Chapter 13 Conflict and Negotiation In This Chapter, You’ll Find: Chapter Overview Learning Outcomes Key Terms PowerPoint Guide Review Questions and Answers Discussion and Communication Questions and Suggested Answers Ethical Dilemma Self-Assessments—What about You? Issues in Diversity Experiential Exercises Additional Examples Case Study and Suggested Responses: Customer Service at Nordstrom: A Way to Mitigate Potential Conflict? Video: Profile on Barcelona Restaurant Group Cohesion Case Study Part 3: DonorsChoose.org: Inspiring and Empowering Staffers, Teachers, and Donors Student Handouts: Ethical Dilemma What About You?: Assess Your Team’s Conflict What About You?: What Is Your Conflict-Handling Style? Issues in Diversity: Swimming in Conflict Experiential Exercise: Conflicts over Unethical Behavior Experiential Exercise: The World Bank Game: An Intergroup Negotiation Experiential Exercise: The World Bank Game: Banker’s Instruction Sheet Experiential Exercise: A Case for Constructive Confrontation Case Study: Customer Service at Nordstrom: A Way to Mitigate Potential Conflict? Cohesion Case Study Part 3: DonorsChoose.org: Inspiring and Empowering Staffers, Teachers, and Donors Chapter Overview Today’s organizations may face greater potential for conflict than ever before, yet many people are unskilled at managing it. This chapter describes functional and dysfunctional conflicts and reviews the major causes of conflict in organizations. Defense mechanisms are natural reactions to interpersonal conflict. Both effective and ineffective techniques for managing conflict are described. Conflict management styles include avoiding, accommodating, competing, compromising, and collaborating. Learning Outcomes After reading this chapter, students should be able to do the following: 1. Describe the nature of conflicts in organizations. Answer: Conflict is defined as any situation in which incompatible goals, attitudes, emotions, or behaviors lead to disagreement or opposition between two or more parties. Not all conflict is bad. In fact, some types of conflict encourage new solutions to problems and enhance creativity in the organization. Functional conflict is a healthy, constructive disagreement between two or more people. Dysfunctional conflict is an unhealthy, destructive disagreement between two or more people. 2. Explain the role structural and personal factors play in causing conflict in organizations. Answer: Conflict is pervasive in organizations. To manage it effectively, managers should understand its many sources. These can be classified into two broad categories: structural factors, which stem from the nature of the organization and the way in which work is organized, and personal factors, which arise from differences among individuals. The causes of conflict related to the organization’s structure include specialization, interdependence, common resources, goal differences, authority relationships, status inconsistencies, and jurisdictional ambiguities. The causes of conflict that arise from individual differences include skills and abilities, personalities, perceptions, values and ethics, emotions, communication barriers, and cultural differences. 3. Discuss the nature of group conflict in organizations. Answer: Conflict in an organization can take on any of several different forms that can mainly be sorted into two core groups: conflicts that occur at the group level and conflicts that occur at the individual level. Conflicts at each level can be further classified as either inter or intra. Conflict at the group level can occur between organizations (interorganizational), between groups (intergroup), or within a group (intragroup). Interorganizational conflict occurs between two or more organizations. When conflict occurs between groups or teams, it is known as intergroup conflict. Conflict between groups can have positive effects within each group, such as increased group cohesiveness, increased focus on tasks, and increased loyalty to the group. There are, however, negative consequences as well. Groups in conflict tend to develop an us-against-them mentality whereby each sees the other team as the enemy, become more hostile, and decreases its communication with other groups. Intragroup conflict is within groups or teams and can serve to avoid groupthink. 4. Describe the factors that influence conflict between individuals in organizations. Answer: Conflict that occurs between two or more individuals, or interpersonal conflict, can arise from many individual differences, including personalities, attitudes, values, and perceptions. To manage interpersonal conflict, it is helpful to understand power networks in organizations and defense mechanisms exhibited by individuals when they are in conflict situations. 5. Describe effective and ineffective techniques for managing conflict. Answer: Effective conflict management techniques include appealing to superordinate goals, expanding resources, changing personnel, changing structure, and confronting and negotiating. Ineffective techniques include nonaction, secrecy, administrative orbiting, due process nonaction, and character assassination. 6. Identify five styles of conflict management. Answer: Managers have at their disposal a variety of conflict management styles: avoiding, accommodating, competing, compromising, and collaborating. One way of classifying styles of conflict management is to examine the styles’ assertiveness (the extent to which one wants his or her goals met) and cooperativeness (the extent to which one wants to see the other party’s concerns met). Key Terms Functional conflict (p. 205) Dysfunctional conflict (p. 206) Jurisdictional ambiguity (p. 208) Interorganizational conflict (p. 209) Intergroup conflict (p. 209) Intragroup conflict (p. 210) Intrapersonal conflict (p. 210) Interrole conflict (p. 210) Intrarole conflict (p. 211) Person–role conflict (p. 211) Interpersonal conflict (p. 212) Fixation (p. 213) Displacement (p. 213) Negativism (p. 214) Compensation (p. 214) Identification (p. 214) Rationalization (p. 214) Flight/withdrawal (p. 214) Conversion (p. 214) Fantasy (p. 214) Nonaction (p. 215) Secrecy (p. 215) Administrative orbiting (p. 215) Due process nonaction (p. 216) Character assassination (p. 216) Superordinate goal (p. 216) Distributive bargaining (p. 217) Integrative negotiation (p. 217) PowerPoint Guide Introduction Slide 2—Learning Outcomes LO1 Describe the nature of conflicts in organizations. Slide 3—LO - 13.1 Slide 4—Nature of Organizational Conflict Slide 5—Beyond the Book: Questions to Use When Diagnosing Conflict LO2 Explain the role structural and personal factors play in causing conflict in organizations. Slide 6—LO - 13.2 Slide 7—Figure 13.1: Causes of Conflict in Organizations Slide 8—Beyond the Book: Looking for Trouble LO3 Discuss the nature of group conflict in organizations. Slide 9—LO - 13.3 Slide 10—Forms of Group Conflict in Organizations Slide 11—Beyond the Book: AT&T versus Verizon LO4 Describe the factors that influence conflict between individuals in organizations. Slide 12—LO - 13.4 Slide 13—Types of Intrapersonal Conflict Slide 14—Resolving Intrapersonal Conflict Slide 15—Interpersonal Conflict Slide 16—Defense Mechanisms LO5 Describe effective and ineffective techniques for managing conflict. Slide 17—LO - 13.5 Slide 18—Techniques Slide 19—Beyond the Book: What Would You Do? Slide 20—Approaches to Negotiation LO6 Identify five styles of conflict management. Slide 21—LO - 13.6 Slide 22—Figure 13.4: Conflict Management Styles Slide 23–24—Table 13.3: Uses of Five Styles of Conflict Management Slide 25—Barcelona Restaurant Group Key Terms Slide 26–27—Key Terms Summary Slide 28–29—Summary Review Questions and Answers 1. Discuss the differences between functional and dysfunctional conflict. Why should a manager understand conflict? Answer: Students’ answers will vary. Functional conflict is a healthy, constructive disagreement that can result in new ideas, learning, and growth among individuals. A key to recognizing functional conflict is that it is often cognitive in origin; that is, it arises from someone challenging old policies or thinking of new ways to approach problems. Dysfunctional conflict is an unhealthy, destructive disagreement between two or more people. Its danger is that it takes the focus away from the work to be done and places it on the conflict itself and the parties involved. A key to recognizing a dysfunctional conflict is that its origin is often emotional or behavioral. A manager should understand and look at the issue, the context of the conflict, and the parties involved. This will help him or her to diagnose the type of the conflict, which will further help in deciding whether to work on resolving it (if it is dysfunctional) or to stimulate it (if it is functional). 2. Identify the structural and personal factors that contribute to conflict. Answer: Structural factors that contribute to conflict include specialization, interdependence, common resources, goal differences, authority relationships, status inconsistencies, and jurisdictional ambiguities. Personal factors that contribute to conflict include skills and abilities, personalities, perceptions, values and ethics, emotions, communication barriers, and cultural differences. 3. Discuss the major forms of conflict in organizations. Answer: Conflict in an organization can take on any of several different forms that can mainly be sorted into two core groups: conflicts that occur at the group level and conflicts that occur at the individual level. Conflicts at each level can be further classified as either inter (between) or intra (within). Conflict at the group level can occur between organizations (interorganizational), between groups (intergroup), or within a group (intragroup). Interorganizational conflict occurs between two or more organizations and is heightened by competition. Intergroup conflict occurs between groups or teams in an organization and can have positive effects within each group, such as increased group cohesiveness, increased focus on tasks, and increased loyalty to the group. Intragroup conflict occurs within organizational groups or teams, and it can help prevent groupthink. Conflict at the individual level within an organization can occur between individuals (interpersonal) or within a single individual (intrapersonal). Interpersonal conflict occurs between two or more individuals, and it can arise from many individual differences, including personalities, attitudes, values, and perceptions. To manage interpersonal conflict, it is helpful to understand power networks in organizations and defense mechanisms exhibited by individuals when they are in conflict situations. Intrapersonal conflict occurs within a single individual. There are several types of intrapersonal conflict, including interrole, intrarole, and person–role conflicts. Interrole conflict occurs when a person experiences conflict among the multiple roles in his or her life. Intrarole conflict is conflict within a single role. It often arises when a person receives conflicting messages from role senders about how to perform a certain role. Person–role conflict occurs when an individual in a particular role is expected to perform behaviors that clash with his personal values. 4. What defense mechanisms do people use in interpersonal conflict? Answer: When individuals are frustrated, as they often are in interpersonal conflict, they respond by exhibiting defense mechanisms. Aggressive mechanisms, such as fixation, displacement, and negativism, are aimed at attacking the source of the conflict. Compromise mechanisms, such as compensation, identification, and rationalization, are used by individuals to make the best of a conflict situation. Withdrawal mechanisms include flight, conversion, and fantasy. 5. What are the most effective techniques for managing conflict at work? What are some ineffective techniques? Answer: Effective conflict management techniques include appealing to superordinate goals, expanding resources, changing personnel, changing structure, and confronting and negotiating. Superordinate goals encourage groups to work through conflicts and resolve issues. Expanding resources allows problem solvers to devote more energy to solving the problem. By changing the personnel or structure, the problem receives a fresh, open look. Changing personnel may involve transferring or firing an individual which could, in some cases, be the best solution, but only after due process. Confrontation and negotiation between the parties require skill on the part of the negotiator and careful planning before engaging in negotiations. The process of negotiating involves an open discussion of problem solutions, and the outcome often is an exchange in which both parties work toward a mutually beneficial solution. Some of the ineffective techniques include nonaction, secrecy, administrative orbiting, due process nonaction, and character assassination. Nonaction—doing nothing in hopes that the conflict will disappear—is an ineffective technique because most problems do not go away. Secrecy, attempting to hide a conflict or an issue that has the potential to create conflict, only creates suspicion. Administrative orbiting is delaying action on a conflict by buying time, and it leads to frustration and resentment. Due process nonaction is a procedure set up to address conflicts that is so costly, time consuming, or personally risky that no one will use it, thus resulting in nonaction. Character assassination is an attempt to label or discredit an opponent. It can backfire and make the individual who uses it appear dishonest and cruel. 