CHAPTER – FIVE

Management of Organizational
Conflict

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 Conflict
• Conflict Defined
 A process that begins when one party perceives that
another party has negatively affected, or is about to
negatively affect, something that the first party cares about.
 Is that point in an ongoing activity when an interaction
“crosses over” to become an interparty conflict.
 Encompasses a wide range of conflicts that people
experience in organizations
 Incompatibility of goals
 Differences over interpretations of facts
 Disagreements based on behavioral expectations

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 Transitions in Conflict Thought
Traditional View of Conflict
The belief that all conflict is harmful and must be
avoided.

Causes:
Causes:
•• Poor
Poorcommunication
communication
•• Lack
Lackofofopenness
openness
•• Failure
Failureto
torespond
respondto
to
employee
employeeneeds
needs

3
Transitions in Conflict Thought (cont’d)
Human Relations View of Conflict
The belief that conflict is a natural and inevitable
outcome in any group.

Interactionism View of Conflict

The belief that conflict is not only a
positive force in a group but that it is
absolutely necessary for a group to
perform effectively.

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Functional versus Dysfunctional Conflict
(Positive)
Functional Conflict
Conflict that supports the goals
of the group and improves its
performance.

Dysfunctional Conflict
Conflict that hinders
(Negative) group performance.

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 Functional Conflict
 Conflict that supports the goals of the group
and improves its performance.
 constructive forms of conflict
 When conflict focuses on tasks, constructive
debate can improve decision making and work
outcomes.
 can be thought of as a type of creative tension
 Cont………….
• Conflict develops cohesiveness within the group
members.
• Conflict leads to innovation and creativity, as
there is competing sprit among various groups.
• Conflict provides challenging work environment
and enhances opportunities for self-
development of group that leads to formation of
group norms.
• Enhance work culture leads to up gradation of
various systems.
 Dysfunctional Conflict

 conflicts that hinder group performance

 destructive, forms of conflict
 a group is unable to achieve its goals because of
conflict
 Studies reveal that most of the dysfunctional
conflict falls under behavioral conflict category.
 It diverts energies, hurts group cohesion,
promotes interpersonal hostilities, and overall
creates a negative environment for workers.
Dysfunctional nature of conflict can be identified in the
following circumstances:
– When conflict does not lead to solution.
– When basic goals of the organization are neglected.
– When people treated without due respect.
• If it is violated and a climate of distrust and
suspicion is created people feel defeated and
demeaned which develops antagonism and leads
to conflict.
Cont…..’d
 When absenteeism and turnover increased
 When the dual management style create
hatred
 disloyalty
 Causes of Conflict
• Scarce Resources
• Jurisdictional Ambiguities
• Personality Clashes
• Power and Status Differences
• Goal Differences
• Communication Breakdown
 Conflict can be broadly classified

• task oriented conflict,

• behavioral conflict and
• structural conflict or process conflict
 Conflict can be broadly classified
……..con’t
• task oriented conflict
– relates to the group goals or objectives to be achieved by the
group
• behavioral conflict
– relates to individual’s value system, approach, attitude, ego
state, skill and norms being followed
• structural conflict or process conflict
– related to how a task is being accomplished in the
organization.
– It is related with various processes, procedures, drills and
instructions that are being followed on a particular job.
 Types of Conflict

