ORGANIZATIONAL

CHANGE & DESIGN

MBA III sem : Core

Unit 3: Org. Decision
making in Changing Env.

Purbanchal University
Course Instructor:
Nepal
B. G. Bhattacharya
 DECISION MAKING

Decision-making can be regarded as the cognitive process resulting

in the selection of a belief or a course of action among several
alternative possibilities. Every decision-making process produces a
final choice that may or may not prompt action. Decision-making is the
study of identifying and choosing alternatives based on the values and
preferences of the decision maker. Decision-making is one of the
central activities of management and is a huge part of any process S-1
of implementation.
 DECISION MAKING

Decision = choice
made from available
alternatives

Decision Making =
process of identifying
problems and
opportunities and
resolving them
S-2
 DECISION MAKING

Categories of decision

Programmed Decision
Routine, virtually automatic decision making that follows
established rules or guidelines.
Managers have made the same decision many times
before
Little ambiguity involved S-3
 DECISION MAKING

Categories of decision

Non-Programmed Decisions

Non-routine decision made in response to unusual or

novel opportunities and threats.
The are no rules to follow since the decision is new.
Decisions are made based on information, and a S-4
managers intuition, and judgment.
 DECISION MAKING
Certainty, Risk, Uncertainty, Ambiguity
Certainty
all the information the decision maker needs is fully available
Risk
decision has clear-cut goals
good information is available
future outcomes associated with each alternative are subject to chance
Uncertainty
managers know which goals they wish to achieve
information about alternatives and future events is incomplete
managers may have to come up with creative approaches to alternatives
Ambiguity
by far the most difficult decision situation
goals to be achieved or the problem to be solved is unclear S-5
alternatives are difficult to define
information about outcomes is unavailable
 DECISION MAKING

Conditions that affect the possibility of decision failure

Organizational
Problem

Low Possibility of Failure High

Certainty Risk Uncertainty Ambiguity

Programmed Nonprogrammed
Decisions Decisions

Problem S-6
Solution
DECISION MAKING

S-7
 DECISION MAKING

7. Plan How to Reach

Your Goal
6. Make a Decision
5. Evaluate Your
Options
4. Gather Information
3. Identify Your
Options
2. Analyze Your
Resources
1. Define Needs or
Wants

S-8
Seven Steps in Decision Making
 DECISION MAKING

Styles of Decision Making

4 Directive style

Analytical style

Conceptual style

Behavioral style
S-9
 DECISION MAKING

Directive Style

People who prefer simple, clear-cut solutions to

problems

Make decisions quickly

May consider only one or two alternatives

Efficient and rational

Prefer rules or procedures

S-10
 DECISION MAKING

Analytical Style

Complex solutions based on as much data as they can

gather
Carefully consider alternatives
Base decision on objective, rational data from
management control systems and other sources
Search for best possible decision based on information
available
S-11
 DECISION MAKING

Conceptual Style

Consider a broad amount of information

More socially oriented than analytical style
Like to talk to others about the problem and possible
solutions
Consider many broad alternatives
Relay on information from people and systems
Solve problems creatively
S-12
 DECISION MAKING

Behavioral Style

Have a deep concern for others as individuals

Like to talk to people one-on-one
Understand their feelings about the problem and the
effect of a given decision upon them
Concerned with the personal development of others
May make decisions to help others achieve their goals
S-13
 DECISION MAKING
Six steps in the managerial decision making process

Evaluation Recognition of
and Decision
Feedback Requirement

Implementation Decision
Diagnosis
of Chosen Making and Analysis
Alternative Process of Causes

Selection of Development
Desired of
Alternative Alternatives S-14
 LEARNING

Learning is the act

of acquiring new, or
modifying and
reinforcing existing
knowledge, skills,
behaviors, values,
or preferences, and
may involve synthe-
sizing different
types of information
S-15
 LEARNING

Learning may be viewed

as a process, rather than a
collection of factual and
procedural knowledge.

Learning produces
changes in the organism
and the changes produced
are relatively permanent.
S-16
 LEARNING

Some established definitions of LEARNING:

1. a persisting change in human performance or

performance potential . . . (brought) about as a
result of the learners interaction with the
environment (Driscoll, 1994, pp. 8-9).
2. the relatively permanent change in a persons
knowledge or behavior due to experience
(Mayer, 1982, p. 1040).

3. an enduring change in behavior, or in the capacity

to behave in a given fashion, which results from
S-17
practice or other forms of experience
(Shuell, 1986, p. 412).
 LEARNING

What are Learning Styles?

Information enters your brain three

main ways: sight, hearing and touch,
which one you use the most is called
your Learning Style.
Visual Learners learn by sight
Auditory Learners learn by hearing
Tactile Learners (kinesthetic) learn
by touch
S-18
LEARNING

S-19
 LEARNING

Human learning may occur as part of education

personal development, schooling, or training.

