13
CONFLICT AT WORK
CHAPTER SCAN
Conflict at work is normal and inevitable, yet many people are unskilled at managing it. This
chapter describes functional and dysfunctional conflict, and reviews the major causes of conflict
in organizations. Defense mechanisms are natural reactions to interpersonal conflict. Both
effective and ineffective techniques for managing conflict are described. Conflict management
styles include avoiding, competing, accommodating, compromising, and collaborating.
LEARNING OBJECTIVES
After reading this chapter, you should be able to do the following:
1.
2.
3.
4.
Diagnose functional versus dysfunctional conflict.
Identify the causes of conflict in organizations.
Identify the different forms of conflict.
Understand the defense mechanisms that individuals exhibit when they engage in
interpersonal conflict.
5. Describe effective and ineffective techniques for managing conflict.
6. Understand five styles of conflict management, and diagnose your own preferred style.
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KEY WORDS
Chapter 13 introduces the following key terms:
conflict
functional conflict
dysfunctional conflict
jurisdictional ambiguity
interorganizational conflict
intergroup conflict
intragroup conflict
interpersonal conflict
intrapersonal conflict
interrole conflict
intrarole conflict
person–role conflict
fixation
displacement
negativism
compensation
identification
rationalization
flight/withdrawal
conversion
fantasy
nonaction
secrecy
administrative orbiting
due process nonaction
character assassination
superordinate goal
distributive bargaining
integrative negotiation
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THE CHAPTER SUMMARIZED
I.
THINKING AHEAD: “Green Business” Stirs Things Up
II.
THE NATURE OF CONFLICTS IN ORGANIZATIONS
Conflict is any situation in which incompatible goals, attitudes, emotions, or behaviors lead to
disagreement or opposition between two or more parties. Most organizational members will
admit that conflict is inevitable, and that not all conflict is negative. Studies have confirmed that
individuals typically avoid conflict. Other studies have revealed that even when the "devil's
advocate" provides creative, innovative ideas, he or she is the first individual to deselect from
groups.
A.
Importance of Conflict Management Skills for the Manager
Estimates suggest that managers spend about 21 percent of their time dealing with
conflict. Conflict management skills are a major predictor of managerial success and are
related to emotional intelligence (EQ). Stimulating functional conflict can result in better
decisions and more innovative thinking.
B.
Functional versus Dysfunctional Conflict
Functional conflict is healthy, constructive disagreement between two or more
individuals. By contrast, dysfunctional conflict is a destructive disagreement. Many of
the high-profile conflict situations are examples of dysfunctional conflict.
III.
CAUSES OF CONFLICT IN ORGANIZATIONS
Conflict causes are categorized into structural factors and personal factors.
A.
Structural Factors
Structural factors include specialization, interdependence, common resources, goal
differences, authority relationships, status inconsistencies, and jurisdictional ambiguities.
Jurisdictional ambiguity refers to unclear lines of responsibility in an organization.
Such ambiguities may increase with team and groupwork, when conflict arises from
confusion over group responsibilities.
B.
Personal Factors
Personal factors include skills and abilities, personalities, perceptions, values and ethics,
emotions, communication barriers and cultural differences. Communication barriers can
be physical or value-related.
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IV.
GLOBALIZATION AND CONFLICT
Hofstede's cultural differences study is useful analyzing conflict approaches globally. Cultures
high in individualism, like the United States, would have a natural conflict tendency with
countries that are more collectivism-oriented. Even within countries, cultures have distinct
differences. Research shows that some ethnic groups in the United States are more willing to
cooperate than compete, which would resemble collectivist traditions.
V.
FORMS OF CONFLICT IN ORGANIZATIONS
Organizations can have several forms of conflict, such as interorganizational, intergroup,
interpersonal, and intrapersonal conflict.
A.
Interorganizational Conflict
Interorganizational conflict occurs between two or more organizations. Competition
can heighten this kind of conflict. The most straightforward example of this form of
conflict might be a corporate takeover attempt.
B.
Intergroup Conflict
Intergroup conflict occurs between groups or teams. It can have both positive and
negative effects within each group.
C.
Intragroup Conflict
Intragroup conflict occurs within groups or teams. Functional intragroup conflict can help
groups avoid groupthink.
D.
Interpersonal Conflict
Interpersonal conflict occurs between two or more individuals. The conflict varies with
the power relationships among individuals.
E.
Intrapersonal Conflict
Intrapersonal conflict occurs within an individual. Interrole conflict occurs when a
person experiences conflict among the multiple roles in his or her life. Intrarole conflict
is conflict about how to perform a single role. Person–role conflict occurs when an
individual in a particular role is expected to perform behaviors that clash with his or her
values.
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VI.
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INTRAPERSONAL CONFLICT
To avoid intrapersonal conflict (i.e., conflict within an individual), individuals should learn as
much as they can about the values of the organization and they should utilize role analysis.
VII.
INTERPERSONAL CONFLICT
To manage interpersonal conflict, it is helpful to understand power networks in organizations,
defense mechanisms exhibited by individuals, and ways to cope with difficult people.
