Document

Transcript Document

The University of Texas at Tyler

Dr. Marilyn Young MANA 5320 Management and Organizational Behavior Chapters 13,15, 16, & 8 Spring 2009

College of Business and Technology

Conflict and Negotiation in the Workplace

Inter-Generational Conflict

Inter-generational conflict is more common today because employees across age groups work together more than ever before. Fred Getz, an executive at Robert Half International Inc. recommends adapting to the different needs and work styles of younger employees to minimize this conflict.

Conflict Inside Arthur Andersen

While Arthur Andersen employees put up a united front during the firm’s dying days (as this photo shows), the accounting firm’s fee structure and culture created substantial dysfunctional conflict.

©AP Photo/David Phillip

Conflict at Air Canada

Conflict between Air Canada pilots and former Canadian Airlines pilots over seniority rights has created tension and ill feelings. “We will not mingle with those people [Air Canada pilots] and the feeling is mutual,” says a former Canadian airlines pilot now working at Air Canada.

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CP/Tannis Toohey

Conflict Defined

The process in which one party perceives that its interests are being opposed or negatively affected by another party.

Transitions in Conflict Thought Traditional View Human Relations View Interactionist View

14-5

Desired Conflict Outcomes

 Agreement  Stronger relationships  Learning

Reasons for Conflict

Competition over scarce resources Power differentials Differentiation

Conflict

Ambiguity over responsibility or jurisdiction Interdependence between work units

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Competitive reward systems

Stage III: Conflict-Handling Intentions Competing Collaborating Compromising Avoiding Accommodating Uncooperative Cooperativeness Cooperative

Third-Party Negotiation Mediator Arbitrator Conciliator Consultant

Task-Related vs. Socioemotional Conflict

Task-related conflict

   Conflict is aimed at issue, not parties Basis of constructive controversy Helps recognize problems, identify solutions, and understand the issues better

Socioemotional conflict

   Conflict viewed as a personal attack Foundation of conflict escalation Leads to dissatisfaction, stress, and turnover

Organizational Conflict Outcomes

Dysfunctional outcomes



Diverts energy and resources



Encourages organizational politics

 

Encourages stereotyping Weakens knowledge management Potential benefits



Improves decision making



Strengthens team dynamics

Sources of Conflict

Goal Incompatibility Different Values and Beliefs

• Goals conflict with goals of others • • •

Different beliefs due to unique background, experience, training Caused by specialized tasks, careers Explains misunderstanding in cross-cultural and merger relations

Sources of Conflict

Goal Incompatibility Different Values and Beliefs Task Interdependence Scarce Resources Ambiguity • Increases competition for resources to fulfill goals • •

Lack of rules guiding relations Encourages political tactics

Sources of Conflict

Goal Incompatibility Different Values and Beliefs Task Interdependence Scarce Resources Ambiguity Communication Problems

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Lack of opportunity

--reliance on stereotypes

Lack of ability

-- arrogant communication heightens conflict perception

Lack of motivation

-- conflict causes lower motivation to communicate, increases stereotyping

Conflict Mgt. Styles: Orientations

Win-win orientation

 You believe parties will find a mutually beneficial solution to their disagreement

Win-lose orientation

 You believe that the more one party receives, the less the other receives  Tends to escalate conflict, use of power/politics

Superordinate Goals at Tivoli Systems

The value of superordinate goals was apparent in a paper airplanes exercise at Tivoli Systems. Teams discovered that they succeeded by focusing on the organization’s goals rather than fighting over conflicting goals between teams.

Emphasizing Superordinate Goals

Emphasizing

common objectives

rather than conflicting sub goals Reduces goal incompatibility and differentiation

Improving Communication/Understanding

Employees understand and appreciate each other’s views through communication  Informal gatherings  Formal dialogue sessions  Teambuilding activities (such as drum circles, shown here)

Bargaining Zone Model

Initial Your Positions Target Resistance

Area of Potential Agreement

Resistance Target Opponent’s Positions Initial

Situational Influences on Negotiation

Location Physical Setting Time Investment and Deadlines Audience

Effective Negotiator Behaviors

Plan and Set Goals Gather Information Communicate Effectively Make Appropriate Concessions

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Organizational Structure

The Decentralization of Coca-Cola

Coca-Cola decentralized its organizational structure by cutting half of the staff at its Atlanta headquarters and moving the regional chieftains closer to their local markets. In India, decision making has been moved further down to different areas of that diverse country.

