UNIT 5 ORGANISATIONAL POWER, CONFLICTS AND CHANGE 12 Hrs.

Concept- Sources of Power, Nature of organisational politics - Distinction between Power,

Authority and Influence - Approaches to Power - Conflict: Concept – Sources – Types -
Stages of conflict - Management of conflict - Organization change.

POWER
Power is the ability to influence other people. It refers to the capacity to affect the behaviour
of the subordinate with the control of resources. It is an exchange relationship that occurs in
transactions between an agent and a target. The agent is the person who uses the power and
target is the receipt of the attempt to use power.

“Power refers to a capacity that A has to influence the behavior of B, so that B acts in
accordance with A’s wishes.” This definition implies a potential that need not be actualized to
be effective and a dependency relationship.

Power may exist but not be used. It is, therefore, a capacity or potential. One can have power
but not impose it. Probably the most important aspect of power is that it is a function of
dependency. A capacity that A has to influence the behavior of B, so that B acts in accordance
with A’s wishes. The definition implies a potential that need not be actualized to be effective
and a dependency relationship. Power may exist but not be used. It is, therefore, a capacity or
potential.

Sources (Base) of Power

According to French and Raven, a manager drives power from five sources : Reward,
Coercive, Legitimate, Referent and Expert power.
Reward Power
It is based on the agent's/manager's ability to control rewards the target/employee wants.
The common, e.g., of it are managers control rewards of salary increases, bonuses and
promotions. This power is based on old saying that 'wealth is power'.
Coercive Power
It is opposite of reward power. It is based on a manager's ability to cause an unpleasant
experience for its people. In organizational situation, it may be in the form of action for or
threat for dismissal, suspension, or demotion, for the people working in organization.
Legitimate Power
It is based on position and mutual agreement. Both the agent and target agree that the agent
has the right to influence the employees. It is in the form of authority which is delegated to
the positions of organizational members.
Referent Power
It is an elusive power that is based on interpersonal attraction. Charismatic individuals are
often thought to have referent power. Here, people take somebody as ideal and behave
accordingly upto a certain stage.
Expert Power
It exists when the agent has information or knowledge that the target needs. It is based on
the proverb, "knowledge in power". Three conditions to be fulfilled are :
(1) The target must trust that the information given by the agent is accurate and correct.
(2) The information should be relevant and useful to the target.
(3) The target must consider the agent as an expert
Meaning of Organizational Politics
It means the use of power and influences in organizations. Actions not officially sanctioned
or acceptable by an organization that are taken to influence others in order to meet personal
goals refer to politics.
Reasons for Organizational Politics
There are many reasons that contribute to political behaviour in organizations. Some of
them are :
1. Clear Goals : Organizations are human groups work for achieving certain goals. The
more unclear and complex the goals are, the more politics will be.
2. Discretionary Authority : Organizations provide position with discretionary authority
that is used based on individual judgement.
3. Autocratic Decisions : The leader dictates the decisions or orders and the subordinates
have no right to disobey. This leads to low employee morale and doubts about what the
manger-leader decides. Therefore, in order to safeguard their interests, workers involve in
politics by forming coalitions and associations.
4. Power Politics : Power is also a limited in supply. Hence, there is a competition among
mangers/executives to acquire more and more power. They try to acquire more power and
resources than their competitors. Managers' such behaviour becomes quite dysfunctional.
5. Saturation in Promotion : Some people reach maximum level of promotion. They feel
dissatisfaction and resort to the organizational politics. Some people may like work
performance more than positional achievement and therefore, may not resort to politics.
6. Biased Performance Appraisal : When the job performance of a personnel cannot be
measured quantitatively, performance appraisal is made on the basis of the judgement ofthe
superior. As such the performance appraisal is likely to be subjective and biased. This may
force the subordinates into dysfunctional political behaviour.
DISTINCTION BETWEEN POWER , AUTHORITY AND INFLUENCE