A.
Power Networks
Power relationships include equal versus equal (a horizontal balance of power), high
versus low (powerful versus less powerful), and high versus middle versus low (conflicts
typically felt by middle managers).
B.
Defense Mechanisms
Over fifty percent of responses to criticism are defensive. Defense mechanisms are
common reactions to frustration associated with conflict. They are categorized as
aggressive (fixation, displacement, negativism), compromise (compensation,
identification, rationalization), and withdrawal (flight, conversion, fantasy) mechanisms.
Fixation refers to a situation in which an individual continues a dysfunctional behavior
that obviously will not resolve the conflict. Displacement means directing anger toward
someone who is not the source of the conflict. Negativism is active or passive resistance.
Compensation occurs when an individual tries to make up for an inadequacy by putting
increased energy into another activity. Identification occurs when one individual patterns
his or her behavior after another’s. Rationalization is trying to justify one’s behavior by
constructing bogus reasons for it. Flight is the act of physically escaping a conflict, while
withdrawal involves psychological escape. Conversion is a process whereby emotional
conflicts become expressed in physical symptoms. Fantasy is an escape by daydreaming.
VIII.
CONFLICT MANAGEMENT STRATEGIES AND TECHNIQUES
Conflict may be managed through either cooperative or competitive strategies. One of the best
known approaches to conflict management is the win–lose analogy. The cooperative (win–win)
strategy is the most time consuming. The competitive approach (win–lose) often results in
damage to both parties.
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A.
Ineffective Techniques
Most individuals do not deal directly with conflict in the work situation. The nonaction
approach is to do nothing, hoping that the conflict will disappear. Secrecy, or trying to
keep a conflict out of view of most people, only creates suspicion. Administrating
orbiting is delaying action on a conflict by buying time. Due process nonaction is a
procedure that is set up to address conflicts that is so costly and time consuming, or even
personally risky, that no one will use this avenue. Character assassination is attempting
to label or discredit one's opponent.
B.
Effective Techniques
Effective techniques include appealing to superordinate goals, expanding resources,
changing personnel, changing structure, and confronting and negotiating. A
superordinate goal is an organizational goal that is more important to both parties in a
conflict than their individual or group goals. Expanding resources simply means
providing additional resources in situations where resources are scarce. Changing
personnel may be appropriate when conflict is prolonged and severe. Changing
structure can occur through the creation of an integrator, or liaison, role or by
implementing cross-functional teams. Negotiation is a joint process of finding a mutually
acceptable solution to a complex conflict. Distributive bargaining is an approach in
which the goals of one party are in direct conflict with the goals of the other party.
Integrative negotiation is an approach in which the parties’ goals are not seen as
mutually exclusive and in which the focus is on making it possible for both sides to
achieve their objectives.
IX.
CONFLICT MANAGEMENT STYLES
A.
Avoiding
Avoiding is a deliberate decision to take no action on a conflict. It may be useful for
situations that are temporary or to give hot tempers time to cool off. However, if a
supervisor uses this style too frequently, employees begin to bypass the individual and
label him or her as unable to solve problems.
B.
Accommodating
Accommodating is the style that is most frequently used with family and friends. It
involves concern that the other party’s goals be met but relatively little concern with
meeting one’s own goals. Accommodating may be appropriate when you find you are
wrong or when you are attempting to create an obligation for future reciprocation.
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C.
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Competing
Competing is an assertive, uncooperative style that may be appropriate in an emergency
or when you know you are right and are willing to satisfy your own interests at the
expense of the other party.
D.
Compromising
The compromising style involves each party giving up something to reach a solution to
the conflict. Compromises are not optimal solutions.
E.
Collaborating
Collaborating is the win–win style that involves open and thorough discussion of the
conflict to arrive at a solution that is satisfactory to both parties.
X.
MANAGERIAL IMPLICATIONS: Creating a Conflict-Positive Organization
Dean Tjosvold proposes that organizations should build and create an environment for conflict
positive situations. He views this approach as adding a creative and innovative edge that is
needed in organizations. This approach involves four steps: (1) value diversity and confront
differences; (2) seek mutual benefits, and unite behind cooperative goals; (3) empower
employees to feel confident and skillful; and (4) take stock to reward success and learn from
mistakes.
XI.
LOOKING BACK: Can Green Business Keep Patagonia in the Black?
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CHAPTER SUMMARY









Conflict management skills are keys to management success. The manager's task is to
stimulate functional conflict and prevent or resolve dysfunctional conflict.
Structural causes of conflict include specialization, interdependence, common resources,
goal differences, authority relationships, status inconsistencies, and jurisdictional
ambiguities.
Personal factors that lead to conflict include differences in skills and abilities,
personalities, perceptions, or values and ethics; emotions; communication barriers; and
cultural differences. The increasing diversity of the workforce and globalization of
business have potential to increase conflict arising from these differences.
The levels of conflict include interorganizational, intergroup, interpersonal, and
intrapersonal.
