Chapter 7.

ORGANIZATIONAL
CONFLICT AND POLITICS
Theory of Organization and Management

MEI AYU RISTIWATI

(041414253003)

REFIVIA AUDIE CALCARINA

(041414253013)

LAILY SABIROZA

(041414253021)

YULLIANA EKANINGRUM

(041414253030)

DEPARTMENT OF ACCOUNTING
ECONOMICS AND BUSINESS FACULTY
UNIVERSITY OF AIRLANGGA
2014/2015

1.

1.1

Interdepartmental Conflict in Organizations

Intergroup conflict, requires three ingredients:
a. Group Identification
Employees have to perceive themselves as part of an identifiable group or
department.
b. Observable Group Differences
There has to be an observable group difference of some form. The ability to
identify oneself as a part of one group and to observe differences in comparison
with other groups is necessary for conflict.
c. Frustration
Frustration means that if one group achieves its goal, the other will not; it will be
blocked. Frustration need not be severe and only needs to be anticipated to set off
intergroup conflict. Intergroup conflict will appear when one group tries to
advance its position in relation to other groups.
Sources of Conflict
Some spesific organizational characteristics can generate conflict. These source of
intergroup conflict are goal incompatibility, task interdependence, and limited
resources. These characteristics of organizational relationships are determined by the
organizational structure and the contigency factors of environment, size, technology,
and stategy and goals.
a. Goal Incompatibility
The goals of each department reflect the specific objectives members are trying to
achieve. The achievement of one departments goals often interferes with another
departments goals, leading to conflict.
b. Differentiation
The differences in cognitive and emotional orientations among managers in
different functional departments. Functional specialization requires people with
specific education, skills, attitudes, and time horizons. Departments or divitions
within an organization often differ in values, attitudes and standards of behavior,
and these subcultural differences lead to conflicts.
c. Task Interdependence
Task Interdependence refers to the dependence of one unit on another for
materials, resources, or information. Interdependence means there is little
interaction; sequential interdependence means the output of one department goes
to the next department; and reciprocal interdependence means that departments
mutually exchange materials and information.
d. Limited Resources
Another major source of conflict involves competition between groups for what
members perceive as limited resources. Organizations have limited money,
physical facilities, staff resources, and human resources to share among
departments. In their desire to achieve goals, groups want to increase their
resources. This throws them into conflict. Resources also symbolize power and
influence within an organization.

1.2

Rational versus Political Model

The degree of goal incompatibility, differentiation, interdependence, and
competition for limited resources determines whether a rational or political model of
behavior is used within the organization to accomplish goals.
Sources of Conflict and Use of Rational versus Political Model

When goals are in alignment, there is little differentiation, departments are

characterized by pooled interdependence, and resources seem abundant, managers
can use a rational model of organization.
Goals are clear and choices are made in a logical way. When a dicision is needed,
the goal is defined, alternatives are identified, and the choice with the highest
probability of success is selected. The rational model is also characterized by
centralized power and control, extensive information systems, and an efficiency
orientation.
The opposite of organizational processes is the political model. When differences are
great, organization groups have separate interests, goals, and values. Disagreement
and conflict are normal, so power and influence are needed to reach decisions.
Groups will engage in the push and pull of debate to decide goals and reach
decisions. Information is ambigous and incomplete. The political model describes
the way organizations operate much of the time. Although managers strive to use a
rational approach, the political model prevails because each department has different
interests it wants met and different goals it wants to achieve. Purely rational
procedures do not work for many circumstances.
Most organizations have at least moderate conflict among departments or other
organizational groups. When conflict becomes too strong and managers do not work
together, it creates many problems for organizations. The top 10 problems caused by
a lack of cooperation that were identified by one survey of managers.

Top 10 Problems From Too Much Conflict

1.3

Tactics for Enhanching Collaboration

Tactics for enchancing collaboration include the following:
a. Create Integration Devices
Teams, task forces, and project managers who span the boundaries between
departments can be used as integration devices. Bringing together representatives
from conflicting departments in join problem solving teams is an effective way to
enhance collaboration because representatives learn to understand each others
point of view. The integrator has to understand each groups problems and must
be able to move both groups toward a solution that is mutually acceptable. Teams
and task forces reduce conflict and enhance cooperation because they integrate
people from different departments.
b. Use Confrontation and Negotiation
Confrontation occurs when parties in conflict directly engage one another and try
to work out their differences. Negotiation is the bargaining process that often
occurs during confrontation and that enables the parties to systematically reach a
solution. Confrontation and negotiation involve some risk. Confrontation and
negotiation are successful when managers engage in a win win strategy. Win win
means both sides adopt a positive attitude and strive to resolve the conflict in a
way that will benefit each other. If the negotiations deteriorate into a strictly win
lose strategy (each group wants to defeat the other), the confrontation will be
ineffective. The differences between win win and win lose strategies of
negotiation are shown as follows:

