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Week8ConflictsandTrustlecturet.pptx

Trust & Conflict

Week 8 – Management in Practice

Dr Carol Bond

RMIT Classification: Trusted

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Today’s overview:

The role of trust in multi-stakeholder partnerships

The role of trust in employee well-being

The role of trust in CSR and SLO

What to do when trust is punctured by conflict

Role of ethics & leadership in maintaining & reclaiming trust

RMIT Classification: Trusted

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Trust is the relational glue of collaboration

Facilitates organisational cooperation & collaboration

Takes considerable time to develop

Bridges the divide between different languages, values, cultures, and power imbalances

Promotes sharing information and communicating effectively with competency and good intentions

RMIT Classification: Trusted

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To trust is to be human

Trust has both cognitive & affective foundations

Interpersonal trust dynamics change over time

Emotional incidents can perforate a relationship or partnership characterised by trust

Breaches of trust can be mended

RMIT Classification: Trusted

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Multi-stakeholder Partnerships and Trust

Stakeholder engagement

Collaborative arrangements

CSR

Achieving strategic corporate goals

Enable systemic change

RMIT Classification: Trusted

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What are multi-stakeholder partnerships?

“Formalised arrangements in which organisations from diverse sectors (public, private, nfp) commit to work together to accomplish goals that they could not otherwise achieve on their own.”

Diversity of partners

Sharing knowledge and complementary competencies

Aim for mutual benefit and win-win situations

RMIT Classification: Trusted

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Lack of trust can imperil multi-stakeholder partnerships

Increase in tensions

Negative episodes

Crises

Contested understanding of terms / goals

RMIT Classification: Trusted

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Challenge: build both cognitive & affective trust levels

Cognitive

Perceptions of an individual’s or team’s trustworthiness and expectations of predictable, reliable behaviour

Affective

The emotions and feelings that people have for one another – genuine care, concern, benevolence and good will.

RMIT Classification: Trusted

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Balance emotions during trust-critical ‘episodes’

People may conceal their emotions in the work environment, but emotions drive behaviour

Negative emotions arise in response to:

interorganisational and interpersonal tensions

threats to identity

neglect of the other’s interests

Sloan P, Oliver D. Building Trust in Multi-stakeholder Partnerships: Critical Emotional Incidents and Practices of Engagement. Organization Studies. 2013;34(12):1835-1868. doi:10.1177/0170840613495018

RMIT Classification: Trusted

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Employee trust in organisations

“The compatibility of an employee’s beliefs, values and engagement with the organisation’s vision & strategic goals”

Trust leads to lower employee turnover

Higher perceived organisational support

Greater productivity and sense of responsibility towards the organisation

RMIT Classification: Trusted

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The role of organisational leadership for employee trust

Employee engagement leads to organisational trust

An engaging and compelling vision for the organisation builds trust through influence, motivation, intellectual stimulation and employee well-being throughout a change process.

Leaders who encourage creativity and reward good ideas emerging from employees enjoy higher levels of trust.

RMIT Classification: Trusted

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Transformational leadership & trust

Lalatendu Kesari Jena, Sajeet Pradhan, Nrusingh Prasad Panigrahy, Pursuit of organisational trust: Role of employee

engagement, psychological well-being and transformational leadership,Asia Pacific Management Review, Volume 23, Issue 3, 2018, Pages 227-234

RMIT Classification: Trusted

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Trust connects employees & organisations

Trust-worthy behaviour of leaders generates confidence and a better work atmosphere

Rational outcome distribution contributes to psychological well-being

Leaders perceived as ethical and trustworthy engender more psychological and emotional engagement of employees

RMIT Classification: Trusted

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Community trust in organisations: CSR & SLO

RMIT Classification: Trusted

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What do communities want?

Improved economic prospects & social services

A company approach that demonstrates fairness & respect

A company or organisation that takes responsibility for any negative impacts

Transparency

RMIT Classification: Trusted

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How does transparency affect trust?

Reinforces support from the community

Lowers demands and supports better long-term planning

Identifies issues early before they become problems

Counters rumours

Signals honesty, trust, and respect

Zandvliet, L., & Anderson, M. (2009). Getting it right : Making corporate-community relations work. ProQuest Ebook

RMIT Classification: Trusted

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What happens when trust breaks down?

Information vacuums & rumours breed distrust

Organisational change can create conditions of uncertainty and anxiety that erode or puncture trust

Factors in the operating environment for which the organisation has not shared a plan

Accidents, a performance error, a catastrophic event can change perception of an organisation

Promises that ‘we’ve got this’ make people feel unsafe

RMIT Classification: Trusted

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It takes a sincere effort …

It takes courage and openness to share that trust has been violated

It takes humility to acknowledge that you have damaged someone else’s trust

The person / organisation that violated trust, must sincerely apologise and offer to make amends

Trust repair can only happen when both sides recognise the violation and can then work on terms of relationship repair

RMIT Classification: Trusted

Take responsibility

RMIT Classification: Trusted

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Steps to rebuild trust

First, figure out what happened

How fast or slowly did trust break down?

When did you find out about the trust violation?

Was there a single cause or a pattern?

Is there a perception of a conspiracy or betrayal?

Was the loss of trust mutual?

Is there an element of vindictiveness at play?

RMIT Classification: Trusted

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Steps to rebuild trust

How deep and broad is the breach in trust?

Own up to the breach and start the recovery process as soon as possible

Identify as precisely as possible what you must accomplish in order to rebuild trust (e.g., reorganise work flows, departmental structures, make lateral assignments)

List the changes you’ll make in organizational structure, systems, people, and culture to achieve those outcomes

RMIT Classification: Trusted

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Summing it up …

Trust is a complicated and fragile commodity

Nobody and no corporation is perfect – breaches in trust can and will occur

Trust between organisations, within organisations, and with the wider community are all very valuable

Good leadership, CSR, Ethics and Transparency are all required

Galford, R and Drapeau, AS, The Enemies of Trust, Harvard Business Review, February 2003 Issue.

RMIT Classification: Trusted

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