Individuals engaged in interpersonal conflict often display aggressive, compromise, or
withdrawal defense mechanisms.
Ineffective techniques for managing conflict include nonaction, secrecy, administrative
orbiting, due process nonaction, and character assassination.
Effective techniques for managing conflict include appealing to superordinate goals,
expanding resources, changing personnel, changing structure, and confronting and
negotiating.
In negotiating, managers can use a variety of conflict management styles, including
avoiding, accommodating, competing, compromising, and collaborating.
Managers should strive to create a conflict-positive organization – one that values
diversity, empowers employees, and seeks win–win solutions to conflicts.
REVIEW QUESTIONS: SUGGESTED ANSWERS
1. Discuss the differences between functional and dysfunctional conflict. Why should a manager
understand conflict?
Functional conflict is a healthy, constructive disagreement that can improve relationships and
produce innovation. Dysfunctional conflict is unhealthy, diverts attention from goal achievement,
and is characterized by threats and deception. The task of the manager is to diagnose conflict as
functional or dysfunctional, and encourage functional conflict while preventing or resolving
dysfunctional conflict.
2. Identify the structural and personal factors that contribute to conflict.
Structural factors include specialization, interdependence, common resources, goal differences,
authority relationships, status inconsistencies, and jurisdictional ambiguities. Personal factors
contributing to conflict are differences in skills and abilities, personalities, perceptions, or values
and ethics; emotions; communication barriers; and cultural differences.
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3. Discuss the four major forms of conflict in organizations.
Interorganizational conflict is the least damaging to the organization, and may even have a
solidifying effect on organizational members. Intergroup conflict occurs between two or more
groups in an organization, and affects group members much the same way interorganizational
conflict affects organizational members. Intragroup conflict occurs within an organizational
group, where there are differences in goals or approaches. Interpersonal conflict occurs between
two or more individuals, and intrapersonal conflict occurs within a single individual.
4. What defense mechanisms do people use in interpersonal conflict?
Common aggressive defense mechanisms are fixation, displacement, and negativism. The three
compromise mechanisms are compensation, identification, and rationalization. Withdrawal
mechanisms include flight or withdrawal, conversion, and fantasy.
5. What are the most effective techniques for managing conflict at work? What are some
ineffective techniques?
Superordinate goals encourage groups to work through conflicts and resolve issues. Expanding
resources allows problem solvers to devote more energy to solving the problem. By changing the
personnel or structure, the problem receives a fresh, open look. Nonaction is an ineffective
technique that is rarely successful because most problems do not simply melt away. Secrecy
eventually mushrooms, like Watergate, and the Exxon spill. Administrative orbiting buys time,
but leads to frustration among those who are truly interested in resolution of the problem.
Occasionally due process results in nonaction. The lengthy process established to "hear" a
problem often defeats the individuals who are most concerned.
6. Identify and discuss five styles of conflict management.
Avoiding is low on assertiveness and cooperativeness. The accommodating style shows concern
for others’ goals but not your own. Competing is assertive and uncooperative. Compromising
requires that both sides give up something to resolve the issue. The collaborating style is
assertive and cooperative and focuses on achieving a “win–win” solution to the conflict.
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DISCUSSION AND COMMUNICATION QUESTIONS: SUGGESTED ANSWERS
1. What causes you the most conflict at work or school?
Answers are surprising similar, and are often time–management problems. Students should be
encouraged to accept their responsibility in managing these conflicts.
2. Identify the different intragroup, interrole, intrarole, and person–role conflicts that you
experience.
Some of the roles mentioned might be family, parent, friend, athlete, employee, and student.
Person–role conflict is apparent with students who work and attend school full-time, and find
themselves asking which role should take precedence.
3. Which defense mechanism do you see people exhibiting most frequently? Why do you think this
is the case? How can you manage this type of reaction to a conflict?
Rationalization is likely to be the most common response, although students may identify other
mechanisms as well. Managers can be prepared for employees’ responses and work toward
helping them uncover their feelings about a conflict.
4. Are you comfortable with your preferred conflict management style? Would you consider
modifying it?
Individuals whose preferred conflict management style is avoidance or accommodation have
the most to gain by testing other approaches.
5. Think of a person with whom you have had a recent conflict. Write a letter to this person,
attempting to resolve the conflict. Use the concepts from the chapter to accomplish your
objective. Be sure to address whether the conflict is functional or dysfunctional, what styles each
party has used, effective strategies for resolving the conflict, and ineffective strategies that
should be avoided.
Students should be encouraged to use specific examples from the conflict to support their
description of it and their recommendations for dealing with it more effectively.
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ETHICS QUESTIONS: SUGGESTED ANSWERS
1. What kind of ethical conflicts have you experienced at school or work? At home?
Students may be aware of the avoidance approach when they have heard of copied tests, copied
computer disks, or plagiarized papers. They may also have experienced accommodation.
Students should be able to state what levels of conflict their examples represent.
2. Is it ethical to avoid a conflict?
Definitely. If there is a personal relationship that is more valuable than the issue, or the issue is
temporary, it is reasonable to avoid the conflict. We do this everyday, intuitively.