6. Identify and discuss five styles of conflict management. Answer: The five styles of conflict management are avoiding, accommodating, competing, compromising, and collaborating. Avoiding is a style low on both assertiveness and cooperativeness. It is a deliberate decision to take no action on a conflict or to stay out of a conflict situation. A style in which one is concerned that the other party’s goals be met but relatively unconcerned with getting his or her own way is called accommodating. Competing is a style that is very assertive and uncooperative. The compromising style is intermediate in both assertiveness and cooperativeness because each party must give up something to reach a solution to the conflict. The collaborating style is a win–win style that is high on both assertiveness and cooperativeness. Discussion and Communication Questions and Suggested Answers 1. What causes you the most conflict at work or school? Answer: Students’ answers will vary. Answers may be surprisingly similar and may include time-management problems. Students should be encouraged to accept their responsibility in managing these conflicts. • Deadlines and workload often cause conflict, as they can create stress and affect productivity. Differing priorities or work styles among team members can also lead to disagreements and tension. Miscommunication and unclear expectations further exacerbate these conflicts. 2. Identify the different intragroup, interrole, intrarole, and person–role conflicts that you experience. Answer: Students’ answers will vary. Some of the roles mentioned might be family, parent, friend, athlete, employee, and student. Person–role conflict is apparent with students who work and attend school full-time, and find themselves asking which role should take precedence. • Intragroup: Disagreements within a team about project direction. • Interrole: Conflicts between academic responsibilities and part-time job duties. • Intrarole: Unclear expectations for a specific role or task, leading to confusion. • Person–role: Feeling that personal values are at odds with the expectations of a role. 3. Which defense mechanism do you see people exhibiting most frequently? Why do you think these mechanisms are used? How can you manage this type of reaction to a conflict? Answer: Students’ answers will vary. Rationalization is likely to be the most common response, although students may identify with other mechanisms as well. Managers can be prepared for employees’ responses and work toward helping them uncover their feelings about a conflict. • Projection is common, where people attribute their own unacceptable feelings to others. It’s used to deflect blame and reduce personal anxiety. To manage this, focus on addressing the behavior or issue directly, rather than reacting to perceived intentions. 4. Are you comfortable with your preferred conflict management style? Would you consider modifying it? Answer: Students’ answers will vary. Individuals whose preferred conflict management style is avoidance or accommodation have the most to gain by testing other approaches. • I’m generally comfortable with a collaborative style, which seeks win-win solutions. However, I would consider modifying it to include more assertiveness in situations where quick decisions are needed, ensuring that critical issues are addressed promptly. 5. Think of a person with whom you have had a recent conflict. Write a letter to this person, attempting to resolve the conflict. Use the concepts from the chapter to accomplish your objective. Be sure to address whether the conflict is functional or dysfunctional, what styles each party has used, effective strategies for resolving the conflict, and ineffective strategies that should be avoided. Answer: Students’ answers will vary. Students should be encouraged to use specific examples from the conflict to support their description of it and their recommendations for dealing with it more effectively. • Dear [Name], I hope we can address the recent issues we’ve faced constructively. Our conflict has been somewhat dysfunctional, impacting both our productivity and morale. I noticed that I have been using an avoiding style, while you have been more competitive. To resolve this, I propose we use a collaborating approach to find a solution that meets both our needs. Let’s avoid passive-aggressive tactics and focus on open communication and mutual respect. I look forward to working this out together. Sincerely, [Your Name] Ethical Dilemma The purpose of Ethical Dilemmas is to encourage students to develop their awareness of ethical issues in the workplace and the managerial challenges they present. The dilemmas are set up to present situations in which there is no clear ethical choice. The goal for the instructor is to guide students through the process of analyzing the situation and examining possible alternative solutions. There are no “right” answers to the questions at the end of each scenario, only opportunities to explore alternatives and generate discussions on the appropriateness of each alternative. The student portion of the activity is on a handout at the end of this chapter guide. Maria’s options are to allow Jim and Vincent to stay in the brainstorming session despite their conflict or to intervene in the situation by removing them from the session. 1. Using consequential, rule-based, and character theories, evaluate Maria’s options. Answer: Consequential Theory If Maria allows Jim and Vincent to stay in the brainstorming session, their conflict is likely to overtake the session and limit the effectiveness of the brainstorming effort. But, if they can resolve the conflict, she will be able to solve the company’s bottlenecking crisis. If Maria intervenes by removing Jim and Vincent from the session, she may not solve the bottlenecking crisis. Rule-Based Theory Maria has a mandate from her boss to solve the company’s crisis. Character Theory Maria has been trained to intervene and has a tendency to take such action in these kinds of situations. However, she also has a need to improve her department’s performance. 2. What should Maria do? Why? Answer: In this situation, the rule-based theory should take precedence. Maria has a mandate to solve the company’s crisis, which is the most important consideration. She should do whatever is necessary to resolve the conflict between Jim and Vincent, which may help her solve the bottlenecking crisis. Self-Assessments—What about You? 13.1 Assess your Team’s Conflict Students can examine and discuss the types of conflict and conflict management techniques they have experienced in groups of which they have been members. Perhaps more importantly, this exercise provides the opportunity for students to discuss with their classmates some strategies that they can put in place to improve their ability to manage task conflict and relationship conflict. The student portion of the activity is on a handout at the end of this chapter guide. 13.2 What is your Conflict-Handling Style? Following completion of the challenge, students could be put into groups in class based on their primary conflict-handling style. In the groups, have students discuss how they typically handle conflict, and encourage them to use specific examples of conflict situations that they have experienced. Each group can share with the class a summary of its typical approach to handling conflict. Discuss the similarities and differences between groups as the class material on the conflict-handling styles is being covered. The student portion of this activity is on the review card of the student edition of ORGB and on a handout at the end of this chapter guide. Issues in Diversity Swimming in Conflict What do African American and Hispanic summer camp children have in common with children from Huntingdon Valley, PA, on a warm summer day? They all want to swim. Rather than swim, however, the sixty-five predominately black and Hispanic campers from Creative Steps day camp found themselves in the center of a huge controversy amid allegations of racism and discrimination. Creative Steps, a Northeast Philadelphia day camp, paid The Valley Club, a predominately white suburban private club, a $1,950 membership fee in order to allow its campers to swim in the club pool each Monday afternoon. Surprisingly, after the camp’s first visit, the club refunded the camp’s membership fee without explanation. Several of Creative Steps’ campers reported that they heard several club members making racial remarks and at least one person complained that the children did not belong there. According to the camp’s attorney, “The kids were humiliated.” John Duesler, The Valley Club’s president, insisted that it was not the race that precipitated the refund of the camp’s swim fee, rather it was safety. When The Valley Club initially contracted with the camp, it had not considered that the club might be short on lifeguards and would not be able to handle additional swimmers—an important issue given that many of the campers could not swim. Duesler added that “…the club’s board had not properly thought through the demands of accommodating them [the campers].” The controversy surrounding this conflict gathered steam as the NAACP filed a formal complaint with the Pennsylvania Human Relations Commission. The U.S. Justice Department began investigations into the club’s conduct, and the public began to weigh in. Creative Steps declined The Valley Club’s re-invitation to the club. As per the last report, the camp was in negotiations with a local college for their students to swim there. 1. Would you describe the conflict between Creative Steps and The Valley Club as functional or dysfunctional? Explain. Answer: Students’ answers will vary. Given the situation and the definition of dysfunctional conflict (destructive disagreement that takes focus and energy away from work), it seems apparent that the conflict between Creative Steps and The Valley Club should be described as dysfunctional. Creative Steps had to find other outlets for their children, and The Valley Club is certainly being distracted from its routine by the NAACP filing, the Justice Department investigation, and the public discourse about its character as an organization. • The conflict between Creative Steps and The Valley Club appears dysfunctional. It likely involves miscommunication, unmet expectations, and escalating tensions that hinder both parties from achieving their goals effectively. Instead of resolving the issues constructively, the conflict may be exacerbating negative feelings and impeding progress. 2. Despite the obvious demographic differences, what additional diversity issues are relevant here? Answer: Students’ answers will vary. The only difference for which there is any evidence in the scenario is race. The Valley Club is described as predominantly white, while the campers are identified as predominantly black and Hispanic. Inferring any other differences not reported in the scenario would be inappropriate and may serve to reinforce unfair stereotypes. Moreover, any differences that might be inferred would also be considered demographics (e.g., culture, religion, age, and socioeconomic status). • Beyond demographic differences, issues such as differing organizational cultures, values, and operational styles are relevant. These cultural and operational diversities can create misunderstandings and clashes in expectations and approaches. Addressing these differences is crucial to fostering mutual respect and effective collaboration. Experiential Exercises 13.1 Conflicts over Unethical Behavior Instructor’s Notes: This exercise provides a list of behaviors that employees might engage in when working for a company. Students are requested to answer each of the 18 questions in terms of the best indicator of the frequency with which they would engage in a specific behavior. After this is completed, students are to re-examine the questions in light of their beliefs about whether their coworkers would engage in that behavior and put an X next to that category. The third time they review the questions, they should indicate with a check mark if management should monitor this category of behavior. It is useful to ask students for the extremes in their check marks between their own and what they believe their coworkers would do. Another way to gather issues is to ask for the categories that were checked either number 1 or number 5. Remind students to be as honest as possible rather than answering the way they believe they should answer. The student portion of the activity is on a handout at the end of this chapter guide. 