Power Authority Influence

Definition The ability to control The legal or rightful The ability to affect the
or direct others, often power to give actions, behavior, or
through force or commands, make opinions of others.
coercion. decisions, and enforce
obedience.
Source Can be derived from Given by an Can come from personal
a position, wealth, organization or society qualities, expertise, or
knowledge, or to someone in a position relationships.
physical strength. of power.
Type Can be formal or Typically formal and Can be formal or
informal, legitimate legitimate. informal, legitimate or
or illegitimate. illegitimate.
Exercise Can be exercised by Exercised through Exercised through
giving orders, making issuing commands, persuasion, negotiation,
decisions, or using making decisions, and leading by example, or
force. enforcing rules. inspiring others.
Focus Focuses on control Focuses on formal Focuses on influencing
and dominance. power granted by a others positively or
position or role. negatively.
Duration Power can be Authority is usually Influence can be long-
temporary or long- sustained as long as the lasting, even after the
lasting. position is held. relationship ends.

APPROACHES TO POWER

There are 5 Approaches to Organizational Behaviour

1. Human resources (supportive) approach

The human resources approach is developmental. It is concerned with the growth and
development of people towards higher levels of competency, creativity, and fulfillment
because people are the central resource in any organisation and any society. The nature of the
human resources approach can be understood by comparing it with the traditional
management approach in the early 1900s.

In the traditional approach, managers decided what should be done and management was
directive and controlling. The human resources approach, on the other hand, is supportive. It
helps employees become better, more responsible persons and then tries to create a climate in
which they may contribute to the limits of their improved abilities. Essentially, the human
resources approach means that better people achieve better results.

Give a person a fish, and you feed that person for a day, Teach a person to fish, and you feed
that person for life.

2. Contingency approach

Traditional management relied on the principle of ―one best way of managing. There was a
correct way to organize, delegate, and divide work. The correct way is applied regardless of
the type of organisation or situation involved. The contingency approach to organizational
behaviour means that different situations require different behavioural practices for
effectiveness.

No longer is there a one best way. Each situation must be analysed carefully to determine the
significant variables that exist in order to establish the kinds of practices that will be more
effective. The strength of the contingency approach is that it encourages analysis of each
situation prior to action, while at the same time discouraging habitual practice based on
Universal assumptions about people.

The contingency approach also is more interdisciplinary, more system oriented, and more
research-oriented than the traditional approach. Thus, it helps to use in the most appropriate
manner all the current knowledge about people in organisations.

3. Productivity approach
Productivity is a ratio that compares units of output with units of input. If more outputs can
be produced from the same number of inputs, productivity is improved or if fewer inputs can
be used to produce the same number of outputs, productivity has increased.

The idea of productivity does not imply that one should produce more output; rather it is a
measure of how efficiently one produces whatever output is desired. Consequently, better
productivity is a valuable measure of how well resources are used in society. It means that
less is consumed to produce each unit of output. There is less waste and better conservation
of resources.

Productivity often is measured in terms of economic inputs and outputs, but human and social
inputs and outputs are also important, For example. if better organizational behaviour can
improve job satisfaction, a human output or benefit occurs. In the same manner, when
employee development programmes lead to a by-product of better citizens in a community, a
valuable social output occurs.

Equations showing the role of organizational behaviour is work systems

Knowledge X skill = Ability

Attitude X situation = Motivation

Ability X Motivation = Potential human performance

Human performance X Resources = Organizational productivity

4. Systems Approach

A system implies that there are many variables in organisations and that each of them affects
all the others in a complex relationship. All people in organisations should be concerned with
improving organizational behaviour. Managers represent the administrative system and their
role is to use organizational behaviour to improve people – organisation relationships as
shown in the following figure.

Managers try to build a climate in which people are motivated work together, productively,
and become more effective persons.
Systems Approach

When organizational behaviour is applied with systems approach it creates a triple reward
system in which human, organizational and social objectives are met. People find more
satisfaction in work when there is cooperation and teamwork. They are learning to grow and
contribute. The organization also is more successful, because it operates more effectively.

Quality is better and costs are less. Perhaps the greatest beneficiary of the triple reward
system is society itself; because it has better products and services, better citizens and a
climate of co-operation and progress.

5. Interdisciplinary Approach

This approach advocates that efficiency can be attained by finding the right methods to get
the job done through specialization on the job by planning and scheduling, by using standard
operating mechanisms, establishing standard time to do the job, by proper selection and
training of personnel and through wage incentives.