Division of Labor

Subdivision of work into separate jobs assigned to different people Potentially increases work efficiency Necessary as company grows and work becomes more complex

Forms of Work Coordination

Informal communication



Sharing information



High media-richness



Important in teams Formal hierarchy



Direct supervision



Common in larger firms



Problems -- costly, slow, less popular with young staff Standardization



Formal instructions



Clear goals/outputs



Training/skills

Making Decisions in Organizations

High Low Managerial Control Employee Empowerment Centralized Decision Making Decentralized Decision Making Employee Empowerment Managerial Control High Low

Elements of Organizational Structure

Department alization Organizational Structure Elements Span of Control Formalization Centralization

Span of Control

Number of people directly reporting to the next level Assumes coordination through direct supervision Wider span of control possible when: 

with other coordinating methods

 

subordinates’ tasks are similar tasks are routine

Flatter structures require wider span (if same # of people in the firm)

Span of Control

Chief Executive

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Chief Executive wide narrow span

Span of Control at Ducks Unlimited

Ducks Unlimited Canada recently flattened its organizational structure by removing layers of management. The environmental conservation group wanted the flatter structure to empower employees, and let them make decisions quickly without having to go up the hierarchy .

Forces for (De)centralization Centralization

• • •

Organizational crises Management desire for control Increase consistency, reduce costs

• •

Complexity -- size, diversity Desire for empowerment

Decentralization

Mechanistic vs. Organic Structures Mechanistic Organic

•

High formalization

•

Low formalization

• •

Narrow span of control

•

Wide span of control High centralization

•

Low centralization

Effects of Departmentalization

Establishes work teams and supervision structure Creates common resources, measures of performance, etc Encourages informal communication among people and subunits

Functional Organizational Structure

Organizes employees around skills or other resources (marketing, production) President Finance Production Marketing

Divisionalized Structure

Organizes employees around geographic areas, products, or clients

President Enterprise Systems

Laserjet Solutions Consumer Products

Functional Organization

Chief Executive Officer

President

Production

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Sales Research & Development Accounting Department

Product Organization

Chief Executive Officer President Product Group 1 Product Group 2 Product Group 3 Prod.

Sales R&D Actg.

Prod.

Sales R&D Actg.

Prod.

Sales R&D Actg.

Actg. = accounting

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Prod. = production R&D = research and development

Sample Organization Chart for a Hospital (continued)

Executive Administrative Staff Executive Medical Director Dir.

Of Human Resources Dir.

Of Patient & Public Relations

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Dir.

Of Nutrition & Food Services Dir.

X-Ray & Lab Services Dir.

Of Admissions Dir.

Of Accounting Dir.

Of Surgery Dir.

Of Out Patient Services Dir.

Of Physician Pharmacy Chief

Organization Chart-- Hospital

Strategic Planning Advisor Executive Administrative Staff

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Board of Directors Chief Executive Officer President Legal Counsel Cost Containment Staff Executive Medical Director

Project-Based Matrix Structure

Employees are temporarily assigned to a specific project team and have a permanent functional unit President Engineering Manager

Marketing Manager

Software Manager Project A Manager Project B Manager Project C Manager

Team-Based Structure Features

Self-directed work teams Teams organized around work processes Very flat span of control Very little formalization Usually found within divisionalized structure

AAP Image/Dave Hunt

President Matrix Organization Farm Machinery Division Production department Project Alpha manager Production support group Project Beta manager Production support group Project Gamma manager

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Production support group Legal department Engineering department Accounting department Legal support group Engineering support group Accounting support group Legal support group Engineering support group Accounting support group Legal support group Engineering support group Accounting support group

Team Structure at Jabil Circuits

Jabil Circuits relies on a team based organizational structure at its manufacturing operations. Each production team is responsible for a specific customer group. Team members have a high degree of autonomy and are cross-trained.

Features of Team-Based Structures

Self-directed work teams Teams organized around work processes Very flat span of control Very little formalization Usually found within divisionalized structure

Org. Environment & Structure

Dynamic • High rate of change • Use organic structure Stable • Steady conditions, predictable change • Use mechanistic structure Complex • Many elements (such as stakeholders) • Decentralize Simple • Few environmental elements • Less need to decentralize

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Organizational Culture

Reinventing Hewlett Packard’s Culture

Carly Fiorina wants to reinvent Hewlett Packard’s legendary culture, known as ‘The H-P Way’. She documented a new set of values, called “The Rules of the Garage” and is merging H-P with Compaq to create a more performance-oriented culture.

