In the previous sections, you have learnt that it would be naive to think that conflicts in an organisation take place simply due to lack of understandingn between people. A large number of potential sources of conflict exist in organisational life as antecedent conditions and form a realistic basis for some conflicts. In this section, we shall quickly review some such sources.
•Competition for Limited Resources
Any group exists for the purpose of attaining some goals within the available resources. These resources may be tangible like men, materials,and money or intangible like power, status or the manager's time. No organisation can provide all the resources demanded by different units. If resources are limited, different groups have to compete for these and many conflicts may arise in such a situation.
•Diversity of Goals
Different groups in an organisation perform different functions and hencen develop their own norms and goals. Theoretically, achievement of these goals should help an organisation to fulfil its mission. But, in practice, it is possible that goals of one group may not be compatible with the goals of another group. Take, for example, a company which manufactures electric fans, which have seasonal demand. Three departments − marketing,production and finance − would be involved in various operations. Since the demand for the product is seasonal, the marketing manager would like to have sufficient stock. The production department will have to gear up its capacity during the season but if labour market is tight, s/he may find it difficult to hire labour temporarily and therefore suggest resorting to employment of people on a permanent basis. The finance manager may find the storage costs high and it may be expensive to keep stock build up.Besides, maintaining the production line during slack season imposes an additional burden.
This example shows that goals of different departments may be conflicting and one department may try to achieve its goals at the expense of another. This happens quite often when the reward system is linked to group performance rather than to overall organisational performance.Does such a source of conflict exist in your utility?
•Task Interdependence
Groups in an organisation do not function independent of one another.They have to interact with one another in order to accomplish their tasks.The sales department will have nothing to sell unless the production people generate power to meet the ever growing demand and for this the finance department has to provide adequate funds. Thus smooth interaction between various groups is essential for efficient functioning of the organisation. Three types of interdependences can cause inter-group conflict − pooled, sequential and reciprocal.
− Pooled interdependence exists when two groups, which do not interact with each other directly, are affected by each other' s actions. It is then possible that if one independent group performs poorly, all other groups may suffer financially. This can happen when rewards are contingent upon collective performance. For example, if T&D losses are high and metering/billing is faulty, the overall revenue generation will be low and adversely affect the interest of all in a power utility.
− Sequential interdependence occurs when one group's performance depends on another group's prior performance. In a constructionm project, for example, the excavating team must prepare the foundation before the masons can work on the building structure. Since the masons depend on the excavators, conflict between the groups can occur when the excavators' work is delayed.
− Reciprocal interdependence occurs when two or more groups are mutually interdependent in accomplishing their tasks. For example, in developing and marketing a new product, three major departments(marketing, production and research) depend on each other to perform their tasks. Information possessed by a department is needed by another department. That is, the research department needs market information and marketing needs research to provide customer services. When one group is unable to meet the expectations of another, inter-group conflict usually results.
Differences in Values and Perception
A lot of conflict is generated within organisations because various groups within a organisation hold 'conflicting' values and perceive situations in anarrow and individualistic manner. Management-labour conflict is a well known example. Labour nurtures the feeling that management is exploiting it, if in spite of making a profit, the latter does nothing for the economic welfare of the former. On the other hand, management feels that the profits should go to cash reserves so as to make the company an attractive proposition for investors. Can you think of a similar situation in your power utility?
•Organisational Ambiguities
Conflict may emerge when two organisational units compete over a new responsibility. Inter-group conflict stemming from disagreement about who has the responsibility for ongoing tasks is an even more frequent problem.Newcomers to organisations are often struck by the ambiguity that exists about job responsibilities. Few organisations make extensive use of job descriptions or periodically update the job descriptions. Further, it is rare that a manager or employee consults her/his own job description.
•Introduction of Change
Change can breed inter-group conflict. Acquisitions and mergers, for example, encourage inter-group conflict, competition, and stress. When one organisation is merged into another, a power struggle often sets in between the employees of the acquiring and acquired companies. To minimise conflict, it is important to lay down plans for power sharing before the acquisition or merger is consummated. Frequently, the acquired company is given representation on the Board of Directors of the acquiring company. Nevertheless, power struggles are difficult to avoid. In the power sector, this is a newly emerging phenomenon wherever state owned subsidiaries are being privatised. You will learn more about change management in the next block.
