Case 11.1 (p. 337) “Conflict at Walt Disney Company: A Distant Memory? |

1) How would you describe the conflict between Michael Eisner and the Weinstein brothers, the two board members (Disney and Gold), and Steve Jobs? Was it functional or dysfunctional?
Ivancevich (p. 311) defines functional conflict as a confrontation between groups that enhances and benefits the organization’s performance’ while he defines dysfunctional conflict as any confrontation or interaction between groups that harms the organization or hinders the achievement or organizational goals. Though, a point the Ivancevich makes (p. 311) is that in most cases, the point at which functional confrontation becomes dysfunctional is impossible to identify precisely.
On the other hand, Iger seems to have a compromising approach to conflict (Ivancevich, p. 321, describes this approach as no one being the distinct winner or loser, and the resolution reached probably is not ideal for either group). Iger did pay Disney and Gold $100 million but Disney in turn kept the Miramax name and film library estimated at $2 billion. He then repaired the relationship with Jobs and Pixar by paying $7.4 billion to get Pixar Studios, and he put Jobs on the Disney Board. So while Iger’s approach still keeps Disney successful (as Eisner did), his compromising approach also keeps the relationships with other key people on a much happier note. So while both sides received something, they in turn lost, making no one the true winner but all truly won!!
4) To what degree do you think Iger’s calmer and less confrontational approach to running Disney has helped the company position itself to survive a major economic recession?
Iger’s calmer and less confrontational approach has helped the company survive a major economic recession as he has probably increased positive relationships with the Board of Directors and other key companies he relies on to make Disney successful. I think Iger realizes how important it is to keep successful relationships and has developed those.