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Chapter 12

BUSI 3103 Chapter Notes - Chapter 12: Policy, Group Conflict, Centrality

Course Code
BUSI 3103
Rumisa Shaukat

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Intergroup conflict: can be defined as the behaviour that occurs among organizational groups
when participants identify with one group and perceive that other groups may block their group's
goal achievement or expectations.
Intergroup conflict requires three ingredients: group identification, observable group differences,
and frustration.
Competition: is rivalry among groups in the pursuit of a common prize, whereas conflict presumes
direct interference with goal achievement.
Sources of Intergroup Conflict: are goal incompatibility, differentiation, task interdependence, and
limited resources
Goal incompatibility: greatest cause of inter- group conflict in organizations. The achievement of
one department's goals often interferes with another department's goals.
Differentiation.: Functional specialization requires people with specific education, skills, attitudes,
and time horizons. Departments or divisions within an organization often differ in values, attitudes,
and standards of behaviour, and these subcultural differences lead to conflicts
Task Interdependence: refers to the dependence of one unit on another for materials, resources,
or information. Generally, as interdependence increases, the potential for conflict increases due to
dependence of work on other departments.
Limited Resources: Another major source of conflict involves competition between groups for what
members perceive as limited resources. In their desire to achieve goals, groups want to increase
their own resources which causes conflict.
Rational Model: behaviour is not random or accidental. Goals are clear and choices are made in a
logical way. The rational model is also characterized by centralized power and control, extensive
information systems, and an efficiency orientation
Political Model: When differences are great, organization groups have separate interests, goals,
and values. Disagreement and conflict are normal, so power and influence are needed to reach
decisions. Organizations that strive for democracy and participation in decision making by
empowering workers
Power: is the ability of one person or department in an organization to influence other people to
bring about desired outcomes. It is the potential to influence others within the organization with the
goal of attaining desired outcomes for power holders.
Legitimate power: is the authority granted by the organization to the formal management position
a manager holds.
Reward power: stems from the ability to bestow rewards to other people.
Coercive power: The authority to punish or recommend punishment is called.
Expert power: derives from a person's greater skill or knowledge about the tasks being performed.
Referent power: is derived from personal characteristics: people admire the manager and want to
be like or identify with the manager out of respect and admiration.
Authority: is also a force for achieving desired outcomes, but only as prescribed by the formal
hierarchy and reporting relationships
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