•Nature of Communication
One of the major fallacies abounding about conflict is that poor communication is the cause of all conflicts. A typical statement is: ‘if we could just communicate with each other well, we could eliminate our differences.’ Since we have very little time for communicating with one another, considering the workload most of us have, conflict due to poor communication can arise unknowingly. In fact, the potential for conflict increases when either too little or too much communication takes place. Apparently, an increase in communication is functional only up to a point;over-communication can result in potential for conflict. That is, too much or too little information sharing can lay the foundation for a conflict.
•Aggressive Nature of People
Another factor that has immense potential for generating conflict within an organisation is personality characteristics that account for individual differences. Evidence suggests that certain personality types − for example, individuals who are highly authoritarian, arrogant, autocratic or dogmatic − lead to potential conflict. People have a natural need to find an outlet for their aggressive tendencies. Organisations are sometimes used as arenas for expression of aggression − ' blowing off steam' − leading to conflict.
This discussion on the sources of conflict is intended to emphasise that no organisation can remain conflict-free for all times. However, these sources are not to be confused with the causes of a conflict. A conflict, in ultimate analysis, is caused by perceptions and feelings people experience when an incompatibility exists between what they want and what someone else wants. When perception of incompatibility and feeling of frustration are translated into Some other sources of conflict may be enumerated as follows:
•Competition for Limited Resources
Any group exists for the purpose of attaining some goals within the available resources. These resources may be tangible like men, materials,and money or intangible like power, status or the manager's time. No organisation can provide all the resources demanded by different units. If resources are limited, different groups have to compete for these and many conflicts may arise in such a situation.
•Diversity of Goals
Different groups in an organisation perform different functions and hencen develop their own norms and goals. Theoretically, achievement of these goals should help an organisation to fulfil its mission. But, in practice, it is possible that goals of one group may not be compatible with the goals of another group. Take, for example, a company which manufactures electric fans, which have seasonal demand. Three departments − marketing,production and finance − would be involved in various operations. Since the demand for the product is seasonal, the marketing manager would like to have sufficient stock. The production department will have to gear up its capacity during the season but if labour market is tight, s/he may find it difficult to hire labour temporarily and therefore suggest resorting to employment of people on a permanent basis. The finance manager may find the storage costs high and it may be expensive to keep stock build up.Besides, maintaining the production line during slack season imposes an additional burden.
This example shows that goals of different departments may be conflicting and one department may try to achieve its goals at the expense of another. This happens quite often when the reward system is linked to group performance rather than to overall organisational performance.Does such a source of conflict exist in your utility?
•Task Interdependence
Groups in an organisation do not function independent of one another.They have to interact with one another in order to accomplish their tasks.The sales department will have nothing to sell unless the production people generate power to meet the ever growing demand and for this the finance department has to provide adequate funds. Thus smooth interaction between various groups is essential for efficient functioning of the organisation. Three types of interdependences can cause inter-group conflict − pooled, sequential and reciprocal.
− Pooled interdependence exists when two groups, which do not interact with each other directly, are affected by each other' s actions. It is then possible that if one independent group performs poorly, all other groups may suffer financially. This can happen when rewards are contingent upon collective performance. For example, if T&D losses are high and metering/billing is faulty, the overall revenue generation will be low and adversely affect the interest of all in a power utility.
− Sequential interdependence occurs when one group's performance depends on another group's prior performance. In a constructionm project, for example, the excavating team must prepare the foundation before the masons can work on the building structure. Since the masons depend on the excavators, conflict between the groups can occur when the excavators' work is delayed.
− Reciprocal interdependence occurs when two or more groups are mutually interdependent in accomplishing their tasks. For example, in developing and marketing a new product, three major departments(marketing, production and research) depend on each other to perform their tasks. Information possessed by a department is needed by another department. That is, the research department needs market information and marketing needs research to provide customer services. When one group is unable to meet the expectations of another, inter-group conflict usually results.