It may be goal-oriented and may be aided by

motivation.

The study of how learning occurs is part of

educational psychology, neuropsychology,
learning theory, and pedagogy.
S-20
 LEARNING

Human learning may occur as part of education

personal development, schooling, or training.

It may be goal-oriented and may be aided by

motivation.

The study of how learning occurs is part of

educational psychology, neuropsychology, S-21
learning theory, and pedagogy.
LEARNING

S-22
 LEARNING

Organizational Learning

Managers seek to improve a employees desire and ability to

understand and manage the organization and its task
environment so as to raise effectiveness.

The Learning Organization

Managers try to maximize the peoples ability to behave

creatively to maximize organizational learning.

S-23
 S-24

LEARNING
LEARNING

S-25
 LEARNING

Theories of Learning:

There are 6 (six) basic theories of Learning -

Behaviorism
Cognitivism
Social Learning Theory
Social Constructivism
Multiple Intelligences
Brain-Based Learning S-26
LEARNING

S-27
LEARNING

S-28
KNOWLEDGE
MANAGEMENT S-29
 KNOWLEDGE MANAGEMENT

Knowledge management (KM) is the

process of capturing, developing,
sharing, and effectively using
organizational knowledge. It refers to a
multi-disciplined approach to achieving
organizational objectives by making the
best use of knowledge.
S-30
 KNOWLEDGE MANAGEMENT

Knowledge Management, (KM) is a concept and a term

that arose approximately two decades ago, roughly in
1990.

Quite simply one might say that it means organizing an

organization's information and knowledge holistically, but
that sounds a bit wooly, and surprisingly enough, even
though it sounds overbroad, it is not the whole picture.

Very early on in the KM movement, Davenport (1994)

offered the still widely quoted definition:
"Knowledge management is the process of capturing,
distributing, and effectively using knowledge." S-31
 KNOWLEDGE MANAGEMENT

The definition of Davenport has the virtue of being simple,

stark, and to the point. A few years later, the Gartner Group
created another second definition of KM, which is perhaps
the most frequently cited one (Duhon, 1998):
"Knowledge management is a discipline that promotes an
integrated approach to identifying, capturing, evaluating,
retrieving, and sharing all of an enterprise's information
assets. These assets may include databases, documents,
policies, procedures, and previously un-captured expertise
and experience in individual workers."
Both definitions share a very organizational, a very
corporate orientation. KM, historically at least, is primarily
S-32
about managing the knowledge of and in organizations.
KNOWLEDGE MANAGEMENT

S-33
 KNOWLEDGE MANAGEMENT

Knowledge management efforts typically focus on

organizational objectives such as improved performance,
competitive advantage, innovation, the sharing of lessons
learned, integration and continuous improvement of the
organization.

KM efforts overlap with organizational learning and may be

distinguished from that by a greater focus on the
management of knowledge as a strategic asset and a focus
on encouraging the sharing of knowledge.

It is seen as an enabler of organizational learning and a

more concrete mechanism than the previous abstract
S-34
research.
 KNOWLEDGE MANAGEMENT
KM Objectives:
The graph below shows the results of a recent IDC study in which corporations
cited various objectives for knowledge management efforts:

S-35
 KNOWLEDGE MANAGEMENT

Explicit, Implicit and Tacit Knowledge

In the KM literature, knowledge is most commonly categorized as

either explicit or tacit (that which is in people's heads). This charac-
terization is however rather too simple, but a more important point,
and a criticism, is that it is misleading. A much more nuanced and
useful characterization is to describe knowledge as explicit, implicit,
and tacit.

Explicit: information or knowledge that is set out in tangible form.

Implicit: information or knowledge that is not set out in tangible

form but could be made explicit.

Tacit: information or knowledge that one would have extreme

difficulty operationally setting out in tangible form. S-36
 KNOWLEDGE MANAGEMENT

Knowledge Management

Tacit Knowledge Explicit Knowledge

Knowledge
Tacit Explicit
This type of knowledge This type of knowledge
exists in peoples heads, can be
Information
not articulated or Processed by information
documented systems
Codified and recorded
Data
Archived and protected

S-37
Knowledge Hierarchy
KNOWLEDGE MANAGEMENT

S-38
 KNOWLEDGE MANAGEMENT
OLD WAY
Capture form is
written, auditory or graphical
representations
Organization is via tables of
content, indexes, classificati
on systems used by
publishers, libraries, etc
Access when physical body
goes to where the
knowledge is locateda
library, a company, a
research laboratory, a
school
Tacit knowledge rarely
tapped
Leverage is a sum game
Knowledge requires Capture, Organization,
Access and Leverage
NEW WAY
Capture from is digits in
cyberspace
Organization via software
programs designed upon
engineering principles,
mathematical equations,
word associations in
cyberspace 24/7/365
Access wherever the
physical bodies link via
computers
Tacit knowledge tapped
using many different
technological tools
Leverage is exponential,
multiples upon multiples
S-39
 KNOWLEDGE MANAGEMENT