ORGANIZATIONAL CONFLICT

MEANING:

In simple terms conflict means disagreement between the persons employed in the
organization. It may also mean clash of interest. It is the result of difference in the opinion of
employees of the organization over any issue. Such a difference of opinion arises mainly
because of the differences in the perception If, for example, a decision has to be made on
whether to revise the working hours or to continue the existing timings, the employer is sure
to get different views from different persons. Before making the final decision, the employer
has to make a secure consensus among the employees. Only then the proposal will get the
support of everyone in the organization. Conflicts are not the same as disputes. In the case of
conflicts the solution can be found out at the organizational level and the matter has to be
referred to an impartial mediator.

DEFINITION:

Conflicts are any situation in which two or more parties feel themselves in opposition. It is an
interpersonal process that arises from disagreements over the goals or the methods to
accomplish those goals‖ – john w. Newstrom and KeithDavis . Conflict is the condition of
objective incompatibility between values and goals‖ – ralph Kilman and Kenneth Thomas.

USES OF CONFLICT:

1.Changes in work pattern:

When the employees are asked to adopt a different pattern of work, conflicts may arise
between them on whether or not to accept such a proposal and update themselves to be able
to discharge their responsibilities as per the new pattern of work.

2.Difference in perceptions:

The perception of any issue by the individuals will not be identical. One of the main reason
why conflicts arise in the workplace it that the perception of employees of any organizational
matter differs. If one person favors the management proposal to revise timings another person
may oppose it.

3.Differences in values:

Difference in the value system of individuals is yet another factor contributing the conflicts.

Example: an employee, who has certain grievances, may want to show his protest to the

management by striking work. On the other hand, another employee, who also has
grievances, may show his protest by fasting in the workplace.

4.Availability of options:

Another reason why conflict arises in the work place is that often the employees have
options, example: day shift or night shift, salary or commission or both.
5.Allocation of limited resources:

Reasons are always scarce in relation to demand. Example: when the funds available are
limited, the management may find it difficult to meet the demands of different departments.

6.Inter-dependence:

Conflicts arise due to the problem of inter-dependence between individuals and departments.

Example: marketing depends on production; production depends on purchase or raw

materials and availability of labor which in turn depends on the availability of finance.

Unequal work load: when there is disparity in the workload of employees operating at the
same level, conflicts are bound to arise. This might have been done deliberately and
inadvertently.

7.Biased assessment of subordinates:

Some superiors show favoritism while appraising the performance of their subordinates.
Favoritism is based on caste, religion, sex etc.

8.Unattainable targets:

Some superior sets target for their subordinates that are unattainable. It might have been dine

intentionally or unintentionally. In any case it provides scope for conflicts in the workplace.

9.Lack of trust and confidence:

Lack of trust and confidence is yet another important cause of conflict. Some superiors have a

feeling that their subordinates always shirk duties and are inefficient and incapable.

10.Threat to status quo: Any change taking place in the organization that disturbs the existing

pattern of the employees give rise to conflicts. Example: certain privileges enjoyed by the

employees may be withdrawn. Additional responsibility may be given to them.

DIFFERNET STAGES OF CONFLICT:

1. LATENT CONFLICT: Conflict has not taken a definite shape. It may arise in the
Subconscious mind of a person. All the cause of conflicts is lying hidden.
2. PERCEIVED CONFLICT: here the parties become aware ofthe existence ofthe causes of
conflict.

3. FELT CONFLICT: Having perceived the conflict the parties, at this stage, begin to feel it.
They

become emotionally involved in the conflicts:

4. MANIFEST CONFLICT: When the stage is reached, the parties begin to show their
hostile

feelings out warmly.

5. CONLFICT AFERMATH: This is the large stage with conflict may be suppressed or
resolved

amicably depending upon the attitudes of the parties and the prevailing conditions.