Differences in Values and Perception
A lot of conflict is generated within organisations because various groups within a organisation hold 'conflicting' values and perceive situations in anarrow and individualistic manner. Management-labour conflict is a well known example. Labour nurtures the feeling that management is exploiting it, if in spite of making a profit, the latter does nothing for the economic welfare of the former. On the other hand, management feels that the profits should go to cash reserves so as to make the company an attractive proposition for investors. Can you think of a similar situation in your power utility?
•Organisational Ambiguities
Conflict may emerge when two organisational units compete over a new responsibility. Inter-group conflict stemming from disagreement about who has the responsibility for ongoing tasks is an even more frequent problem.Newcomers to organisations are often struck by the ambiguity that exists about job responsibilities. Few organisations make extensive use of job descriptions or periodically update the job descriptions. Further, it is rare that a manager or employee consults her/his own job description.
•Introduction of Change
Change can breed inter-group conflict. Acquisitions and mergers, for example, encourage inter-group conflict, competition, and stress. When one organisation is merged into another, a power struggle often sets in between the employees of the acquiring and acquired companies. To minimise conflict, it is important to lay down plans for power sharing before the acquisition or merger is consummated. Frequently, the acquired company is given representation on the Board of Directors of the acquiring company. Nevertheless, power struggles are difficult to avoid. In the power sector, this is a newly emerging phenomenon wherever state owned subsidiaries are being privatised. You will learn more about change management in the next block.
•Nature of Communication
One of the major fallacies abounding about conflict is that poor communication is the cause of all conflicts. A typical statement is: ‘if we could just communicate with each other well, we could eliminate our differences.’ Since we have very little time for communicating with one another, considering the workload most of us have, conflict due to poor communication can arise unknowingly. In fact, the potential for conflict increases when either too little or too much communication takes place. Apparently, an increase in communication is functional only up to a point;over-communication can result in potential for conflict. That is, too much or too little information sharing can lay the foundation for a conflict.
•Aggressive Nature of People
Another factor that has immense potential for generating conflict within an organisation is personality characteristics that account for individual differences. Evidence suggests that certain personality types − for example, individuals who are highly authoritarian, arrogant, autocratic or dogmatic − lead to potential conflict. People have a natural need to find an outlet for their aggressive tendencies. Organisations are sometimes used as arenas for expression of aggression − ' blowing off steam' − leading to conflict.
This discussion on the sources of conflict is intended to emphasise that no organisation can remain conflict-free for all times. However, these sources are not to be confused with the causes of a conflict. A conflict, in ultimate analysis, is caused by perceptions and feelings people experience when an incompatibility exists between what they want and what someone else wants. When perception of incompatibility and feeling of frustration are translated into Some other sources of conflict may be enumerated as follows:
Potential Sources of Conflict and Resultant Orientations |
• People in a group are likely to experience conflict when they have more concern for self (i.e., selfishness). Conflict generates if members have a narrow perspective resulting in a focus on short-term gains. The group is likely to remain in conflict till the members broaden their perceptions by working for ‘super-ordinate goals’.
• Superordinate goals are necessary for all members in a group but cannot be achieved individually. On a long term perspective, conflict can be prevented when members realise that the interests of all can be served by collective efforts.
• Conflict often arises when available resources have to be shared within groups or between individuals. When members perceive that their share in the resources is limited, they tend to contest.• When power is perceived as limited, group members develop lack of trust which leads to conflict. A situation in which members feel that power is being shared, leads to trust amongst them.
• Stereotyping may result in a group if ideologies differ which ultimately lead towards conflict. If members accept varied ideologies in spite of differences, understanding may ensue.
• Sometimes conflict arises in a group when members realise that uniform norms breed intolerance. If members feel that norms take into account the diversity, they can learn tolerance.
• Another source of conflict may be the dynamics of relationships. In dependent roles, the members perceive the chances of
dominance/submission which result in conflicts and stereotyped relations.
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