3. How can you stimulate conflict in an ethical manner?
Managers can stimulate conflict in an ethical manner by encouraging group members to consider
alternative solutions through the use of creative problem solving or appointing a devil’s
advocate. Functional conflict stimulates change and innovation, and this is certainly ethical.
4. Evaluate the following techniques in terms of their implications for ethical behavior:
nonaction, secrecy, administrative orbiting, and changing personnel.
All of these strategies have the potential to be unethical. Failure to take action can cause
employees to engage in unethical behavior if they become frustrated with the inaction. Secrecy
may result in similar frustration and unethical behavior on the part of employees. Administrative
orbiting is a form of dishonesty. Administrative orbiting can happen with sexual harassment
charges when the informed individual does not want to take action on the situation. Due process
nonaction is an underhanded way of forcing people not to seek justice. Changing personnel can
be unethical if it unfairly damages an individual's career.
5. Suppose an employee comes to you with a sexual harassment complaint. You know that your
company has a policy in place, but the policy is so complicated and risky that it is hardly worth
using. What should you do?
Expedite the process if possible. One of the most important values of expeditious processes is
that it is easier to establish the facts of the situation when the situation is still recent. In addition,
it is less painful for all individuals involved.
6. In what situations is the competing style of conflict management appropriate? What unethical
behaviors might be associated with this style? How can these behaviors be avoided?
Competing is appropriate when emergencies exist or when you know that you are right.
However, this style has the potential to encourage sabotage, deceit, and a "win at all costs"
mentality. Such behaviors can be avoided by creating a culture that rewards cooperative rather
than competitive behaviors.
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CHALLENGES
13.1 ASSESS YOUR TEAM’S CONFLICT
Students can examine and discuss the types of conflict and conflict management techniques they
have experienced in groups of which they have been members.
13.2 WHAT IS YOUR CONFLICT-HANDLING STYLE?
Following completion of the challenge, students could be put into groups in class based on their
primary conflict-handling style. In the groups have students discuss how they typically handle
conflict, encourage them to use specific examples of conflict situations they have experienced.
Each group can share with the class a summary of its typical approach to handling conflict.
Discuss the similarities and differences between groups as you cover class material on the
conflict-handling styles.
EXPERIENTIAL EXERCISES
13.1 CONFLICTS OVER UNETHICAL BEHAVIOR
Instructor's Notes:
This exercise provides a list of behaviors that employees might engage in when working for a
company. Students are requested to answer each of the 18 questions in terms of the best indicator
of the frequency with which they would engage in the behavior. After this is completed, they are
to re-examine the questions in light of their beliefs about whether their coworkers would engage
in the behavior, and put an X next to that category. The third time they review the questions, they
should indicate with a check mark if management should monitor this category of behavior. It is
useful to ask students for the extremes in their check marks between their own and what they
believe their coworkers would do. Another way to gather issues is to ask for the categories that
were checked either number 1 or number 5. Remind students to be as honest as possible, rather
than answering the way they believe they should answer.
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13.2 THE WORLD BANK GAME: AN INTERGROUP NEGOTIATION
Adapted from N. H. Berkowitz and H. A. Hornstein, "World Bank: An Intergroup
Negotiation," in J. W. Pfeiffer and J. E. Jones, (eds.), The 1975 Handbook for Group
Facilitators (San Diego, Pfeiffer & Company), 58-62.
Instructor’s Notes
Goals: To experience the conflict between advantages of cooperation and advantages of
competition in a mixed-motive dilemma; to explore some dynamics of trust between groups; to
practice negotiation skills.
Group size: No more than ten participants per team. Two teams can be formed to compete
against each other, with the instructor serving as banker and the remaining students designated as
observers. (Alternatively, several pairs can be conducted simultaneously, with each team
competing against one other team, and one student serving as banker for every two competing
teams).
Materials:
 Twenty 3" x 5" cards for each team, each card with a marked side (X covering the entire side)
and an unmarked side. (Playing cards may be used as substitutes).
 A copy of the World Bank Record Sheet for each team (these appear in the textbook).
 A copy of the World Bank Banker's Instruction Sheet for each banker.
Physical Setting: Teams competing against each other are located close to each other, but their
meetings are private. Their negotiators also need a private place to meet briefly several times.
Process:
1. The banker forms pairs of teams. (There must be an even number of teams).
2. Participants should read the World Bank General Instructions, and the banker responds to
questions.
3. If there are two teams, the instructor serves as banker. If there are more than two teams,
additional bankers (one for each additional pair of teams) are appointed. Bankers are briefed
about their roles and given a copy of the World Bank Banker's Instruction Sheet.
4. Teams have ten minutes to organize themselves and plan their strategies. Before play begins,
each team must select a negotiator, representative, team recorder, and treasurer.
5. The banker signals the beginning of round one to each team.
6. The bankers call the game to a close at an appropriate time.
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Variations:
1. To increase collaboration, the design may be altered as follows: (a) reduce the number of
moves in each round to five; (b) require negotiation after each move; or (c) increase the
penalty for an attack.
