BBA Principle Management Conflict Coordination Study Material Notes

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BBA Principle Management Conflict Coordination Study Material Notes

BBA Principle Management Conflict Coordination Study Material Notes: Concept of conflict  Functional and Dysfunctional aspects of conflict functional aspect of conflict dysfunctional aspect of conflict individual-level conflict goal conflict interpersonal conflict role conflict Horizontal conflict causes of interpersonal conflict intergroup conflict vertical conflict Establishment of common goals structural rearrangement conflict management coordination conflict resolution actions :

BBA Principle Management Conflict Coordination Study Material Notes
BBA Principle Management Conflict Coordination Study Material Notes

MCom I Semester Employees Learn Culture Study Material Notes

FUNCTIONAL AND DYSFUNCTIONAL ASPECTS OF CONFLICT

A basic question that arises is whether conflict has only a dysfunctional aspect or it generates functional utility to the organisation under some conditions. This question becomes important because for long, conflict has been held as a villain for organisational functioning, but at the same time, behavioural scientists have been trying to use conflict in a constructive way. It suggests that under some situations, conflict can generate positive response in the organisation. Thus, a conflict may have both positive and negative aspects. For example, Boulding has recognised that some optimum level of conflict and associated personal stress and tension are necessary for progress and productivity, but he portrays conflict primarily as a potential and social cost. Similarly, Kahn and others view that one might well make a case for interpreting some conflict as essential for the continued development of mature and competent human beings, they feel that conflict is a social cost. These views suggest that under some circumstances conflict may be functional but in other cases, it is dysfunctional. Let us analyse both these aspects.

Functional Aspect of Conflict

Most experts today view conflict as a potentially useful aspect of organisation. It is claimed that an organisation void of constructive conflict is an organisation void of excitement, diversity, and viability. Conflict prevents stagnation; stimulates interest and curiosity. Thus, a minimum level of conflict is necessary because it helps organisation in the following ways:

  1. Stimulant for Change. Conflict provides stimulus for change in the systems which are not conducive to the organisation. The existence of conflict means that there is something wrong with the systems of working. Thus, it spotlights problems that demand attention. forces clarification of their nature and sources, and channels organisational efforts towards finding better solution of the problems. This way, conflict can focus the areas where changes should be brought about
  2. Creativity and Innovation. Normally, a conflict of certain degree arouses creativity and innovation. In an atmosphere of open confrontation, people tend to put forward more! imaginative solutions to problems. A climate of challenge compels people to think through their own ideas before airing them out. Thus, a conflict can help people to test their capacities to learn and develop.
  3. Group Cohesion. Generally, a group shows more cohesion when it faces threat from ternal sources in the form of inter-group conflict. Group cohesion is a situation in which all members of the group work together for a common goal, or where everyone is ready to take responsibility for group cause. If group cohesion is high, interaction among members is high and the amount of agreement in group opinion is high. Thus, members can derive more satisfaction from group activities.
  4. Avoidance of Tension. Conflict can be used as a source of avoiding tension and frustration. People can express their tension and frustration by means of conflict. This helps in releasing tension and brings people back to normal situation.

Dysfunctional Aspect of Conflict

While the positive aspects of conflict are few and limited, negative aspects are many and serious. Conflict to the extent of healthy competition may produce better results but beyond that, it may be destructive. For example, conflict between management and workers has led the closure of many organisations or has turned them into loss-making units. Similarly, conflict between line and staff or interdepartmental conflict creates lot of problems in the organisation. In general, conflict may create following problems:

  1. Disequilibrium in Organisation. Conflict affects equilibrium of the organisation and produces disequilibrium. Every individual contributes something to the organisation and gets inducement in return. An organisation is said to be in equilibrium when contribution matches inducement for all or most individuals. When there is conflict, this equilibrium is affected adversely because the individuals’ contributions do not match their inducements as they are using some of their energies in conflictful behaviour. This creates problems to the organisation and ultimately to the individuals because an organisation cannot exist in this disequilibrium for long and, therefore, there is no question of engaging individuals in it. However, if an organisation continues to exist, it will try to bring equilibrium either by getting rid of such individuals whose contributions do not match their contributions, or by modifying them to increase their contributions. The similar process will also take place when contributions exceed inducements. In any case, conflict creates disequilibrium.
  2. Stress and Tension. While group cohesion provides satisfaction, conflict creates tension and stress. It exacts its toll on the physical and mental health of parties to the conflict. Intense conflict generates feelings of anxiety. guilt, frustration, and hostility. A win-lose situation is created in the organisation in which winners try to injure the feelings of defeated. This may create serious coordination and interpersonal or interdepartmental problems.
  3. Diversion of Energy. The most important dysfunctional aspect of conflict is that it leads to diversion of energy from constructive activities to destructive activities. People try to focus more on their personal goals rather than organisational goals. They spend more time on designing tactics for winning in conflictful situation rather than pursuing organisational goals. Long-term goals of the organisation begin to suffer as short-term problems become more important. In extreme cases, even sabotage and illegal activities may take place.

Thus, it can be seen that conflict will ultimately result in destructive activities. Therefore, It is necessary that management takes adequate steps either to eliminate the emergence of unnecessary conflict or, if generated, to turn it into constructive one. This requires understanding of conflict and its management. Though conflict may arise at various levels and in various forms, its intensity is felt in terms of individual and group level. Thus, conflict can be analysed at individual level-goal conflict, role conflict-and interpersonal and intergroup level.

INDIVIDUAL-LEVEL CONFLICT

The analysis of conflict may start at individual level because organisation is composed of individuals and many conflicts may arise at this level. Though there should be two parties to the conflict, it may arise within an individual because of lack of smooth progression of the need-drive-goal cycle. Within an individual, there are usually a number of competing goals and roles. Thus, there may be goal conflict and role conflict within an individual. Besides, there may be interpersonal conflict when two individuals interact

Goal Conflict

Goal conflict occurs at individual level when an individual faces the problem of choosing among two or more goals which are mutually competing in some way. Existence of mutuallycompeting goals may lead to three possible alternatives: approach-approach conflict, approach-avoidance conflict, and avoidance-avoidance conflict.