CAUSES OF CONFLICTS:

Conflict is a natural occurrence. It arises mainly due to the difference in perceptions, values,

beliefs, sentiments, likes and dislikes of the people at work. Conflicts are not always bad.
Certain benefits also become available to the organization out of these. The various positive
and negative aspects are explained below:

Conflict in the workplace could be the result of:

poor management

unfair treatment

unclear job roles

inadequate training

poor communication

poor work environment

lack of equal opportunities

bullying and harassment

significant changes to products, organisational charts, appraisals or pay systems

Major causes of workplace conflict

Other major causes of conflict in the workplace include:

Personality clashes - the 'personality mix' within a team can be upset when a new member
of staff joins or if two colleagues suddenly fall out. Individuals may also respond to difficult
or challenging situations in an unhelpful or unproductive way.

Unrealistic needs and expectations - conflict at work can often be caused when
employers ignore the needs of employees or set unrealistic expectations. For example,
arranging hours that make it difficult for employees to carry out childcare responsibilities.

Business values - most people have very clear ideas about what they think is fair, and your

organisation's procedures and policies must reflect this. For example, giving someone a fair
hearing or explaining the reasoning behind a decision.

Unresolved workplace issues - for example, an employee might ask to be moved to

another team because of their manager's 'aggressive' leadership style. However, the employee
may have other reasons - for example, they may blame their manager for a lack of training or
career progression.

Increase in workload - sometimes workplace conflict is caused because people feel they
are being pushed too hard and resentment sets in if they feel their workload is unmanageable.

Establish the root cause of workplace conflictt is important to understand the root cause of an
individual's or group's unhappiness. For example, a person in a team may seem to be
struggling with an unmanageable workload, but they may be resentful of another employee
who appears to have less work to do. It may also be a result of organisational changes,
restructuring, or promotions given to other staff.

Conflict is an inevitable part of life, arising from opposing ideas and actions among different
entities. Let’s explore the various types of conflict:

1. Interpersonal Conflict: This type of conflict occurs between two individuals. It

often arises due to differences in personalities, opinions, and choices. While
interpersonal conflict can be challenging, it can also lead to personal growth and
improved relationships. Mediation may be helpful when it becomes too destructive.
 2. Intrapersonal Conflict: Within an individual, intrapersonal conflict takes place in
the mind. It involves psychological struggles related to thoughts, values, principles,
and emotions. These inner conflicts can cause restlessness or even depression.
Seeking communication with others can help alleviate anxiety and contribute to
personal growth.

3. Intragroup Conflict: Intragroup conflict occurs among individuals within a team or

group. It results from incompatibilities, misunderstandings, and differences in views.
Whether due to interpersonal disagreements or varying opinions, addressing
intragroup conflict is essential for effective teamwork.

4. Intergroup Conflict: This type of conflict extends beyond individual teams and
involves conflict between different groups. It can arise due to competition, differing
goals, or limited resources. Intergroup conflict may impact collaboration and overall
organizational dynamics.

Remember that conflict isn’t always negative; it can lead to growth, innovation, and better
understanding when managed effectively

Ways to Manage Conflict

Change the Structure

When structure is a cause of dysfunctional conflict, structural change can be the solution to
resolving the conflict. Consider this situation. Vanessa, the lead engineer in charge of new
product development, has submitted her components list to Tom, the procurement officer, for
purchasing. Tom, as usual, has rejected two of the key components, refusing the expenditure
on the purchase. Vanessa is furious, saying, “Every time I give you a request to buy a new
part, you fight me on it. Why can’t you ever trust my judgment and honor my request?”

Tom counters, “You’re always choosing the newest, leading-edge parts—they’re hard to find
and expensive to purchase. I’m supposed to keep costs down, and your requests always break
my budget.”

“But when you don’t order the parts we need for a new product, you delay the whole
project,” Vanessa says.

Sharon, the business unit’s vice president, hits upon a structural solution by stating, “From
now on, both of you will be evaluated on the total cost and the overall performance of the
product. You need to work together to keep component costs low while minimizing quality
issues later on.” If the conflict is at an intergroup level, such as between two departments, a
structural solution could be to have those two departments report to the same executive, who
could align their previously incompatible goals.