2. To increase competition, the design may be altered as follows: (a) increase the number of
moves in each round to ten; (b) make negotiations more difficult and costly by assessing a
fee; (c) remove the penalty for an attack; or (d) multiply the payoff threefold for move four,
and fivefold for the final move.
3. To focus on the negotiation process, all negotiations may take place in a neutral location in
the presence of all parties to the negotiation, e.g., both teams may observe. The number of
negotiators may also be increased to two from each team.
Limitations: This game sometimes generates feelings of betrayal and resentment that disrupt
relationships and affect subsequent classes. These issues should be addressed directly and there
should be ample opportunity for persons to talk through their feelings.
WORLD BANK BANKER'S INSTRUCTION SHEET
As banker, your tasks during this experiment are to synchronize the timing between your two
teams and to monitor the rules set forth in the World Bank General Instructions.
1. After each one and a half minute move, call for a private report from each team's
representative.
2. Thirty seconds later, indicate the beginning of the next move, announce a three-minute
negotiation session, or signal that an attack has been declared. (An attack immediately ends
each round).
3. Following moves three and six, direct the negotiators to a prearranged site out of view of both
teams for a compulsory negotiation session. (This session must be limited to a maximum of
three minutes).
4. At the end of a round (after the seventh move or an attack), give each team's recorder the
information needed about the status of the other team's weapons to complete the records for
that round and prepare for the next round. (Note that there may be an attack after the seventh
move also).
5. Have team members complete the World Bank Questionnaire at the end of the game.
As banker, you have the following responsibility:
1.
2.
3.
Collect penalties from the treasurers.
Make payments directly to treasurers.
Transfer funds from one treasurer to another.
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ALTERNATIVE EXPERIENTIAL EXERCISE
A CASE FOR CONSTRUCTIVE CONFRONTATION
Instructor's Notes:
This exercise is good to do with the entire class, rather than as a group exercise, although it is
appropriate for either approach. The answers to the exercise are as follows:
1. Reject solution: This approach will probably elicit a defense mechanism for a response.
This is also a win–lose strategy, with a competitive approach of you're wrong, I'm right.
2. Reject solution: Fred might resort to the superagreeables coping tactic.
3. Reject solution: This is avoidance.
4. Amend solution: This is the best solution of the choices.
5. Reject solution: This is ineffective and combines secrecy and administrative orbiting.
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A CASE FOR CONSTRUCTIVE CONFRONTATION
Adapted from Conrad Jackson, The University of Alabama, Huntsville.
There have been complaints recently about Fred among several of his coworkers for wasting their
time by dropping by their office and engaging them in "conversations" (actually Fred does most
of the talking) about various things (usually not work-related). It is difficult to interrupt one of
his stories, and he usually takes vaguely polite hints that "the conversation is over" as an
expression of interest in what he is saying. ("Well, Fred, that's great. Let me know how that new
bowling ball works out."----"Yeah, I've already bowled a couple of games with it. I went Sunday
afternoon. You should see all the professional people who go bowling on Sundays. I met this
one guy ....etc.."). Even you endure these interruptions from time to time. Fred's work is
generally good in quality, and adequate in quantity. He puts in a full workday, but doesn't work
as many hours per week as some of the others in the department.
Discuss the pros and cons of confronting Fred in each of the following ways:


For each rejected item, substantiate your opinion by referencing Chapter 13 of your text.
Modify, or write an approach that would be optimal, and list as many of the issues that you
can discover from the chapter.
1. Send Fred a memo stating that "some people have complained about him 'visiting' too much."
Admonish him to be careful to not waste his own time or anyone else's.
2. Call Fred into your office. Tell him that it has come to your attention that he's been
"chatting" with other people in the office a good bit. Tell him that everyone looks pretty busy
right now. Ask him if he's sure he is not taking up too much of their time.
3. Drop by Fred's office while walking around. Ask him how things are going. Make a big deal
about "I had better get out of here and let you get back to work. I know all of you guys have a
lot of work to do."
4. The next time Fred interrupts you with one of his stories, cut him off by saying "Fred, I hate
to interrupt your story, but I'm really busy right now. I run into this problem with you every
now and then. I'm reluctant to cut you off, but sometimes I need to let you know that I am in
the middle of something important."
5. Send around a memo saying, "It has come to my attention that some of the people in this
department are beginning to spend too much time "chatting" with each other during work
time. We are all very busy these days, so let me ask you all to take special care to not
interrupt one another unnecessarily."
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MBTI EXERCISE
Exercise Learning Objectives:
a. Ask students to explore the idea that the majority of conflicts are based on miscommunication.
b. Students should understand that conflict resolution will be different for different people.
Exercise Overview:
1. Students should have taken the MBTI or the short version in Chapter 3.
2. Students will be formed into "S" and "N" dyads where you have one "S" and one "N" student
in each dyad. In those cases where the class has more of one type than another, use the next letter
"T" or "F" to form the dyads. In this case, put one "ST" with an "SF" or one "NT" with an "NF".
