Deck 7: Decision Making at Insomnia Cookies

Question 1

Why is interpersonal conflict important in a business?
Why do some managers avoid interpersonal conflict?

Answer 1

Studies show that a lack of interpersonal conflict is one of the leading causes of business failure. When top executives agree with each other and "get along" all of the time, they fail to explore alternative perspectives and become complacent. Managers in an organization where there is little disagreement are often ill-equipped to meet the challenges of a competitive environment where it may be necessary to think outside the box. In contrast, managers in organizations where interpersonal conflict is present tend to be more creative and innovative, and consequently are more successful in changing environmental conditions. Yet, the presence of interpersonal conflict makes some managers, especially those who are inexperienced, uncomfortable, and so they tend to avoid it.

Question 2

Discuss the difference between people-based conflict and issue-based conflict. How does each type of conflict affect an organization?

Answer 2

People-based conflict typically involves a dispute-like conflict that arises from something that transpired between the parties involved. In contrast, issue-based conflict refers to a negotiation process that takes place over competing ideas, interests, proposals, or resources. People-based conflict can create feelings of resentment and therefore damages relationships between employees. This type of conflict tends to have a negative effect on the organization. Issue-based conflict can be productive to the firm however, because it can actually enhance relationships between individuals. This type of conflict typically involves a process in which managers represent the interests of their own departments, but share a general recognition of the need to find a fair solution to an issue.

Question 3

How would you characterize the interpersonal conflict displayed at Insomnia Cookies?
Is it people-based or issue-based?
What does you response tell you about how the conflict impacts the company?

Answer 3

Most students will probably agree that the interpersonal conflict at Insomnia Cookies appears to be issue-based conflict. The management team at the company includes CEO Seth Berkowitz, COO Joe Essenfeld, and Marketing Director Elise Piatkowski. All three individuals agree that the culture at Insomnia Cookies encourages them to challenge decisions and ideas, and all three individuals seem to agree that this culture allows them to make better decisions. Berkowitz for example, feels that the input from Essenfeld and Piatkowski forces him to consider new issues and perspectives. Piatkowski feels that as a woman, her perspective on issues especially those related to brand aesthetics is different from that of either Berkowitz or Essenfeld, and therefore she brings new insights to the table. Berkowitz also points out that each member of the team is able to separate personal feelings from business feelings allowing them to keep the focus in all decision making on what is best for Insomnia Cookies.

Question 4

What are the five approaches to manage conflict in an organization?
Which type of approach is evident at Insomnia Cookies?