Change the Composition of the Team

If the conflict is between team members, the easiest solution may be to change the
composition of the team, separating the personalities that were at odds. In instances in which
conflict is attributed to the widely different styles, values, and preferences of a small number
of members, replacing some of these members may resolve the problem. If that’s not possible
because everyone’s skills are needed on the team and substitutes aren’t available, consider a
physical layout solution. Research has shown that when known antagonists are seated directly
across from each other, the amount of conflict increases. However, when they are seated side
by side, the conflict tends to decrease (Gordon et al., 1990).

Create a Common Opposing Force

Group conflict within an organization can be mitigated by focusing attention on a common

enemy such as the competition. For example, two software groups may be vying against each
other for marketing dollars, each wanting to maximize advertising money devoted to their
product. But, by focusing attention on a competitor company, the groups may decide to work
together to enhance the marketing effectiveness for the company as a whole. The “enemy”
need not be another company—it could be a concept, such as a recession, that unites
previously warring departments to save jobs during a downturn.

Consider Majority Rule

Sometimes a group conflict can be resolved through majority rule. That is, group members
take a vote, and the idea with the most votes is the one that gets implemented. The majority
rule approach can work if the participants feel that the procedure is fair. It is important to
keep in mind that this strategy will become ineffective if used repeatedly with the same
members typically winning. Moreover, the approach should be used sparingly. It should
follow a healthy discussion of the issues and points of contention, not be a substitute for that
discussion.

Problem Solve
Problem solving is a common approach to resolving conflict. In problem-solving mode, the
individuals or groups in conflict are asked to focus on the problem, not on each other, and to
uncover the root cause of the problem. This approach recognizes the rarity of one side being
completely right and the other being completely wrong.

ORGANISATIONAL CHANGE

“Organisational change refers to any alteration that occurs in total work environment”.

“Organisational change refers to the alteration of structural relationships and roles of people
in the organization.”

Significance

An organisation must develop adaptability to change otherwise it will either be left behind

or be swept away by the forces of change.

Organisational change is inevitable in a progressive culture.

Modern organizations are highly dynamic, versatile and adaptive to the multiplicityof

changes.

It is largely structural in nature.

An enterprise can be changed in several ways. Its technology can be changed, its structure,

its people and other elements can be changed.

Organisational change calls for a change in the individual behaviour of the employees.

Organizations survive, grow or decay depending upon the changing behaviour ofthe

employees.

Most changes disturb the equilibrium of situation and environment in which the
individuals or groups exist.

If a change is detrimental to the interests of individuals or groups, they will resist the

change.

Causes of organizational change:

External Pressures:
1. Change in Technology and Equipment:Advancements in technology is the major cause

(i.e., external pressure) of change. Each technological alternative results in new forms of

organization to meet and match the needs.

2. Market Situation: Changes in market situation include rapidly changing goals, needs and

desires of consumers, suppliers, unions etc. If an organization has to survive, it has to cope

with changes in market situations.

3. Social and Political Changes: Organizational units literally have no control over social and

political changes in the country. Relations between government and business or drive for

social equality are some factors which may compel for organizational change.

Internal pressures (pressures for change from within the organisation):

1. Changes in the Managerial Personnel: One of the most frequent reasons for major

changes in the organization is the change of executives at the top. No two managers have

the same style, skills or managerial philosophies.

2. Deficiencies in the Existing Organization: Many deficiencies are noticed in the

organizations with the passage of time. A change is necessary to remove suchdeficiencies

as lack of uniformity in the policies, obstacles in communication, any ambiguity etc.

3. Other Factors: Certain other factors such as listed below also demand a change in the

organization.

Employee’s desire to share in decision-making

Employee’s desire for higher wage rate

Improvement in working conditions, etc.

Response to Organizational Change:

Every change is responded by the people working in the organization. These responses may
be positive or negative depending upon the fact as how they affect people.
Before introducing a change, the manager should study and understand employee’s attitudes
so as to create a positive response. Three sets of factors-psychological, personal and social-
govern the attitude of people.

PROCESS OF ORGANIZATIONAL CHANGE:

Unless the behavioral patterns of the employees change, the change will have a little impact
on the effectiveness of the organization.

A commonly accepted model for bringing change in people was suggested by Kurt Lewin in

terms of three phase process:-

(1) Unfreezing:

The essence of unfreezing phase is that the individual is made to realize that his beliefs,
feelings and behaviour are no longer appropriate or relevant to the current situation in the
organisation. Once convinced, people may change their behaviour. Reward for those willing
to change and punishment for others may help in this matter.