  1. Approach-approach Conflict. This conflict arises when a person faces the problem of selecting among two or more equally attractive goals which are mutually exclusive. Conflict arises in the mind of the person because he can choose only one alternative at the cost of another equally positive alternative. However, this type of problem is not very serious in the context of organisational functioning.
  2. Approach-avoidance Conflict. This conflict arises when a person has an alternative which has both positive and negative aspects, for example, a person gets job opportunity but at a place which he does not like. Therefore, he feels a conflict as he has got a job (positive aspect) but does not like the place of job (negative aspect).
  3. Avoidance-avoidance Conflict. This conflict arises when a person has to choose between two mutually exclusive goals, each of which possesses equally negative aspect. In such a case, unless another alternative is available, the conflict remains unresolved. For example, a person may not like his present job but the alternative of leaving and looking for another job may be equally unattractive.

Goal conflict has important implication for integrating individual and organisational goals. While approach-approach conflict may be mildly distressing for the people, other goal conflicts may be quite harmful for the organisation as well as for the individuals. Therefore, the general approach of the management should be to resolve goal conflict by building compatibility between personal and organisational goals.

Role Conflict

A role is a set of expectations people have about the behaviour of a person in a position. Such a behaviour may be formally prescribed by job description, delegation, organisational manual, and the likes and is derived from tasks, missions, procedures, or instructions. Role may also be derived from informal activities in which members may be engaged. Role conflict occurs when expectations of a role are materially different or opposite from the behaviour anticipated by the person in that role. He may feel role conflict because there is no way to meet one expectation without rejecting the other. Mutually exclusive expectations may arise from a person’s behaviour in four ways: (0) when a person is asked to do a job for which he is not capable of doing or time and resources are not just sufficient to do the job:

when the person is asked to do a job which does not fit with his own value system, for mole, giving bribe to an officer and getting things done; (II) when the person receives different sources but these sources prescribe different behaviour, for example, a tered Accountant may adopt accounting practices according to guidelines prescribed by the Institute of Chartered Accountants of India but he is asked to follow am in the organisation; (iv) when the person holds two or more roles and their expect he is asked to follow different practices dulterent, for example, a worker may be a member of works committee of his more roles and their expectations are and he has to make a decision, unfavourable to workers, in committee of his organisation other members from management side. In all these situations, the person may CAP role conflict because he fails to satisfy all expectations of his role. Reasons for Role Conflict. Normally all those factors which are associated determination of role expectations may be responsible for role conflict because arises due to mutually exclusive role expectations. Such factors responsible for foie may be grouped broadly in three categories: role ambiguity, organisational position personal characteristics.

  1. Role Ambiguity. Role ambiguity occurs when an individual is not clear regarding his jou duties and responsibilities. As a result, he experiences difficulties in deciding the actual expectations from his role. For example, the role of medical/sales representatives is not defined properly and they are not clear whether they have to sell the products or merely meet the doctors to convince them about the products of their company. In such a case, they may experience role conflict because they are not clear about what to do.
  2. Organisational Positions. Organisational positions also affect the role ambiguity and consequently role conflict. This happens because there are different expectations from a position; each individual or group of individuals has particular expectations which may not be compatible. For example, supervisor’s position is such in an organisation. Generally. he is called a ‘marginal man’ or ‘man in the middle’. There are different expectations from supervisors. One set of expectations from his role is that he is part of management team and should have the corresponding values and attitudes. A second set of expectations is that he came from the workers’ group and should have their values and attitudes. A third set expects that he is a separate link between management and workers and, therefore, he should have separate values and attitudes. Naturally conflict arises in the mind of a supervisor as to which expectations he should fulfil.
  3. Personal Characteristics. Role conflict may also arise because of personal characteristics. Certain personality characteristics are more prone to experience role conflict. For example, introverts develop social relationships that are easily undermined by conditions of stress. Similarly, emotionally-sensitive persons show higher tension for any given degree of objective conflict. An individual who is strongly achievement-oriented exhibits a high degree of personal involvement with his job, and the adverse effects of role conflict are more pronounced for him than those who are less involved.

Role conflict has serious dysfunctional effects as it provides conflicting situation where the effort of human beings can go in waste because they do not work the way in which they should apply themselves. Therefore, management should take steps to avoid role conflict as far as possible by prescribing role expectations clearly. This can be done by proper lobi description, clarity in authority and responsibility, and setting proper organisational climate.

INTERPERSONAL CONFLICT

In an organisational setting, there may be several forms of interpersonal conflicts, such as the hierarchical conflict between various levels of management, functional conflict between Occupational specialists, professional vs. professional conflict, and so on. These conflicts may be interpreted in two forms: vertical and horizontal conflicts.

Vertical Conflict

Vertical conflict, also known as hierarchical conflict, arises between superior and subordinates. Individuals in a superior-subordinate relationship have many organisational cross-pressures operating on them. The following examples indicate the sources of potential conflict:

Vertical conflict usually arises because superior attempts to control the behaviour of his subordinates, and subordinates resist such control. A subordinate may resist such control as he feels that his superior tries to control activities outside the scope of his control and he perceives conflict with his superior and the latter may feel when his attempt of control is thwarted. He is likely to interpret subordinate’s resistance as due to resentment of the exercise of personal power. This perception of the behaviour may be grounded either on realities or may be due to misunderstanding between superiors and subordinates.

The non-resolution of this conflict may not necessarily terminate the relationship; however, this may become a serious problem to the efficiency of the organisation. More differences between superior and subordinate may create more conflict between them which ultimately adds more inefficiency in the organisation. It may be argued that a superior enjoys hierarchical support because of his position in the authority relationship: he may suppress the conflict and, thereby, he can remove its consequence. But it is not possible as he may be denied the full cooperation of his subordinates and he may be proved to be poor superior thereby causing his position weak in the organisation.