Creates knowledge
through new ways of
doing things
Identifies and captures
new knowledge
Places knowledge into
context so it is usable
Stores knowledge in
repository
Reviews for accuracy
and relevance
Makes knowledge
available at all times to S-40

anyone
KNOWLEDGE MANAGEMENT

S-41
KNOWLEDGE MANAGEMENT

S-42
 KNOWLEDGE MANAGEMENT
Focuses on its users.
Practioners summarize, contextualize, value-judge, rank, synthesize,
edit and facilitate to make information and knowledge accessible
between people within or outside their organization. It concerns with
the social interactions with sharing and use of knowledge.
KM is largely based on tacit interpretation that relate to human
behavior and interchange.

S-43
 KNOWLEDGE MANAGEMENT

Knowledge Management is a very

important aspect of Management Science
these days. This lecture presentation
includes some basic slides only on KM to
cover up your examination requirements. I
would advice students to go through the
additional attachment sent to your mails
on KM to enhance and enlighten your
concept on this very practical emerging
aspect of management.

S-44
 KM AND INFORMATION TECHNOLOGY
Many organizations employ IT in one form or another to manage their
knowledge. It is primarily used to store and transfer explicit forms of
knowledge. However, IT is not just about computers. Tools such as video-
conferencing may also be useful for the transmission of tacit knowledge as
it is, in crude terms, a form of socialization. Capturing tacit knowledge and
then storing it in repositories is vital for effective KM. Many organizations
have developed sophisticated methods for storing their intellectual capital,
including patenting knowledge assets to protect trade secrets.

S-45
 INFORMATION MANAGEMENT

Focuses on information as a resource or collection.

Practitioners select, describe, classify, index, and abstract this information to make it
more accessible within and outside the organization.
IM is concerned to provide transparent and standardized access using technology by
storing and organize information.

S-46
 KM AND INFORMATION TECHNOLOGY
What is KMS?
Knowledge Management Systems (KMS) are the integra-
tion of technologies and mechanisms that are developed to
support KM processes.
Social/Structural mechanisms (e.g., mentoring and retreats,
etc.) for promoting knowledge sharing.
Leading-edge information technologies (e.g., Web-based
conferencing) to support KM mechanisms.
Knowledge management systems is the synergy between
social/structural mechanisms and latest technologies.

S-47
 KM AND INFORMATION TECHNOLOGY

SHARE DISTRIBUTE
KNOWLEDGE KNOWLEDGE

NETWORKS PROCESSORS
GROUP OFFICE
COLLABORATION AUTOMATION
SYSTEMS SYSTEMS

ARTIFICIAL KNOWLEDGE
INTELLIGENCE WORK
SYSTEMS SYSTEMS

DATABASES SOFTWARE
CAPTURE, CODI
FY KNOWLEDGE CREATE
KNOWLEDGE
S-48
 KM AND INFORMATION TECHNOLOGY
The survey conducted to establish the uses of technology to support
a knowledge management strategy brought out some interesting
facts which are mentioned below:

Almost 90% of the organizations surveyed used an Intranet

extensively or to a certain extent as a means of sharing knowledge.

GroupWare is also reported as being used to share information at a

lesser rate of just under 70%.

Online information sources and the Internet generally, are also

widely used (around 60%).

Other forms of technology currently in use or planned to be used in

KM include CD Rom utilization and Video-conferencing, Electronic
bulletin boards, Expert systems, Search and retrieval agents, Data
warehousing/mining and document repositories or document S-49
management systems.
KM AND INFORMATION TECHNOLOGY

S-50
 KM AND INFORMATION TECHNOLOGY

It is argued that KM is about mobilizing the intangible assets of an

organization, which are of greater significance in the context of
organizational change than its tangible assets, such as IT.

While IT is an important tool for a successful organization, it is often

too heavily relied upon as a guarantee of successful business.

IT should be understood less in its capacity to store explicit

information and more in its potential to aid collaboration and co-
operation between people.

Dougherty (1999) argues that IT should be seen as a tool to assist

the process of KM in organizations. Such a process relies more on
the face-to-face interaction of people than on static reports and
databases. S-51
 KM AND INFORMATION TECHNOLOGY
The following diagram reflects the main technologies that
currently support knowledge management systems.

S-52
 KM AND INFORMATION TECHNOLOGY

These technologies (previous slide) roughly correlate to four main stages

of the KM life cycle:

Knowledge is acquired or captured using intranets, extranets,

groupware, web conferencing, and document management systems.

An organizational memory is formed by refining, organizing, and storing

knowledge using structured repositories such as data warehouses.