Negotiating Strategies

With a win win strategy which includes defining the problem as mutual,
communicating openly, and avoiding threats understanding can be change while
the dispute is resolved.
c. Schedule Intergroup Consultation
When conflict is intense and enduring, and department members aare suspicious
and uncooperative, top managers may intervene as third parties to help resolve
the conflict or bring in third party consultants from outside the organization. This
process, sometimes called workplace mediation, is a strong intervention to reduce
conflict because it involves bringing the disputing parties together and allowing
each side to present its version of the situation.
d. Practice Member Rotation
Rotation means that individuals from one department can be asked two work in
another department on a temporary or permanent basis. The advantage is that
individuals become submerged in the values, attitudes, problems, and goals of the
other department. In addition, individuals can explain the problems and goals of
their original departments to their new colleagues. This enables a frank, accurate
exchange of views and information. Rotation works slowly to reduce conflict but
is very effective for changing the underlying attitudes and perceptions that romote
conflict.
e. Create Shared Mission and Superordinate Goals
Another strategy is for top management to create a shared mission and establish
superordinate goals that require cooperation among departments. Studies have
shown that when employees from different departments see that their goals are
linked, they will openly share resources and information. To be effective,
superordinate goals must be substantial, and employees must be granted the time
and incentives to work cooperatively in pursuit of the superordinate goals rather
than departmental subgoals.

2.

Power and Organizations

Power is the ability of one person or department in a organization to influence other
people to bring about desired outcomes. It is potential to influence other within
organization to attain organizations goals.

2.1

Individual versus Organizational Power

a. Legitimate Power: Authority granted by the organization to the formal
management position a manager holds
b. Reward Power: Ability to bestow rewards to other people
c. Coercive Power: Authority to punish or recommend punishment
d. Expert Power: Persons greater skill or knowledge about the task being
performed. Referent Power: Derived from personal characteristic: people admire
the manager and want to be like identify with the manager out of respect and
admiration

2.2

Power versus Authority

Authority is related to power but is narrower in scope. Authority is also a force for
achieving desired outcomes, but only prescribed by the formal hierarchy and
reporting relationships.
Three properties identify properties:
a. Authority is vested in organizational position, not personal characteristics or
resources
b. Authority is accepted by subordinates. Subordinates comply because they believe
position holders have a legitimate right to exercise authority
c. Authority flows down the vertical hierarchy. Positions at the top of the hierarchy
are vested with more formal authority than are positions at the bottom.

2.3

Vertical Sources of Power

There are four major sources of vertical power:
a. Formal Position, certain rights, responsibilities, and prerogatives accrue to top
positions (legitimate power). The total amount of power in an organization can be
increased by designing tasks and interactions along the hierarchy so everyone can
exert more influence. If the distribution of power is skewed too heavily toward
the top, research suggests that the organizations will be less effective
b. Resources, Top managers control resources and determine the distribution.
Resources can be used to rewards or punishments. Resources allocation creates a
dependency relationship. Top management can exchange resources on the form
of salaries, bonuses, personnel, promotions for attaining their goals.
c. Control of Information is a significant source of power. Managers recognizes that
information is a primary business resources and that by controlling what
information is collected, how it is interpreted, and how it is shared, they can
influence how decisions are made.
d. Network Centrality means being centrally located in the organizations and having
access to information and people that critical to the companys success. People at

all levels of hierarchy can use the idea of network centrality to accomplish goals.
People can increase their network centrality by becoming knowledgeable and
expert about certain activities.
e. People. Top leader often increase their power by surrounding themselves with
group of loyal executives. Loyal managers keep the leader informed and in touch
with events and report. Many top executives strive to build cadre of loyal and
supportive executives to help attaining goals. Lower level people have greater
power when they have positive relationships and connections with higher-ups. By
being loyal and supportive of their bosses, employees sometimes gain favorable
status and exert greater influence
2.4

The Power of Empowerment

There are numerous definitions for empowerment, some of which are described
below:
a. Empowering means releasing the internal power of individuals to achieve
extraordinary results and it is a technique for increasing productivity and
enhancing employee commitment to the organization and vice versa.
b. Empowering means a process through which managers allow their employees to
gain power and influence within the organization. To overcome the complexity
and the pace of challenges which we are confronted with in today's environment,
the success of an organization is dependent on how much power can be allowed
to all employees.
Empowering employees involves giving three elements that enable them to act more
freely to accomplish their jobs:
a. Employees receive information about company performance
b. Employees have knowledge and skills to contribute to company goals
c. Employees have the power to make substantive decisions

2.5

Horizontal Sources of Power

Horizontal sources of power: relationships across departments or divisions.
a. Strategic contingencies
Events and activities both inside and outside an organization that are essential for
attaining organizational goals. Departments involved with strategic contingencies
tend to have greater power. Departmental activities are important when they
provide strategic value by solving problems or crises for the organization.
a) Dependency: A unit gains power based upon its relative dependency to other
units. The more another unit needs it to complete it mission
successfully,
the more power the latter has relative to the former unit.
b) Financial Resources: The person with the gold makes the rules. Modern
Axiom. Money is a scarce resource that can be converted to many other
resources. Control over money is a big source of power to units. It also
creates dependencies. Usually departments that generate income for the
organization have more power.