3. The students in these dyads will individually write a set of instructions on a common issue
and then compare with their partner.
4. The instructor should review "S/N" differences in Myers-Briggs, paying particular attention to
the differences to the manner in which each type explains issues.
Exercise Description:
a. Form "S" and "N" dyads as described in the exercise overview. Form as many groups as you
need so that everyone is in a group. If after forming the dyads you have one "extra" student, you
may either have the student help you observe and report this group activity or form one team.
b. Each student should write a set of instructions on "how to register for fall classes." The
instructor should read the following instruction: "Each of you is to write a set of instructions for
an incoming freshman on how to register for fall classes." DO NOT amplify these instructions
and do not allow students to use any reference material--this is done from memory. DO NOT
give any clarification. If the instructor gives clarifying information, the major benefit of this
exercise will be lost--i.e., how we "hear" instructions. We suggest you allow 10 to 15 minutes for
this.
c. Ask students to read their instructions to their partner. Ask their partners to listen attentively.
Ask each student to read his or her instructions before you allow them to discuss the differences.
d. After reading the instructions to each other, ask the students to discuss these questions:
1. What, if any, differences are apparent in the two sets of instructions?
2. As the receiver of the other's instructions, what were the things that helped you? What were
the things that confused you? What other information would you need in order to register?
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3. What recommendations would you give the writer to improve his or her communications?
e. Ask two students to be the recorders--one for large newsprint and one on regular notebook
paper.
f. Depending on time, ask each person in the class to share their recommendations and have one
recorder list them on large flip chart paper and the other recorder list them on notebook paper.
What the instructor should expect:
a. "Ss" will most likely give very detailed step-by-step instructions. These instructions will most
likely be numbered and would generally be representative of the actual registration sequence.
b. "Ns" will most likely give less detailed instructions and may even skip several steps in the
process. Their instructions would most likely be representative of the process used but without
most of the actual steps.
Instructor's Summary:
One of the major issues involved in conflict is the actual discussion of the facts and
circumstances surrounding the situation in conflict. We've noticed in this exercise that we all
gather and relate information differently.
Misinformation or poor communication is the single largest reason for conflict. If we can take
the time to try to understand the "facts" as seen by the other person, we should be able to resolve
most of our conflicts and at the same time learn from each other.
Properly managed conflict is healthy because the creative tension that happens forces us to grow
and to learn. Conflict is in fact a normal part of life. Successfully managing conflict means that
you choose the right conflict management style appropriate to the situation. Most of us use only
one or two preferred conflict management styles and, unfortunately, that style only works in
certain cases.
Know how you collect and receive information and remember that other people may collect and
receive information differently. Clarify the facts, stay issue-focused, maintain an open mind and
you will learn, grow, and have more fulfilling relationships.
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EXTRA EXPERIENTIAL EXERCISES
The following exercises to supplement the material in the textbook can be obtained from:
Marcic, Dorothy, Seltzer, Joseph, & Vaill, Peter. Organizational Behavior: Experiences and
Cases, 6th Ed. South Western College Publishing Company, 2001.
Border Dispute. p. 133-134. Time: 50 minutes minimum.
Purpose: To develop both competitive and collaborative behavior.
Management of Differences. p. 121-130. Time: 45 minutes.
Purpose: To determine which style of conflict resolution students use.
Fandt, Patricia M. Management Skills: Practice and Experience. West Publishing Company,
1994.
In-Basket Exercise 4: Defending Decisions When Challenged. p. 393.
In-Basket Exercise 5: Resolving Conflicts. p. 451.
CASE QUESTIONS: SUGGESTED ANSWERS
A FAMILY FEUD AT BINION’S HORSHOE CLUB
1. From your perspective, was the conflict among the Horseshoe Club heirs functional or
dysfunctional?
In discussing this question, the students can use Table 13.1 as a point of departure. This table
identifies the positive (or functional) and negative (or dysfunctional) consequences of
conflict.
Students may be inclined to describe the conflict as dysfunctional, citing, in particular, the
lawsuit that Brenda filed in order to wrest control of the casino from Jack. However, legal
action could be considered to be a quite feasible approach for rescuing the Horseshoe Club
because of the problems created by Jack and Ted. Under Jack’s leadership, the Horseshoe
Club had a devastating, nine-month long strike; received a $1 million fine for lax cash
control; and had large net losses of $13 million in 1996. Ted had the licensing problems with
the Nevada State Gaming Control Board. If, as a result of the legal action, the Horseshoe
Club returns to profitability, adheres to all the regulations of the Nevada State Gaming
Control Board, and effectively serves its other stakeholders (including gambling patrons and
employees), then the lawsuit could ultimately have positive consequences. The point should
be emphasized that conflict that is dysfunctional in the short term may become functional in
the long term.
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2. What structural factors and personal factors were likely causes of the conflict at the
Horseshoe Club?