• Intra ……Within
• Inter …….Between
• The conflict may be
 intra personal,
 inter-personal,
 intra-group,
 inter-group or
 intra-organizational, and
 inter-organizational in nature
 Cont……
1 Intra-personal Conflict
• The conflict within the individual. It can be
– Value conflict: there are certain situations when
an individual may have to compromise on value
system and beliefs.
– Decision-making: Problem solving is one of the
important jobs every individual has to
undertake in work environment. Every
problem has various courses open. At times it is
difficult for a person to select an appropriate
course of action.
 Cont…..
2. Inter-personal Conflict
• relates to conflict between two or more individuals
• is probably the most common and recognized form
of conflict.
• is caused due to disagreement over goals and
objectives of the organization.
• These are heightened due to difference of opinion
of individuals and when issues are not based on
facts.
 Cont…..
3 Intra-group conflict
• relates to values, status and roles played by an
individual in the group and the group norms.
– Individual may want to remain in the group for social needs
but may disagree with the methods and procedures
followed by the group.
– The conflict may arise when social changes are
incorporated in the group. When group faces new problems
and when values are changed due to change in social
environment.
• Intra-group conflict is like Inter-personal conflict
except that the people involved in the conflict episode
belong to a common group.
 Cont……..
4 Inter-group conflict
• Conflicts between different groups, sections and
departments
– E,g conflict between production and sales departments
• Inter-group conflict causes due to factors inherent
to the organizational structure like independence,
inconsistency in various policy matter, variance on
promotion criteria, reward system and different
standards being adopted for different sub-units
and departments.
 Cont…………….
5 Intra organizational conflict
• encompasses horizontal, vertical, line–staff and role
based conflicts.
• Horizontal Conflict
– is caused due to incompatibility of goals, sharing limited
resources and difference in time orientation.
– relates to employees or group at the same level.
• Vertical conflict
– refers to conflicts that might take place between different
levels of hierarchy.
– Conflicts between subordinates and superior occur due
to incompatibility.
 Cont……….
5 Intra organizational conflict
• encompasses horizontal, vertical, line–staff and
role based conflicts.
• Line and staff conflict
– Line authority creates product and services and
contributes directly towards the revenue generation.
– While staff authority assists line authority and acts in
advisory capacity.
 Cont……….
5 Intra organizational conflict
• encompasses horizontal, vertical, line–staff and
role based conflicts.
• Role Conflict
– Conflict arises when roles assigned to person have
different expectation.
– ‘Time’ management may cause conflict.
 Cont………..
6 Inter organizational conflict
• takes place between two dependent organizations.
• Conflict can take place between government
organization, unions and the operating industry.
The Conflict Process
 Stage I: Potential Opposition or
Incompatibility
• Communication
– Semantic difficulties, misunderstandings, and “noise”
• Structure
– Size and specialization of jobs
– Jurisdictional clarity/ambiguity
– Member/goal incompatibility
– Leadership styles (close or participative)
– Reward systems (win-lose)
– Dependence/interdependence of groups
• Personal Variables
– Differing individual value systems
– Personality types
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Stage II: Cognition and Personalization
Perceived Conflict Felt Conflict
Awareness by one or more Emotional involvement in a
parties of the existence of conflict creating anxiety,
conditions that create tenseness, frustration, or
opportunities for conflict to hostility.
arise.

Conflict
ConflictDefinition
Definition

Negative
NegativeEmotions
Emotions Positive
PositiveFeelings
Feelings

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 Stage III: Intentions
Intentions
Decisions to act in a given way.

Cooperativeness
Cooperativeness: :
•• Attempting
Attemptingto
tosatisfy
satisfythe
theother
otherparty’s
party’sconcerns.
concerns.
Assertiveness:
Assertiveness:
•• Attempting
Attemptingto
tosatisfy
satisfyone’s
one’sown
ownconcerns.
concerns.

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Dimensions of Conflict-Handling Intentions

Source: K. Thomas, “Conflict and Negotiation Processes in Organizations,” in M.D. Dunnette and L.M.
Hough (eds.), Handbook of Industrial and Organizational Psychology, 2nd ed., vol. 3 (Palo Alto, CA:
Consulting Psychologists Press, 1992), p. 668. With permission.
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 Stage III: Intentions (cont’d)
Competing
A desire to satisfy one’s interests, regardless of the
impact on the other party to the conflict.

Collaborating
A situation in which the parties to a conflict each
desire to satisfy fully the concerns of all parties.

Avoiding
The desire to withdraw from or suppress a conflict.

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 Stage III: Intentions (cont’d)
Accommodating
The willingness of one party in a conflict to place the
opponent’s interests above his or her own.

Compromising
A situation in which each party to a conflict is
willing to give up something.

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 Stage IV: Behavior
Conflict Management
The use of resolution and stimulation techniques to
achieve the desired level of conflict.

