Organizational Theory,

Design, and Change

Sixth Edition
Gareth R. Jones

Chapter 14
Managing Conflict,
Power, and Politics

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

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Learning Objectives
1. Describe the nature of organizational
conflict, its sources, and the way it
arises between stakeholders and
subunits
2. Identify the mechanisms by which
managers and stakeholders can
obtain power and use that power to
influence decision making and
resolve conflict in their favor
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Learning Objectives (cont.)

3. Explain how and why individuals and
subunits engage in organizational politics
to enhance their control over decision
making and obtain the power that allows
them to influence the change process in
their favor
4. Appreciate the importance of managing
an organizations power structure to
overcome organizational inertia, and to
bring about the type of changing that
promotes performance
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What is Organizational Conflict?

The clash that occurs when the goaldirected behavior of one group blocks
or thwarts the goals of another
Although conflict is often perceived
as something negative, research
suggests that some conflict can
actually improve organizational
effectiveness

Can overcome inertia and lead to

learning and change
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Figure 14.1: Cooperation and Competition

Among Organizational Stakeholders

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What is Organizational Conflict?

(cont.)
Beyond a certain point, conflict becomes
a cause for organizational decline

Conflict leads to inability to reach consensus

and indecision
Too much time spent on bargaining rather
than acting swiftly to resolve problems

On balance, organizations should be

open to conflict and recognize its value

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Figure 14.2: Relationship Between Conflict

and Organizational Effectiveness

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Pondys Model of
Organizational Conflict
Conflict is a process that consists of five
sequential stages
Stage 1: Latent conflict: no outright
conflict exists, but there is potential for
conflict because of several latent factors

Sources of conflict include:

Interdependence
Difference in goals and priorities
Bureaucratic factors
Incompatible performance criteria
Competition for scarce resources
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Pondys Model of
Organizational Conflict (cont.)
Stage 2: Perceived conflict:
subunits become aware of conflict and
begin to analyze it

Conflict escalates as groups battle over

the cause of conflict

Stage 3: Felt conflict: subunits

respond emotionally to each other,
and attitudes polarize into us-versusthem

Cooperation between units decreases

What began as a small problem escalates
into huge conflict
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Pondys Model of
Organizational Conflict (cont.)
Stage 4: Manifest conflict: subunits
try to get back at each other

Fighting and open aggression

Passive aggression doing nothing
Organizational effectiveness suffers

Stage 5: Conflict aftermath:

conflict is resolved in some way

If sources of conflict are not resolved, the

dispute will arise again
Conflict aftermath
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Figure 14.3: Pondys Model of

Organizational Conflict

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Managing Conflict:
Resolution Strategies
Organizational conflict can escalate
rapidly and sour an organizations
culture

Managing conflict is an important priority

Organizations must balance the need

to have some good conflict without
letting it escalate into bad conflict
Choice of conflict-resolution method
depends on the source of the problem
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Managing Conflict:
Acting at the Level of Structure

Because task interdependence and

differences in goals produce conflict, alter
the level of differentiation and integration
to change relationships
Increase the number of integrating roles
Assign top managers to solve conflict
Rethink the hierarchy/reporting chain to
make sure there is no loss of control

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Managing Conflict: Acting at the

Level of Individuals

Establish a procedural system that allows

parties to air their grievances

Important for conflict between management

and unions

Use a third-party negotiator

Exchange/rotate/terminate individuals
CEOs can also use their power to resolve
conflicts and motivate units to cooperate

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What is
Organizational Power?
Organizational power: the ability
of one person or group to overcome
resistance by others to achieve a
desired objective or result

Conflict and power are intimately related

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Figure 14.4: Sources of

Organizational Power

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Sources of
Organizational Power
Authority: power that is legitimized
by the legal and cultural foundations
on which an organization is based

Empowerment: the deliberate

decentralization of authority

Control over resources: as the

organization controls more and more
resources in its environment, power
within an organization comes from the
control of resources
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Sources of Organizational
Power (cont.)
Control over information: access
to strategic information and the
control of the information are sources
of considerable power
Nonsubstitutability: if no one else
can perform the tasks that a person
or subunit performs, that person or
subunit is nonsubstitutable
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Sources of Organizational
Power (cont.)
Centrality: the subunits that are
most central to resource flows have
the ability to reduce the uncertainty
facing other subunits
Control over uncertainty: a
subunit that can actually control the
principal sources of uncertainty has
significant power

Changes in contingencies facing the

organization alter which subunits have
this power
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Sources of Organizational
Power (cont.)
Unobtrusive power: controlling the
premises of decision making

Unobtrusive power: the power

flowing from the ability to control the
premises behind decision making
The power of a coalition resides in its
ability to control the assumptions, goals,
norms, or values that managers use to
judge alternative solutions to a problem

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Using Power:
Organizational Politics
Organizational politics: activities
taken within organizations to acquire,
develop, and use power and other
resources to obtain ones preferred
outcomes in a situation in which there
is uncertainty or disagreement about
choices

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Using Power:
Tactics for Playing Politics

Increasing indispensability: become

indispensable to the organization
Increasing nonsubstitutability: develop
specialized skills or knowledge that enables one
to control a crucial contingency facing the
organization
Increasing centrality: accept responsibilities
that enhance ones reputation or that of ones
function
Associating with powerful managers:
supporting a powerful manager who is clearly
on the way to the top
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Using Power: Tactics for

Playing Politics (cont.)

Building and managing coalitions

Influencing decision making

Must be circumspect in the use of power

Controlling the agenda

Forming relationships with stakeholders and

other subunits around some common issue
Skills in coalition building are important

By setting the agenda, managers can control

the issues and problems to be considered

Bringing in an outside expert

Use supposedly neutral outsiders to support the

views of the coalitions
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Costs and Benefits of

Organizational Politics

To manage organizational politics and gain

its benefits, an organization must establish
a balance of power in which alternative
views and solutions can be offered and
considered by all parties and dissenting
views can be heard
Balance of power should shift over time
toward the party that can best manage
the uncertainty and contingencies
confronting the organization

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Costs and Benefits of

Organizational Politics (cont.)

If balance of power does not encourage

allocation of resources to where value is
created, the organization suffers
If powerful managers can suppress views
against their interests, debates become
restricted, checks and balances fade, bad
conflict increases, and organizational
inertia increases

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Figure 14.5: Maintaining a

Balance of Power

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