Organizational Culture Defined

The basic pattern of shared assumptions, values, and beliefs considered to be the correct way of thinking about and acting on problems and opportunities facing the organization.

Elements of Organizational Culture

Artifacts of Organizational Culture Physical Structures Rituals/ Ceremonies Stories Language Organizational Culture Beliefs Values Assumptions

Brown & Brown’s Cultural Content

Brown & Brown, Inc. in Daytona Beach has an aggressive culture that helps it succeed in the highly competitive insurance business. At its annual sales meeting, managers of poorly performing divisions are led to the podium by medieval executioners while a funeral dirge plays.

Organizational Subcultures

Located throughout the organization Can support or oppose (countercultures) firm’s dominant culture Two functions of countercultures: 

provide surveillance and evaluation



source of emerging values

Artifacts: Organizational Stories

Social prescriptions of desired behavior Demonstrate that organizational objectives are attainable Most effective stories: 

Describe real people

  

Assumed to be true Known throughout the organization Are prescriptive

Artifacts: Rituals and Ceremonies

Rituals

 

programmed routines e.g., conducting meetings Ceremonies

 

planned activities for an audience e.g., award ceremonies

Artifacts: Organizational Language

Words used to address people, describe clients, etc.

Leaders use phrases and metaphors as cultural symbols 

e.g.. General Electric’s “grocery store”

Language also found in subcultures 

e.g.. Whirlpool’s “PowerPoint culture”

Artifacts: Physical Structures/Space

Oakley, Inc.’s protective and competitive corporate culture is apparent in its building design and workspace. The building looks like a vault to protect its cherished product designs (eyewear, footwear, apparel and watches).

Courtesy of Oakley, Inc.

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Courtesy of Oakley, Inc.

Problems with Strong Cultures

Culture content might be incompatible with the organization’s environment.

Strong cultures focus attention on one mental model.

Strong cultures suppress dissenting values from subcultures.

Strengthening Organizational Culture

Founders and leaders Selection and socialization Strengthening Organizational Culture Aligning Artifacts Culturally consistent rewards Stable workforce

C H A P T E R 17

Organizational Change and Development

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Organizational Change

Driving Change at EDS

Richard H. “Dick” Brown drove the change effort at EDS by:



listening to customer complaints



changing the firm’s structure



monitoring the change process



communicating the change directly with employees



replacing several executives

Change at Nissan Motor Company

Carlos Ghosn launched a turnaround at Nissan Motor Company that saved the Japanese automaker and relied on change management practices rarely seen in Japan.

Unilever Reduces Resistance to Change

Gary Calveley (right) brought in team coaches to train employees throughout the process of changing Unilever’s Elida Faberge factory into Europe’s best factory. A theatrical production helped to communicate the changes that Calveley was trying to achieve through coaching.

Dean Smith/The Camera Crew

Strategic Vision at Hanson Brick

© Robert Padgett Richard Manning (shown in photo) relied on strategic vision and his role as a change agent to integrate seven companies into a single corporate entity at Hanson Brick’s North American operations.

Appreciative Inquiry at Hunter Douglas

The Hunter Douglas Window Fashions Division in Colorado relied on appreciative inquiry as well as a search conference to create a collective vision, re instill a sense of community among employees, and build leadership within the company.

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Courtesy of Amanda Trotsen-Bloom

Some External Forces for Change

Information Technology Globalization & Competition Demography

Easier information transfer Facilitates global structures Requires new competencies and expectations Facilitates telecommuting; new employment relationships More emphasis on knowledge management

Some External Forces for Change

Information Technology Globalization & Competition Demography

Global competition Technology makes it easier to compete quickly Results in restructuring, outsourcing, mergers  produces many employment changes

Some External Forces for Change

Information Technology Globalization & Competition Demography More educated workforce



want involvement; interesting work Younger generation

 

less intimidated by status want a more balanced work life Cultural changes



more individualism in traditionally collectivist countries

Force Field Analysis

Desired Conditions Restraining Forces Restraining Forces Driving Forces Current Conditions Restraining Forces Driving Forces Before Change

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Driving Forces During Change After Change

World Politics Social Trends Workforce

Forces For Change

Technology Economic Shocks Competition

Job Rotation Job Enlargement

Work Redesign Options

Group-Based Work Job Enrichment

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Assumptions About Change

   Involves learning something new, Discontinuing current attitudes, behaviors, or organizational practices.