Horizontal Conflict

Horizontal conflict at the interpersonal level is among the persons at the same hierarchical level in the same function or in different functions. Within each functional group, there may be many individuals and these individuals interact among themselves. Such interactions may be contacts for the purpose of giving, taking, and soliciting advice, counsel. information, and skilled assistance on difficult problems. These interactions may be cooperative or conflicting depending on the nature of persons involved in interactions and situational variables.

Causes of Interpersonal Conflict

The major reasons for interpersonal conflict emerge out of two variables: personal and situational

Nature of Persons. The types of persons involved in the interaction process determine to a great extent the degree to which the interaction may be cooperative or conflicting. Following factors are important in this context:

  1. Ego States. People interact with particular ego states. Ego states are the person’s way of thinking, feeling, and behaving at any particular time. If ego states are not complementary. the conflicting situations take place. Since, people are not aware about others adequately. often such situations arise. Lack of complementary ego states may ultimately lead to interpersonal conflict.
  2. Value Systems. People having different dominant value systems may develop conflict in their interaction. Value system is a framework of personal philosophy which governs and influences individual reactions to any situation. Thus, people having different value systems may interpret the things and situations differently which may reflect the choice of different methods of working and behaving. Such differences become the basis of interpersonal conflict. 3. Socio-cultural Factors. People coming with different social and cultural backgrounds may develop conflict among themselves. Many interpersonal conflicts based on caste, religion. region, and family background are based on socio-cultural differences. These differences may lead people to perceive the personal interests as conflicting. Situational Variables. The various factors discussed above are related with the persons concerned who are interacting among themselves. There may be several situational factors which also generate interpersonal conflict. These factors either generate the conditions under which the persons having personal differences may heighten these or may sink these differences. If the differences are heightened, these may lead to conflict. Following are the major situational variables which generate conflicting relationships:
  3. Interest Conflict. The most important situational variable is when people in a group or in intergroup see their interest differently. This may not be because of the basic nature of the people but may generate because of the situations. People have different permutations and combinations in order to protect their self-interest if the situation so warrants. Though such grouping of persons may be based on several other factors, as discussed in Chapter 11. often the conflict of interpersonal interest is one of the main reasons.
  4. Role Ambiguity. As discussed earlier, role ambiguity is one of the reasons for role conflict. However, it may also develop into inter-role conflict specially if various interacting roles have not been clearly specified. Thus, organisation structure itself may be responsible for such type of conflicts.

INTERGROUP CONFLICT

Groups exist in every organisation both at formal as well as at informal level. There may be conflict within the group or conflict among groups. The first kind of conflict is mostly interpersonal. Therefore, intergroup conflict becomes more important form of group conflict. Intergroup conflict arises because of interaction of various groups. There are various factors which determine intergroup relationships. They may either create a harmonising situation or conflicting situation among groups. These factors are as follows:

  1. Incompatible Goals. The goals of two groups may have powerful impact on their relationship. Each group tries to accomplish its own goals. Intergroup conflict arises when goals of two or more groups are incompatible, that is, goal attainment by one group may prevent or reduce the level of goal attainment of one or more groups. The conflict between production and marketing is a classic example of such conflict. Line and staff conflict, as discussed earlier, or labour-management conflict arises because two groups have different sets of goals. For example, labour wants more wages which means reduction in profit while management wants more profit which means reduction in wages.
  2. Resource Sharing. The relationship between two groups can be affected by the degree to which the groups draw resources from a common pool, and the degree to which this common pool is not adequate to meet the demands of both the groups. Conflict arises because of discrepancy between aggregated demand and available resources. Each party

Principles and Practice of Management to the conflict has an interest in making total resources as large as possible but also m securing as large a share of them as possible. Since resources are scarce and limited, most of the groups (departments) Jockey for resources. In their anxiety of achieving their goals. groups try to cut a bigger slice of the common pool of resources. This tendency leads to intergroup conflict.

  1. Task Interdependence. Task interdependence refers to the dependence of one unit on another for resources or information. Each group in the organisation is related with others as these are created through organisation structure. A dependent task relationship may result in one group having the ability to dictate or unilaterally determine the outcome of interaction between two groups. This happens when one group exceeds its authority and conflict arises. For example, line-staff conflict often arises if staff department exceeds its advisory role.
  2. Absorption of Uncertainty. Organisation and its various groups may experience uncertainties of various types because they interact with the environment. In order to absorb such uncertainties, certain groups are assigned activities to prescribe the way. Thus, a group may prescribe the way in which the group itself or other groups may absorb uncertainty. This, then, becomes the basis of decision making for other groups. For example. accounting department may prescribe the rules for travelling expenses for marketing personnel so that they know how to spend on travelling. Conflict arises when uncertainty absorption by one group is not in accordance with the expectations of other groups. For example, condition for conflict exists when marketing department finds that travelling rules prescribed by accounting department are not adequate or efficient.
  3. Attitudinal Sets. The sets of attitudes that members of various groups hold towards others can be a cause of conflict among groups. If the group relations begin with the attitudes of distrust, competitiveness, secrecy and closed communication, there is a possibility that group relationships will become hostile rather than cooperative.
  4. Joint Decision-making Process. Because of interdependence, groups involve in joint decision-making process. This process may not progress smoothly in the following circumstances: (1) if people have different sources of information: (11) if there are leakages and blockages in the channels of information to different levels and departments; and (1) if the techniques for processing of information by different groups are different. In such circumstances, misunderstanding is created among various groups which ultimately generate conflict.

Conflict Management

Conflict beyond certain level is dysfunctional. Therefore, an attempt should be made to develop organisational procedures and practices through which organisation functions in coordinative way and reducing conflict. However, if conflict generates in the organisation for whatever the reason, management should take effective steps to resolve it. Thus, there can be two approaches of managing conflict: preventive measures and curative measures. In preventive measures, attempts are made to create situations in which conflict does not take place while curative measures deal with resolving conflict amicably so that its dusfunctional aspect is minimised. Such preventive and curative measures may be taken terms of establishment of common goals, change in structural arrangement, and conflict olution actions. Application of these techniques will depend on the nature and causes in the organisation. Thus, if the conflict is not dysfunctional but it is leading to it can be even encouraged. However, it is unlikely that a confict is healthy competition, it can be even encourage constructive in the absence of proper organisational climate. A major part of on climate. A major part of organisational Cicvant to contlict management is built through common goals and proper structural arrangement.

