible assets, such as IT.
• While IT is an important tool for a successful organization, it is often
too heavily relied upon as a guarantee of successful business.
• IT should be understood less in its capacity to store explicit
information and more in its potential to aid collaboration and co-
operation between people.
• Dougherty (1999) argues that IT should be seen as a tool to assist
the process of KM in organizations. Such a process relies more on
the face-to-face interaction of people than on static reports and
databases.
53. S-52
KM AND INFORMATION TECHNOLOGY
The following diagram reflects the main technologies that
currently support knowledge management systems.
54. S-53
KM AND INFORMATION TECHNOLOGY
These technologies (previous slide) roughly correlate to four main stages
of the KM life cycle:
• Knowledge is acquired or captured using intranets, extranets,
groupware, web conferencing, and document management systems.
• An organizational memory is formed by refining, organizing, and storing
knowledge using structured repositories such as data warehouses.
• Knowledge is distributed through education, training programs,
automated knowledge based systems, expert networks.
• Knowledge is Applied or leveraged for further learning and innovation
via mining of the organizational memory and the application of expert
systems such as decision support systems.
All of these stages are enhanced by effective workflow and project
management.
55. S-54
KM AND INFORMATION TECHNOLOGY
The Technology Involvement in Knowledge
Management can be categorized into four areas
in an organization:
1. Office Automation Systems (OAS)
2. Knowledge Work Systems (KWS)
3. Group Collaboration Systems (GCS)
4. Artificial Intelligence Applications (AI)
56. S-55
KM AND INFORMATION TECHNOLOGY
1. Office Automation Systems (OAS)
• OAS involves technology application in
creation, storage, retrieval and dissemination of document
management in an office. The technology used include
Word processing, desktop publishing, document
imaging, Web publishing, work flow managers, etc.
• OAS is also used in scheduling for individuals and groups
through electronic calendars, groupware, and intranet.
• Another important area of involvement for OAS in an organi-
zation is in the communication process. It is utilized for
initiating, receiving, and managing voice, digital and
documents. Common technology used are E-mail, voice
mail, digital answering systems, GroupWare, intranets, etc.
57. S-56
KM AND INFORMATION TECHNOLOGY
1. Office Automation Systems (OAS) [contd…]
• OAS is also extensively used in managing data for vendors,
employees, and customers. Desktop Databases, Spread
Sheets, and User-friendly Interfaces to mainframe data-
bases are the technologies used in this regard.
• Some other frequently found uses of OAS are:
DOCUMENT IMAGING SYSTEMS: Systems convert
documents, images into digital form (e.g.: optical
character recognition; microfiche)
JUKEBOX: Storage & retrieving device for CD-ROMs &
other optical disks
INDEX SERVER: Imaging system to store / retrieve
document
58. S-57
KM AND INFORMATION TECHNOLOGY
2. Knowledge Work Systems (KWS)
• Information systems that aid knowledge workers to create,
integrate new knowledge in organization.
• Knowledge workers keep organization up-to-date in
knowledge through technology, science, thought and arts.
• They involve internal consultants and change agents in their
specific area of activity – evaluating, initiating and promoting
change projects.
• Computer Aided Design/Computer Aided Manufacturing
aids like CAD/CAM provides precise control over industrial
design, manufacturing, inventory handling.
59. S-58
KM AND INFORMATION TECHNOLOGY
2. Knowledge Work Systems (KWS) [contd…]
• VIRTUAL REALITY: Interactive software creates photo-
realistic simulations of real world objects through Virtual
Reality Modeling Language (VRML).
• INVESTMENT WORKSTATIONS: High-end PCs used in
finance to analyze trading situations, facilitate portfolio
management.