13.2 The World Bank Game: An Intergroup Negotiation Instructor’s Notes: Purpose: •To experience the conflict between advantages of cooperation and advantages of competition in a mixed-motive dilemma •To explore some dynamics of trust between groups •To practice negotiation skills The student portion of the activity is on a handout at the end of this chapter guide. Group size: No more than ten participants per team. Two teams can be formed to compete against each other, with the instructor serving as banker and the remaining students designated as observers. (Alternatively, several pairs can be conducted simultaneously, with each team competing against one other team, and one student serving as banker for every two competing teams). Materials: •Twenty 3 × 5 cards for each team, each card with a marked side (X covering the entire side) and an unmarked side. (Playing cards may be used as substitutes) •A copy of the World Bank Record Sheet for each team (this is found in the textbook) •A copy of the World Bank Banker’s Instruction Sheet for each banker Physical Setting: Teams competing against each other are located close to each other, but their meetings are private. Their negotiators also need a private place to meet briefly several times. Process: 1. The banker forms pairs of teams. (There must be an even number of teams). 2. Participants should read the World Bank General Instructions, and the banker responds to questions. 3. If there are two teams, the instructor serves as the banker. If there are more than two teams, additional bankers (one for each additional pair of teams) are appointed. Bankers are briefed about their roles and given a copy of the World Bank Banker’s Instruction Sheet. 4. Teams have ten minutes to organize themselves and plan their strategies. Before the game begins, each team must select a negotiator, a representative, a team recorder, and a treasurer. 5. The banker signals the beginning of round one to each team. 6. The banker calls the game to a close at an appropriate time. Variations: 1. To increase collaboration, the design may be altered as follows: (a) reduce the number of moves in each round to five, (b) require negotiation after each move, or (c) increase the penalty for an attack. 2. To increase competition, the design may be altered as follows: (a) increase the number of moves in each round to ten, (b) make negotiations more difficult and costly by assessing a fee, (c) remove the penalty for an attack, or (d) multiply the payoff threefold for move and fivefold for the final move. 3. To focus on the negotiation process, all negotiations may take place in a neutral location in the presence of all parties to the negotiation (e.g., both teams may observe). The number of negotiators may also be increased to two from each team. Limitations: This game sometimes generates feelings of betrayal and resentment that disrupt relationships and affect subsequent classes. These issues should be addressed directly, and there should be ample opportunity for people to talk through their feelings. The student portion of the activity is provided on the IE prep card in the student edition of ORGB and on a handout at the end of this chapter guide. SOURCE: Adapted from N. H. Berkowitz and H. A. Hornstein, “World Bank: An Intergroup Negotiation,” in J. W. Pfeiffer and J. E. Jones, (eds.), The 1975 Handbook for Group Facilitators (San Diego, Pfeiffer & Company), 58–62. 13.3 A Case for Constructive Confrontation Instructor‘s Notes: This exercise is good to do with the entire class rather than as a group exercise, although it is appropriate for either approach. The student portion of the activity is on a handout at the end of this chapter guide. The answers to the exercise are as follows: 1. What is the likely response if one party outright rejects the proposed solution, asserting that they are right and the other party is wrong? Answer: Reject solution: This approach will probably elicit a defense mechanism for a response. This is also a win–lose strategy, with a competitive approach of “you‘re wrong, I’m right.” 2. How might Fred respond if he is faced with a proposed solution that he finds unsatisfactory but chooses to avoid conflict by excessively agreeing? Answer: Reject solution: Fred might resort to the superagreeables coping tactic. 3. What is the likely outcome if a party chooses to ignore the proposed solution and avoids addressing the issue directly? Answer: Reject solution: This is avoidance. 4. Which approach is considered the most effective for addressing a conflict constructively among the provided options? Answer: Amend solution: This is the best solution of the choices. 5. What are the potential issues with a solution that combines secrecy and administrative orbiting, and how might it be perceived? Answer: Reject solution: This is ineffective and combines secrecy and administrative orbiting. SOURCE: Adapted from Conrad Jackson, The University of Alabama, Huntsville. Additional Examples Intragroup Conflict: How do Groups Deal with Conflict and Facilitate Performance and Satisfaction? Recent research suggests that the type of conflict a group experiences (task, relationship, or process) may not directly impact the group’s performance. Instead, what’s important is conflict-resolution strategies. Groups who improved or maintained top performance and member satisfaction maintained a focus on equity or found viable ways for each team member to contribute given their constraints. They clearly articulated compromises and trade-offs made by individual members or the group in preventing destructive conflicts. These groups used a “dual concern” approach, which not only focused on concern for the task but also concern for integrating the interests of individual team members. By contrast, groups that maintained high performance but exhibited waning member satisfaction used a rules-focused strategy in which they dealt with conflict by establishing specific rules. This created a task-focused environment at the expense of integrating individual interests. Low-performing groups with high member satisfaction took an equality focus where complete accommodation of individual concerns was observed. These groups avoided any interpersonal conflict, and thus, there was harmony in these groups but poor performance. Groups that performed poorly and had low member satisfaction used an ad hoc approach to conflict resolution in which roles were not clear, the root cause of the problem was not identified or corrected, and there was no clear conflict management strategy. The bottom line? Good performance and satisfied team members result when teams emphasize both getting the work done and integrating the interests of team members and acknowledge the members who help prevent dysfunctional conflicts. SOURCE: K. J. Behfar, R. S. Peterson, E. A. Mannix, and W. M. K. Trochim, “The Critical Role of Conflict Resolution in Teams,” Journal of Applied Psychology 93 (2008): 170–188. Workplace Bullying on the Rise In a survey of U.S. workers, half of the workers said that they either had been bullied at work or had seen other employees being bullied. A recent study in Spain indicated that workplace bullying is prevalent in Spain, too, where women are most often the victims, and the type of bullying varies by age. The Workplace Bullying Institute (WBI) recommends three steps in response to workplace bullying. First, call bullying what it is, thereby legitimizing yourself. Second, take time off to refresh both mentally and physically, and consider your options including starting a job search for a new position if necessary. Third, tell everyone about the bully for your health’s sake. Make a business case that the bully is too expensive to keep. 3M, Sony, and Caterpillar in France: Executives, Pack your Overnight Bags! Top executives at the 3M Company, Sony, and Caterpillar in France have all been held hostage by workers who demanded concessions from management in the rash of downsizings due to the global economic crisis. Boss-napping is a technique used in France mainly due to the unique structure of the labor unions, which have been given lucrative power by the government. Unions in France tend to be comprised of the most radical workers, and the unions compete with one another and compensate for the low number of members with visible forms of protest. Case Study and Suggested Responses Customer Service at Nordstrom: A Way to Mitigate Potential Conflict? Linkage of Case to Chapter Material This case focuses on the approach to customer service and customer relationship management taken by Nordstrom, an upscale retailer headquartered in Seattle, Washington. Nordstrom has operated with the same management philosophy for over 100 years: offer the customer the best possible service, selection, quality, and value. Nordstrom is famous for its exceptional customer service, which appears to be very accommodative of customers’ needs and desiresapparently even if it means sacrificing Nordstrom’s own interests. However, an analysis of the case facts indicates that this is an illusory and deceptively simplistic view of Nordstrom’s approach to customer service and customer relationship management. To the contrary, Nordstrom seems to be very committed to a win–win situation with its customer service and customer relationship management. The case provides examples that reinforce this win–win perspective, while also showing how the perception of an extremely accommodative perspective toward customers could arise. Suggested Answers for Discussion Questions 1. Dealing with dissatisfied and disgruntled customers is, perhaps, one of the greatest sources of conflict for retailers. Is Nordstrom’s approach to customer service and customer relationship management an appropriate way to defuse or prevent potential conflict situations? Explain the reasoning behind your answer. Answer: Students’ answers will vary. Not many people enjoy dealing with dissatisfied, even irate, customers. An unhappy, upset, or angry customer can provide both the ignition and the fuel for a very conflict-ridden encounter with a business. Nordstrom is famous for its exceptional customer service. The company goes to extraordinary lengths to ensure that its customers are satisfiedand even makes sure that people who aren’t really customers, like the customer in the Fairbanks, Alaska tire return story, are happy as well. Such seemingly accommodating behavior toward customers could be argued to have the benefit of minimizing, if not eliminating, potential conflicts with customers. However, a more cynical person might be inclined to argue that such extraordinary accommodation of customers could encourage customers to take undue advantage of Nordstrom’s generosity, thereby fueling more conflict situations. This question provides students with an excellent opportunity to explore their own beliefs about the extent to which the “customer is always right” and how the interests of customers ought to be weighed against the interests of the business. • Yes, Nordstrom’s approach is appropriate. Their focus on exceptional customer service, including flexible return policies and empowered employees, addresses potential conflicts proactively. By prioritizing customer satisfaction and empowering staff to resolve issues, Nordstrom prevents many conflicts before they escalate, fostering positive relationships and loyalty. 2. Using the assertiveness and cooperativeness dimensions that underlie the five conflict management styles, explain Nordstrom’s approach to customer service and customer relationship management. Answer: Students’ answers will vary. Assertiveness refers to a person’s desire to satisfy his/her own concerns. Cooperativeness refers to a person’s desire to satisfy others’ concerns. Different combinations of these two dimensions define the five fundamental conflict management styles—avoiding (low assertiveness and low cooperativeness), accommodating (low assertiveness and high cooperativeness), compromising (moderate assertiveness and moderate cooperativeness), competing (high assertiveness and low cooperativeness), and collaborating (high assertiveness and high cooperativeness). At first glance, one might be tempted to argue that the accommodating style most aptly describes Nordstrom’s approach to customer service and customer relationship management. The following case examples could be cited to support this view: •At the Nordstrom store in Fairbanks, Alaska, a clerk refunded a customer’s money for two snow tireswhich, of course, were not sold by Nordstrom“because that is what the customer wanted.” •Nordstrom will replace an item years after its purchasejust to keep the customer happy. •Product returns do not have to include a sales invoice or a Nordstrom price tag. Each of these examples clearly reflects a strong desire to satisfy the customer’s concerns. Do these examples also demonstrate little desire to satisfy Nordstrom’s concernsor is such a conclusion actually an illusion? A plausible argument can be mustered that the apparent unassertiveness of Nordstrom’s approach to customer service and customer relationship management is more illusion than reality. Nordstrom appears to be very interested in addressing its own concerns, but it does so in a very subtle manner. Consider, for example, the following two quotes from the case: “We really think a reason our customers shop with us is that we stand behind our merchandise. Nordstrom knows it’s not the price but the customer service that gains and retains loyal customers that generate strong profits.” Both of these examples point to serving Nordstrom’s own interests by focusing on serving its customers’ interestsan unequivocal win–win or collaborative situation. • Nordstrom’s approach is high in cooperativeness and moderate to high in assertiveness. The company emphasizes understanding and addressing customer needs (cooperativeness) while also being proactive in resolving issues and accommodating requests (assertiveness). This balance helps in creating a supportive environment that addresses conflicts effectively. 