Establishment of Common Goals

The basic strategy in this case may be to find out goals upon which groups and individuals can agree. Conflict can also be minimised by adopting appropriate incentive and rew systems. It has been observed that goal differentiation can be reduced through the use incentives designed to activities that benefit the larger system, as against those that concentrate on the interest of subunits. However, while taking such an action, it should be ensured that the incentive system so adopted is capable of motivating people for better performance.

Another method of reducing conflict arising out of goal differentiation is the reference to superordinate goal. A superordinate goal is a common goal that appeals to all the parties involved and cannot be achieved by the resources of a single party separately. In the case of reference to superordinate goal. conflicting parties may be brought together and they can sink their differences for the time being. For example, in the case of national emergency. various political parties cooperate together to face national emergency successfully while in normal situation, such parties can pursue their own goals. This concept can be applied in organisations also. For example, threat from external environment like government, competitors, etc., may bring various departments and people together to fight out the problem. However, the reference to superordinate goal cannot be applied always.

Structural Rearrangement

In many cases, structural rearrangement in some part or major part of the organisation can reduce dysfunctional conflicts, particularly when the conflicts are taking place because of such factors. Some structural arrangements are helpful in reducing the amount of conflicts. For example, Kahn and others suggest that conflict can be reduced by status systems, development of cycle of work, and providing opportunities to employees to complete and sharing in organisational rewards. In general, following structural arrangements help in reducing conflicts in the organisation:

1 Reduction in Interdependence. The potential for conflict is very great in situations or more departments have to work in an interdependent manner and share Therefore, conflict may be minimised by reducing interdependence among departments. In organisational situations, such interder organisational situations, such interdependence cannot be avoided se various departments are created to achieve organisational objectives.can be lessened by creating various units on the basis of selfcontained resources, and units using similar resources should be A better way to minimise conflict among interdependent units

  1. Exchange of Personnel. A better way to minimum of these units for specified period of time, specially if personnel of is to exchange personnel of these units for unit can be fitted well in another unit. An exchange of people is very similar to role reversal which is aimed at greater understanding between people of various units by forcing them to present and defend others’ position. When people understand the dimculties and problems of other units, they become more considerate about these and chances of conflict are lesser.
  2. Creation of Special Integrators. To solve problems of conflict, organisation may create provisions for the appointment of special integrators. These integrators can resolve problems arising out of interdependent relationship between two or more units. While appointing such integrators, care should be taken that they are well acceptable to interdependent units. Normally, they are more effective when they are viewed as high in influence, and mediators in conflicting situations. Similarly, they will work better if they have perception that they will be rewarded according to the total performance of groups they are integrating.
  3. Reference to Superior’s Authority. The organisation should keep provisions for referring conflict upward for its resolution particularly when the conflict cannot be solved at the levels of parties involved to the conflict. Since the superior has authority to dictate both the parties, he can succeed in bringing the conflicting parties together. However, this method should not be adopted quite frequently because it will resolve the particular conflict in question but may not be suitable for minimising the occurrence of conflict in the organisation.

Conflict Resolution Actions

Conflict-resolution actions are curative methods to overcome the problems of conflict. While the various measures discussed above help in minimising the occurrence of conflict, they do not guarantee the complete absence of conflict. Therefore, whenever conflict arises in the organisation, it should be resolved amicably so that its negative effect is reduced. There may be several types of conflict-resolution actions. For example, March and Simon have given four measures to overcome conflict: problem-solving. persuasion, bargaining, and politics. As against this, Lawrence and Lorsch have suggested three measures: confrontation, smoothing, and forcing. There may be other actions also which can be taken to resolve conflict in the organisation. The major conflict-resolution actions may be as follows which can be taken depending on the situations:

  1. Problem Solving. Problem-solving technique is the most suitable to deal with conflict when it arises out of misunderstanding of the parties to the conflict. In problem-solving process, an attempt is made to bring the parties together with the responsibility of solving! the mutual problems rather than merely finding the way to accommodate their respective perspectives. Questions of who is right and who is wrong is avoided, and emphasis is put on sharing of information through better communication to find out areas of common interest. This process leads to sharpen the areas of misunderstandings that lie in the conflict so that these can be dealt with adequately.
  2. Smoothing. Smoothing is the process of playing down differences that exist between parties to the conflict and emphasising common interests. Differences are suppressed and similarities are accentuated. During this process, both parties realise that they are not far apart as was first believed to be. With shared viewpoints on an issue, the ability to work is increased because misunderstanding, the common cause of cont This technique is very much similar to is very much similar to problem solving in that it tries to avoid misunderstanding between the parties but it Ending between the parties but it differs from that. In smoothing, attempt is bring two parties together by removing misunderstanding but not necessarily assing the problem of conflict. However, smoothing can be used only as a short-term measure for resolving conflict.
  3. Compromise. Compromise is a traditional technique of resolving conflict is a dennite loser or distinct winner. Each party is expected to give something of value cachange to get something. Compromise can be arrived at either througn the process bargaining or through mediation and arbitration. In bargaining, parties involved comulct may negotiate among themselves and can arrive at some decision on the basis of give and take. In mediation, there is third party intervention. However, third party wies that two parties arrive at certain mutually-agreed solution to the problem resulting come In arbitration, third party may give a verdict on the problem being acceptable to both the parties. In organisational situation, the common superior is in such a position that he can arbitrate on the problem.
  4. Confrontation. Confrontation is a technique in which parties to the conflict are left free to settle their score by mobilising their strengths and capitalising on the weaknesses of others. This technique is adopted specially when both the parties adopt very rigid stand and common superior does not want to interfere in their working. Through confrontation, parties involved may identify their weaknesses and can try to overcome them. In ultimate analysis, the parties will try to become stronger over the period of time. In this way. confrontation can be used as means for organisation development. However, confrontation cannot be used as a technique of resolving conflict and organisation development in all organisations. It may be desirable to use it if various units of the organisation are working on competitive spirit basis. Therefore, if the organisational climate cannot be developed on this line, the use of confrontation may be harmful in the long run.
  5. Avoidance. Against confrontation, avoidance involves withdrawal of parties from the scene of the conflict. When parties to the conflict fail to arrive at mutually agreed solution, they may detach from the problem believing that conflict avoidance is more mature and reasonable rather than involving into wasteful arguments and actions. They can take the chapter relating to conflict as closed. They stay out of conflict, ignore disagreement, and take no position on issues involved. Thus, this does not provide real solution of the problem but avoids the problem itself.

