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A Systems Theory of Organizational
Conflict
LOUIS R. PONDY
University of Pittsburgh
246
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1966 Analysis of Organizational Conflict 247
how one form of conflict in a given subsystem affects the conflict level in the
other subsystems.
1James G. March and Herbert A. Simon, Organizations (New York: John Wiley & Son
1958).
'James G. March, "The Business Firm as a Political Coalition," Journal of Politics
(December 1962).
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248 Academy of Management September
'Richard M. Cyert and James G. March, A Behavioral Theory of the Firm (Engle
Cliffs, New Jersey: Prentice-Hall, Inc., 1963).
'Op cit., Chap. 5.
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1966 Analysis of Organizational Conflict 249
Role Interdependence:
Role interdependence is an attribute of the formal organization. It is a
measure of the extent to which a person in one position depends on a person in
another position for work inputs or decision premises. It is a measure of th
interconnectedness of the organization. When what one person does or decides
does not affect what other persons do or decide, then role interdependence is low
For example, inventories may serve as a buffer between production and marketing
departments, thus reducing interdependence between those two sets of positions.
Role interdependence will be high when two or more persons have competin
claims on scarce resources such as office space, secretarial help, etc; or when th
formal job descriptions require frequent consultations among participants; o
when the formal system sets up widely shared norms of concensus.
Our concept of role interdependence is quite similar to the March-Simo
concept of "need for joint decision making," except that it also includes non
decision activities. Mlarch and Simon also introduce the concept of "felt need for
joint decision making" (emphasis mine), which suggests that people may perceiv
the intensity of interdependence differently from that specified by the form
structure.
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250 Academy of Management September
members in low status offices may feel greater needs for joint decision making
with members in high status offices than vice versa.7 Or, less competent members
may seek out joint activity with more competent members than vice versa.8
Other factors which may affect the felt need for joint activity for both
members of a dyad are: (a) predictability-the more predictable member A's
activity or decisions are, the less member B needs joint consultation9; and, (b)
homophily and heterophily-persons tend to seek out both homophilous rela-
tions (i.e., with persons of similar value orientations) and, to a lesser extent,
heterophilous relations (i.e., with persons of different value orientations).10
The important effects of role interdependence and felt need for joint activity
on goals and decision-making will be discussed in the next section.
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1966 Analysis of Organizational Conflict 251
3In a very real sense the goals a person uses in making decisions and the relative weight
he attaches to them define his organizational personality as his "needs" define his private
personality. See A. Maslow, "A Theory of Human Motivation," Psychological Review, 50,
1943, pp. 370-396.
1March and Simon argue that the absence of intra-individual conflict is necessary for
the presence of inter-individual conflict. This is not necessarily so. If an individual is in
conflict with himself and finds it impossible to make a choice, he is likely to create conflict
in the rest of the organization through his failure to provide decision premises for others'
decisions.
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252 Academy of Man&gement September
then the goal differentiation among members will be high.15 Once a person is
a member of the organization and even if his goals are fixed, the impact of goal
differences on interpersonal conflict can be minimized by assigning persons with
widely different goals to roles which have a low role interdependence.
Suppose we next assume that a person's goals are not fixed during his or-
ganizational membership. A major determinant of his goals is the formal role
he plays in an organization. This is due partly to his internalizing the goals of
the department or the goals that normally attach to his office.16 It is also due
to the fact that he is exposed to complaints, requests, questions, and information,
from both outside and inside the organization, which reinforce and elaborate
his departmental or office-based goals.
Now consider two members who are highly role interdependent. Quite likely
they are exposed to similar internal and external environments, including each
other. We would expect their goals to be similar. Thus role interdependence
cuts both ways. It increases goal similarity and thus decreases the chance for
disagreement, but it also increases the awareness of disagreements. Which effect
is stronger is an empirical question.
We have yet to deal with the question of the evolution of multiple goals. We
have argued elsewhere17 that multiple goals or criteria are the "residues" of past
conflicts. Conflicts are frequently resolved not by reference to some super-
ordinate goal, but by the recognition and legitimization of the goals of the several
conflicting participants. To the extent that multiple goals constrain future
decisions, we may say that past conflict breeds future conflict.
We are ready for a summary of the essential features of interpersonal con-
flict in the informational subsystem:
1. We define interpersonal conflict as perceptions by the participants of disagreement
over some organizational matter(s) at some level of specificity.
2. Role interdependence is a measure of the official "interconnectedness" of two par-
ticipants. "Felt need for joint activity" is a measure of each participant's de-
sired interdependence with each other member.
3. Goals are defined as criteria for ex ante decision making or ex post performance
evaluation. Goal differences may be of the first order (two participants disagree on
the ranking of goal-clusters in importance), or of the second order (disagreement
on the ranking of goals within clusters).
4. We hypothesize that, ceteris paribus, perceived disagreement between the members
of a given dyad will:
a. increase with goal differences of the first or second order.
b. increase the rater's felt need for joint activity with the ratee.
"If goal differentiation is high and this leads to conflict, the persons who are sources
of conflict may leave or be forced out. Thus, turnover is a built-in stabilizer to reduce goa
differentiation and conflict.