The structural factors that cause conflict include specialization, interdependence, common
resources, goal differences, authority relationships, status inconsistencies, and jurisdictional
ambiguities. Authority relationships and goal differences appear to be the primary structural
factors contributing to the conflict situation at the Horseshoe Club. The problem with
authority relationships can be traced back many years. Benny trained the sons in the casino
business but kept the daughters out of it. Yet, when the sons and daughters inherited the
family business upon their parents’ deaths, all four surviving Binion children were co-owners
(though Jack held about twice as much stock as each of the other three). Essentially, the
Binion children were partners in a business where one person owned a “larger portion of the
pie” and was also president of the company. In that role as president, Jack made and
implemented some decisions that produced questionable, if not detrimental, results for the
Horseshoe Club. The other owners were not in a position to overturn Jack’s decisions—and
this ultimately led to Brenda’s lawsuit. Differences in goals are evident in the allegations
made in the lawsuit itself. The brothers—and Jack in particular—sought to grow the business
by expanding the physical facilities and tightening up casino payouts. Furthermore, Ted
compromised his involvement in the casino business due to actual and alleged violations of
Gaming Control Board regulations. Jack also was interested in developing his own business
ventures in the two riverboat casinos, and purportedly diverted resources from the family
business to accomplish these goals. On the other hand, the sisters—and particularly Brenda—
apparently had the goals of re-establishing the Horseshoe Club as a reputable and profitable
casino business.
The personal factors that produce conflict include skills and abilities, personalities,
perceptions, values and ethics, emotions, communications barriers, and cultural differences.
Differences in perceptions and values and ethics are the personal factors which most likely
exist in this situation. In particular, Becky and Jack seem to have quite different perceptions
of the events that produced the conflict. Jack apparently believes that what he did was
appropriate and necessary for the growth and success of the family’s business. Becky,
however, perceived Jack’s actions as destroying the family’s business––as well as diverting
resources from the family business to invest in the Louisiana and Mississippi riverboat
casinos. With regard to values and ethics, Becky probably perceived Jack’s actions as
unethical, whereas Jack did not. Moreover, additional values and ethics issues are raised by
Ted’s drug use and alleged association with mobsters that led to licensing problems with the
Gaming Control Board.
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3. How can the various forms of conflict—interorganizational, intergroup, interpersonal,
intrapersonal (e.g., interrole, intrarole, and person—role)—be applied in analyzing the
current and historical events at the Horseshoe Club?
Little, if any, evidence exists to demonstrate the presence of the interrole or intrarole forms of
intrapersonal conflict. The case evidence does suggest, however, that interorganizational,
intergroup, and interpersonal conflicts and the person—role form of intrapersonal conflict
probably exist, as described below:
 Interorganizational conflict exists with respect to the Horseshoe Club’s
violation of Gaming Control Board regulations regarding cash management.
 Intergroup conflict exists between the two Binion brothers and the two Binion
sisters since they were opposed to each other in the effort to exercise control
over the family business.
 Interpersonal conflict is currently evident among the Binion heirs as they
jockey for ultimate control of the family business. Historically, interpersonal
conflict may have existed among members of the Binion family since Benny
trained the sons in the family business but not the daughters. Interpersonal
conflict among Benny, Teddy Jane, Ted, and Jack may have existed when Jack
was president. Jack was basically out of sight in an upstairs office while Ted
managed the casino’s floor operations, Teddy Jane managed the cash, and
Benny unofficially oversaw everything from the casino’s café. Interpersonal
conflict is also reflected in Ted’s actions of removing his $5 million stash
from the Horseshoe Casino’s safe due to mistrust of his sister. Finally,
interpersonal conflict is evident in the suspicious and murderous relationships
among Ted Binion, Sandy Murphy, and Rick Tabish.
 Person—role conflict would be most evident with regard to Benny and Ted.
The Nevada State Gaming Control Board has a specific set of role
expectations for casino operators. Neither Benny nor Ted fully conformed to
those expectations. Instead, both engaged in activities that they apparently
personally valued but which were inconsistent with the expectations of the
Gaming Control Board.
4. What conflict management styles seem to be evident throughout the history of the Horseshoe
Club?
Clearly, a competing style of conflict management is evident in recent years at the Horseshoe
Club. The battle for control of the family business, as well as Brenda’s lawsuit and out of
court settlement, attest to this conclusion. This competing style may have had its roots in the
earlier years of the Horseshoe Club. Although Jack was president, Benny, Teddy Jane, and
Ted actually ran the casino. At that time, Jack may have been more of an accommodator
while the others were competitors. However, Jack began to assert himself as Benny became
ill and then died; Jack then seemed to adopt a competing style of conflict resolution. Even
earlier in the history of Binion’s Horseshoe Club, it might be argued that the seeds of a
competing style of conflict resolution were sown when Benny indoctrinated his sons into the
business but largely excluded his daughters from it.
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COHESION CASE -- PART III
PROCTER & GAMBLE (C)
1. In your opinion, how might Alan Lafley respond to the challenges of globalization, diversity,
technology, and ethics?