The various approaches of conflict management suggest that management can take a variety of actions. What actions are to be taken will depend on the nature of parties to conflict issues in it, and organisational resources available. In many cases, changes in organisational structure, processes, or value systems may be required. Comprehensive changes can be brought through the management of organisational change which will be taken up for discussion in the next chapter.

Coordination

When the organisation structure is designed and various organisational units are created. a problem emerges as to how to synchronise the operation of these units and people working therein so that they contribute their maximum to achieve organisational objectives. We have seen in the previous section that, often, conflicts emerge among various organisational functions and individuals. In order to overcome these problems, coordination is needed which is an integration or synchronisation of group efforts in the organisation. Theo Haimann has defined coordination as follows:

Coordination and Cooperation

Coordination should not be confused with cooperation, for two terms denote quite different meanings. The term ‘coordination’ is related with the synchronisation of efforts which have amount, time, and direction attributes. For managers, it is a means of viewing in true perspective of work of a particular unit or department of which they may be incharge. Cooperation is basically a motto: a collective action of one person with another or other reasons towards a common goal. The basic motto behind cooperation is ‘each for all and all for each. Thus, basic differences between coordination and cooperation can be identified as follows:

1 Coordination is basically achieved through the performance of various activities. In , special efforts may be required for achieving coordination. Cooperation lly a motto and spirit. The motto of cooperation leads to the development of

System in which physical, biological, personal, and social elements are It is based on the assumption that every member of the cooperative system k in the general interest of the system as a whole and not for his interest.

  1. Cooperation leads to building of an institution, for example, cooperative society, etc. in fact, Barnard has visualised every organisation as cooperative social system Coordination being a process is required in all such institutions and organisations.
  2. The basic principles of coordination consist of direct contact, continuity of efforts. and reciprocal relations among persons whose efforts are to be coordinated. On the other hand, basic principles of cooperation include: (0 voluntary association. (to democratic process in performance of activities, (ii) common welfare, and (w) a spirit of dedication and service with absolute honesty and unquestionable integrity.
  3. In a given situation, cooperation may exist without coordination. The case of various cooperative societies and organisations based on the motto of cooperation is in point. In such organisations, there may be lack of coordination of efforts causing inefficiency. For, cooperation emphasises on the collective actions of members for certain common goals and any organisation may be cooperative. However, it is not necessary that coordination exists in all cases.
  4. The basic objective of coordination is the synchronisation of efforts of individuals in a work group so that no effort goes in waste. On the other hand, the basic objective of cooperation is to protect the interest of members of a cooperative group specially from the threats presented by conflicting groups. Need for Coordination Performance of various managerial functions in an integrated way ensures fair degree of coordination among individuals and departments. However, problems of coordination arise because of the presence of constant change, weak or passive leadership, and complexities inherent in large-scale organisations. In a large organisation, there are three types of such complexities which require special efforts for coordination: large number of personnel, functional differentiation, and specialisation.
  5. Large Number of Personnel. The increasing number of persons involved in large organisations complicates the problems of coordination. Each individual is unique, acting to serve his own needs as well as those of the organisation. Each has his own habits of work, his own background, approaches to situations, and relationships with others. Moreover, the individual does not always act rationally. His behaviour is not always well understood nor completely predictable. Therefore, it is not necessary that human beings perform their actions without regard to others and synchronisation in efforts may be lacking. Further, problems of coordination of a quite different character arise out of the perverseness of human beings in organisational settings. Individuals join the organisation as its members to fulfil their needs. Many times, these needs may be different from group needs and goals. In such a case, organisational and individual goals are not fully achieved. More is the number of individuals in an organisation, the higher will be the degree of such incompatibility. It is imperative for the organisational efficiency that both these goals are brought to a level of conformity, and management tries to integrate individual and group goals through coordination.
  6. Specialisation. There is high degree of specialisation in modern organisations. Specialisation arises out of the complexities of modern technology as well as from the diversity of tasks and persons needed to perform them. Specialisation is reflected in the use of specialists of various types. It is the nature of training of specialists that they are made to feel that they are the best judge of the scope, nature, and kind of work they perform. Specialists think that they are qualified to judge each other according to professional criteria, but outsiders cannot have adequate basis for such judgements. If the specialists are allowed to work without coordination, the results can be costly. There no mechanism is required to coordinate the efforts of various specialists in the organizational Functional Differentiation. Functions of an ordanisation are frequently divided into departments, divisions, sections, and the like. Coordination is, therefore, necessary to the the functions together and assure their contribution to the total result.
  7. Coordination problems arise because domains become solidified, with barriers between them becoming rigid. Each unit tries to perform its mission in isolation from the others. Sometimes, happens because functions are grouped illogically, or managers take the expedienicolau than the logical route. For example, conflict between sales and production departments arises because of this reason. The sales department has a fundamental interest sem as much as possible; left to it, it may even sell the twice of what production department can produce. On the other hand, it is possible that sales may drop because of market conditions or poor salesmanship or both. In this case, production department may produce far more than can be sold, for it has an economic interest of utilising the production capacity. In such a case, it is clear that there are many divergent interests in the activities of these two departments. This problem has to be handled through some means, otherwise organisational resources may go in waste. There may be several such cases in a large organisation.
  8. Interdependence. The need for coordination arises because of interdependence of organisational units and subunits and people working within these. Because of this interdependence, performance of one unit is affected by others but at the same time affects others. Therefore, in order to optimise effective use of the organisational resources, the efforts of all the units have to integrated. There can be three types of interdependence: pooled, sequential, and reciprocal. In pooled interdependence, various units of the organisation, either located at the same place or at different places, contribute to the organisational objectives though they may not be directly related. This may happen in the case of highly diversified organisations, particularly without product relationship, for example, textile and cement being manufactured by the same organisation. In such a case, coordination between two units does not pose big problem. In sequential interdependence, the relationship between units is such that a later unit depends solely on the former unit, for example, in the case of assembling in an automobile company. In such a case, high degree of coordination is required otherwise the output will suffer. In reciprocal interdependence, the input of one unit becomes the output of another unit and vice versa. for example, operation and maintenance of vehicles in a transport company in which operation department may send a vehicle to maintenance department for repair, etc., and the maintenance department may send it back to operation department after repair. In such a case, high degree of coordination is required between two departments
  9. Individual Versus Organisational Interests. There may be a clash between individual and organisational interests. Individuals join the organisation to fulfil their desires and expectations. In turn, the organisation expects certain things from the individuals. When there is incompatibility between these two expectations, often clash of interests takes place. In such a case, individual efforts may not contribute to the achievement of organisational obiectives. Therefore, there is a need for coordination and integration of both interests.