Centrality: degree to which a departments role is in a primary activity of the

organization, especially one that affects the final output.
d) Non-Substitutability: the degree to which a units work cannot be duplicated
by another contributes significantly to its power in the organization and
enhances its role in the organization.
e) Coping with Uncertainty: Many environmental variables can be volatile and
change rapidly, creating high levels of uncertainty for the organization. The
degree to which the work of a unit contributes to reducing that uncertainty
for other units, the more power accrues to the unit. This is usually
accomplished by (1) obtaining important information for others, (2)
preventing problems before they occur, and (3) absorption of uncertainty.
b. Power sources
Powerful departments may possess one or more power sources:
a) Dependency: Interdepartmental dependency;
b) Financial resources: control over financial resources;
c) Centrality: role in the primary activity of an organization;
d) Non-substitutability: departments functions cannot be performed by other
readily available resources;
e) Coping with uncertainty: reduce uncertainty to increase power.
c)

3.

Political Processes in Organizations

There are two surveys on managers reaction to political behavior:
a. Most managers give negative political behavior and the manager believes that
politics often galling than helping the organization to achieve its objectives.
b. Manager believe political behavior is common practically in all organizations.
c. Most managers think that political behavior occurs more often at the upper rather
than lower levels in the organization.
d. Political behavior arises in certain decisions domains, such as structural changes,
but is absent from other decisions, such as handling employee grievances

3.1

Definition
Politics is the use of power to influence the decision to achieve a result. There are
two ways to define politics:
a. As self-serving behavior
b. Sees politics as a natural organization process for resolving differences among
organizational interests groups.
The formal definition of organizational politics is as follows: Organizational politics
involves activities to acquire, develop and use power and other resources to obtain
the preferred outcome when there is uncertainty or disagreement about choices.
Political Behavior can be either positive or a negative force. Politics is the use of
power to get things accomplished (good things as well as a bad thing). Uncertainty
and conflict are natural and inevitable, and politics is the mechanism for reaching an
agreement. Politics, includes informal discussion that enable participants to arrive at
consensus and make decisions that otherwise might be unsolvable.

3.2

When is Political Activity Used?

Politics is a mechanism for arriving at consensus when uncertainty is high and there
is disagreement over goals or problem priorities. There are three domains of political
activity:
a. Structural reorganization.
Reorganization change responsibilities and tasks, which also affects the
underlying power base from strategy contingencies. Manager may actively
bargain and negotiate to maintain the responsibilities and power bases they have.
b. Management succession.
Organizational change such as, hiring new executives, promotion and transfer
have great political significance, particulary at top organizational levels where
uncertainty is high and network of trust, cooperation, and communication among
executive is important.
c. Resources allocation.
Resources allocation decision encompass all resources required for organizational
performance, including salaries, operating budget, employee, and office facilities.

4.
4.1

Using Soft Power and Politics

Tactics for Increasing Power
There are four tactics to increase the basic strength:
a. Enter areas of high uncertainty
If department manager can identify key uncertainties and take steps to remove
those uncertainties, the department power base will be enhanced. Trial and error
will be needed, which is to solve the uncertainty. This process gives the
advantage to the department and provide the experience and expertise that is not
easily replicated by other departments.
b. Create dependencies
Dependencies are another source of power. When the organization depends on a
department for the information, material, knowledge or skills, that department
will hold power over others. This power can be increased by incurring an
obligations.
c. Provide scarce resources.
Resources are always important to organizational survival. departments that
accumalate resources and provide them to an organization in the form of money,
information,or facilities will be powerful.
d. Satisfy strategic contigencies.
The theory of strategic contigencies says that some elements in the external
enviroment and within the organization are especially important for
organizational sucess. a contigency could be a critical event, a task for which
there are no substituties, or a central task that is interdependent with many others
in the organization

4.2

Political Tactics for Using Power

a. Build coalitions and expand networks.
Effective managers develop positive relationships throughout the organization,
and they spend time talking with others to learn about their views and build
mutually beneficial alliances and coalitions. most important decisions are made
outside of formal meeting. networks can be expanded by (1) reaching out to
establish contact with additional managers (2) coopting dissenters.
b. Assign loyal people to key position.
Another political tactic is to assign trusted and loyal people to key positions in the
organization or department. top managers as well as department heads often use
the hiring, transfer, and promotion process to place in key positions people who
are sympathetic to the outcomes of the department, thus helping to achieve
departmental goals.
c. Use reciprocity.
There is much research indicating that most people feel a sense of obligation to
give something back in return for favors others do for them.
d. Enhance legitimacy and expertise.
Managers can exert the greatest influence in areas in which they have recognized
legitimacy and expertise. this tactic is highly effective with the younger
generation of managers and employees.
e. Make a direct appeal.
If managers do not ask, they seldom receive. its often direct appeal use to get a
new title and a salary increase.