"One of the assumed benefits of frequent inter-departmental transfers and rotatio
training programs is that they broaden the goals of the transferee or trainee, thus lowerin
goal differentiation and, hopefully, interpersonal conflict.
"7See my "Budgeting and Intergroup Conflict in Organizations," Pittsburgh Busin
Review, 34(3) (April 1964), pp. 1-3.
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1966 Analysis of Organizational Conflict 253
5. We hypothesize that, ceteris paribus, the rater's felt need for joint activity will:
a. increase with the role interdependence for the dyad.
b. increase with the rater's perceived disagreement at first, but then decrease with
perceived disagreementt above some critical level of perceived disagreement.
6. For purposes of the analysis we take goals and role interdependence as fixed. But
we recognize that over time (a) the goals of two participants in highly interdepend-
ent roles will become more nearly alike, and (b) participants who experience chronic
conflict with each other will be placed (or request to be placed) in positions with
low role interdependence.
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254 Academy of Management September
these questions and then showed that there was a positive correspondence be-
tween similarity of preference on the five issues and the pattern of interpersonal
feelings.21
White did not present any quantitative data in support of his assertion that
"drive for autonomy" causes conflict. But his qualitative finding suggests that
such a proposition may be worth including in the context of the present study.
To say that a person perceives another person to be threatening his autonomy
means that he objects to the other person's high felt need for joint activity. In
other words if person A rates the need for joint activity with B too high, then B
is likely to experience conflict22 because of the threat to his autonomy. This is
a restatement of the invasion and expansion types of autonomy drive. In the
case of the insulation type of autonomy drive, we would expect person B to ex-
perience conflict if person A rates the need for joint activity with B too low.
Thus we wish to examine whether the correlation between perceived conflict
is significantly positive or negative for the cases which we examine. If both
mechanisms are present, then the effects may cancel out and the aggregated data
may hide their presence. However, we can study the relative strength of the
two mechanisms for different types of relationships, for example, peer and non-
peer relationships.
1. High status persons, more than low status persons, are engaged in more non-
routine, policy-making type activities where the guides to action are less clear and
the chance for disagreement therefore higher.
2. High status persons, more than low status persons, are probably less flexible in
their views, thus making the resolution of conflicts more difficult.
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1966 Analysis of Organizational Conflict 255
In the case of non-peer dyads, we would expect the subordinate's main source
of felt conflict to be attempted over-control by the superior.24 In other words,
we predict that for low status persons, felt conflict will be positively correlated
with the rating of felt need for joint activity by high status dyad partners. For
superiors on the other hand, we would expect insulation by low status persons
to generate felt conflict. We therefore predict a negative correlation between a
high status person's felt conflict and his low status dyad partner's felt need for
joint activity.
In summary we assert that the main effect of status on felt conflict is through
the differential effect of autonomy drives, as described above.
'Blau and Scott point out that, "the supervisor who resorts to formal status preroga-
tives and sanctions in his relations with his subordinates will alienate them. The supervisor's
tendency to enforce all official rules must be limited." Peter M. Blau and W. Richard Scott,
Formal Organizations, pp. 142-153.
25This is difficult to test in the context of a field study, since real organizations may have
efficient recruiting schemes which lead to standard personality types in the organization.
"See his Modern Organization (New York: Alfred A. Knopf, 1961), pp. 22-24, 152-159.
2See their "Dyadic Behavior of Self-Interaction, and Task-Oriented Subjects in a Test
Situation," Journal of Abnormal and Social Psychology, 68(5) (May 1964), pp. 558-562.
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256 Academy of Management September
CONCLUDING COMMENTS
The central hypothesis of this analysis was that the major det
perceived interpersonal conflict is differentiation in the participan
organization. Some of the other propositions served to qualify th
pothesis, especially those dealing with role interdependence and f
joint activity. Other propositions served as alternative explanatio
-those dealing with autonomy, status, and personality.
We have so far assumed that the "goal-sharing hypothesis" is e
to be true in all types of organizations. This is not necessarily so
were to place all organizations or sub-organizations on some scale
according to the nature of the organization's activities. At one ext
find a government bureau or an assembly line department. In th
major determinants of behavior are likely to be procedural rules
either the technological environment or official departmental im
supported by habit and socially legitimate norms.
At this extreme where behavior is routine, the procedures wel
the environment stable, we would not expect perceived confli
correlated with goal differences. Personality, autonomy motives,
terdependence, and status are more likely to be the attributes of t
and its members which loom large as important explanatory variab
At the other extreme we might find organizations such as leg
or upper echelon management groups where activities are distinctl
and more concerned with the formulation of policy than with th
procedures. In these cases we would expect to find a much strong
between goal differentiation and perceived conflict. At intermediat
continuum, conflict may be correlated with lower order goal dif
As mentioned earlier, any given organization may move along t
over time. Other things being equal, we would expect older organ
near the routine end of the continuum. But we would expect sub
high up the hierarchial ladder to be near the non-routine end of
And we would also expect organizations to be forced toward the
extreme by a rapidly changing environment and by a high turnov
(which prevents reliance on routine, specialized procedures).
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