Professional Documents
Culture Documents
Thomson Learning
© 2004 13-1
Marketing – Manufacturing
Areas of Potential Goal Conflict
MARKETING VS. MANUFACTURING
Operative goal is Operative goal is
Goal Conflict customer satisfaction production efficiency
Conflict Area Typical Comment Typical Comment
Breadth of product line: “Our customers “The product line is too
demand variety.” broad, all we get are
short, uneconomical runs.”
New product introduction: “New products are our “Unnecessary design changes
lifeblood.” are prohibitively expensive.”
Production scheduling: “We need faster response. “We need realistic customer
Lead times are too long.” commitments that don’t
change like the wind direction
Physical distribution: “Why don’t we ever have “We can’t afford to keep huge
the right merchandise inventories.”
in inventory?”
© 2004
and Victoria L. Crittenden, Lorraine R. Gardiner, and Antonie Stam,
“Reducing Conflict Between Marketing and Manufacturing,”
Industrial Marketing Management 22 (1993): 299-309.
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Sources of Conflict and Use of
Rational vs. Political Model
When Conflict Is When Conflict Is
Sources of
Low, High,
Potential Organization
Rational Model Political Model
Inter-group Variables
describes describes
Conflict organization organization
Consistent across Goals Inconsistent, pluralistic
participants within the organization
Legitimate power
Reward power
Coercive power
Expert power
Referent power
Thomson Learning
© 2004 13-4
Power vs. Authority
POWER
Ability to influence others to bring about
desired outcomes
AUTHORITY
Flows down the vertical hierarchy
Prescribed by the formal hierarchy
Vested in the position held
Thomson Learning
© 2004 13-5
Vertical Sources of Power
Formal Position
Resources
Network Centrality
Thomson Learning
© 2004 13-6
Horizontal Sources of Power
High
Power
350
325
300 Sales
275 Production
250
R&D
225
200 Finance
175
150
125
Low
Co. B Co. C Co. I Avg.
Power
Thomson Learning
© 2004
Source: Charles Perrow, “Departmental Power and Perspective
in Industrial Firms,” in Mayer N. Zald, ed., Power in Organizations
(Nashville, Tenn.: Vanderbilt University Press, 1970), 64.
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Strategic Contingencies That Influence
Horizontal Power Among Departments
Dependency
Financial Resources
Nonsubstitutability
Thomson Learning
© 2004 13-8
Power and Political Tactics in
Organizations
Tactics for Increasing Tactics for Enhancing
the Power Base Political Tactics for Using Collaboration
Power
1. Enter areas of high 1. Build coalitions 1. Create integration
uncertainty devices
2. Create dependencies 2. Expand networks 2. Use confrontation and
negotiation
3. Provide resources 3. Control decision premises 3. Schedule inter-group
consultation
4. Satisfy strategic 4. Enhance legitimacy and 4. Practice member
contingencies expertise rotation
5. Make preferences explicit, 5. Create superordinate
but keep power implicit goals
Thomson Learning
© 2004 13-9
Negotiating Strategies
Win-Win Strategy Win-Lose Strategy
1. Define the conflict as a 1. Define the conflict as a
mutual problem win-lose situation
2. Pursue joint outcomes 2. Pursue self outcomes
3. Find creative agreements 3. Force other group into
that satisfy both groups submission
4. Use open, honest, and 4. Use deceitful, inaccurate
accurate communication communication
5. Avoid threats 5. Use threats
6. Communicate flexibility 6. Communicate rigidity
Thomson Learning
© 2004
Source: Adapted from David W. Johnson and Frank P. Johnson,
Joining Together: Group Theory and Group Skills (Englewood Cliffs,
N. J.: Prentice-Hall, 1975), 182-83.
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