Role of Coordination in Organisational Performance

The above discussion shows that coordination is required among organisational units/ subunits and among different individuals. The basic objective of the coordination is to achieve harmonious functioning of the units and individuals so that the organizational objectives are achieved in the best possible way. A proper coordination helps the management for effective performance in the following ways:

  1. Proper coordination pulls all the functions and activities together so that each function and activity becomes complementary to each other and contributes positively to the performance of others. In its absence, human and physical resources cannot follow a specified direction and to that extent, organisational efforts would go in waste.
  2. Coordination brings satisfaction to the people in the organisation. They derive satisfaction out of their performance in a better way because their efforts do not go waste. They try to see their own interests and those of the organisation as the same. This on-going process contributes to satisfaction of both individual as well as organisational interests.
  3. Since organisations have to work as a system surrounded by the environment, they have to import resources and information from it. Coordination ensures the smooth flow of information and resources into productive units to bring the required quantity and quality of outputs.

TYPES OF COORDINATION

Because of different types of organisational relationships as evident by various forms of organisation structure and authority relationships, various types of coordination are needed within an organisation. Besides, the organisation interacts with various constituents of its environment and, therefore, it requires coordinative relationship with these constituents. Thus, coordination may be classified in two broad categories: internal and external with different types of coordination in internal category.

Internal Coordination

Generally, when we talk of coordination, we refer to internal organisational coordination. An organisation needs following types of coordination: vertical and horizontal, substantive and procedural.

Vertical and Horizontal Coordination. Individuals interact vertically as well as horizontally in the organisation during their work performance. Therefore, they need coordination in both such interactions. In the vertical relationship, individuals are put in superiorsubordinate positions except those that are at the top level and at the bottom level. Vertical coodination is required to maintain such relationships in orderly manner to get the job performed. Horizontal coordination is required to maintain synchronised operations of various departments, particularly those which have interdependent relationships, for example, production, marketing, personnel, finance, etc.

Substantive and Procedural Coordination. Every work has two dimensions: substantive and procedural. Substantive dimension involves deciding what to do and procedural dimension involves deciding how to do. In every organisation, both dimensions of work are required. Therefore, coordination on both dimensions is required. In substantive coordination, emphasis is put on how interrelated activities should be divided so that these are performed in synchronised way. For example, a production manager is responsible for manufacturing products, that is, Coversion of raw materials into finished products through come onerations. In order to do this work, he requires raw materials of specified quality in fed volume, and at specified time. However, he may not have control over the Brocurement of raw materials as this acuvity may be entrusted to purchase department there is a need for coordinating between production and purchase m order to carry on the manufacturing operations. Procedural coordination Production and purchase departments prescribing the procedure for performing those activities which have impact on one department. For example, in the above case, procedure for procuring may be prescribed so that production department gets information about meprocedure for procuring raw materials materials procurement and this procedure is adhered to.

External Coordination

External coordination is needed in organisation’s external relationships with various par These parties may be investors and financiers, customers, suppliers, government agen and so on. External coordination is required because an organisation works as m e output mediator; it takes various inputs-materials, energy. finances, personne supplies various outputs-products and services to the environment. Success of input output operation depends on the degree to which the organisation coordinates with various external factors as identified above.

TECHNIQUES OF EFFECTIVE COORDINATION

The basic objective of all managerial functions is to get things done by coordinated efforts. Thus, every management function should lead to coordination. However, conflicts frequently arise since it is virtually impossible to achieve a mechanically perfect system of clear-cut jurisdictions. Therefore, managers have to achieve coordination by making some special efforts. Some of these efforts may be in the following direction:

