Conflict

MANAGING CONFLICT IN ORGANIZATION

Objectives of this lecture

What is group conflict
The consequences of group conflict
The causes of group conflict
The solutions to group conflict
Cultural dimensions in managing group conflict

1. The Ubiquity of Conflict

incompatible

Intrapersonal Conflicts
Interpersonal Conflicts
Intragroup Conflicts
Intergroup Conflicts
Inter-organization Conflicts
Intra-racial Conflicts
Inter-racial Conflicts
Inter-gender Conflicts
Inter-class Conflicts
Inter-regional Conflicts
Inter-cultural Conflicts
International Conflicts

2. Two Views of Conflict

(1). Traditional View

Comfilict is bad and should be avoided

(2). Contemporary View:

Conflict is neither inherently bad nor good but is inevitable and structurally induced

3. Two Consequences of Intergroup Conflict

(1). Functional Conflict: Intergroup conflict that enhances organizational performance

Increased problem awareness

Increased self- and other awareness

Increased exchange of information and knowledge

Improved decision processes

Increased innovativeness and creativity

Enhanced motivation and morale

Decreased tensions

Enhanced psychological maturity

(2). Dysfunctional Conflict: Intergroup conflict that leads to the decline of organizational performance

General Organizational Consequences

Increased stress and burnout
Reduced organizational performance
Reduced morale and job satisfaction
Reduced loyalty to organization
Waste of resources and time

Dysfunctional Changes between Groups

Increased hostility and distrust
Distorted perception
Negative stereotyping
Decreased communication

Changes within Groups

Increased group cohesiveness
Increased loyalty to the group rather than to the organization
Rise in autocratic leadership
More task-oriented

4. Why Intergroup Conflict Occurs

Goal Incompatibility

Mutually exclusive goals
Limited resources
Reward structures
Different values

Structural Interdependence

Task interdependence
Lack of substitution
Power differentials

Different Perceptions

Different goals
Different time horizon
Different role expectations
Different information environment
Different knowledge base
Difference in information processing

Different organizing principles

Autonomy v.s. Interdependence
Analyzing v.s. Synthesizing

5. Cultural Dimensions of Group Conflict

(1) Locational Dimension

National
Professional
Organizational
Governance

(2) Value Dimension

Power distance
Uncertainty avoidance
Individualism
Masculinity
Long-term

6. Managing Intergroup Conflict Through Conflict Resolution

(1). Five Strategies

Dominating

Avoiding

Obliging

Compromising

Integrating

(2). Two dimensions

Distributive Dimension: win-lose
Integrative Dimension: win-win

(3). Differences in strategic choice:

U.S: competitive conflict resolution
Japan: cooperative conflict resolution

6. Managing Intergroup Conflict Through Organizational Coordination

The U.S. Japan

Explicit rules           Implicit norms
Hierarchical            Horizontal
Planning                  Relation-building
Command              Consensus
Liaison                    Job rotation
Task forces            Cross-functional teams
Specialization          Integration

7. Managing Intergroup Conflict Through Elimination of its Causes

(1). Overcoming goal incompatibility

Commonly used methods

Eliminate win-lose situation
Reward organizational effectiveness
Create a common enemy
Expansion of resources

American focus: dividing values and goals

Explicit division and clarification of responsibilities: job descriptions
Formal hierarchical control
Intrapreneurship: interfirm competition

Japanese focus: integrating values and goals

Shared values
Superordinate goals
Norms of loyalty and identification
Informal consensus building

(2) Overcoming structural interdependence

American focus: breaking interdependence

Maintaining inventories and buffers
Creating alternative suppliers
Creating independent control units
Partitioning tasks into autonomous units

Japanese focus: deepening interdependence

Eliminating inventories and buffers
Creating multiple interlinkages
Eliminating independent control units
Integrating tasks into interdependent units

(3). Overcoming differences in perceptions

Commonly used methods

Seek and maintain common knowledge
Increased communication
Problem solving meetings

American focus: objective measurement

Systematic collection of objective data
Systematic and objective measurement of group and individual performance
Independence of the above functions

Japanese focus: inter-subjective understanding

Socialization
Job-rotation
Quality circle and consensus building
Eliminating independent control and measurement units

8. Managing Intergroup Conflict through Stimulation: the building of conflict-positive organization.

(1). Structural strategies

Bringing outsiders into group

Altering organizing structure

Stimulating competition

Making use of programmed conflict: devil's advocacy

(2). Process and cultural strategies

Value diversity
Seek mutual benefit
Empower employees
Build teamwork and trust
Integrating for creative solution

9. Third party mediation

10. Negotiation

11. The Competitiveness Consequences of Different Ways of Managing Intergroup Conflict

12. Conclusion

Group conflict is neither good nor bad but is inevitable and structural induced
Group conflict has functional and dysfunctional consequences depending on the amount of conflict and the way conflict is managed
The most important causes of group conflict include structural interdependence, differences in values, goals, perceptions, and organizing principles
Common conflict resolution strategies include dominating, avoiding, obliging, compromising, and integrating.
Americans tend to use dominating, obliging, and compromising strategies, while Japanese tend to use avoiding, obliging, and integrating strategies
The American way of managing conflict includes: division of responsibility, reduction of interdependence, and formal information and control system.
The Japanese way of managing conflict includes: shared values, multiple interlinkages, integration, teamwork, and empowerment.
There is a diffusion of the Japanese way of managing group conflict to the U.S.