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Organization theory, design and change summary chapter 14
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Summary organizational theory, design and change chapter 14 7th edition Gareth R. Jones
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(HER)TENTAMEN/ EXAM: Organizational Theory & Design (OTD) for Pre-MSc
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Summary Organizational Theory, Design, and Change - Organizational Structure
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Samenvatting Organizational Theory, Design, and Change - Organizational Structure (EBP670C05)
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Organizational conflict: the clash that occurs when the goal-directed behavior of onegroup blocks or thwarts the goals of another. Some organizational conflict is good
because it can overcome organizational slowness and lead to organizational learning
and change.
Figure 14.3 Pondy’s model of organizational conflict
Sources or conflict:
1. Interdependence: as organizations differentiate, each subunit develops a
desire for autonomy and begins to pursue goals and interests that it values
over the goals of other subunits or of the organization as a whole.
2. Differences in goals and priorities
3. Bureaucratic factors: status inconsistencies between different groups in the
organization’s bureaucracy. E.g. a line function views themselves as the
critical organizational resource and people in staff function as secondary
players.
4. Incompatible performance criteria: the organization’s way of monitoring,
evaluating and rewarding different subunits brings them into conflict.
Production and sales can be in conflict when, to achieve the goal of increased
sales, the sales department asks manufacturing to respond quickly to
customer orders – an action that raises manufacturing costs.
5. Competition for resources: resources are always scarce and therefore subunits
have to compete for their share.
Stage 1: Latent conflict: No outright conflict exists, but there is a potential for
conflict because of several factors.
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: ‘us versus them’. What began as a small problem escalates into huge
conflict.
Stage 4: manifest conflict: Subunits try to get back at each other. Fighting and open
aggression are common and organizational effectiveness suffers.
Stage 5: conflict aftermath: conflict is resolved in a way that leaves subunits feeling
combative or cooperative.
To resolve conflicts there are two common strategies managers use:
1) Changing an organization’s structure to reduce or eliminate the cause of the
conflict
, 2) Trying to change the attitudes of individuals or replacing the individuals
themselves.
Organizational power: the ability of one person or group to overcome resistance by
others to resolve conflict and achieve a desired objective or result.
Power and conflict and intimately related. Conflict arises because although different
managers or subunits must cooperate to achieve organizational goals, at the same
time they compete for organizational resources and have different goals and
priorities. When conflict emerges, and the issue is sufficiently important, individuals
and groups use their power to influence decision making and obtain outcomes that
favor them.
How to obtain organizational power?
Figure 14.4 sources of organizational power. All functions and visions gain
power fro one or more of these sources:
- Authority: power that is legitimized by the legal and cultural foundations on
which an organization is based, is the ultimate source of power in an
organization.
- Control over resources:
- Control over information
- Nonsubstitutability: if no one else can perform the tasks that a person or
subunit performs, that person or subunit is nonsubstitutable and thus has
power.
- Centrality: central in decision-making process
- Control over uncertainty: a subunit that can directly control and reduce the
main sources of uncertainty or contingencies facing an organization has
significant power.
- Unobtrusive power/ controlling the premises of decision making: a set of
managers who form a “partnership” and use their combined power secretively
to influence the decision-making process in ways that favor their interests.
Other managers are generally not aware that the coalition is shaping their
perceptions or interpretations of a situation
Organizational politics: activities taken within organizations to acquire, develop and
use power and other resources to obtain one’s preferred outcomes in a situation in
which there is uncertainty or disagreement about choices.
Tactics for playing politics:
- Becoming indispensable (onmisbaar)
- Becoming nonsubstitutable
- Becoming central
- Associating with powerful managers
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