60. S-59
KM AND INFORMATION TECHNOLOGY
3. Group Collaboration Systems (GCS)
• GROUPWARE: Allows interactive collaboration, approval of
documents
• INTRANETS: Good for relatively stable information in
central repository
• TEAMWARE: Group collaborative software to customize
team efforts
• CAPABILITIES OF GROUPWARE - Publishing, Replication,
Discussion Tracking, Document Management, Work-flow
Management, Security, Portability, Application Develop-
ment
61. S-60
KM AND INFORMATION TECHNOLOGY
4. Artificial Intelligence Systems (AIS)
• ARTIFICIAL INTELLIGENCE (AI) are computer-based
systems with abilities to learn language, accomplish
tasks, use perceptual apparatus, emulate human expertise
& decision making.
NATURAL
LANGUAGE
ROBOTICS
PERCEPTIVE
SYSTEMS
EXPERT
SYSTEMS
INTELLIGENT
MACHINES
ARTIFICIAL
INTELLIGENCE
THE AI FAMILY
62. S-61
KM AND INFORMATION TECHNOLOGY
4. Artificial Intelligence Systems (AIS) [contd…]
Business Interests in AI:
Preserve expertise
Create knowledge base
Mechanism not subject to feelings, fatigue, worry,
crisis
Eliminate routine / unsatisfying jobs
Enhance knowledge base
64. S-63
INNOVATION
• The term innovation defined: "An innovation is something
original, new, and important in whatever field that breaks in
to a market or society".
• While something ‗original‘ is often described as an
innovation, in economics, management science, and other
fields of practice and analysis it is generally considered
a process that brings together various novel ideas in a way
that they have an impact on society.
• Innovation is about finding a better way of doing something.
It can be viewed as the application of better solutions that
meet new requirements, in-articulated needs, or existing
market needs.
66. S-65
INNOVATION
• Innovation is about finding a better way of doing
something. This is accomplished through more effective
products, processes, services, technologies, or ideas that
are readily available to markets, governments and society.
• Innovation differs from invention in that innovation refers to
the use of a better and, as a result, novel idea or method,
whereas invention refers more directly to the creation of the
idea or method itself.
• Innovation differs from improvement in that innovation refers
to the notion of doing something different rather than doing
the same thing better.
68. S-67
INNOVATION – IN BUSINESS CONTEXT
• In business and economics, innovation is the catalyst to
growth.
• With rapid advancements in transportation and
communication over the past few decades, the old world
concepts of factor endowments and comparative
advantage, which focused on an area‘s unique inputs, are
outmoded for today‘s global economy.
• Economist Joseph Schumpeter, who contributed greatly to
the study of innovation, argued that industries must
incessantly revolutionize the economic structure from within,
that is innovate with better or more effective processes
and products.
69. S-68
INNOVATION – IN BUSINESS CONTEXT
• Economist Joseph Schumpeter famously asserted
that ―creative destruction is the essential fact about
capitalism‖.
• In addition, entrepreneurs continuously look for
better ways to satisfy their consumer base with
improved quality, durability, service, and price which
come to fruition in innovation with advanced
technologies and organizational strategies.
71. S-70
INNOVATION – IN ORGANIZATIONAL CONTEXT
• In the organizational context, innovation may be linked
to positive changes in efficiency, productivity, quality,
competitiveness, and market share.
• However, recent research findings highlight the comple-
mentary role of organizational culture in enabling
organizations to translate innovative activity into tangible
performance improvements.
• Organizations can also improve profits and performance
by providing work groups opportunities and resources to
innovate, in addition to employee's core job tasks.
74. S-73
SOURCES OF INNOVATION
• There are several sources of innovation. It can occur
as a result of a focus effort by a range of different
agents, by chance, or as a result of a major system
failure.
• According to Peter F. Drucker , the general sources of
innovations are different changes in industry structure,
in market structure, in local and global demographics,
in human perception, mood and meaning, in the
amount of already available scientific knowledge, etc.
75. S-74
SOURCES OF INNOVATION
• In the simplest linear model of innovation the traditionally
recognized source is manufacturer innovation. This is where
an agent (person or business) innovates in order to sell the
innovation.
