Fundamentals of Management, 8th ed

F I G U R E 1 3 . 5

The Nature of Organizational Conflict

Either too much or too little conflict can be

dysfunctional for an organization. In either case,

performance may be low. However, an optimal level

of conflict that sparks motivation, creativity,

innovation, and initiative can result in higher levels of

performance.

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Part 4: Leading

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Another manager might believe that a variety of software packages should be allowed,

in order to accommodate individuality. Similarly, a male manager may disagree with

his female colleague over whether the organization is guilty of discriminating against

women in promotion decisions. Conflict can also result from excess competitiveness

among individuals. Two people vying for the same job, for example, may resort to

political behavior in an effort to gain an advantage. If either competitor sees the other’s

behavior as inappropriate, accusations are likely to result. Even after the “winner” of

the job is determined, such conflict may continue to undermine interpersonal relation-

ships, especially if the reasons given in selecting one candidate are ambiguous or open

to alternative explanations. Acer CEO and President Gianfranco Lanci resigned due to

several months of unresolved conflict with the company’s board of directors. Lanci and

the board had differing views on organizational growth, customer value creation, brand

position enhancement, and resource allocation. Lanci pushed strongly for a move into

the mobile segment to compete with Apple’s iPad, while the board wanted to maintain

its core PC business.

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