This article suggests three ways to manage organizational conflicts. The first is the collaboration theory which maintains that people should air their differences and work for mutually satisfactory solutions. Collaboration requires that members of the organization be interdependent, capable of interacting candidly, and sufficiently committed to the organization to justify the time and energy required to develop and preserve mutually beneficial relationships. A second approach, the power play, is a method of handling organizational conflict which is diametrically opposed to collaboration. It is characterized by an adversary ethic and rational self-interest; the parties are involved in a win/lose situation. According to Derr, the power-play is the dominant conflict management strategy for those who seek autonomy and is best suited for idealogical disputes. Bargaining, the third technique, contains elements that overlap collaboration and power-play. Bargaining "trade-offs" are particularly useful in dealing with conditions of scarcity; this method is seen as economical in that it requires parties to meet only periodically to review the old contracts and to develop new contracts. The author concludes that there is no one best way to manage organizational conflicts and suggests that conflict management will require more extensive studies of the realities of power play.

Robbins sees functional conflict as an absolute necessity within organizations and explicitly encourages it. He explains: "Survival can result only when an organization is able to adapt to constant changes in the environment. Adaption is possible only through change, and change is stimulated by conflict." Robbins cites evidence indicating that conflict can be related to increased productivity and that critical thinking encourages well-developed decisions. He admits, however, that not all conflicts are good for the organization. Their functional or dysfunctional nature is determined by the impact of the conflict on the objectives of the organization. The author identifies several factors underlying the need for conflict stimulation: (1) managers who are surrounded by "yes men"; (2) subordinates who are afraid to admit ignorance or uncertainty; (3) decision-makers' excessive concern about hurting the feelings of others; or (4) an environment where new ideas are slow in coming forth. He suggests techniques for stimulating conflict; manipulating the communication channels (i.e., repression of information); changing the organizational structure (i.e., changes in size or position); and altering personal behavior factors (i.e., role incongruence). Robbins stresses that the actual method to be used in either resolving or stimulating conflict must be appropriate to the situation.

Although many different approaches are currently being used to create planned change in organizations, Kilmann and Mitroff feel that too little attention has been paid to determining the effectiveness of these different methods in solving the organizations' problems. Based on intervention theory and the consulting process, the authors offer a method of evaluating an organization's approach to change to determine if it is well-suited to the types of problems being experienced. The process of change is diagrammed as a five-step cycle: 1) sensing problems; 2) defining problems; 3) deriving solutions; 4) implementing solutions; and 5) evaluating outcomes. Most consultants enter the process at step 3 which increases the probability that they will try to solve the wrong problem (termed Type III error). A second source of trouble is that consultants are usually trained in one or two disciplines and, therefore, see problems primarily in those perspectives. Kilmann and Mitroff suggest the use of teams of consultants so the problems can be conceptualized from a number of different viewpoints.

Information, that is both accurate and timely, is probably the most important resource needed by managers to make sound decisions regarding the problems and issues facing their organizations. Unfortunately, sophisticated information systems often fail to meet this need. Managers complain that the data produced by information systems arrive too late, are too general and lack accuracy. Daft and MacIntosh studied the system problems of a number of organizations, discovering that understanding their work activities is critical to the design of successful information systems. The authors also considered the volume of information, preciseness of information and the way in which it is handled by users to develop a model describing information systems. The article illustrates how the model was applied successfully to four case situations.

Robeson offers a number of options to employers to help reduce the impact of increasing health care costs. He points out that large organizations which employ hundreds of people have considerable market power which can be exerted to contain costs. It is suggested that the risk management departments assume the responsibility for managing the effort to reduce the costs of medical care and of the health insurance programs of these organizations since that staff is experienced at evaluating premiums and negotiating with third-party payors. The article examines a number of short-run strategies for firms to pursue to contain health care costs: (1) use alternative delivery systems such as health maintenance organizations (HMOs) which have cost-cutting potential but require marketing efforts to persuade employees of their desirability; (2) contracts with third-party payors which require a second opinion (peer review), a practice which saved one labor union over $2 million from 1972 to 1976; (3) implementation of insurance coverage for less expensive outpatient care; and (4) the use of claims review. These strategies are compared in terms of four criteria: supply of demand for health services; management effort; cost; and time necessary for realized savings. Robeson concludes that development of a management plan for containing health care costs requires an extensive analysis of alternatives, organizational objectives, existing policies, and resources, and offers a table summarizing the cost-containment strategies that a firm should consider.