(2) Changing:

Once convinced and ready to change, an individual, under this phase, learns to behave in
newways. He is first provided with the model in which he is to identify himself. Gradually he
will accept that model and behave in the manner suggested by the model. In another process
(known as internalisation), the individual is placed in a situation where new behaviour is
demanded of him if he is to operate successfully.

(3) Refreezing:

During this phase, a person has to practice and experiment with the new method of behaviour
and see that it effectively blends with his other behavioural attitudes. Reinforcement, for
creating a permanent set in the individual, is provided through either continuous or
intermittent schedules.

Resistance to organizational change:

Resistance to change is perhaps one of the baffling problems a manager encounters because it
can take many shapes. People may resign, they may show tardiness, loss of motivation to
work, increased absenteeism, request for transfer, wild-cat strikes, shoddy work, reduction in
productivity etc.
Classification of resistance to change:

Individual Resistance:

Economic Reasons:

1. Obsolescence of Skills:

When a person feels that with the introduction of newer processes, his skills will just

become obsolete, he will resist the change. For example, a twenty years experienced

accountant is quite likely to resist the introduction of a computer for preparing the wage

bills because he feels that might affect his pay and position.

2. Fear of Economic Loss:

People resist change if it opens the possibility of lowering their income directly or

indirectly.

Personal Reasons:

1. Ego Defensiveness:

A sales manager may turn down the suggestions of a salesman simply because the manager

perceives that his ego may be deflated by accepting the suggestion.

2. Status Quo:

Most of the people feel comfortable with status quo and strongly resist change as it may

involve uncertainty and risk.

3. Fear of Unknown:

Change presents unknown and unknown poses a constant threat and sores people. For fear

of unknown, a manager may refuse promotion that requires his relocating in another

state.
Social Reasons:

Social Displacement:

Introduction of change (e.g., relocating) may result in breaking up of work groups and thus
result in disturbance of the existing social relationships of people.

1. Peer Pressure:

Whenever change is unwilling to the peers, they force the individual subordinate employees

who are bent of accepting the change, to resist it.

2. Organizational Resistance:

Resistance may also be present at organizational level. Some organizations are so designed

that they resist innovations.

Some of the reasons of organizational resistance are:

1. Threats to Power and Influence:

Some people (especially sitting at the top levels) resist change because they feel that a

change might affect their position, power and influence in the organization.

2. Organizational Structure: Some organization structures (e.g., bureaucratic structure)

have inbuilt mechanism for resistance to change.

3. Resource Constraints: Non-availability of financial, material and human resourcesmay

also act as a resistance to change.

4. Sunk Cost: In some companies, heavy capital is blocked in the fixed or permanent assets.
If such an organization wishes to introduce change, then difficulty arises because of these
sunk costs.

5. Overcoming Resistance to Organizational Change: Change creates tension and

emotional turmoil in the minds of employees. Change thus results in resistance quite
frequently, negative reactions doom the success of the change program especially when a
manager is unable to handle it properly
TECHNIQUES TO HANDLE THE CHANGE PROPERLY AND TO DEAL WITH

RESISTANCE TO CHANGE ARE:

1. Education and Communication: One of the easiest techniques to overcome resistance to

change is to educate the people who resist it. In many cases, people do not properly

understand the change and hence become afraid of its consequences and resist change.

2. Participation and Involvement: If subordinates are allowed to participate and involve

themselves in the change process (decision-making regarding the implementation of the

change), their misunderstandings about the consequences of change are cleared, they

generally feel satisfied and do not oppose change.

3. Support: Support may be facilitative and emotional. Managers sometimes deal with

potential resistance by being supportive. This includes listening, providing emotional

support, providing training in new skills etc.

4. Incentives: Offering incentive is another fruitful way to overcome resistance to change.

5. Manipulation: Managers generally indulge in manipulation when all other tactics have

failed to overcome resistance to change.

6. Coercion: At times, there is no way except to deal with resistance coercively. People are

forced to accept change by threatening them with loss of their jobs, promotion possibilities

and so forth.