3. Drawing on your answer to the preceding question, discuss the advantages and disadvantages of the conflict management approach that seems to characterize Nordstrom’s approach to customer relationship management. Answer: Students’ answers will vary. If the students argue that Nordstrom uses an accommodating style, the main advantage for Nordstrom would be minimizing potential customer dissatisfaction and encouraging customer retention. The primary disadvantage of using an accommodating approach is the risk of “being ripped off” by unscrupulous customers. If the students argue that Nordstrom uses a win–win approach, the primary advantage would be the generation of problem solutions that substantially benefit both parties. Thus, Nordstrom’s customers benefit by having their concerns addressed and their needs met, and Nordstrom benefits with respect to customer loyalty, growing sales, and sustained profitability. The main disadvantage of taking a collaborative approach is the amount of time that is consumed in searching for and reaching a mutually acceptable solution. The students should be encouraged to explore other possible advantages and disadvantages for each of these approaches. • Advantages: Nordstrom’s approach builds strong customer loyalty, enhances satisfaction, and fosters positive word-of-mouth. It can also lead to higher customer retention and differentiation in a competitive market. • Disadvantages: The approach may lead to higher operational costs and potential abuse of lenient policies. Additionally, it requires extensive training and empowerment of staff, which can be resource-intensive. SOURCE: This case solution was written by Michael K. McCuddy, The Louis S. and Mary L. Morgal Chair of Christian Business Ethics and Professor of Management, College of Business, Valparaiso University. Video Profile on Barcelona Restaurant Group At Barcelona, life is all about authentic cuisine, exceptional service, and a good time. But, delivering this eclectic dining experience involves a serious, sometimes confrontational, approach to restaurant management. The company recruits only self-confident individuals who take complete ownership over the establishment. When Andy Pforzheimer coaches new recruits, he is adamant that his staff be willing to take responsibility for their work and success. The enormous trust Barcelona places in employees is evident during weekly staff meetings. Pforzheimer routinely mixes it up with managers and chefs, and the dialogue gets feisty at times. Discussion Questions and Solutions 1. Would you characterize the conflict evident at Barcelona Restaurant as functional or dysfunctional? Explain. Answer: Students’ answers will vary, but students can use the following questions to diagnose the nature of the conflicts: Are the parties approaching the conflict from a hostile standpoint? Is the outcome likely to be a negative one for the organization? Do the potential losses of the parties exceed any potential gains? Is energy being diverted from goal accomplishment? If students answer no to most of these questions, the conflict is probably functional. Based on Barcelona’s performance, conflict at the restaurant chain is functional. Functional conflict produces new ideas, stimulates creativity, motivates change, and promotes organizational vitality. By contrast, dysfunctional conflict diverts energy from work, threatens psychological well-being, wastes resources, and creates a negative climate. • The conflict at Barcelona Restaurant appears to be dysfunctional. It likely involves unresolved issues that impair team cohesion, customer service, and operational efficiency. Dysfunctional conflicts often lead to ongoing disputes, decreased morale, and hindered performance. 2. What forms of conflict are on display at Barcelona? What structural and personal factors are likely causes of this conflict? Answer: Students’ answers will vary. Based on Andy Pforzheimer’s straight-talking, no-nonsense personality, and preference for employees who are equally assertive, students should infer that interpersonal conflict is common at Barcelona. Additionally, the conflict on display during the weekly managers meeting may lead students to cite intragroup conflict. Personal factors of conflict seen in the video include Andy Pforzheimer’s confrontational personality, as well as the emotions and perceptions that employees experience when interacting with Pforzheimer. The most obvious structural factor in the video is the authority relationship between the owner and his lower-level chefs and managers. Students may also cite interdependence among employees as another factor, as the video features a brief dialogue on how the poor performance of one Barcelona employee reflects negatively on the entire restaurant crew. • Forms of Conflict: Interpersonal conflicts among staff, role ambiguity, and operational disputes. • Structural Factors: Lack of clear roles, inadequate communication channels, and possibly poor management practices. • Personal Factors: Individual differences in work styles, personalities, and personal grievances among staff members. 3. Which of the five styles of conflict management mentioned in the chapter best characterizes interactions at Barcelona? Answer: Students’ answers will vary. Based on Pforzheimer’s assertive, confrontational tone, students may suggest that Barcelona’s managers use a competing style for managing conflict. However, Barcelona intentionally hires employees who are assertive and self-confident, and so the assertiveness of Pforzheimer and COO Scott Lawton is countered by an equal assertiveness from chefs and managers. “I’m interested in having other people’s opinions thrown at me. I like managers who talk back, and I like people who self-start,” Pforzheimer explains. This mix of assertive personalities, combined with a culture of open engagement and shared goals, results in a collaborating win–win style that is high on both assertiveness and cooperativeness. It is also worth noting that the organization’s unwavering insistence on customer satisfaction serves as a superordinate goal that unites all employees and helps direct conflict to positive ends. • The conflict management style at Barcelona likely aligns with avoidance. Staff may be avoiding direct confrontation or resolution of issues, leading to persistent underlying problems that are not addressed effectively. Cohesion Case Study Part 3 DonorsChoose.org: Inspiring and Empowering Staffers, Teachers, and Donors 1. How would you describe Charles Best’s approach to leadership? Answer: Students’ answers will vary. Charles Best can be described as a visionary leader with boundless energy to do “good” on behalf of society. He accepts responsibility and accountability. He is appreciative of what others do, and he ensures that others are aware of his appreciation. He is an extraordinary role model of personal character and integrity for those who follow him. As a leader, Charles Best possesses “infectious energy [that] reflects the good intentions at the core of [the organization].” These good intentions are expressed in the mission of engaging “the public in public schools by giving people a simple, accountable, and personal way to address educational inequity,” and the vision of “a nation where children in every community have the tools and experiences needed for an excellent education.” All the efforts to attain that vision and mission are infused with integrity. Best is adamant about expressing kindness and gratitude to those who support his cause. Best and his staff don’t let donors slip away into cyberspace after they click to give. This approach of having the recipients of funds express their appreciation to the donors pays off. Commenting on the strategy of expressing gratitude, Best observes, “You are doing more than turning your customers into advocates. You are turning your advocates into staff.” • Charles Best’s leadership approach is transformational and visionary. He inspires and motivates others with a compelling vision for educational reform and empowers staff and teachers to achieve their goals. His leadership is characterized by empathy, enthusiasm, and a strong commitment to making a positive impact. 2. What type(s) of followers would work well with Charles Best? What type(s) of followers would not work well with Best? Answer: The students’ responses to this question should build on their responses to the preceding question. Followers who would work well with Charles Best are those who have similar attributes and characteristics. They would be more compatible with one another and more likely to be comfortable in working with each other. Followers who would not work well with Charles Best are likely to be very much his opposite in terms of attributes and characteristics. In terms of the suggested response to Question 1, followers who would work well with Best would be highly energetic self-starters who willingly accept responsibility and want to be held accountable for their decisions and actions. The followers would also be able to relate well to other people, to be open and honest with them, and to be sociable rather than be loners. Perhaps most importantly, followers would need to be committed to the vision and mission of DonorsChoose and would need to possess strong personal integrity. The opposites of these attributes would pertain to followers who would have difficulty in working with Charles Best. • Works Well: Proactive, self-motivated individuals who share a passion for education and innovation. • Does Not Work Well: Followers who are resistant to change, lack initiative, or prefer a more structured, hierarchical work environment. 3. Why is effective communication essential for the operational success of DonorsChoose? Answer: Students’ answers will vary. A fundamental reason for the importance of effective communication is the sheer number of different projects for which funding is being sought; each project must be transparent in and of itselfand as the number of funding requests grows, so does the amount of information for which transparency is needed. Another reason for the importance of effective communication is the provision of adequate information to potential donors so that they can make informed choices about the project(s) they wish to support. A third reason for effective communication is the DonorsChoose requirement that classes with funded projects must put together a documentation packet about actual use of the funds, with that packet being transmitted to the donor(s) who supported the project. • Effective communication is crucial for aligning staff, teachers, and donors with the organization's goals. It ensures clarity in project needs, fosters transparency, and builds trust among all stakeholders, which is essential for successful collaboration and resource allocation. 4. How does DonorsChoose.org empower staffers, teachers, and donors? Answer: The manner in which DonorsChoose empowers staffers is perhaps best demonstrated in the way Charles Best leads. His emphasis on personal responsibility, accountability, and integrity empowers staffers. His infectious energy is empowering as well. As one observer said, Charles Best possesses “infectious energy [that] reflects the good intentions at the core of [the organization].” These good intentions are expressed in the mission of engaging “the public in public schools by giving people a simple, accountable, and personal way to address educational inequity,” and the vision of “a nation where children in every community have the tools and experiences needed for an excellent education.” Not only do the vision and mission express the good intentions of DonorsChoose but also give direction to staffers in undertaking the actions necessary to move ahead in fulfilling both. DonorsChoose empowers teachers to be innovative in their pursuit of effective methods for educating their students. One such example of empowerment is provided by Steve Oszust, a Bronx, New York high school science teacher, who is particularly adept at connecting with donors. Oszust has a knack for using catchy headlines on his postings seeking support for projects. “No Bones About It”which headlines a post requesting funds for a model skeletonis one example of how he captures the attention of potential donors. The major way in which DonorsChoose.org empowers donors is by providing a user-friendly mechanism through which they can help make a difference in public education. DonorsChoose is attractive to donors because it enables them to connect directly with their recipients. As one observer commented: “You browse the requests and send a donation to the one that appeals to you the most. You can kick in part of the funding or all of it. Once the target amount has been met, DonorsChoose buys the materials and ships them to the school.” Part of the empowerment recipe for donors is the transparency of DonorsChoose.orgit provides contributors with ample information about the exact use of their money. Another way in which DonorsChoose empowers donors is through the use of a “Blogger Challenge” wherein Internet bloggers compete to raise money among their readers. For example, Sarah Bunting, “who writes Tomato Nation, a culture and humor blog, offered to shave her head if her readers donated $30,000 to DonorsChoose.org. The funds were raised within days.” • DonorsChoose.org empowers staffers through a supportive and innovative work environment. Teachers are given a platform to directly present their needs and receive funding, while donors are empowered to choose projects they wish to support, making their contributions impactful and personal. 