• Another source of innovation, only now becoming widely
recognized, is end-user innovation. This is where an agent
(person or company) develops an innovation for their own
(personal or in-house) use because existing products do not
meet their needs.
• MIT economist Eric von Hippel has identified end-user
innovation as, by far, the most important and critical in his
classic book on the subject, Sources of Innovation.
76. S-75
SOURCES OF INNOVATION
The robotics engineer Joseph F. Engelberger asserts that
innovations require only three things:
• A recognized need,
• Competent people with relevant technology, and
• Financial support.
However, innovation processes usually involve: identifying
customer needs, macro and micro trends, developing
competences, and finding financial support.
83. S-82
CHANGE MANAGEMENT
Change management is an approach to
transitioning individuals, teams, and organizations to a
desired future state.
Organizational change is a structured approach in an
organization for ensuring that changes are smoothly
and successfully implemented to achieve lasting
benefits.
85. S-84
CHANGE MANAGEMENT
Choosing what changes to
implement
When determining which of the
latest techniques or innovations
to adopt, there are four major
factors to be considered:
• Levels, goals, and strategies
• Measurement system
• Sequence of steps
• Implementation and
organizational change
87. S-86
CHANGE MANAGEMENT
Reasons for change
Globalization and the constant innovation of technology
result in a constantly evolving business environment.
Phenomena such as social media and mobile adaptability
have revolutionized business and the effect of this is an
ever increasing need for change, and therefore changes
management.
The growth in technology also has a secondary effect of
increasing the availability and therefore accountability of
knowledge. Easily accessible information has resulted in
unprecedented scrutiny from stockholders and the
media and pressure on management.
89. S-88
CHANGE MANAGEMENT
Managing the change process
Regardless of the many types of organizational change, the
critical aspect is a company‘s ability to win the buy-in of their
organization‘s employees on the change. Effectively managing
organizational change is a four-step process:
• Recognizing the changes in the broader business
environment.
• Developing the necessary adjustments for their company‘s
needs.
• Training their employees on the appropriate changes.
• Winning the support of the employees with the persua-
siveness of the appropriate adjustments.
91. S-90
CHANGE MANAGEMENT
Change management processes should include creative
marketing to enable communication between changing
audiences, as well as deep social understanding about
leadership‘s styles and group dynamics.
As a visible track on transformation projects, Organizational
Change Management aligns groups‘ expectations,
communicates, integrates teams and manages people
training.
It makes use of performance metrics, such as financial
results, operational efficiency, leadership commitment,
communication effectiveness, and the perceived need for
change to design appropriate strategies, in order to
avoid change failures or resolve troubled change projects.
93. S-92
CHANGE MANAGEMENT
Successful change management is more likely to occur if the
following are included:
• Benefits management and realization to define measurable
stakeholder aims, create a business case for their
achievement (which should be continuously updated), and
monitor assumptions, risks, dependencies, costs, return on
investment, dis-benefits and cultural issues affecting the
progress of the associated work
• Effective communication that informs various stakeholders
of the reasons for the change (why?), the benefits of
successful implementation (what is in it for us, and you) as
well as the details of the change (when? where? who is
involved? how much will it cost? etc.)
94. S-93
CHANGE MANAGEMENT
Successful change management (contd…)
• Devise an effective education, training and/or skills
upgrading scheme for the organization
• Counter resistance from the employees of companies and
align them to overall strategic direction of the organization
• Provide personal counseling (if required) to alleviate any
change-related fears
• Monitoring of the implementation and fine-tuning as
required
100. S-99
CONFLICT MANAGEMENT
CONFLICT
A disagreement between people on:
Substantive issues regarding goals and tasks,
allocation of resources, distribution of rewards, policies
and procedures, and job assignments.
Emotional issues arising from feelings of anger, fear,
distrust, dislike, and resentment, as well as personality
clashes.
Conflict that is well managed can help promote creativity
and high performance.
102. S-101
CONFLICT MANAGEMENT
Over the years, three views of conflict have
evolved.
