Case Study

Arod229

Neck2e_PPT_11.pptx

Home >Business & Finance homework help >Operations Management homework help >Case Study

Chapter 11

Trust, Conflict, and Negotiation

Case Study: Distrust in the National Football League (NFL)

Case Questions:

What role did trust play in the NFL Lockout of 2011?

Why was organizing a league in 1920 a better option than allowing independent clubs to take up much of the professional football market?

Neck, Organizational Behavior, 2e. © SAGE Publishing, 2020.

Trust in Organizations

Neck, Organizational Behavior, 2e. © SAGE Publishing, 2020.

LO 11.1 Outline the bases of trust and predictable outcomes of trust in organizations

Generally, we can form three types of trust: disposition-based trust, cognition-based trust, and affect-based trust (see Figure 11.1).

Disposition-based trust exists when people possess personality traits that encourage them to put their faith in others. For instance, you might be the kind of person who will trust the new team leader unless you are given a reason not to.

In contrast, in cognition-based trust, people rely on factual information such as someone’s past experience and track record as a basis for trust. You might be wary of a new team leader until you recognize that he or she demonstrates the character, integrity, abilities, and benevolence to lead the team.

Finally, affect-based trust occurs when people put their faith in others based on feelings and emotions. For example, you are more likely to trust a new team leader if you feel you have made an emotional connection with him or her, such as by finding out you grew up in the same town.

Choi, B. K., Moon, H. K., & Nae, E. Y. (2014). Cognition- and affect-based trust and feedback-seeking behavior: The roles of value, cost, and goal orientations. Journal of Psychology, 148, 603-620; Mayer, R. C., Davis, J. H., & Schoorman, F. D. (1995). An integrative model of organizational trust. Academy of Management Review, 20, 709–734; McAllister, D. J. (1995). Affect- and cognition-based trust as foundations for interpersonal cooperation in organizations. Academy of Management Journal, 38, 24–59.

Trust in Organizations

Outcomes of trust:

When trust is high in the workplace, people work better together and are more focused.

Psychological contract: determines the degree to which employees trust their organizations.

Neck, Organizational Behavior, 2e. © SAGE Publishing, 2020.

Just as trust is important in how we interact with others in our personal lives, we also have expectations about how we are treated within an organization. This type of unwritten expectation between employees and organizations is called a psychological contract.

Trust in Organizations

Neck, Organizational Behavior, 2e. © SAGE Publishing, 2020.

Employees working in a low-trust organizational environment are more likely to be distracted from their duties, lack engagement in their tasks, exhibit defensive behaviors, display apathy toward organizational goals, and have higher levels of absenteeism (see Figure 11.2).

Trust in Organizations

Social networks: Recurrent interactions with others

Someone who is trustworthy shows:

Competence

Character

Goodwill

Neck, Organizational Behavior, 2e. © SAGE Publishing, 2020.

Trust also plays an important part in how we relate to others in work through our social networks. In this context, social networks describes the recurrent patterns of interaction with others that take place when carrying out work activities (e.g., exchanging information or working on projects). People who demonstrate their competence (the skills and abilities to successfully support the completion of a task), character (the ability to keep confidence, respect others, and stand up for what’s right), and goodwill (the ability to listen, offer positive remarks, and provide gentle encouragement) in their interactions with others tend to be perceived as being trustworthy. Delgado-Márquez, B. L., Belitski, M., & Delgado-Márquez, L. (2013). The role of individuals' social networks density on their transfers of trust behaviors and expectations: A social capital approach. In Psychology of trust: New research (ppp. 305–324). Hauppauge, NY: Nova Science Publishers.

Conflict in Teams and Organizations

Conflict is a clash between individuals or groups due to different opinions, thought processes, and perceptions.

Neck, Organizational Behavior, 2e. © SAGE Publishing, 2020.

Teams and organizations face many challenges and it is inevitable that conflicts will naturally arise. We define conflict as a clash between individuals or groups due to different opinions, thought processes, and perceptions. As a member of an organization, you will probably have opinions that differ at times from those of other teams or individuals. Sometimes such disagreements and clashes can make us feel uncomfortable. But does this mean all conflict is bad? Not necessarily. There are times when conflict actually helps teams and organizations be more creative and innovative.

Conflict in Teams and Organizations

Functional conflict consists of productive and healthy disputes between individuals or groups.