5. What impact does the empowerment approach used by DonorsChoose have on teachers and donors? Answer: Students’ answers will vary. DonorsChoose.org enables teachers to design an innovative or engaging project, or to simply have the books, supplies, and technology for more standard educational efforts. Project funding by DonorsChoose permits teachers to improve and enhance the educational experiences of their students. However, some school superintendents have been reluctant to embrace DonorsChoose because they view it as a way for teachers to sidestep the public school’s authority to provide funding for educational projects. As a standard practice, the class that benefits from a donation assembles a documentation packet that includes thank-you notes from the children, a letter from the teacher, and photographs of the entire class using the resource. The DonorsChoose staff then sends the documentation packet to the donor(s). One donor who supported a project that enabled students to visit an Ivy League college was “so touched by the photos and cards [he received] that he has since become a repeat giver and sent friends to the site.” Commenting on the strategy of expressing gratitude, Best observes, “You are doing more than turning your customers into advocates. You are turning your advocates into staff.” • The empowerment approach fosters a sense of ownership and engagement among teachers, leading to greater motivation and effective project implementation. For donors, it creates a personal connection to the projects they support, enhancing satisfaction and continued contributions. 6. How does the empowerment of staffers influence teamwork dynamics at DonorsChoose? Answer: Students’ answers will vary. As indicated in the suggested response to question 4, Charles Best’s infectious energy and his emphasis on personal responsibility, accountability, and integrity are empowering the staffers. These various attributes also likely work in concert to promote effective teamwork among the DonorsChoose staffers. They seem to be committed to working together in an effective and efficient manner to make significant progress in bringing together teachers with educational projects in need of financial resources and donors who wish to support educational projects of their choice at a financial level they can afford. • Empowering staffers enhances teamwork by promoting collaboration, trust, and shared goals. It encourages initiative and creativity, leading to a more cohesive and productive work environment where team members are motivated to contribute their best efforts. 7. Although there are some critics of DonorsChoose and, by implication of Charles Best, Jonathan Beyman characterizes Best as follows: “I’ve met lots of software guys over the years his age who are off to make a billion dollars. I very rarely meet people who are going straight to heaven. Here’s one of them.” Do you think Beyman’s description of Best is justified? Why or why not? Answer: Students’ answers will vary. DonorsChoose was selected as one of the “world’s 50 most innovative companies,” and Charles Best was tabbed as one of the “hottest young business leaders on the planet.” Both of these honors are powerful testimonies to the success and impact of DonorsChoose and its leader, Charles Best. Moreover, Best’s honorific status is enhanced by his success in fulfilling the vision and mission of DonorsChoose. In short, the organization has significantly influenced opportunities in and the quality of public education by bringing together contributorsmany of quite modest meanswith instructional projects in need of funding. Although a legitimate argument can be made that Best is deserving of accolades, an interesting debate can evolve around the notion of whether Beyman overstates the case for Best’s ascension. Students should be encouraged to consider why any public figurebusinessperson, politician, educator, artist, author, actor, athlete, etc. should be “put on a pedestal of adoration.” • Beyman’s description of Best seems justified. Best’s dedication to improving education and his genuine commitment to social good, as reflected in DonorsChoose’s mission, aligns with the notion of pursuing a noble cause. His focus on creating positive societal impact rather than financial gain highlights his exceptional dedication and integrity. SOURCE: This case solution was written by Michael K. McCuddy, The Louis S. and Mary L. Morgal Chair of Christian Business Ethics and Professor of Management, College of Business, Valparaiso University. Student Handouts Ethical Dilemma Maria Vasquez has called a department meeting to address a critical issue affecting Universal Product Shipping as a whole. Maria’s department seems unable to meet their deadline, and as a result, orders and fulfillment are constantly getting backlogged. Maria’s supervisor has instructed her to divine the source of the problem through team brainstorming and exercises. Maria asks everyone to share their role in the process so that the department can start determining where the bottlenecking problems are occurring. Jim, a longtime member of the team, explains that he thinks that when he passes his work onto Vincent, the files don’t move forward in a timely manner. Vincent pushes back against this assessment, saying that he has to go through Jim’s work a second time before he can add his component and pass it forward to Cassie. Jim begins to get defensive, accusing Vincent of making a claim that Jim’s age is negatively affecting his performance. Shelly, who works closely with Jim, mentions that she thinks there’s a significant portion of information that is omitted when the files get to their step in the process, and thinks that the department needs to see why those data are absent. Unfortunately, just as people start brainstorming about where that missing information is, Jim and Vincent begin to raise their voices. Maria tries to keep everyone on topic, but she realizes that Jim and Vincent seem to be at the heart of the problem. Jim’s missing information is stymieing the process, and Vincent’s tardiness with moving the files forward is further compounding the problem. Maria knows that they can’t resolve the problem without keeping these two people staying engaged in the process. However, Jim and Vincent’s interaction is becoming louder and more personal. Maria has been trained to intervene when interpersonal conflict becomes problematic, and she thinks that Jim and Vincent have crossed the line. On the other hand, she has a mandate to solve this crisis immediately, and believes that she needs Jim and Vincent to stay in the brainstorming session in order to accomplish this. Questions 1. Using consequential, rule-based, and character theories, evaluate Maria’s options. Answer: Using consequential, rule-based, and character theories, evaluate Maria’s options. • Consequential Theory: Maria should weigh the outcomes of either allowing the conflict to continue, which might derail the brainstorming session, versus intervening to restore order and potentially resolve the underlying issues. The best outcome would be to balance immediate problem-solving with long-term team cohesion. • Rule-Based Theory: Maria should adhere to her training and organizational guidelines, which likely prioritize resolving interpersonal conflicts and maintaining a professional environment. Ensuring adherence to these rules helps maintain fairness and respect. • Character Theory: Maria’s actions should reflect virtues like fairness, empathy, and integrity. She should address the conflict while keeping in mind the importance of each team member’s contribution and fostering a collaborative atmosphere. 2. What should Maria do? Why? Answer: • Maria should intervene to de-escalate the conflict and refocus the team on the task at hand. She should address the personal attacks and remind everyone of the goal—to identify and resolve process issues. This approach maintains a constructive environment and ensures that all perspectives are considered while keeping the team engaged in problem-solving. What about You? Assess your Team’s Conflict Think of a team you’re a member of or one you were part of in the past. Answer the following eight questions regarding that team. 1. How much emotional tension was there in your team? Answer: • 3: There was moderate emotional tension, with occasional stress affecting team dynamics. 2. How much conflict of ideas was there in your team? Answer: • 4: The team frequently had conflicts of ideas, as members had varied perspectives on the project. 3. How often did people get angry while working in your team? Answer: • 2: People rarely got angry; conflicts were generally managed with discussion. 4. How different were your views on the content of your project? Answer: • 4: Views on the project content were often quite different, leading to extensive discussions and negotiations. 5. How much were personality clashes evident in your team? Answer: • 2: Personality clashes were infrequent, though some differences in work styles did arise. 6. How much did you talk through disagreements about your team projects? Answer: • 4: Disagreements were usually talked through, with a focus on finding common ground. 7. How much interpersonal friction was there in your team? Answer: • 3: There was a moderate level of interpersonal friction, often linked to stress and workload. 8. How much disagreement was there about task procedure in your team? Answer: • 3: There was a moderate amount of disagreement about task procedures, which required regular alignment efforts. Total for items 2, 4, 6, and 8 5__________ indicating task conflict. Answer: Total for items 2, 4, 6, and 8: 4 + 3 + 4 + 3 = 14 (indicating task conflict) Total for items 1, 3, 5, and 7 5 __________ indicating relationship conflict. Answer: Total for items 1, 3, 5, and 7: 2 + 1 + 2 + 2 = 7 (indicating relationship conflict) Source: Adapted from K. Jehn, “A Multimethod Examination of the Benefits and Detriments of Intragroup Conflict,” Administrative Science Quarterly 40 (1995): 256–282. What about You? What is your Conflict-Handling Style? For each of the fifteen items, indicate how often you rely on that tactic by circling the appropriate number. 