Knowledge is distributed through education, training programs,

automated knowledge based systems, expert networks.

Knowledge is Applied or leveraged for further learning and innovation

via mining of the organizational memory and the application of expert
systems such as decision support systems.
S-53
All of these stages are enhanced by effective workflow and project
management.
 KM AND INFORMATION TECHNOLOGY

The Technology Involvement in Knowledge

Management can be categorized into four areas
in an organization:

1. Office Automation Systems (OAS)

2. Knowledge Work Systems (KWS)

3. Group Collaboration Systems (GCS)

4. Artificial Intelligence Applications (AI)

S-54
 KM AND INFORMATION TECHNOLOGY

1. Office Automation Systems (OAS)

OAS involves technology application in

creation, storage, retrieval and dissemination of document
management in an office. The technology used include
Word processing, desktop publishing, document
imaging, Web publishing, work flow managers, etc.
OAS is also used in scheduling for individuals and groups
through electronic calendars, groupware, and intranet.
Another important area of involvement for OAS in an organi-
zation is in the communication process. It is utilized for
initiating, receiving, and managing voice, digital and
documents. Common technology used are E-mail, voice S-55
mail, digital answering systems, GroupWare, intranets, etc.
 KM AND INFORMATION TECHNOLOGY

1. Office Automation Systems (OAS) [contd]

OAS is also extensively used in managing data for vendors,

employees, and customers. Desktop Databases, Spread
Sheets, and User-friendly Interfaces to mainframe data-
bases are the technologies used in this regard.
Some other frequently found uses of OAS are:
DOCUMENT IMAGING SYSTEMS: Systems convert
documents, images into digital form (e.g.: optical
character recognition; microfiche)
JUKEBOX: Storage & retrieving device for CD-ROMs &
other optical disks
S-56
INDEX SERVER: Imaging system to store / retrieve
document
 KM AND INFORMATION TECHNOLOGY

2. Knowledge Work Systems (KWS)

Information systems that aid knowledge workers to create,

integrate new knowledge in organization.
Knowledge workers keep organization up-to-date in
knowledge through technology, science, thought and arts.
They involve internal consultants and change agents in their
specific area of activity evaluating, initiating and promoting
change projects.
Computer Aided Design/Computer Aided Manufacturing
aids like CAD/CAM provides precise control over industrial
design, manufacturing, inventory handling. S-57
 KM AND INFORMATION TECHNOLOGY

2. Knowledge Work Systems (KWS) [contd]

VIRTUAL REALITY: Interactive software creates photo-

realistic simulations of real world objects through Virtual
Reality Modeling Language (VRML).

INVESTMENT WORKSTATIONS: High-end PCs used in

finance to analyze trading situations, facilitate portfolio
management.

S-58
 KM AND INFORMATION TECHNOLOGY

3. Group Collaboration Systems (GCS)

GROUPWARE: Allows interactive collaboration, approval of

documents

INTRANETS: Good for relatively stable information in

central repository

TEAMWARE: Group collaborative software to customize

team efforts

CAPABILITIES OF GROUPWARE - Publishing, Replication,

Discussion Tracking, Document Management, Work-flow
Management, Security, Portability, Application Develop- S-59
ment
 KM AND INFORMATION TECHNOLOGY

4. Artificial Intelligence Systems (AIS)

ARTIFICIAL INTELLIGENCE (AI) are computer-based

systems with abilities to learn language, accomplish
tasks, use perceptual apparatus, emulate human expertise
& decision making.

ARTIFICIAL
INTELLIGENCE

NATURAL PERCEPTIVE EXPERT INTELLIGENT

ROBOTICS
LANGUAGE SYSTEMS SYSTEMS MACHINES

S-60
THE AI FAMILY
 KM AND INFORMATION TECHNOLOGY

4. Artificial Intelligence Systems (AIS) [contd]

Business Interests in AI:

Preserve expertise
Create knowledge base
Mechanism not subject to feelings, fatigue, worry,
crisis
Eliminate routine / unsatisfying jobs
Enhance knowledge base
S-61
INNOVATION S-62
 INNOVATION

The term innovation defined: "An innovation is something

original, new, and important in whatever field that breaks in
to a market or society".

While something original is often described as an

innovation, in economics, management science, and other
fields of practice and analysis it is generally considered
a process that brings together various novel ideas in a way
that they have an impact on society.

Innovation is about finding a better way of doing something.

It can be viewed as the application of better solutions that
meet new requirements, in-articulated needs, or existing S-63
market needs.
INNOVATION

S-64
 INNOVATION

Innovation is about finding a better way of doing

something. This is accomplished through more effective
products, processes, services, technologies, or ideas that
are readily available to markets, governments and society.

Innovation differs from invention in that innovation refers to

the use of a better and, as a result, novel idea or method,
whereas invention refers more directly to the creation of the
idea or method itself.