The traditional view of conflict asserts that all conflict is
bad and should be avoided.
The human relations view of conflict argues that
because conflict is natural and inevitable, it has the
potential to be a positive force.
The interactionist view of conflict proposes that some
conflict is necessary for an organization to function.
104. S-103
CONFLICT MANAGEMENT
Conflict stems from three sources: communication
differences, structural differences, and personal differences.
Communication differences arise from semantic
difficulties, misunderstandings, and noise in the
communication channels.
Because organizations are horizontally differentiated
through specialization and departmentalization and
vertically differentiated by management levels, structural
differentiation can cause conflict.
The third source of conflict is personal differences:
individual idiosyncrasies and value systems.
106. S-105
CONFLICT MANAGEMENT
Conflict Handling Styles
The research of Kenneth W. Thomas provides some insight
into handling conflict. In conflict-laden situations, one must
first determine the intention of the other party in order to
respond appropriately. Thomas concluded that a person‘s
response will depend on the following two factors:
Cooperativeness - the degree to which one tries to resolve
conflict by satisfying the other person‘s concerns.
Assertiveness - the degree to which one tries to resolve
conflict by satisfying his or her own concerns.
107. S-106
CONFLICT MANAGEMENT
Conflict Handling Styles (contd…)
Managers can draw on five options for resolving conflict.
Not every conflict requires assertive action. Sometimes
avoidance (avoiding or suppressing the conflict) is the best
solution. Managers use accommodation to maintain
harmonious relationships by placing the needs and
concerns of others above their own. In forcing, managers
attempt to satisfy their own needs at the expense of others.
A compromise requires each party to give up something of
value. Collaboration is the ultimate win-win situation, and all
parties try to satisfy their interests.
109. S-108
CONFLICT MANAGEMENT : A SUMMARY
Not every conflict is worth the time and effort it would take to
resolve it. Also, some conflicts are just not manageable. So,
managers should not succumb to the naïve notion that they
can resolve all conflicts. If you do decide to get involved,
knowing the ―players‖ promotes successful conflict
management.
A study of middle-level and top-level executives conducted
by the American Management Association revealed that the
average manager spends 20 percent of his or her time
dealing with conflict.
In a recent survey of practicing managers, conflict manage-
ment skills were rated higher than decision making,
leadership, or communication skills.
111. S-110
POWER AND POLITICS
The meaning of POWER
Power is the capacity of a person, team, or organization
to influence others.
The potential to influence others
People have power they don‘t use and may not know they
possess
Power requires one person‘s perception of dependence on
another person
112. S-111
POWER AND POLITICS
Definition :
Power as the probability that one actor within a social
relationship will be in a position to carry out his own will
despite resistance.
Max Weber
Power as a potential ability to influence behavior, to change
the course of events, to overcome resistance, and to get
people to do things that they would not otherwise do.
Pfeffer
113. S-112
POWER AND POLITICS
• Effectance—getting one‘s way.
• Necessity of social interaction among two or more parties.
• The act or ability to influence others.
• Outcomes favoring one part over the other.
• Power is the ability to get one‘s way in a social situation.
Organizational Power: Characteristics
114. S-113
POWER AND POLITICS
Why does having „power‟ matter?
With power you can…
Intercede favorably on behalf of someone in trouble
Get a desirable placement for a talented subordinate
Get approval for expenditures beyond the budget
Get items on and off agendas
Get fast access to decision makers
Maintain regular, frequent contact with decision makers
Acquire early information about decisions and policy
shifts
115. S-114
POWER AND POLITICS
Sources of Power:
Social psychologist John French and Bertram Raven identified five
categories of sources of power.
1. Legitimate
2. reward
3. Coercive
4. Expert
5. Referent
The first three power bases are derived from the power holder‘s
position i.e. the person receive these power bases because of the
specific authority or roles he or she is assigned. Last two
originates from the power holder‘s own characteristic. In other
words, people bring these power bases to the organization.