1. I argue my case with my coworkers to show the merits of my position. Answer: • Rating: 4 2. I negotiate with my coworkers so that a compromise can be reached. Answer: • Rating: 3 3. I try to satisfy the expectations of my coworkers. Answer: • Rating: 2 4. I try to investigate an issue with my coworkers to find a solution acceptable to us. Answer: • Rating: 5 5. I am firm in pursuing my side of the issue. Answer: • Rating: 4 6. I attempt to avoid being “put on the spot” and try to keep my conflict with my coworkers to myself. Answer: • Rating: 2 7. I hold on to my solution to a problem. Answer: • Rating: 4 8. I use “give and take” so that a compromise can be made. Answer: • Rating: 3 9. I exchange accurate information with my coworkers to solve a problem together. Answer: • Rating: 5 10. I avoid open discussion of my differences with my coworkers. Answer: • Rating: 2 11. I accommodate the wishes of my coworkers. Answer: • Rating: 3 12. I try to bring all our concerns out in the open so that the issues can be resolved in the best possible way. Answer: • Rating: 5 13. I propose a middle ground for breaking deadlocks. Answer: • Rating: 3 14. I go along with the suggestions of my coworkers. Answer: • Rating: 3 15. I try to keep my disagreements with my coworkers to myself in order to avoid hard feelings. Answer: • Rating: 2 Scoring Key: Collaborating Accommodating Competing Avoiding Compromising 4 3 1 6 2 9 11 5 10 8 12 14 7 15 13 Total Total Total Total Total Your primary conflict-handling style is: ______ Answer: Calculate Totals: • Collaborating: • Items 4 (5) + 9 (5) + 12 (5) • Total: 15 • Accommodating: • Items 3 (2) + 11 (3) + 14 (3) • Total: 8 • Competing: • Items 1 (4) + 5 (4) + 7 (4) • Total: 12 • Avoiding: • Items 6 (2) + 10 (2) + 15 (2) • Total: 6 • Compromising: • Items 2 (3) + 8 (3) + 13 (3) • Total: 9 Your Primary Conflict-Handling Style: Collaborating (15) Your backup conflict-handling style is: _______ Answer: Calculate Totals: • Collaborating: • Items 4 (5) + 9 (5) + 12 (5) • Total: 15 • Accommodating: • Items 3 (2) + 11 (3) + 14 (3) • Total: 8 • Competing: • Items 1 (4) + 5 (4) + 7 (4) • Total: 12 • Avoiding: • Items 6 (2) + 10 (2) + 15 (2) • Total: 6 • Compromising: • Items 2 (3) + 8 (3) + 13 (3) • Total: 9 Your Backup Conflict-Handling Style: Competing (12) SOURCE: Reprinted with permission of Academy of Management, PO Box 3020, Briar Cliff Manor, NY 10510-8020. A Measure of Styles of Handling Interpersonal Conflict (adaptation), M. A. Rahim, Academy of Management Journal, June 1983. Reproduced by permission of the publisher via Copyright Clearance Center, Inc. Issues in Diversity Swimming in Conflict What do African American and Hispanic summer camp children have in common with children from Huntingdon Valley, PA, on a warm summer day? They all want to swim! Rather than swim, however, the sixty-five predominately black and Hispanic campers from Creative Steps day camp found themselves in the center of a huge controversy amid allegations of racism and discrimination. Creative Steps, a Northeast Philadelphia day camp, paid The Valley Club, a predominately white suburban private club, a $1,950 membership fee in order for its campers to swim in the club pool each Monday afternoon. Surprisingly after the camp’s first visit, the club refunded the camp’s membership fee without explanation. Several of Creative Steps’ campers reported that they heard several club members making racial remarks and at least one person complain that the children did not belong there. According to the camp’s attorney, “The kids were humiliated.” John Duesler, The Valley Club’s president, insisted that it wasn’t race that precipitated the refund of the camp’s swim fee, rather it was safety. When The Valley Club initially contracted with the camp, it had not considered that the club might be short on lifeguards and wouldn’t be able to handle additional swimmers—an important issue given that many of the campers could not swim. Duesler added that “…the club’s board had not properly thought through the demands of accommodating them [the campers].” The controversy surrounding this conflict gathered steam as the NAACP filed a formal complaint with the Pennsylvania Human Relations Commission, the U.S. Justice Department began investigations into the club’s conduct, and the public began to weigh in. Creative Steps declined The Valley Club’s re-invitation to the club. Last reported, the camp was in negotiations with a local college for their children to swim there. Questions 1. Would you describe the conflict between Creative Steps and The Valley Club as functional or dysfunctional? Explain. Answer: • The conflict is dysfunctional. It escalated due to allegations of racism and discrimination, leading to public outcry and legal investigations. The inability to address these issues constructively resulted in significant harm to both parties and broader societal implications. 2. Despite the obvious demographic differences, what additional diversity issues are relevant here? Answer: • Beyond racial demographics, there are issues of inclusion and equity. The conflict highlights how structural and procedural barriers, like inadequate planning for additional swimmers, intersect with cultural and racial biases, affecting access and fairness for marginalized groups. SOURCES: I. Urbina, “Club in Philadelphia Suburb Faces Accusations of Racism,” The New York Times (July 11, 2009); S. Netter, “Specter Wants Probe Into Club’s Rejection of Black Swimmers,” ABCNews.com (July 9, 2009), http://abcnews.go.com/. Experiential Exercise Conflicts over Unethical Behavior Many conflicts in work organizations arise over differences in beliefs concerning what constitutes ethical versus unethical behavior. The following questionnaire provides a list of behaviors that you or your coworkers might engage in when working for a company. Go over each item, and circle the number that best indicates the frequency with which you personally would (or do, if you work now) engage in that behavior. Then, put an X over the number you think represents how often your coworkers would (or do) engage in that behavior. Finally, put a check mark beside the item (in the “Needs Control” column) if you believe that management should control that behavior. At Every Opportunity Often About half the time Seldom Never Needs Control 1. Passing blame for errors to an innocent coworker. 5 4 3 2 1 ______ 2. Divulging confidential information. 5 4 3 2 1 ______ 3. Falsifying time/quality/quantity reports. 5 4 3 2 1 ______ 4. Claiming credit for someone else’s work. 5 4 3 2 1 ______ 5. Padding an expense account by over 10 percent. 5 4 3 2 1 ______ 6. Pilfering company materials and supplies. 5 4 3 2 1 ______ 7. Accepting gifts/favors in exchange for preferential treatment. 5 4 3 2 1 ______ 8. Giving gifts/favors in exchange for preferential treatment. 5 4 3 2 1 ______ 9. Padding an expense account by up to 10 percent. 5 4 3 2 1 ______ 10. Authorizing a subordinate to violate company rules. 5 4 3 2 1 ______ 11. Calling in sick to take a day off. 5 4 3 2 1 ______ 12. Concealing one’s errors. 5 4 3 2 1 ______ 13. Taking longer than necessary to do a job. 5 4 3 2 1 ______ 14. Using company services for personal use. 5 4 3 2 1 ______ 15. Doing personal business on company time. 5 4 3 2 1 ______ 16. Taking extra personal time (lunch hour, breaks, early departure, and so forth). 5 4 3 2 1 ______ 17. Not reporting others’ violations of company policies and rules. 5 4 3 2 1 ______ 18. Overlooking a superior’s violation of policy to prove loyalty to the boss. 5 4 3 2 1 ______ Discussion Questions 1. Would (do) your coworkers seem to engage in these behaviors more often than you would (do)? Why do you have this perception? Answer: • Yes, coworkers might seem to engage more often due to the tendency to notice unethical behavior in others more than in oneself, possibly influenced by workplace culture or shared experiences that highlight certain behaviors as more common. 2. Which behaviors tend to be most frequent? Answer: • Behaviors like calling in sick to take a day off (11) and doing personal business on company time (15) are often more frequent due to their perceived lower impact and normalization in some work environments. 3. How are the most frequent behaviors different from the behaviors engaged in less frequently? Answer: • More frequent behaviors are often perceived as less severe or more justifiable, while less frequent behaviors, such as falsifying reports (3) or divulging confidential information (2), are seen as more serious violations with higher potential consequences. 4. What are the most important items for managers to control? How should managers control these behaviors? Answer: • Items like falsifying reports (3) and divulging confidential information (2) are critical. Managers should implement strict policies, regular audits, and ethical training to prevent and address these behaviors effectively. 5. Select a particular behavior from the list. Have two people debate whether the behavior is ethical or not. Answer: • Behavior: Accepting gifts/favors in exchange for preferential treatment (7). • Debate: One might argue it's unethical due to conflicts of interest and fairness issues, while the other might argue it's a common practice and could be seen as a form of networking or relationship-building, depending on the context. 6. What types of conflicts could emerge if the behaviors in the list occurred frequently? Answer: • Conflicts could include ethical disputes between employees, trust issues within teams, and management challenges in enforcing fair practices and maintaining integrity in the workplace. SOURCE: From Managerial Experience, 3e and 3rd Edition by Jauch L. © 1983. Reprinted with permission of South-Western, a division of Thomson Learning: www.thomsonlearning.com. Fax 800-730-2215. Experiential Exercise The World Bank Game: An Intergroup Negotiation The purposes of this exercise are to learn about conflict and trust between groups and to practice negotiation skills. In the course of the exercise, money will be won or lost. Your team’s objective is to win as much money as it can. Your team will be paired with another team, and both teams will receive identical instructions. After reading these instructions, each team will have ten minutes to plan its strategy. Each team is assumed to have contributed $50 million to the World Bank. Teams may have to pay more or may receive money from the World Bank, depending on the outcome. Each team will receive twenty cards. These cards are the weapons. Each card has a marked side (X) and an unmarked side. The marked side signifies that the weapon is armed; the unmarked side signifies that the weapon is unarmed. At the beginning, each team will place ten of its twenty weapons in their armed position (marked side up) and the remaining ten in their unarmed position (marked side down). The weapons will remain in the team’s possession and out of sight of the other team at all times. The game will consist of rounds and moves. Each round will be composed of seven moves by each team. There will be two or more rounds in the game, depending on the time available. Payoffs will be determined and recorded after each round. The rules are as follows: 1. A move consists of turning two, one, or none of the team’s weapons from armed to unarmed status, or vice versa. 2. Each team has one and a half minutes for each move. There is a thirty-second period between each move. At the end of the one and a half minutes, the team must have turned two, one, or none of its weapons from armed to unarmed status or from unarmed to armed status. If the team fails to move in the allotted time, no change can be made in weapon status until the next move. 3. The two-minute length of the period between the beginning of one move and the beginning of the next is unalterable. Finances: The funds each team has contributed to the World Bank are to be allocated in the following manner: $30 million will be returned to each team to be used as the team’s treasury during the course of the game, and $20 million will be retained for the operation of the World Bank. Payoffs: 1. If there is an attack: a. Each team may announce an attack on the other team by notifying the banker during the thirty seconds following any minute-and-a-half period used to decide upon the move (including the seventh, or final, decision period in any round). The choice of each team during the decision period just ended counts as a move. An attack may not be made during negotiations. b. If there is an attack by one or both teams, two things happen: (i) the round ends, and (ii) the World Bank assesses a penalty of $2.5 million on each team. c. The team with the greater number of armed weapons wins $1.5 million for each armed weapon it has over and above the number of armed weapons of the other team. These funds are paid directly from the treasury of the losing team to the treasury of the winning team. The banker will manage the transfer of funds. 2. If there is no attack: At the end of each round (seven moves), each team’s treasury will receive from the World Bank $1 million for each of its weapons that is at that point unarmed; and each team’s treasury will pay to the World Bank $1 million for each of its weapons remaining armed. Negotiations: Between moves, each team will have the opportunity to communicate with the other team through its negotiations. Either team may call for negotiations by notifying the banker during any of the thirty-second periods between decisions. A team is free to accept or reject any invitation to negotiate. Negotiators from both teams are required to meet after the third and sixth moves (after the thirty-second period following the move, if there is no attack). Negotiations can last no longer than three minutes. When the two negotiators return to their teams, the minute-and-a-half decision period for the next move will begin once again. Negotiators are bound only by (a) the three-minute time limit for negotiations and (b) their required appearance after the third and sixth moves. They are always free to say whatever is necessary to benefit themselves or their teams. The teams are not bound by agreements made by their negotiators, even when those agreements are made in good faith. Special Roles: Each team has ten minutes to organize itself and plan team strategy. During this period, before the first round begins, each team must choose persons to fill the following roles: •A negotiator—activities stated above. •A representative—to communicate the team’s decisions to the banker. •A recorder—to record the moves of the team and to keep a running balance of the team’s treasury. •A treasurer—to execute all financial transactions with the banker. The instructor will serve as the banker for the World Bank and will signal the beginning of each of the rounds. At the end of the game, each participant should complete the following questionnaire, which assesses reactions to the World Bank Game. World Bank Questionnaire: 1. To what extent are you satisfied with your team’s strategy? 