Dysfunctional conflict consists of disputes and disagreements that negatively affect individuals and/or teams.

Neck, Organizational Behavior, 2e. © SAGE Publishing, 2020.

When conflict is constructive, it can help improve work performance, redefine company goals, and encourage people to communicate better. Such functional conflict consists of productive and healthy disputes between individuals or groups. For functional conflict to be successful, individuals from opposing sides need to be genuinely interested in finding a resolution to the problem and willing to listen to each other. Providing individuals with a forum to express their opinions often gives rise to critical thinking and helps to generate new ideas and solutions.

In contrast, dysfunctional conflict consists of disputes and disagreements that negatively affect individuals and/or teams. This type of conflict often arises from an unwillingness to listen to each other or a reluctance to agree on a resolution or goal. High levels of dysfunctional conflict can lead to absenteeism, turnover, and a substantial drop in work performance, all of which can have a devastating effect on organizational goals and objectives.

Conflict in Teams and Organizations

Three main types of conflict:

Task conflict

Relationship conflict

Process conflict

Neck, Organizational Behavior, 2e. © SAGE Publishing, 2020.

The three main types of conflict in organizations are task conflict, relationship conflict, and process conflict.

Task conflict refers to a clash between individuals about the direction, content, or goals of a work assignment. Relationship conflict is the clash in personality between one or more individuals in the workplace. This type of conflict can be useful in resolving disputes if the parties are willing to communicate in a constructive and effective way.

Process conflict refers to the clash in viewpoints about how to carry out work. Like task conflict, process conflict can be beneficial to organizations as long as it operates at a low level.

Conflict in Teams and Organizations

The four stages of the conflict process:

antecedents of conflict

perceived/felt conflict

manifest conflict

outcomes of conflict

Neck, Organizational Behavior, 2e. © SAGE Publishing, 2020.

As we have learned, conflicts can have positive or negative outcomes depending on how the situation is managed. The following example illustrates the four different stages of the conflict process: antecedents of conflict, perceived/felt conflict, manifest conflict, and outcomes of conflict.

Conflict in Teams and Organizations

The conflict process:

Antecedents of conflict are factors that set the scene for potential disputes.

In the perceived/felt conflict stage, emotional differences are sensed and felt.

In the manifest conflict stage, people engage in behaviors that provoke a response.

The outcomes of conflict stage, describes the consequences of the dispute.

Neck, Organizational Behavior, 2e. © SAGE Publishing, 2020.

The antecedents of conflict refer to the factors that set the scene for potential disputes. These antecedents include lack of communication, incompatible personalities, and collisions in value systems. When you have finally settled into your workday, one of your coworkers says, “Glad you could join us,” which prompts a chuckle from the rest of the team. You perceive that the team has a problem with your tardiness and you feel the tension directed toward you. In the perceived/felt conflict stage, emotional differences are sensed and felt.

Now you have a choice. Do you address the conflict head-on or do you ignore it? In the manifest conflict stage, people engage in behaviors that provoke a response. You can either try to resolve the conflict by bringing the matter out into the open, or you can suppress it, which may temporarily solve the problem but may also leave the situation open to future conflict. The final stage is the outcomes of conflict stage, which describes the consequences of the dispute. Depending on how you handle the conflict, there will be either functional or dysfunctional outcomes.

Conflict Management Strategies

Five conflict management strategies include:

Avoidance

Accommodation

Competition

Compromise

Collaboration

Neck, Organizational Behavior, 2e. © SAGE Publishing, 2020.

LO 11.3 Identify the five basic conflict management strategies

The five strategies (see Figure 11.3) are avoidance, accommodation, competition, compromise, and collaboration.

Chang, W.-L., & Lee, C. Y. (2013) Virtual team e-leadership: The effects of leadership style and conflict management mode on the online learning performance of students in a business-planning course. British Journal Of Educational Technology, 44, 986-999; Kilmann, R. H., & Thomas, K. W. (1975). Interpersonal conflict-handling behavior as reflections of Jungian personality dimensions. Psychological Reports, 37, 971–980.

Conflict Management Strategies

Neck, Organizational Behavior, 2e. © SAGE Publishing, 2020.