  1. Coordination by Chain of Command. In an organisation, the chain of command is the most important method of coordination, particularly vertical coordination. Vertical coordination is required to harmonise the work allocated to several levels in the organisation. It ensures that the various levels do not act out of accord with each other or with policies and objectives of the organisation. The concepts of unity of efforts, timing, and orderly efforts apply to all levels and all units of the organisation. A manager can achieve the vertical coordination by using his authority. Because of his organisational position, he can issue orders and instructions to his subordinates. This process can go down the organisation. He can define the authority of his subordinates, their functions, and timing of performance of these functions. However, role of chain of command is limited even to achieve vertical coordination.
  2. Coordination by Leadership. If coordination cannot be achieved by mere exercise of authority, managers can use their leadership to bring coordination among their subordinates. Leadership is the process of inducing subordinates to cooperate willingly Leadership brings individual motivation and persuades the group to have identity of interests and outlook in group efforts. Thus, many conflicting situations can people to work in harmony by exercising leadership. Committee is a body of persons entrusted with discharge
  3. Coordination by Committees. Committee is a body of persons entrust collectively as a group. The role of a committee is significant in achieving of some functions collectively as a group. The role of a commit nation. Coordinating horizontally is a matter of relating the efforts of horizontal coordination. Coordinating horizontally is a matter units to each other. Committee ensures that problems functional, divisional, or territorial units to each other. Committee relationships among various units can which arise out of relationships among various units can far as coordination is concerned, lies in the opportunities solved by group decisions. The core of group decision making, so far as coordination is con interchange of ideas, problems, proposals, and solutions for free and open discussion and interchange of ideas of organisation-wide matters leads to better coordination Improved understanding of organisation-wide mat
  4. Staff Meetings. Periodic staff meetings can be highly effective in promoting coordination wrough better communication. Usually, it is desirable for a regular time to be set aside for meetings. These meetings generally contribute in the following ways to achieve coordination: ly to give everyone present a sense of the unity and interconnectedness of the work of the organisation as a whole: (11) to learn from the superior manager about new problems and developments which affect their work; (iii) to solicit and enlist the thought and cooperation of staff members in the solution of problems; (iv) to provide an opportunity for subordinates to bring up questions which the superior manager should know about and which may affect the operations of parallel divisions of the organisation; and (u) to provide a forum in which friction points or areas of inadequate coordination are brought into the open.
  5. Special Coordinators. Generally, in large organisations, special coordinators are appointed. They normally work in staff capacity to facilitate the working of line managers. A coordination cell may also be created. The basic responsibility of the cell is to collect the relevant information and to send this to various heads of departments or sections so that interdepartmental work and relationship is coordinated. In some cases, a particular person is appointed to coordinate the work of a particular nature. For example, in a particular project, along with various functionaries, a project coordinator can also be appointed. His basic function is to coordinate various activities of the project and to keep information about the development of the project.
  6. Self-coordination. The basic principle of self-coordination is modification of functioning of a department in such a way that each department coordinates with other departments. Each department, section, or individual affects others and is also affected by others. Therefore, if these departments, sections, or individuals apply a method of working which facilitates other, self-coordination is achieved. This can be done by better horizontal communication. However, mere communication does not work unless there is a proper organisational climate in which each one sees the integration of his goals with organisational goals and also the benefits of his department with others.

In using various techniques of coordination, managers have to keep two factors in mind: essentials for effective coordination and following the principles of coordination. Essentials for

Effective Coordination

An effective coordination tries to ensure synchronised operations by different units and individuals of an organisation. A coordination effort based on the following features ensures its effectiveness:

  1. Well-defined Authority and Responsibility. Often, coordination problems emerge because of lack of well-defined authority and responsibility. In such a situation, people are not clear about what is expected of them and they experience role ambiguity. This results in conflict among organisational units and individuals leading to suboptimal performance. In order to overcome this problem, authority and responsibility of each unit and individual should be defined clearly. In bureaucratic organisation, this is done more precisely in structured form. However, in adaptive and dynamic organisations, such a prescription is not easily possible because of changing work contents. In these organisations, clarity of authority and responsibility emerges out of the functioning of members of a team. Therefore, authority and responsibility of various teams can be prescribed from time to time.
  2. Well-defined Work Procedures. While well-defined authority and responsibility facilitate substantive coordination, well-defined work procedures facilitate procedural coordination When the work procedures are well-defined and adhered properly, these help to achieve coordination easily. Well-defined work procedures ar which have impact on other activities in the casuy. well-defined work procedures are more important in those ac have impact on other activities in the organisation. Where two units of the organizational dependent, performance of activities in one unit affects the performance or activities in another unit.
  3. Effective Communication System. People in the organization People in the organisation Interact among themselves through communication as it is the means for sharing Ideas and Communication performs different types of the function-informative, comman influence and persuasive, and integrative. All these functions not only he proper work performance but also help in coordination. If communication system is a erectively, it helps the members to sort out their differences and work in harmonised way. A good communication system is one that ensures adequate, clear, and timely mond at various points in the organisation.
  4. Provisions of Check and Inspection. In order to achieve coordination among and Tunctions and persons in the organisation, there should be provisions for adequate and inspection to know what is happening in the organisation; where the problems of coordination exist; and what factors are responsible for such problems. Provisions of check and inspection may not automatically ensure effective coordination but help to correct those factors which create problems in coordination.
  5. Effective Organisation Structure. Often, faulty organisation structure is one of the most crucial factors which affect coordination adversely. Tall structure with large number of organisational levels often presents the problems of communication and coordination. As against this, flat structure with a limited number of levels facilitates communication and coordination. This is the reason why progressive organisations prefer flat structure in which they experience least problem of coordination.
  6. Proper Organisational Climate. Organisational climate affects various organisational processes including coordination. Organisational climate refers to the work environment that prevails in the organisation. If this is developed properly, much of coordination problems will not emerge. In fact, in one way, it can be said that coordination problem is the result of classical organisation structure and behavioural pattern. Organisations which follow contemporary approach in designing structure and behavioural pattern face less problem of coordination. Proper organisational climate can be created by effective leadership and supervision, high standards of excellence in every area of operation and evaluation. encouragement of participation and group decision making and its implementation, and high value assigned to interpersonal trust, amity, and, tolerance of inividual differences.

Principles of Coordination

In applying techniques for achieving effective coordination in the organisation, managers observe certain principles. Observance of these principles facilitates the application furious techniques of coordination. Mary Parker Follett, one of the classical management Thinkers, has suggested four basic principles of coordination direct contact, coordination arly stages, continuity, and dynamism. To these, two more principles in the form of reciprocal relationship were added. Let us see how these principles work and aid to effective coordination.

1 Principle of Direct Contact. Principle of direct contact states that coordination can be by direct contact among people whose activities are to be coordinated. Such a contact can be established through the provision of effective communication system. Direct contact helps in bringing agreement on work methods, actions, and achievement of ultimate objectives. It helps to wither away the controversies and misunderstandings among! organisational members as well as external parties. Principle of direct contact is based on the theme that coordination is better achieved through mutual understanding and not by force, order, or coercion.