2. To what extent do you believe the other team is trustworthy? 3. To what extent are you satisfied with the performance of your negotiator? 4. To what extent was there a consensus on your team regarding its moves? 5. To what extent do you trust the other members of your team? 6. Select one word that describes how you feel about your team: ________________________. Select one word that describes how you feel about the other team: _____________________. Negotiators only: 7. How did you see the other team’s negotiator? At the end of the game, the class will reconvene and discuss team members’ responses to the World Bank Questionnaire. In addition, the following questions are to be addressed: 1. What was each team’s strategy for winning? What strategy was most effective? Answer: • Teams typically used strategies focusing on collaborative problem-solving or competitive negotiation. The most effective strategy was often a collaborative approach, which fostered mutual benefit and maintained trust. 2. Contrast the outcomes in terms of win-win solutions to conflict versus win-lose solutions. Answer: • Win-win solutions involved both teams finding mutually beneficial outcomes, enhancing relationships and long-term satisfaction. In contrast, win-lose solutions often resulted in one team gaining at the expense of the other, leading to potential resentment and reduced future cooperation. SOURCE: Adapted by permission from N. H. Berkowitz and H. A. Hornstein, “World Bank: An Intergroup Negotiation,” in J. W. Pfeiffer and J. E. Jones, eds., The 1975 Handbook for Group Facilitators (San Diego: Pfeiffer), 58–62. Copyright © 1975 Pfeiffer/Jossey-Bass. This material is used by permission of John Wiley & Sons, Inc. Experiential Exercise The World Bank Game: Banker’s Instruction Sheet As a banker, your tasks during this experiment are to synchronize the timing between your two teams and to monitor the rules set forth in the World Bank General Instructions. 1. After each one and a half minute move, call for a private report from each team’s representative. 2. Thirty seconds later, indicate the beginning of the next move, announce a three-minute negotiation session, or signal that an attack has been declared. (An attack immediately ends each round). 3. Following moves three and six, direct the negotiators to a prearranged site out of view of both teams for a compulsory negotiation session. (This session must be limited to a maximum of three minutes). 4. At the end of a round (after the seventh move or an attack), give each team’s recorder the information needed about the status of the other team’s weapons to complete the records for that round and prepare for the next round. (Note that there may be an attack after the seventh move also). 5. Have team members complete the World Bank Questionnaire at the end of the game. As a banker, you have the following responsibility: 1. Collect penalties from the treasurers. 2. Make payments directly to treasurers. 3. Transfer funds from one treasurer to another. Experiential Exercise A Case for Constructive Confrontation There have been complaints recently about Fred among several of his coworkers for wasting their time by dropping by their office and engaging them in “conversations” (actually Fred does most of the talking) about various things (usually not work-related). It is difficult to interrupt one of his stories, and he usually takes vaguely polite hints that “the conversation is over” as an expression of interest in what he is saying. (“Well, Fred, that’s great. Let me know how that new bowling ball works out.”——”Yeah, I’ve already bowled a couple of games with it. I went Sunday afternoon. You should see all the professional people who go bowling on Sundays. I met this one guy....etc.”). Even you endure these interruptions from time to time. Fred’s work is generally good in quality, and adequate in quantity. He puts in a full workday, but doesn’t work as many hours per week as some of the others in the department. Discuss the pros and cons of confronting Fred in each of the following ways: •For each rejected item, substantiate your opinion by referencing Chapter 13 of your text. •Modify, or write an approach that would be optimal, and list as many of the issues that you can discover from the chapter. 1. Send Fred a memo stating that “some people have complained about him ‘visiting’ too much.” Admonish him to be careful to not waste his own time or anyone else’s. 2. Call Fred into your office. Tell him that it has come to your attention that he’s been “chatting” with other people in the office a good bit. Tell him that everyone looks pretty busy right now. Ask him if he’s sure he is not taking up too much of their time. 3. Drop by Fred’s office while walking around. Ask him how things are going. Make a big deal about “I had better get out of here and let you get back to work. I know all of you guys have a lot of work to do.” 4. The next time Fred interrupts you with one of his stories, cut him off by saying, “Fred, I hate to interrupt your story, but I’m really busy right now. I run into this problem with you every now and then. I’m reluctant to cut you off, but sometimes I need to let you know that I am in the middle of something important.” 5. Send around a memo saying, “It has come to my attention that some of the people in this department are beginning to spend too much time “chatting” with each other during work time. We are all very busy these days, so let me ask you all to take special care to not interrupt one another unnecessarily.” Case Study Customer Service at Nordstrom: A Way to Mitigate Potential Conflict? Customer service can become a highly contentious situation when employees are confronted with dissatisfied or disgruntled patrons. How employees handle these situations will affect customer loyalty, the company’s reputation, and ultimately its profitability. Handled well, such situations can result in reduced conflict with customers and can strengthen a company’s relationship with its customers. Handled poorly, these situations can erode customer relationship management and perhaps eventually destroy the company. Nordstrom, an upscale retailer headquartered in Seattle, Washington and operating almost 200 stores in about three-fifths of the states in America, provides some valuable clues on how to do customer service the right way. “While Nordstrom was growing nationally, it focused on catering to customers’ needs, individually. Instead of categorizing departments by merchandise, Nordstrom created fashion departments that fit individuals’ lifestyles. Today, Nordstrom has grown from one downtown Seattle shoe store into a nationwide fashion specialty chain with renowned services, generous size ranges and a selection of the finest apparel, shoes and accessories for the entire family. The company’s philosophy has remained unchanged for more than 100 years since its establishment by John W. Nordstrom in 1901: offer the customer the best possible service, selection, quality and value.” Nordstrom is famous for its exceptional customer service. Whether it’s true or not, a classic story about Nordstrom’s service tells the public a lot about the high-end retailer’s approach to customer relationship management. According to the story, “[a] man walked into the Nordstrom department store in Fairbanks, Alaska, with two snow tires. He approached the counter, put the tires down and asked for his money back. The clerk, who’d been working there for two weeks, saw the price on the side of the tires, reached into the cash register and handed the man $145. It didn’t matter that Nordstrom sells upscale clothing and not tires. The customer wanted to return the tires. The clerk accepted the return because that is what the customer wanted.” John Nordstrom, one of three brothers in senior executive positions at the retailer, “claims he was there and that the refund took place in a former tire store that had been converted [into] a Nordstrom outlet.” Nordstrom handles customer returns on a case-by-case basis. Sometimes Nordstrom will replace items years after their purchasejust to keep the customer happy. “We really think a reason our customers shop with us is that we stand behind our merchandise,” says a Nordstrom spokesperson. “Returns of Nordstrom products do not have to include a sales invoice or a Nordstrom price tag. Nordstrom knows it’s not the price but the customer service that gains and retains loyal customers that generate strong profits.” Nordstrom’s sales associates also keep close tabs on their clientele so they can provide excellent customer serviceespecially to patrons who are frequents shoppers and who spend considerable sums of money. Associates carry a clientele book with them onto the selling floor and they refer to it when a recognized or high-valued customer comes into the store. The clientele book contains information about the specific customer’s recent purchases, important dates, and fashion tastes, among other data items. More recently, Nordstrom has begun “issuing mobile devices that workers on the sales floor can use to scour the company’s inventory for a garment in a size a customer is requesting. The shopper pays on the spot, with no need to locate and wait at a cash register.” Nordstrom increasingly uses its large store network and large centralized distribution hub to ship online orders quickly to customers. In recent years, Nordstrom has invested heavily in integrating its online and in-store divisions, which has had the effect of providing better customer service because of merchandise being out of stock less frequently. Another way in which Nordstrom effectively serves its customers is by seeking feedback from them. Luxury retailers like Nordstrom have “embraced online customer reviews, opening their websitesand the brands they sellto the slings and arrows of public opinion.” Nordstrom, being a leader among luxury retailers, launched its online customer review system in the autumn of 2009. The reasons that luxury retailers have launched online customer review systems include “the need to beef up online sales, and a realization among luxury retailers that customers want the ability to take shopping advice from their peers.” According to the E-tailing Group, 71 percent of online shoppers are influenced by customer reviews; and according to Bazaarvoice Inc., customer reviews tend to be overwhelmingly positive. Perhaps the bottom line with respect to Nordstrom’s approach to customer service is best summarized in the observation made by John Graham. Writing in The American Salesman, Graham observes: “Being known isn’t what’s important. What adds to your panache and builds credibility is what you want to be known for. What’s important isn’t the Nordstrom’s name; it’s the link to extraordinary customer service that makes the store unique.” Discussion Questions 1. Dealing with dissatisfied and disgruntled customers is, perhaps, one of the greatest sources of conflict for retailers. Is Nordstrom’s approach to customer service and customer relationship management an appropriate way to defuse or prevent potential conflict situations? Explain the reasoning behind your answer. Answer: • Yes, Nordstrom’s approach is effective as it emphasizes exceptional customer service, including personalized attention and a no-questions-asked return policy. This proactive, customer-centric approach helps resolve conflicts before they escalate and fosters customer loyalty. 2. Using the assertiveness and cooperativeness dimensions that underlie the five conflict management styles, explain Nordstrom’s approach to customer service and customer relationship management. Answer: • Nordstrom’s approach is highly cooperative and assertive. They focus on understanding and addressing customer needs (cooperativeness) while maintaining clear, customer-focused policies and taking proactive steps to solve problems (assertiveness). 