Innovation differs from improvement in that innovation refers

to the notion of doing something different rather than doing
the same thing better. S-65
INNOVATION

S-66
 INNOVATION IN BUSINESS CONTEXT

In business and economics, innovation is the catalyst to

growth.

With rapid advancements in transportation and

communication over the past few decades, the old world
concepts of factor endowments and comparative
advantage, which focused on an areas unique inputs, are
outmoded for todays global economy.

Economist Joseph Schumpeter, who contributed greatly to

the study of innovation, argued that industries must
incessantly revolutionize the economic structure from within,
that is innovate with better or more effective processes S-67
and products.
 INNOVATION IN BUSINESS CONTEXT

Economist Joseph Schumpeter famously asserted

that creative destruction is the essential fact about
capitalism.

In addition, entrepreneurs continuously look for

better ways to satisfy their consumer base with
improved quality, durability, service, and price which
come to fruition in innovation with advanced
technologies and organizational strategies.
S-68
INNOVATION IN BUSINESS CONTEXT

S-69
 INNOVATION IN ORGANIZATIONAL CONTEXT

In the organizational context, innovation may be linked

to positive changes in efficiency, productivity, quality,
competitiveness, and market share.

However, recent research findings highlight the comple-

mentary role of organizational culture in enabling
organizations to translate innovative activity into tangible
performance improvements.

Organizations can also improve profits and performance

by providing work groups opportunities and resources to
innovate, in addition to employee's core job tasks. S-70
INNOVATION IN ORGANIZATIONAL CONTEXT

S-71
THE INNOVATION ABBREVIATION

S-72
 SOURCES OF INNOVATION

There are several sources of innovation. It can occur

as a result of a focus effort by a range of different
agents, by chance, or as a result of a major system
failure.

According to Peter F. Drucker , the general sources of

innovations are different changes in industry structure,
in market structure, in local and global demographics,
in human perception, mood and meaning, in the
amount of already available scientific knowledge, etc.
S-73
 SOURCES OF INNOVATION

In the simplest linear model of innovation the traditionally

recognized source is manufacturer innovation. This is where
an agent (person or business) innovates in order to sell the
innovation.

Another source of innovation, only now becoming widely

recognized, is end-user innovation. This is where an agent
(person or company) develops an innovation for their own
(personal or in-house) use because existing products do not
meet their needs.

MIT economist Eric von Hippel has identified end-user

innovation as, by far, the most important and critical in his
S-74
classic book on the subject, Sources of Innovation.
 SOURCES OF INNOVATION

The robotics engineer Joseph F. Engelberger asserts that

innovations require only three things:
A recognized need,
Competent people with relevant technology, and
Financial support.

However, innovation processes usually involve: identifying

customer needs, macro and micro trends, developing
competences, and finding financial support.
S-75
INNOVATION

S-76
INNOVATION

S-77
INNOVATION

S-78
 INNOVATION

There are 7 (seven) interconnected interwoven areas in a

systematic business innovation:

S-79
INNOVATION

S-80
S-81
 CHANGE MANAGEMENT

Change management is an approach to

transitioning individuals, teams, and organizations to a
desired future state.
Organizational change is a structured approach in an
organization for ensuring that changes are smoothly
S-82
and successfully implemented to achieve lasting
benefits.
CHANGE MANAGEMENT

S-83
 CHANGE MANAGEMENT

Choosing what changes to

implement

When determining which of the

latest techniques or innovations
to adopt, there are four major
factors to be considered:
Levels, goals, and strategies
Measurement system
Sequence of steps
Implementation and S-84
organizational change
 CHANGE MANAGEMENT

How Change
Management Works
in an Organization

S-85
 CHANGE MANAGEMENT

Reasons for change

Globalization and the constant innovation of technology

result in a constantly evolving business environment.
Phenomena such as social media and mobile adaptability
have revolutionized business and the effect of this is an
ever increasing need for change, and therefore changes
management.
The growth in technology also has a secondary effect of
increasing the availability and therefore accountability of
knowledge. Easily accessible information has resulted in
unprecedented scrutiny from stockholders and the
S-86
media and pressure on management.
CHANGE MANAGEMENT

S-87
 CHANGE MANAGEMENT

Managing the change process

Regardless of the many types of organizational change, the

critical aspect is a companys ability to win the buy-in of their
organizations employees on the change. Effectively managing
organizational change is a four-step process:
Recognizing the changes in the broader business
environment.
Developing the necessary adjustments for their companys
needs.
Training their employees on the appropriate changes.
Winning the support of the employees with the persua- S-88
siveness of the appropriate adjustments.
CHANGE MANAGEMENT