116. S-115
POWER AND POLITICS
• Coercive power depends on fear.
• One reacts to this type of power out of fear of
the negative results that might occur if one fails
to comply.
• It rests on the application (or the threat) of
physical sanctions.
Coercive Power
117. S-116
POWER AND POLITICS
Reward Power
• is the opposite of coercive power.
• People comply because doing so produces
benefits.
• Anyone who can distribute rewards that others
value will have power over them.
118. S-117
POWER AND POLITICS
Legitimate Power
• represents the power a person receives as a
result of his or her position in the formal
hierarchy of an organization.
• Legitimate power is broader than the power to
coerce and reward.
• it includes acceptance of a person‘s authority
by members of the organization.
119. S-118
POWER AND POLITICS
Expert Power
• is influence wielded as a result of
experience, special skill, or knowledge.
• Expertise has become a strong source of
influence as the world has become more
technologically oriented.
• As jobs become more specialized, we become
more dependent on ―experts‖.
120. S-119
POWER AND POLITICS
Referent Power
• is based on identification with a person who has
desirable resources or admirable personal
traits.
• It develops out of an admiration for someone
and a desire to be like that person.
• If person A admires person B enough to model
behavior and attitudes after him or her, then
person B has power over person A.
121. S-120
POWER AND POLITICS
Model of Power in Organizations
Power
over Others
Contingencies
Of Power
Legitimate
Reward
Coercive
Expert
Referent
Sources
Of Power
122. S-121
POWER AND POLITICS
Contingencies of Power
Contingencies
of Power
Substitutability
Centrality
Discretion
Visibility
Power
over others
Sources
of Power
124. S-123
POWER AND POLITICS
Symbols of Power
1. Ability to intercede for someone in trouble
2. Ability to get placements for favored employees
3. Exceeding budget limitation
4. Procuring above-average raises for employees
5. Getting items on the agenda at meetings
6. Access to early information
7. Having top managers seek out their opinion.
125. S-124
POWER AND POLITICS
Consequences of Power
Commitment
Reward
Power
Legitimate
Power
Coercive
Power
Expert
Power
Referent
Power
Resistance
Compliance
Sources
of Power
Consequences
of Power
126. S-125
POWER AND POLITICS
Managers Acquire the power needed for leadership by
working towards:
Power-oriented behavior
Position power and personal power
2–C‘s : Centrality and Criticality
Building expertise
Visibility of their job performance
Expanding contacts with senior people
Seeking opportunities to increase name and recognition
127. S-126
POWER AND POLITICS
The Evolution of Power: From Domination to Delegation
None
High
Degree
of
Empowerment
Domination Consultation Participation Delegation
Influence
Sharing
Manager/leader
consults
followers when
making
decisions
Power Sharing
Manager/leader
and followers
jointly make
decisions
Power
Distribution
Followers are
granted
authority to
make decisions
Authoritarian
Power
Manager/leader
impose
decisions
128. S-127
POWER AND POLITICS
The Dark Side of Power
People associate power and
politics with attempts to use
organizational resources for
personal advantage and to
achieve personal goals at the
expense of other goals.
129. S-128
POWER AND POLITICS
The Bright Side of Power
• Improve decision making
quality.
• Promote change.
• Encourage cooperation.
• Promote new organizational
goals.
131. S-130
POWER AND POLITICS
―Organizational politics involves those
activities by organizations to acquire,
develop, and use power and other
resources to obtain one‘s preferred
outcomes in a situation in which there is
uncertainty or dissent about choices.‖
(Pfeffer, 1981)
132. S-131
POWER AND POLITICS
Organizational politics emphasizes self-interest and the use
of non-sanctioned means.
Organizational politics is defined as the management of
influence to obtain ends not sanctioned by the organization
or to obtain sanctioned ends through non-sanctioned
influence means.
Politics is a necessary function resulting from differences in
the self-interests of individuals.
Politics is the art of creative compromise among competing
interests.