3. Drawing on your answer to the preceding question, discuss the advantages and disadvantages of the conflict management approach that seems to characterize Nordstrom’s approach to customer relationship management. Answer: • Advantages include high customer satisfaction and loyalty due to personalized service and effective problem resolution. Disadvantages might be higher operational costs and potential for abuse of generous policies. Overall, the approach builds strong customer relationships but requires careful management to prevent misuse. SOURCE: This case was written by Michael K. McCuddy, The Louis S. and Mary L. Morgal Chair of Christian Business Ethics and Professor of Management, College of Business Administration, Valparaiso University. Cohesion Case Study Part 3 DonorsChoose.org: Inspiring and Empowering Staffers, Teachers, and Donors DonorsChoose and its leader-in-chief, founder and CEO Charles Best, have been repeatedly lauded for their impact and achievements. Among the most notable of these plaudits is the March 2011 recognition by Fast Company magazine of DonorsChoose as one of the “world’s 50 most innovative companies.” Just a few months earlier, in November 2010, Fortune magazine named Charles Best to its “40 Under 40” list of the “hottest young business leaders on the planet.” How did Charles Best and DonorsChoose achieve this stunning recognition? Best’s collaborative leadership of this innovative nonprofit organization and his empowerment of othersstaffers, teachers, and donorsprovide some instructive clues as to how these accolades have been achieved. As a leader, Charles Best possesses “infectious energy [that] reflects the good intentions at the core of [the organization].” Good intentions are expressed in the mission of engaging “the public in public schools by giving people a simple, accountable and personal way to address educational inequity,” and the vision of “a nation where children in every community have the tools and experiences needed for an excellent education.” And all the efforts to attain that vision and mission are infused with integrity. Best “is adamant about expressing kindness and active gratitude to those who support his cause. Best and his staff don’t let donors slip away into cyberspace after they click to give. He requires teachers to take pictures of the projects that donors have enabled. His staff then sends those pictures to the donors, along with thank-you notes from the children.” This approach of having the recipients of funds express their appreciation to the donors pays off. For instance, one donor who supported a project that enabled students to visit an Ivy League college was “so touched by the photos and cards [he received,] that he has since become a repeat giver and sent friends to the site.” Commenting on the strategy of expressing gratitude, Best observes, “You are doing more than turning your customers into advocates. You are turning your advocates into staff.” Advocates for DonorsChoose have arisen in a variety of ways and places. One such incarnation is that of the Internet bloggers. For example, Sarah Bunting, “who writes Tomato Nation, a culture and humor blog, offered to shave her head if her readers donated $30,000 to DonorsChoose.org. The funds were raised within days.” “DonorsChoose.org now features a ‘Blogger Challenge’ on its site where bloggers compete to raise money among their readers.” From the very beginning of DonorsChoose.org, teachers were empowered to be innovative in their pursuit of effective methods for educating their students. One such example of empowerment is provided by Steve Oszust, a Bronx, New York high school science teacher, who is particularly adept at connecting with donors. Affectionately called “Mr. O.” by his students, Oszust has a knack for using catchy headlines on his postings seeking support for projects. “No Bones About It”which headlines a post requesting funds for a model skeletonis but one example of how he captures the attention of potential donors. And his students are appreciative of his efforts: One student says, in “[o]ther classes, we hardly have any books. You have to leave them in the classroom. Mr. O. got us books you can take home and do practice questions.” Another of Mr. O.’s students points out, “[t]he school’s very poor. When they donate stuff, we’re like, ‘Oh cool, where’d you get that from?’ “ Although teachers like being able to design an innovative or engaging project, or to simply have the books, supplies, and technology for more standard educational efforts, some school superintendents have been reluctant to embrace DonorsChoose. Unfortunately, DonorsChoose could be viewed by some school superintendents as a way for teachers to sidestep the public school’s authority to provide funding for educational projects. The success of DonorsChoose can be attributed, in part, to Charles Best vigorously embracing small donors and providing a user-friendly mechanism by which they are empowered to help make a difference in public education. “Giving through DonorsChoose feels as personal as bringing cupcakes to your kid’s classroom. You browse the requests and send a donation to the one that appeals to you most. You can kick in part of the funding or all of it. Once the target amount has been met, DonorsChoose buys the materials and ships them to the school.” DonorsChoose, like some of the other newer Web-based nonprofit organizations, is attractive to donors because it enables them to connect directly with their recipients. This is especially true with respect to donors being apprised of the impact of their contributions. As standard practice, the class that benefits from a donation, assembles a documentation packet that includes thank-you notes from the children, a letter from the teacher, and photographs of the entire class using the resource. The documentation packet goes to DonorsChoose, which then sends it to the donor(s). Without a doubt, DonorsChoose.org is thriving, in part, because of its transparencyit provides charitable donors with ample information about the exact use of their money. Of course, success and rapid growthlike that enjoyed by DonorsChooseseldom occurs without encountering some opposition. Among the naysayers are the traditional philanthropists. Conventional wisdom among these individuals asserts that requesting donations to help meet the financial shortfalls of public education simply lets politicians off the hook. Moreover, according to these critics, attempting to fund the needs of public schools is a complex task. Such critics are in the minority, however. Obviously, the selection of DonorsChoose as one of the “world’s 50 most innovative companies” and of Charles Best as one of the “hottest young business leaders on the planet” provide powerful testimony to counter the critics. Or as Jonathan E. Beyman, a prominent businessman in information management and an avid contributor to DonorsChoose, says of Charles Best, “I’ve met lots of software guys over the years his age who are off to make a billion dollars I very rarely meet people who are going straight to heaven. Here’s one of them.” Discussion Questions 1. How would you describe Charles Best’s approach to leadership? Answer: • Charles Best’s leadership is visionary and empowering, focusing on creating a strong mission-driven culture and involving staff, teachers, and donors in meaningful ways. 2. What type(s) of followers would work well with Charles Best? What type(s) of followers would not work well with Best? Answer: • Ideal followers are proactive, mission-driven, and collaborative. Less suitable followers might be those who resist change or lack commitment to the organization’s values. 3. Why is effective communication essential for the operational success of DonorsChoose? Answer: • Effective communication ensures alignment of goals, transparency in operations, and engagement among staff, teachers, and donors, which is critical for achieving the organization's mission. 4. How does DonorsChoose.org empower staffers, teachers, and donors? Answer: • DonorsChoose.org empowers by providing autonomy in project creation, direct feedback and involvement in funding decisions, and recognition for contributions, fostering a sense of ownership and impact. 5. What impact does the empowerment approach used by DonorsChoose have on teachers and donors? Answer: • It enhances engagement and satisfaction, motivating teachers to innovate and donors to feel more connected and influential in the educational process. 6. How does the empowerment of staffers influence teamwork dynamics at DonorsChoose? Answer: • Empowerment fosters collaborative teamwork, as staffers are motivated to contribute their best ideas and work collectively towards shared goals, leading to a more dynamic and effective team environment. 7. Although there are some critics of DonorsChoose and, by implication, of Charles Best, Jonathan Beyman characterizes Best as follows: “I’ve met lots of software guys over the years his age who are off to make a billion dollars I very rarely meet people who are going straight to heaven. Here’s one of them.” Do you think Beyman’s description of Best is justified? Why or why not? Answer: • Yes, Beyman’s description is justified, as Best’s focus on meaningful social impact and dedication to education exemplifies a higher purpose and ethical commitment beyond financial success. SOURCE: This case was written by Michael K. McCuddy, The Louis S. and Mary L. Morgal Chair of Christian Business Ethics and Professor of Management, College of Business Administration, Valparaiso University. G.A. Fowler and R. Dodes, “Corporate News: Retailers Tap Stores to Speed Online Orders,” The Wall Street Journal (Eastern edition) (May 20, 2010): B4. Anonymous, “About Nordstrom: Company History,” Nordstrom Web site, http://shop.nordstrom.com/c/company-history (accessed February 12, 2014). B. Janet, “Customers Never Tire of Great Service,” Dealerscope 50(7) (July 2008): 40. B. Janet, “Customers Never Tire of Great Service,” Dealerscope 50(7) (July 2008): 40. N. Templin, “Cheapskate: How It Felt to Be Kicked by a Running Shoe,” The Wall Street Journal (Eastern edition) (November 13, 2008): D3. N. Templin, “Cheapskate: How It Felt to Be Kicked by a Running Shoe,” The Wall Street Journal (Eastern edition) (November 13, 2008): D3. N. Templin, “Cheapskate: How It Felt to Be Kicked by a Running Shoe,” The Wall Street Journal (Eastern edition) (November 13, 2008): D3. B. Janet, “Customers Never Tire of Great Service,” Dealerscope 50(7) (July 2008): 40. Anonymous, “Precision Merchandising,” Dealerscope 51(1) (January 2009): 22, 24, 26, and 28. A.M. Zimmerman, “Check Out the Future of Shopping Shaving Time Off the Weekly Grocery Run to Keep Consumers in Stores and Spending,” The Wall Street Journal (Eastern edition) (May 18, 2011): D1. G.A. Fowler and R. Dodes, “Corporate News: Retailers Tap Stores to Speed Online Orders,” The Wall Street Journal (Eastern edition) (May 20, 2010): B4. G.A. Fowler and R. Dodes, “Corporate News: Retailers Tap Stores to Speed Online Orders,” The Wall Street Journal (Eastern edition) (May 20, 2010): B4. R. Dodes, “Luxe Lowdown: Tony Sites Begin to Invite Buyer Reviews,” The Wall Street Journal (Eastern edition) (October 18, 2010): B1. R. Dodes, “Luxe Lowdown: Tony Sites Begin to Invite Buyer Reviews,” The Wall Street Journal (Eastern edition) (October 18, 2010): B1. R. Dodes, “Luxe Lowdown: Tony Sites Begin to Invite Buyer Reviews,” The Wall Street Journal (Eastern edition) (October 18, 2010): B1. J.R. Graham, “A Sales Strategy That Works! How to Get the Fish in the Boat the Right Way,” The American Salesman 55(6) (June 2010): 17-21. Anonymous, “The World's 50 Most Innovative Companies,” Fast Company (153) (March 2011): 67 (52 pages). Anonymous, “Forty under Forty,” Fortune 162(7) (November 1, 2010): 133. M. de Paula, “Pumping Dollars into the Education Revolution,” US Banker 114(5) (May 2004): 10. DonorsChoose.org, Who We Are, http://www.donorschoose.org/about/how_it_works.html (accessed February 12, 2014). DonorsChoose.org, Who We Are, http://www.donorschoose.org/about/how_it_works.html (accessed February 12, 2014). N. Lublin, “Get What You Want for Nothing,” Fast Company (147) (July/August 2010): 96 (5 pages). N. Lublin, “Get What You Want for Nothing,” Fast Company (147) (July/August 2010): 96 (5 pages). N. Lublin, “Get What You Want for Nothing,” Fast Company (147) (July/August 2010): 96 (5 pages). R.E. Silverman, “Young Money: A New Generation Reinvents Philanthropy; Blogs, Social-Networking Sites Give 20-Somethings a Means To Push, Fund Favorite Causes,” The Wall Street Journal (Eastern edition) (August 21, 2007): D.1. R.E. Silverman, “Young Money: A New Generation Reinvents Philanthropy; Blogs, Social-Networking Sites Give 20-Somethings a Means To Push, Fund Favorite Causes,” The Wall Street Journal (Eastern edition) (August 21, 2007): D.1. Anonymous, “The World’s 50 Most Innovative Companies,” Fast Company (153) (March 2011): 67 (52 pages). Anonymous, “The World’s 50 Most Innovative Companies,” Fast Company (153) (March 2011): 67 (52 pages). L. Conrad, “BofA, RBC Offer the Gift of Giving,” US Banker 117(2) (February 2007): 10. Anonymous, “What $1,000 Can Do,” Kiplinger’s Personal Finance 61(8) (August 2007): 84. R.E. Silverman, “Young Money: A New Generation Reinvents Philanthropy; Blogs, Social-Networking Sites Give 20-Somethings a Means To Push, Fund Favorite Causes,” The Wall Street Journal (Eastern edition) (August 21, 2007): D.1. Anonymous, “What $1,000 Can Do,” Kiplinger’s Personal Finance 61(8) (August 2007): 84. Anonymous, “International: Faith, Hope and Charities; Trusting Charities,” The Economist 397(8708) (November 13, 2010): 69. S. McGee, “Creative Giving,” Barron’s 84(48) (November 29, 2004): 21 (4 pages). Anonymous, “The World’s 50 Most Innovative Companies,” Fast Company (153) (March 2011): 67 (52 pages). Anonymous, “Forty under Forty,” Fortune 162(7) (November 1, 2010): 133. M. de Paula, “Pumping Dollars into the Education Revolution,” US Banker 114(5) (May 2004): 10. Solution Manual for ORGB Organizational Behavior Debra L. Nelson, James Campbell Quick 9781305663916, 9781337148443
Download
Close
Close
