Chapter 12 Conflict, Negotiation, Power, and Politics

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Chapter 12 Conflict, Negotiation, Power, and Politics. Michael A. Hitt C. Chet Miller Adrienne Colella. Slides by Ralph R. Braithwaite. Green Conflict. Michael Dell. Exploring Behavior in Action.
Chapter 12 Conflict, Negotiation, Power, and Politics

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Chapter 12 conflict negotiation power and politicsSlide 1

Chapter 12Conflict, Negotiation, Power, and Politics

Michael A. Hitt

C. Chet Miller

Adrienne Colella

Slides by Ralph R. Braithwaite

Green conflictSlide 2

Green Conflict

Michael Dell

Exploring Behavior in Action

Do you think companies are becoming more aware of the impact of their businesses on the environment?

Can the goals of environmental and conservation groups be compatible with the goals of businesses? Why or why not?

What are the upside gains for businesses that become more environmentally friendly? What are the consequences if they don’t?

Knowledge objectivesSlide 3

Knowledge Objectives

  • Explain how conflict can be either functional or dysfunctional, and distinguish among various types of conflict.

  • Discuss common causes of conflict.

  • Describe conflict escalation and the various outcomes of conflict.

  • Explain how people respond to conflict and under what circumstances each type of response is best.

  • Understand how organizations can manage conflict.

  • Describe the basic negotiation process, strategies, and tactics.

  • Explain why organizations must have power to function, and discuss how people gain power in organizations.

  • Define organizational politics and the tactics used to carry out political behavior.

The nature of conflictSlide 4

The Nature of Conflict




Effects of conflictSlide 5

Effects of Conflict

Effects onIndividuals

Effects onBehavior

Effects on InterpersonalRelationships

Adapted from Exhibit 12-1: Effects of Conflict

Functional consequencesSlide 6

Improved Problem Solving

Facilitation of Change

Enhanced Morale and Cohesion

Potential Benefits of Conflict

Spontaneity in Communication

Stimulation of Creativity

Functional Consequences

Types of conflictSlide 7

Types of Conflict




Effects of types of conflict on task performanceSlide 8


Substantive Conflict

Personal Conflict

Procedural Conflict

Task Performance



Degree of Conflict


Effects of Types of Conflict on Task Performance

Adapted from Exhibit 12-2: The Effects of Different Types of Conflict on Task Performance

Causes of conflictSlide 9

Structural Factors




Individual Characteristics

Cognitive Factors

Causes of Conflict

Un unitedSlide 10


What were some of the conflicts that United was experiencing even before September 11, 2001?

What could Jim Goodwin, United’s CEO, have done differently?

How would you characterize the relationship between union and management? What could each side have done to more effectively deal with the issues the organization was experiencing?

Do you think United will survive?

ExperiencingStrategic OB

Rosie vs donaldSlide 11

Rosie vs. Donald

What was your reaction to the escalating conflict between Rosie O’Donnell and Donald Trump?

Was anything ever resolved between the two of them?

Do you agree that “each of the parties harmed the other but did equal harm to themselves”?

What has been your experience with escalating conflict?

ExperiencingStrategic OB

Conflict escalationSlide 12

Conflict Escalation

Conflict outcomesSlide 13






Conflict Outcomes


Degree of Satisfaction of Party A’s Concern

Degree of Satisfaction of Party B’s Concern



Adapted from Exhibit 12-3: Possible Conflict Outcomes

Responses to conflictSlide 14

Responses to Conflict











NegotiationSlide 15


A process by which parties with different preferences and interests attempt to agree on a solution.

Negotiation strategiesSlide 16

Negotiation Strategies



Negotiation tacticsSlide 17

Distributive Tactics

Integrative Tactics

Attitudinal Structuring Tactics

Negotiation Tactics

Adapted from Exhibit 12-4: Negotiation Tactics

The negotiation processSlide 18

The Negotiation Process



Closing theDeal

Determiningthe NegotiationProcess

Negotiating theAgreement

Costly conflict resolutionSlide 19

Costly Conflict Resolution


  • Salary negotiations – classic case of conflict

  • Do your homework

  • Determine your BATNA

  • Know what salary you want

  • Never make vague counteroffers

  • Avoid a hard stand – winner’s remorse

  • Be realistic

  • Be polite

  • Never inflate past salary or experience

  • Calculate benefits as part of the package

  • Don’t play “hard to get” when little bargaining power

PowerSlide 20


The ability of those who hold it to achieve outcomes they desire. The ability of one person to get another person to do something that he or she would not normally do. Persuasion is often the exercise of power.

Bases of powerSlide 21

Referent Power

Coercive Power

Legitimate Power

Reward Power

Expert Power

Bases of Power

An example of powerSlide 22

Michael Eisner

An Example of Power

  • Eisner had a great deal of legitimate power.

  • Eisner lavished attention on board members, important investors, Disney family members, and others.

  • Eisner limited access to and controlled key information.

  • Eisner divided those who might oppose him and made himself indispensable.

  • Eisner restricted the power of others.

Did he use his power for the good of the organization?

Strategic contingencies modelSlide 23

Strategic Contingencies Model

People and organizational units gain power by being able to address the major problems and issues faced by the organization.

  • People need to identify strategic contingencies faced by an organization and gain control over them

  • Anyone who can help reduce uncertainties faced by the organization will gain power

  • People who are irreplaceable have power

  • Power can result from controlling the decision process, either by setting parameters on the types of solutions that are acceptable or by controlling the range of alternatives to be considered

Organizational politicsSlide 24

Organizational Politics

  • Behavior that is directed toward furthering one’s own self-interests without concern for the interests or well-being of others

  • Goal of political behavior is to exert influence on others

  • Most managers and associates (70%) feel they have been harmed by political behavior of others

  • Fewer managers and associates (45%) feel they have gained power and influence by acting politically

Levels of politicsSlide 25

Levels of Politics



An associate who usespolitics to suit his or herbest interests – takingsole credit for a groupproject for example

Often in the formof coalitions – agroup whose membersact together toactively pursuea common interest

Political tacticsSlide 26




Political Tactics







Political skillSlide 27

Political Skill

The ability to effectively understand others at work and to use this knowledge to enhance one’s own objectives. People with strong political skills:

  • Find it easy to imagine themselves in others’ positions or see their points of view

  • Can understand situations, determine the best response and adjust their behavior accordingly

  • Develop large networks and are known by many people

  • Easily gain cooperation of others

  • Make others feel at ease

The strategic lensSlide 28

The Strategic Lens

  • Can you describe a situation in which conflict was functional (i.e., had positive outcomes)? If so, in what ways was the conflict functional?

  • A strategic leader must use power in many actions that he or she takes. In what ways can he or she exercise this power to achieve positive outcomes?

  • How can knowledge of conflict, negotiations, power, and politics in organizations help you be more successful in your career? Please be specific.

QuestionsSlide 29


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