Politics is the use of power to develop socially acceptable
ends and means that balance individual and collective
interests.
133. S-132
POWER AND POLITICS
Line units are typically more powerful than are staff
groups.
Units toward the top of the organizational hierarchy
are often more powerful than those toward the
bottom.
Power differentials are not as pronounced among
units at or near the same level in an organization.
134. S-133
POWER AND POLITICS
Factors Influencing Political Behavior
Political behavior
Low High
Favorable outcomes
Rewards
Averted punishments
135. S-134
POWER AND POLITICS
Organizational
Politics: More likely
at the top
Extent
to
Which
Political
Activity
is
Likely
(range
0-3)
Production &
blue collar
Clerical &
white collar
Technical &
professional
Lower
Mgmnt.
Middle
Mgmnt.
Upper
Mgmnt.
1.3
1.2
1.1
1.0
.9
.8
.7
.6
.5
.4
.3
.2
.1
Organizational Level
(.18)
(.50)
(.54)
(.73)
(1.07)
(1.22)
Political activity
is perceived to
increase at higher
organizational levels
136. S-135
POWER AND POLITICS
Political Tactics
Attacking or blaming others.
Using information as a political tool.
Creating a favorable image.
Developing a base of support.
Association with influential people.
Creating obligations.
137. S-136
POWER AND POLITICS
TYPES OF
ORGANIZATIONAL
POLITICS
Selectively
distributing
information
Controlling
information
channels
Forming
coalitions
Cultivating
networks
Creating
obligations
Managing
impressions
Attacking
blaming
others
139. S-138
POWER AND POLITICS
Controlling Political Behaviour
Peer Pressure
Against Politics
Remove
Political Norms
Free Flowing
Information
Manage Change
Effectively
Provide
Sufficient
Resources
Introduce
Clear Rules
Hire
Low-Politics
Employees
Increase
Opportunities
for Dialogue
140. S-139
POWER AND POLITICS
Response of politics in organization
Organization politics may threaten employees…
Decreased job satisfaction.
Increased anxiety and stress.
Increased turnover.
Reduced performance.
141. S-140
POWER AND POLITICS
Positive aspects of organizational politics
Overcoming personnel inadequacies.
Coping with change.
Substituting for formal authority.
142. S-141
POWER AND POLITICS
Ethical guideline for Political Behavior
Question 1
Is the action
motivated by
self-serving
interests which
exclude the
goals of the
organization?
Question 2
Does the political
action respect
individual rights?
Question 3
Is the political
activity fair
and equitable?
Yes
No
Yes
No
Yes
No
Unethical
Unethical
Unethical
Ethical
143. S-142
POWER AND POLITICS
Relationship between Social
Influence, Power and Politics
Organizational
politics
Use of power for
personal interests
Capacity to
exert influence
Social influence
Unsuccessful
Successful
Power
144. S-143
POWER AND POLITICS
Limiting the Effects of Political Behavior
Open communication
Provide Sufficient Resources
Introduce Clear Rules
Free Flowing Information
Measure performance, not personalities
Remove Political Norms
Hire Low-Politics Employees
Increase Opportunities for Dialogue
Peer Pressure Against Politics
145. S-144
POWER AND POLITICS
The Bottom Line: Managing Organizational Politics
Effectively
Learn the
Culture and the
“Rules of the
Game” for
Success in the
Organization
Establish Cred-
ibility and an
Overall Positive
Impression in
the Eyes of
Others in the
Organization
Build a Base of
Support by
Networking,
Forming
Alliances, etc.,
with Key
Players
Create and
Implement
Formal and
Clear Policies,
Procedures,
etc., to Reduce
Ambiguity
Be Open and
Visible with
Employees
When Dealing
with Key
Issues that
Affect Them
Act in Ways
Consistent with
What is
Verbally
Communicated
to Employees
(Walk the Talk)
Use Defensive
Behaviors as
Protection
Against Dirty
Political
Players in the
Organization