Conflict is inevitable in the workplace. If you understand the five basic conflict-management strategies, you will be able to manage conflicts so they are productive and do not escalate out of control. The five strategies are avoidance, accommodation, competition, compromise, and collaboration.

Negotiation and Dispute Resolution

Negotiation is the process of reaching an agreement that both parties find acceptable.

When getting ready to negotiate:

Outline your goals and objectives

Research your opponent

LO 11.4 Describe the negotiation process

We may not realize it, but most of us negotiate on a daily basis in every aspect of our lives with family members, friends, classmates, roommates and partners, as well as at work with our coworkers, team leaders, and bosses. We define negotiation as the process of reaching an agreement that both parties find acceptable. Since disagreements are common in a range of issues including task allocation, work schedules, and salaries, the art of negotiation is a necessity in life as well as in the workplace.

Before any negotiation, it is critical for each party to outline the goals and objectives they would like to achieve. It is also essential for each party to do its homework on its opponent--to consider the other party’s position and decision-making power, the length of time it has been in business, and whether it has any other negotiating history.

Negotiation and Dispute Resolution

Shaping Expectations

Establishing ground rules will set the stages for the parties to begin negotiations.

Providing Supporting Evidence

During this stage of the process, both parties take turns to explain their issues backed up with supporting evidence.

Both parties agree on negotiation that should set the ground rules for the process. This might refer to things such as talking one at a time, listening to each other, and treating one another with respect. It is also a good idea to set rules regarding the use of derogatory language or any other kind of verbal attacks that will not be tolerated.

With the ground rules set, it is now time for the parties to exchange their demands.

In this stage of the process, both parties take turns explaining their issues, which they each back up with supporting evidence.

Negotiation and Dispute Resolution

Negotiating the deal:

Discussions

Decisions

Agreements

Agreement and implementation:

Clarifying

Formalized in writing and signed

This is the bulk of the process where extensive discussion takes place. At some point, decisions will be made and agreements will occur. Following some further discussions around operations, legal matters, and logistics, both parties finally reach an agreement.

With the bargaining process complete, the parties move on to the final stage of negotiation--formalizing an agreement and implementing the deal. They spend time clarifying the deal and ensuring that everyone understands the outcome of the negotiations and the specifications of the final agreement. Pending due diligence, the agreement will be formalized in writing and signed by each party by an agreed date.

Negotiation and Dispute Resolution

A mediator is a neutral third party who attempts to assist parties in a negotiation to find a resolution or come to an agreement using rational arguments and persuasion. The chief role of mediators is to get the opposing parties to communicate again, rather than providing a solution or a decision. A mediator has no right to impose his or her views on the parties. An arbitrator is a neutral third party officially assigned to settle a dispute who listens to both sides of the argument as stated by the parties. Unlike a mediator, an arbitrator has the power to issue a judgment, which is final and binding for all parties. Finally, a conciliator is a neutral third party who is informally assigned to persuade opponents to communicate. The conciliator is allowed to offer an opinion, but unlike that of an arbitrator, this judgment does not carry any legal weight.

Bargaining Approaches

Distributive bargaining occurs when two parties both try to claim a “fixed pie” of resources.

Integrative bargaining occurs when both parties negotiate a win–win solution.

LO 11.5 Compare distributive and integrative bargaining approaches

Distributive bargaining occurs when two parties both try to claim a “fixed pie” of resources. For example, say you are trying to buy a used car. You know you will need a certain amount of money to fix the car up the way you want it, and for that reason, you want a reduction in the price. However, the car salesperson wants the maximum price he can get for the car and tells you to take it or leave it. This is known as a win/lose situation, in which one party only gains and the other one only loses.

Bargaining Approaches

It is always wise to have a best possible alternative to a negotiable agreement (BATNA), which is the best outcome you could achieve if the negotiation fails and you must follow another course of action.25 For example, say you want a salary raise of US$5,000 per year, but you will accept US$3,000 if it is offered. What will you do if you are unable to get the US$3,000 raise? Will you settle for your current salary? Will you quit your job and try to find a higher paying job in another organization? Once you have identified your BATNA, you will be in a better position to figure out your zone of possible agreement (ZOPA) which is the area where two sides in a negotiation may find common ground26 For example, say you request your US$5,000 salary raise and your boss tells you that the best offer will be US$3,500. Since this figure lies within the zone that both parties find acceptable, then it is likely an agreement will be reached.