S-89
 CHANGE MANAGEMENT

Change management processes should include creative

marketing to enable communication between changing
audiences, as well as deep social understanding about
leaderships styles and group dynamics.
As a visible track on transformation projects, Organizational
Change Management aligns groups expectations,
communicates, integrates teams and manages people
training.
It makes use of performance metrics, such as financial
results, operational efficiency, leadership commitment,
communication effectiveness, and the perceived need for
change to design appropriate strategies, in order to S-90
avoid change failures or resolve troubled change projects.
CHANGE MANAGEMENT

S-91
 CHANGE MANAGEMENT

Successful change management is more likely to occur if the

following are included:
Benefits management and realization to define measurable
stakeholder aims, create a business case for their
achievement (which should be continuously updated), and
monitor assumptions, risks, dependencies, costs, return on
investment, dis-benefits and cultural issues affecting the
progress of the associated work
Effective communication that informs various stakeholders
of the reasons for the change (why?), the benefits of
successful implementation (what is in it for us, and you) as
well as the details of the change (when? where? who is S-92
involved? how much will it cost? etc.)
 CHANGE MANAGEMENT

Successful change management (contd)

Devise an effective education, training and/or skills

upgrading scheme for the organization

Counter resistance from the employees of companies and

align them to overall strategic direction of the organization

Provide personal counseling (if required) to alleviate any

change-related fears

Monitoring of the implementation and fine-tuning as

S-93
required
CHANGE MANAGEMENT

The
Change
Manage
-ment
Process

S-94
 CHANGE MANAGEMENT

The Corporate CUBE in handling change

S-95
CHANGE MANAGEMENT

S-96
 CONFLICT
MANAGEMENT S-97
 CONFLICT MANAGEMENT

The MANTRA of cautious balanced behavior in a

work environment:

S-98
 CONFLICT MANAGEMENT

CONFLICT

A disagreement between people on:

Substantive issues regarding goals and tasks,

allocation of resources, distribution of rewards, policies
and procedures, and job assignments.
Emotional issues arising from feelings of anger, fear,
distrust, dislike, and resentment, as well as personality
clashes.
Conflict that is well managed can help promote creativity
and high performance. S-99
 CONFLICT MANAGEMENT

Three Views
of Conflict
Human
Traditional
Relations
Interactionist

S-100
 CONFLICT MANAGEMENT

Over the years, three views of conflict have

evolved.
The traditional view of conflict asserts that all conflict is
bad and should be avoided.

The human relations view of conflict argues that

because conflict is natural and inevitable, it has the
potential to be a positive force.

The interactionist view of conflict proposes that some

conflict is necessary for an organization to function.
S-101
 CONFLICT MANAGEMENT

Communication Sources of
Differences
Conflict
Structural
Differences

Personal
Differences
S-102
 CONFLICT MANAGEMENT

Conflict stems from three sources: communication

differences, structural differences, and personal differences.

Communication differences arise from semantic

difficulties, misunderstandings, and noise in the
communication channels.
Because organizations are horizontally differentiated
through specialization and departmentalization and
vertically differentiated by management levels, structural
differentiation can cause conflict.
The third source of conflict is personal differences:
individual idiosyncrasies and value systems. S-103
 CONFLICT MANAGEMENT

HOW DO I HANDLE/PREVENT/REDUCE
CONFLICTS?

S-104
 CONFLICT MANAGEMENT

Conflict Handling Styles

The research of Kenneth W. Thomas provides some insight

into handling conflict. In conflict-laden situations, one must
first determine the intention of the other party in order to
respond appropriately. Thomas concluded that a persons
response will depend on the following two factors:

Cooperativeness - the degree to which one tries to resolve

conflict by satisfying the other persons concerns.

Assertiveness - the degree to which one tries to resolve

S-105
conflict by satisfying his or her own concerns.
 CONFLICT MANAGEMENT

Conflict Handling Styles (contd)

Managers can draw on five options for resolving conflict.

Not every conflict requires assertive action. Sometimes
avoidance (avoiding or suppressing the conflict) is the best
solution. Managers use accommodation to maintain
harmonious relationships by placing the needs and
concerns of others above their own. In forcing, managers
attempt to satisfy their own needs at the expense of others.
A compromise requires each party to give up something of
value. Collaboration is the ultimate win-win situation, and all
parties try to satisfy their interests.
S-106
 CONFLICT MANAGEMENT

Conflict Handling Styles (contd)

High

Forcing Collaboration
Assertiveness

Compromise

Avoidance Accommodation

Low High
Cooperativeness S-107
 CONFLICT MANAGEMENT : A SUMMARY

Not every conflict is worth the time and effort it would take to
resolve it. Also, some conflicts are just not manageable. So,
managers should not succumb to the nave notion that they
can resolve all conflicts. If you do decide to get involved,
knowing the players promotes successful conflict
management.
A study of middle-level and top-level executives conducted
by the American Management Association revealed that the
average manager spends 20 percent of his or her time
dealing with conflict.
In a recent survey of practicing managers, conflict manage-
ment skills were rated higher than decision making, S-108
leadership, or communication skills.
S-109
 POWER AND POLITICS

The meaning of POWER

Power is the capacity of a person, team, or organization

to influence others.