Lafley was described as “a forceful leader with a unique ability to energize the organization
to achieve high goals. He has long been seen as a future P&G chief executive. He has led
virtually every key part of the company’s business with distinction.” Lafley’s emphasis on
goals, his ability to energize people in the pursuit of those goals, along with his record of
successful leadership throughout all key aspects of P&G’s business, provide a strong signal
that he will be very proactive in addressing each of the challenges.
2. How could Procter & Gamble’s executive team use knowledge about power, conflict
resolution, and teamwork to deal with the challenge of global growth?
With the initial creation of the global business units, a significant shuffling of part of the
leadership hierarchy took place. Five of the seven top GBU leadership positions went to
people whose previous responsibilities had been in a different area of P&G’s operations. In
addition, three of the seven assumed dual leadership rolestwo GBU executives also headed
an MDO and one GBU executive also led one of the Corporate Functions. The remaining six
MDO chiefs headed areas that were closely aligned to their previous job responsibilities at
P&G. The top leadership position in each of the nine initial Corporate Functions as well as
the top position in the Global Business Services unit was assumed by the person who had
been responsible for that specific area prior to the Organization 2005 initiative. In late 2001,
only 11 of the 22 executives who had led one or more of the original units of the four pillars
remained one the executive committee in late 2001. Some of these individuals were leading
different units than they had led originally.
Whether considering the initial structural arrangement of the Organization 2005 initiative or
its subsequent realignment, some of the executives picked up new responsibilities and some
continued with the same or similar responsibilities. Those who had new responsibilities may
have had somewhat different bases of power from which to operate. Those with the same or
similar responsibilities probably drew on their existing bases of power. All the leaders,
however, must effectively use their power bases in influencing other people to do whatever is
necessary for their organizational units to be successful.
Conflict will inevitably arise in a complex global business, even when operations are
streamlined. Some of the conflict may result from people learning to work and adapt to the
new structure. Part of the conflict may come from the interlocking interests of the GBUs and
MDOs as the company tries to be global while serving local target markets. Another source
of conflict could be the interface of global business services centers and corporate functions
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with the GBUs and MDOs. In all cases, top leadership must be cognizant of the source and
nature of any conflict, and work vigorously to resolve the conflict in the overall best interests
of Procter & Gamble.
As noted in the previous paragraph, P&G’s structural design requires extensive interaction
and support among the four pillars (i.e., global business units, market development
organizations, global business services centers, and corporate functions). Consequently,
effective teamwork will be needed. The leaders of these different organizational units will
need to model effective teamwork behaviors for their followers. Additionally, they will need
to create new and/or refine existing policies, processes, and procedures to promote effective
teamwork within their own units as well as among their units and other units.
3. Why is effective communication and effective leadership so crucial to managing a global
company like Procter & Gamble?
The answer to the previous question emphasizes the need for effective interaction among the
four pillars––global business units, market development organizations, global business
services centers, and corporate functions—of the Organization 2005 initiative. Effective
interaction, in turn, requires effective communication and leadership. Without either, a
complex global company such as Procter & Gamble could too easily fall into disarray. In one
sense, effective communication and leadership represent the mortar that bonds the individual
structures together so that P&G can be a company that produces and markets various
consumer products on a worldwide basis, while adapting to the needs of local target markets.
4. What role should leaders play in establishing and maintaining an ethical culture within a
global company with a diverse workforce? What role should followers play in establishing
and maintaining an ethical culture in such a company?
Followers take ethical cues from the leaders. Thus, leaders must set the ethical tone and
standards for an organization. Leaders should clearly articulate their ethical values and use
them to guide their actual business practices. Leaders should serve as role models for their
followers, and should do everything in their power to support and reinforce follower behavior
that is consistent with the company’s desired ethical culture.
The leaders’ values and behavior are not the only factors that influence the extent to which
followers act in an ethical or unethical fashion. The followers’ personal standards and beliefs
play a role as well. Situational factors––like the presence or absence of ethics training in the
organization, the nature of the organization’s reward system, opportunities to engage in
unethical acts, the presence or absence of a corporate code of ethics or code of conduct,
etc.—can be influential too. Nonetheless, the leader still plays a crucial role in establishing an
ethical (or unethical) culture for an organization.
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When the organization operates globally, ethical attitudes and practices may vary from
country to country as well as across diverse populations. Thus, the leaders and followers must
be aware of local practices and customs while seeking to maintain consistent ethical
standards throughout the company.
This question also provides an excellent opportunity to explore the issue of an organization
having a universal ethical standard versus adapting to local customs. Some students may
argue that a global company’s leaders should set uniform ethical standards for all their
operations throughout the world. Other students may favor an ethical approach that varies
according to the beliefs and practices of the host country. In such a case, the organization’s
leaders would establish and model “flexible” ethical guidelines. These two perspectives
capture a fundamental ethical tension that leaders and followers will encounter in global
business operations that employ a diverse workforce. Students should explore how they feel
about this tension, and how, as followers and as leaders, they would likely react to it.
Role Plays
Additional role plays relevant to the material in this chapter are located in Appendix A of this
instructor's manual.