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 Conflict-Intensity Continuum

Source: Based on S.P. Robbins, Managing Organizational Conflict: A Nontraditional Approach (Upper Saddle
River, NJ: Prentice Hall, 1974), pp. 93–97; and F. Glasi, “The Process of Conflict Escalation and the Roles of
Third Parties,” in G.B.J. Bomers and R. Peterson (eds.), Conflict Management and Industrial Relations (Boston:
Kluwer-Nijhoff, 1982), pp. 119–40.
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Conflict Management Techniques
Conflict
ConflictResolution
ResolutionTechniques
Techniques
•• Problem
Problemsolving
solving
•• Superordinate
Superordinategoals
goals
•• Expansion
Expansionofofresources
resources
•• Avoidance
Avoidance
•• Smoothing
Smoothing
•• Compromise
Compromise
•• Authoritative
Authoritativecommand
command
•• Altering
Alteringthe
thehuman
humanvariable
variable
Source: Based on S. P. Robbins,
Managing Organizational Conflict: A
Nontraditional Approach (Upper
•• Altering
Alteringthe
thestructural
structuralvariables
variables
Saddle River, NJ: Prentice Hall, 1974),
pp. 59–89

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Conflict Management Techniques

Conflictstimulation
Conflict stimulationTechniques
Techniques

•• Communication
Communication
•• Bringing
Bringingininoutsiders
outsiders
•• Restructuring
Restructuringthetheorganization
organization
•• Appointing
Appointingaadevil’s
devil’sadvocate
advocate

Source: Based on S. P. Robbins, Managing Organizational Conflict: A Nontraditional Approach (Upper

Saddle River, NJ: Prentice Hall, 1974), pp. 59–89
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 Stage V: Outcomes
• Functional Outcomes from Conflict
– Increased group performance
– Improved quality of decisions
– Stimulation of creativity and innovation
– Encouragement of interest and curiosity
– Provision of a medium for problem-solving
– Creation of an environment for self-evaluation and change
• Creating Functional Conflict
– Reward dissent and punish conflict avoiders

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 Stage V: Outcomes
• Dysfunctional Outcomes from Conflict
• Development of discontent( unhappiness)
• Reduced group effectiveness
• Retarded communication(slow)
• Reduced group cohesiveness
• Infighting among group members overcomes
group goals

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 Negotiation
Negotiation
A process in which two or more parties exchange
goods or services and attempt to agree on the
exchange rate for them.

BATNA
The Best Alternative To a
Negotiated Agreement; the
lowest acceptable value
(outcome) to an individual
for a negotiated agreement.

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 Bargaining Strategies
Distributive Bargaining
Negotiation that seeks to divide up a fixed amount
of resources; a win-lose situation.

Integrative Bargaining
Negotiation that seeks one or more settlements that
can create a win-win solution.
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Distributive Versus Integrative Bargaining
Bargaining Distributive Integrative
Characteristic Bargaining Bargaining

Goal Get as much of pie Expand the pie

as possible
Motivation Win-Lose Win-Win
Focus Positions Interests
Information Low High
Sharing

Duration of Short term Long term

relationships

EEXHIBIT
XHIBIT 15-
15-
Source: Based on R. J. Lewicki and J. A. Litterer, Negotiation (Homewood, IL: Irwin, 1985), p. 280. 55
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Staking Out the Bargaining Zone

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 The
Negotiation
Process

BATNA
The Best Alternative To a
Negotiated Agreement; the
lowest acceptable value
(outcome) to an individual
for a negotiated agreement.

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 THIRD-PARTY NEGOTIATIONS
Mediator
A neutral third party who facilitates a negotiated
solution by using reasoning, persuasion, and
suggestions for alternatives.

Arbitrator
A third party to a negotiation
who has the authority to
dictate an agreement.

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Third-Party Negotiations (cont’d)
Conciliator
A trusted third party who provides an
informal communication link between
the negotiator and the opponent.
Conflict Management
Consultant
An impartial third party, skilled in
conflict management, who attempts
to facilitate creative problem
solving through communication and
analysis.

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// End//
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