The potential to influence others

People have power they dont use and may not know they
possess

Power requires one persons perception of dependence on

another person

S-110
 POWER AND POLITICS

Definition :
Power as the probability that one actor within a social
relationship will be in a position to carry out his own will
despite resistance.
Max Weber

Power as a potential ability to influence behavior, to change

the course of events, to overcome resistance, and to get
people to do things that they would not otherwise do.
Pfeffer

S-111
 POWER AND POLITICS

Organizational Power: Characteristics

Effectancegetting ones way.

Necessity of social interaction among two or more parties.

The act or ability to influence others.

Outcomes favoring one part over the other.

Power is the ability to get ones way in a social situation.

S-112
 POWER AND POLITICS

Why does having power matter?

With power you can

Intercede favorably on behalf of someone in trouble
Get a desirable placement for a talented subordinate
Get approval for expenditures beyond the budget
Get items on and off agendas
Get fast access to decision makers
Maintain regular, frequent contact with decision makers
S-113
Acquire early information about decisions and policy
shifts
 POWER AND POLITICS
Sources of Power:
Social psychologist John French and Bertram Raven identified five
categories of sources of power.
1. Legitimate
2. reward
3. Coercive
4. Expert
5. Referent
The first three power bases are derived from the power holders
position i.e. the person receive these power bases because of the
specific authority or roles he or she is assigned. Last two
originates from the power holders own characteristic. In other S-114
words, people bring these power bases to the organization.
 POWER AND POLITICS

Coercive Power

Coercive power depends on fear.

One reacts to this type of power out of fear of

the negative results that might occur if one fails
to comply.

It rests on the application (or the threat) of

physical sanctions. S-115
 POWER AND POLITICS

Reward Power

is the opposite of coercive power.

People comply because doing so produces

benefits.

Anyone who can distribute rewards that others

value will have power over them.

S-116
 POWER AND POLITICS

Legitimate Power

represents the power a person receives as a

result of his or her position in the formal
hierarchy of an organization.

Legitimate power is broader than the power to

coerce and reward.

it includes acceptance of a persons authority

by members of the organization.
S-117
 POWER AND POLITICS

Expert Power

is influence wielded as a result of

experience, special skill, or knowledge.

Expertise has become a strong source of

influence as the world has become more
technologically oriented.

As jobs become more specialized, we become

more dependent on experts.
S-118
 POWER AND POLITICS

Referent Power

is based on identification with a person who has

desirable resources or admirable personal
traits.

It develops out of an admiration for someone

and a desire to be like that person.

If person A admires person B enough to model

behavior and attitudes after him or her, then
person B has power over person A. S-119
 POWER AND POLITICS

Model of Power in Organizations

Sources
Of Power

Legitimate Power
over Others
Reward
Coercive
Expert Contingencies
Referent Of Power

S-120
 POWER AND POLITICS

Contingencies of Power

Sources Power
of Power over others

Contingencies
of Power

Substitutability
Centrality
Discretion
Visibility
S-121
 POWER AND POLITICS

Relationship between Power & Influence in an organization

S-122
 POWER AND POLITICS

Symbols of Power

1. Ability to intercede for someone in trouble

2. Ability to get placements for favored employees
3. Exceeding budget limitation
4. Procuring above-average raises for employees
5. Getting items on the agenda at meetings
6. Access to early information
7. Having top managers seek out their opinion.
S-123
 POWER AND POLITICS

Consequences of Power

Sources Consequences
of Power of Power

Expert
Power
Commitment
Referent
Power
Legitimate
Power Compliance

Reward
Power
Coercive Resistance S-124
Power
 POWER AND POLITICS

Managers Acquire the power needed for leadership by

working towards:

Power-oriented behavior
Position power and personal power
2Cs : Centrality and Criticality
Building expertise
Visibility of their job performance
Expanding contacts with senior people
Seeking opportunities to increase name and recognition S-125
 POWER AND POLITICS
The Evolution of Power: From Domination to Delegation
Power
Distribution
Followers are
granted
High authority to
make decisions
Power Sharing
Manager/leader
Degree of Empowerment

and followers
jointly make
Influence decisions
Sharing
Manager/leader
consults
followers when
making
decisions
Authoritarian
Power
Manager/leader
impose
decisions S-126

None Domination Consultation Participation Delegation

 POWER AND POLITICS

The Dark Side of Power

People associate power and

politics with attempts to use
organizational resources for
personal advantage and to
achieve personal goals at the
expense of other goals.