Change will not occur unless there is motivation to change.   People are the hub of all organizational changes. Resistance to change is found even when the goals of change are highly desirable.

 Effective change requires reinforcing

Organizational Change

Unfreezing Changing Refreezing

Lewin’s Three-Step Process

Refreezing the Desired Conditions

Creating organizational systems and team dynamics to reinforce desired changes  alter rewards to reinforce new behaviors  new information systems guide new behaviors  recalibrate and introduce feedback systems to focus on new priorities

Resistance to Change at BP Norge

Employees initially resisted self directed work teams (SDWTs) at BP Norge’s North Sea drilling rigs.

“

We already have teams!”

“

SDWTs don’t work on rigs!” “This creates more work -- we want higher pay!” “I don’t know how to work in teams.” “SDWTs will threaten my job as a supervisor!”

Creating an Urgency for Change

Need to motivate employees to change Most difficult when organization is doing well Must be real, not contrived Customer-driven change

 

Adverse consequences for firm Human element energizes employees

Reducing Restraining Forces at Unilever

Minimizing Resistance to Change

Coercion Negotiation Communication Training Minimizing Resistance to Change Stress Management Employee Involvement

Overcoming Resistance to Change

Education and Communication Participation Negotiation Facilitation and Support Manipulation and Cooptation Coercion

Organization Development Defined

A planned system wide effort, managed from the top with the assistance of a change agent, that uses behavioral science knowledge to improve organizational effectiveness.

Appreciative Inquiry at Hunter Douglas

The Hunter Douglas Window Fashions Division in Colorado relied on appreciative inquiry as well as a search conference to create a collective vision, re-instill a sense of community among employees, and build leadership within the company.

What is Appreciative Inquiry?

Directs the group’s attention away from its own problems and focuses participants on the group’s potential and positive elements.

Reframes relationships around the positive rather than being problem oriented

Decision Making and Creativity

Decision Making at NASA

The loss of the space shuttle Columbia (shown here lifting off for its final flight) and its crew was caused by more than foam hitting the left wing; it was also due to NASA’s flawed decision making.

Decision Making Defined

Conscious process of making choices among one or more alternatives with the intention of moving toward some desired state of affairs

Rational Decision Making Model

1. Identify problem 6. Evaluate decision 2. Choose decision style 5. Implement solution 3. Develop alternatives 4. Choose best solution

Problem Identification Process

Problems and opportunities are not announced or pre-defined



need to interpret ambiguous information Involves both rational and emotional brain centers



probably need to pay attention to both in problem identification

Problem Identification Challenges

Perceptual bias :



Selective attention mechanisms



Influence from others



Mental models Diagnostic skills :



Defining problems in terms of solutions

Intuitive Decision Making

Ability to know when a problem or opportunity exists and select the best course of action without conscious reasoning Conduit for tacit knowledge Use intuition to complete rational process

Choosing Solutions Effectively

Systematically evaluate alternatives Balance emotions and rational influences Scenario planning © Corel Corp. With permission

Escalation of Commitment

Escalation of commitment occurred when the British government continued funding the Concorde supersonic jet long after it ’ s lack of commercial viability was apparent. Some scholars refer to escalation of commitment as the “ Concorde fallacy.

”

Escalation of Commitment Causes

Self-justification Gambler’s fallacy Perceptual blinders Closing costs

Employee Involvement Defined

The degree to which employees influence how their work is organized and carried out



Level of control over decision making



Different levels and forms of involvement

Levels of Employee Involvement

High Medium

High involvement



Employees have complete decision making power (e.g.. SDWTs) Full consultation



Employees offer recommendations (e.g.. gain sharing) Selective consultation



Employees give information, but don’t know the problem

Low

Creative Process Model

Verification Insight Preparation Incubation

Characteristics of Creative People

Above average intelligence Persistence Relevant knowledge and experience Inventive thinking style

Creative Work Environments

Learning orientation

 

Encourage experimentation Tolerate mistakes Intrinsically motivating work



Task significance, autonomy, feedback Open communication and sufficient resources Team trust and project commitment

Creative Activities at EDS

These employees at the EDS eSpace innovation center near Detroit play with toys to generate new ideas. “We’re all about collaboration and creativity and inspiration, and the toys are props to stimulate the thought process,” says an employee at the computer service firm.

Creative Activities

Redefine the Problem Associative Play Cross Pollination • Review abandoned projects • Explore issue with other people • Storytelling • Artistic activities • Morphological analysis • Diverse teams • Information sessions • Internal tradeshows