  1. Coordination at Early Stages. Coordination can better be achieved if it is attempted at the early of stage of work cycle, that is, at the planning stage. At the stage of planning such as objective setting, strategy and policy formulation, etc., coordination can be sought from organisational members. This may be done through their participation in decision-making process. When members are involved in decision-making process, they realise how their work performance affects other members in the organisation. This happens because participative decision making enables members to commit and agree on various issues. Conflict and incongruency are reduced which are major hurdles for effective coordination.
  2. Principle of Continuity. Principle of continuity states that coordination should be treated as a continuous process; it should be taken on regular basis. Coordination should be treated as never-ceasing and never-ending exercise of all managers, and in all functions. Follett has stated that coordination emerges with the organisation and ends with it.
  3. Principle of Dynamism. Principle of dynamism states that coordination does not work on the basis of rigid and fixed basis but on dynamic basis. Dynamism is required because changes occur in external factors which necessitate changes in the organisation and its processes including coordination. When organisational changes take place, many old organisational practices do not remain workable. This is true for coordination too.
  4. Principle of Timing. Principle of timing involves that various organisational units and members should synchronise the timing of their work performance. One member of the organisation facilitates the working of another if he synchronises the timing of his work with the working of another. For example, in an assembly work, the different stages of the work are interrelated in such a way that a subsequent stage can be undertaken only when the earlier stage has been completed. In such a case, coordination of timing at different stages is important.
  5. Principle of Reciprocal Relationship. Reciprocal relationship exists between two or more parties in which each party affects the functioning of others and, in turn, is affected by others. In the organisational context, various departments may have reciprocal relationship though the amount of reciprocity may not be equal. In the reciprocal relationship. afa department is affected by some functions of another department but the former does not have control over these functions, the problem of coordination arises. In this situation. the functions and the way of performing such functions are altered in such a way that these affect others positively. For example, the level of production in production department maw he decided in consultation with marketing department so that optimum level of production is maintained.

Case: Sheetal Textiles Limited

Sheetal Textiles Limited was engaged in the business of manufacturing and marketing of cotton yarn, synthetic yarn, worsted yarn, and acrylic yarn used for weaving and knitting. The company was located in Sheetalpur, an industrial city of North India with good infrastructure. The company was considered as one of the most progressive as it was earning handsome profit from of its business. The management team of the company consisted of chairman and managing director (owner), managing director (his elder brother but with lower qualifications), a technical director, and three vice-presidents (VPs), each looking after marketing, finance and accounts, and personnel and administration. Under these VPs, there were executives at different levels. Many of these executives were MBAs and recruited from the local university having business management department. The technical director was considered to be an expert in yarn dyeing and, therefore, concentrated more on this aspect as yarn quality depended on the quality of dyeing. The production side was looked after by a factory manager along with his subordinates. The industrial relations aspect was with VP-personnel and administration. The factory was located adjacent to the administrative block and was working on three-shift basis with about 2,000 workers in each shift and corresponding number of supervisors.

With the active cooperation of faculty members of department of business management in the local university, Sheetalpur Management Association, a local affiliate of All India Management Association, was formed. Most of the large business organisations of the city were members (corporate category) of the association besides other industrialists and managers as individual members. The association provided good opportunity for interaction among academics and practitioners. The president used to be appointed from the business sector and general secretary from academic sector.

Dr. Sunder, a faculty member of management department of the university with behavioural science specialisation, was appointed secretary of the association for two years. He used to visit different organisations frequently and the university encouraged such visits as a part of its extension programme. He used to discuss management problems with On receiving the news through informal sources that industrial relation dat Sheetal Textiles, Dr. Sunder took an opportunity to visit it as a courtesy call. wanted to have a round of the factory. With some initial hesitation, During his visit, he wanted to have a round of the factor personnel and administration-who also happened to be a member of the association accompanied Dr. Sunder for the factory visit. During their visit, the behavoiur of the workers was not receptive at all and they were looking at both of them as if they were uninvited guests. In fact, on one occasion, VP commented, “see how they (workers) are looking at us as if we are their enemies.” After the factory visit, both met together in the office of VP and Dr. Sunder hinted about the poor industrial relations and general apathy of the workers On this, VP commented laughingly that there was nothing to worry and everything was alright. These workers were accustomed of only Danda (stick). On this, Dr. Sunder also laughed but hinted that the matter should be given some consideration.

After several weeks, in the morning shift, some workers were having problems with a supervisor and heated exchange of words took place. The matter was settled with the intervention of some aged workers. The supervisor left the place immediately and met the assistant factory manager who happened to be his relative. The assistant factory manager (AFM) came to the spot with the supervisor and called the workers engaged in the incident. Along with those involved in the incident, other workers also joined which became just like a mob. In order to settle the problem, assistant factory manager shouted loudly on the workers about their rude behaviour. There were lot of allegations and counter-allegations and some workers manhandled the supervisor. On this, AFM fired from his personal pistol and one worker died instantly and two others injured seriously. The news of this incident spread like a wild fire and all workers stopped the work and came out of the factory loaded with iron rods which were used in the textile machines. They started beating any person except the workers who came in their way. In all, they killed the supervisor and injured 69 persons including some senior management personnel. By the time police came, the matter was over and a lockout was declared in the factory

Next morning when the news came to Dr. Sunder, he was upset over the incident. Being general secretary of Sheetal Management Association, he prepared a press report condemning the incident and behaviour of workers as the company was a member of the association. He approached the president of the association for approval of the text but the latter commented, “If the management cannot understand their workers and cannot respect them, they deserve the kind of treatment given by the workers and we should not be party to that.” The press report was torn out by the secretary.

QUESTIONS

1 Discuss the nature of organisational climate that existed at Sheetal Textiles Limited.

2. Had you been vice-president-personnel and administration, what actions would you have taken to stop the occurrence of such an incident?

3. What lessons can be derived from the incident that occurred at Sheetal Textiles Limited?

 

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