S-127
 POWER AND POLITICS

The Bright Side of Power

Improve decision making

quality.
Promote change.
Encourage cooperation.
Promote new organizational
goals.
S-128
 POWER AND POLITICS

Organizational
Politics is intentional
Organi- enhancement of self-
interest

zational
Politics
S-129
 POWER AND POLITICS

Organizational politics involves those

activities by organizations to acquire,
develop, and use power and other
resources to obtain ones preferred
outcomes in a situation in which there is
uncertainty or dissent about choices.
(Pfeffer, 1981)

S-130
 POWER AND POLITICS

Organizational politics emphasizes self-interest and the use

of non-sanctioned means.
Organizational politics is defined as the management of
influence to obtain ends not sanctioned by the organization
or to obtain sanctioned ends through non-sanctioned
influence means.
Politics is a necessary function resulting from differences in
the self-interests of individuals.
Politics is the art of creative compromise among competing
interests.
Politics is the use of power to develop socially acceptable
ends and means that balance individual and collective S-131
interests.
 POWER AND POLITICS

Line units are typically more powerful than are staff

groups.

Units toward the top of the organizational hierarchy

are often more powerful than those toward the
bottom.

Power differentials are not as pronounced among

units at or near the same level in an organization.

S-132
 POWER AND POLITICS
Factors Influencing Political Behavior

Favorable outcomes
Political behavior
Low High Rewards
Averted punishments

S-133
 POWER AND POLITICS
Extent to Which Political Activity is Likely (range 0-3)

1.3 Political activity (1.22)

is perceived to
1.2
increase at higher (1.07)
1.1 organizational levels
1.0
.9
.8 (.73)
.7
.6 (.50)
(.54) Organizational
.5 Politics: More likely
.4
at the top
.3
(.18)
.2
.1
Production & Clerical & Technical & Lower Middle Upper S-134
blue collar white collar professional Mgmnt. Mgmnt. Mgmnt.
Organizational Level
 POWER AND POLITICS

Political Tactics

Attacking or blaming others.

Using information as a political tool.

Creating a favorable image.

Developing a base of support.

Association with influential people.

S-135
Creating obligations.
 POWER AND POLITICS

Managing Attacking
impressions blaming
others

Creating
obligations TYPES OF Selectively
distributing
ORGANIZATIONAL information
POLITICS
Cultivating
networks
Controlling
information
Forming
channels
coalitions
S-136
 POWER AND POLITICS

Personal Scarce
Characteristics Resources
Conditions
Supporting
Organizational
Politics
Complex and
Tolerance of
Ambiguous
Politics
Decisions

S-137
 POWER AND POLITICS

Controlling Political Behaviour

Provide
Remove
Sufficient
Political Norms
Resources

Hire
Introduce
Low-Politics
Clear Rules
Employees

Increase
Free Flowing
Opportunities
Information
for Dialogue

Manage Change Peer Pressure

Effectively Against Politics
S-138
 POWER AND POLITICS

Response of politics in organization

Organization politics may threaten employees

Decreased job satisfaction.

Increased anxiety and stress.

Increased turnover.

Reduced performance. S-139

 POWER AND POLITICS

Positive aspects of organizational politics

Overcoming personnel inadequacies.

Coping with change.

Substituting for formal authority.

S-140
 POWER AND POLITICS

Ethical guideline for Political Behavior

Unethical Ethical
Question 1 Yes
Question 3
Is the action
Yes Is the political
motivated by
activity fair
self-serving No
and equitable?
interests which
exclude the No Unethical
goals of the Yes
organization?
Question 2
Does the political
action respect No
individual rights? Unethical
S-141
 POWER AND POLITICS

Capacity to
Successful
exert influence

Organizational
Power Social influence
politics

Use of power for

personal interests Unsuccessful

Relationship between Social S-142

Influence, Power and Politics

 POWER AND POLITICS
Limiting the Effects of Political Behavior
Open communication
Provide Sufficient Resources
Introduce Clear Rules
Free Flowing Information
Measure performance, not personalities
Remove Political Norms
Hire Low-Politics Employees
Increase Opportunities for Dialogue S-143

Peer Pressure Against Politics

 POWER AND POLITICS
The Bottom Line: Managing Organizational Politics
Effectively

Establish Cred- Build a Base of Create and

Learn the
ibility and an Support by Implement
Culture and the
Overall Positive Networking, Formal and
Rules of the
Impression in Forming Clear Policies,
Game for
the Eyes of Alliances, etc., Procedures,
Success in the
Others in the with Key etc., to Reduce
Organization
Organization Players Ambiguity

Use Defensive Act in Ways Be Open and

Behaviors as Consistent with Visible with
Protection What is Employees
Against Dirty Verbally When Dealing
Political Communicated with Key
S-144
Players in the to Employees Issues that
Organization (Walk the Talk) Affect Them
END