ORGANIZATIONAL BEHAVIOR Written Case Assignment
Chapter 6: Trust, Justice, and Ethics
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
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Learning Objectives
Define trust, and describe how it relates to justice & ethics.
Understand the three sources of trust.
Describe the dimensions of trustworthiness.
Understand the four dimensions that can be used to evaluate the fairness of an authority’s decision making.
Understand the four-component model of ethical decision making.
Understand how trust affects job performance & organizational commitment.
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Trust, Justice, and Ethics
Trust - willingness to be vulnerable to an authority based on positive expectations about the authority’s actions and intentions.
Justice – the perceived fairness of an authority’s decision making.
Ethics - degree to which an authority’s behaviors are in accordance with accepted moral norms.
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Factors that Influence Trust
Disposition-based trust – depends on your personality (general propensity to trust others).
Cognition-based trust – depends on a rational assessment of the authority’s trustworthiness.
Affect-based trust – depends on feelings toward the authority that go beyond any rational assessment.
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Factors that Influence Trust
Disposition-Based Trust
Has less to do with the authority and more to do with the trustor.
Based on the trustee’s personality.
High trust propensity is general expectation that the words, promises, and statements of others can be relied upon.
Shaped by nature & nuture.
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Factors that Influence Trust
Cognition-Based Trust
Based on cognitions developed about the authority.
Trustworthiness - characteristics or attributes of a trustee that inspire trust.
Driven by the authority’s “track record.”
Includes: ability, integrity, & benevolence
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Factors that Influence Trust
How to gauge the track record of an authority?
Ability - expertise of an authority.
You trust a doctor who is an expert.
Integrity - the perception that the authority adheres to a set of values and principles that the trustor finds acceptable.
You trust those who have honest motives and “walk the talk.”
Benevolence - the belief that the authority wants to do good for the trustor, apart from any selfish or profit-centered motives.
Mentor-protégé relationship.
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Factors that Influence Trust
Affect-Based Trust
Occurs when an emotional bond develops between the trustor & trustee (We trust them because we like them).
Is more emotional than rational.
Acts as a leap of faith in the face of uncertainty about trustworthiness.
Acts as a supplement to the other types of trust.
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Types of Trust Over Time
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Factors that Influence Trust Levels
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Justice
It is often difficult to assess the ability, benevolence, and integrity of authorities accurately.
In such circumstances, employees need some sort of observable behavioral evidence.
Justice provides that sort of behavioral evidence because authorities who treat employees more fairly are usually judged to be more trustworthy.
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Four Types of Justice
Distributive justice
Procedural justice
Interpersonal justice
Informational justice
Distributive Justice
Perceived fairness of decision-making outcomes.
Employees decide if outcomes (e.g., pay, rewards, promotions) are allocated fairly (e.g., using equity norms).
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Procedural Justice
Perceived fairness of decision-making processes.
Fostered when authorities adhere to Procedural Justice Rules:
Voice – giving employees a chance to express opinions during the course of decision-making.
Correctability – giving employees a chance to request an appeal.
Consistency, bias suppression, representativeness, and accuracy rules help ensure that procedures are neutral & objective.
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Distributive Justice and Procedural Justice
Does procedural justice matter?
Don’t people just care about the outcomes that they receive?
Distributive justice and procedural justice combine to influence employee reactions.
When outcomes are bad, procedural justice becomes important.
Procedural justice tends to be a stronger driver of reactions to authorities than distributive justice.
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Interpersonal Justice
Perceived fairness of treatment from authorities.
Fostered when authorities adhere to two rules:
Respect rule – treating employees in a dignified manner.
Propriety rule – refraining from making improper remarks.
Interpersonal injustice occurs when authorities bad-mouth employees.
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Informational Justice
Perceived fairness of communications from authorities.
Fostered when authorities adhere to two rules:
Justification rule – explaining decision-making procedures and outcomes in a comprehensive and reasonable manner.
Truthfulness rule – communicating honestly.
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The Effects of Informational and Interpersonal Justice on Theft During a Pay Cut
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Ethics
Research on ethics seeks to explain why people behave in accordance with accepted moral norms, and why they sometimes violate those norms.
Unethical acts are common in organizations.
Whistle-blowing occurs when employees expose illegal actions by their employer.
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The Four Component Model of Ethical Decision Making
Explains why an authority would choose to act ethically or unethically.
Suggests ethical behaviors result from a multistage sequence.
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The Four Component Model of Ethical Decision Making
Moral awareness - when an authority recognizes that a moral issue exists in a situation.
Depends on characteristics of the authority & of the issue itself.
Ethical sensitivity - ability to recognize that a decision has ethical content.
Moral intensity - degree to which the issue has ethical urgency.
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The Four Component Model of Ethical Decision Making
Moral judgment - when the authority identifies the morally “right” action.
Theory of cognitive moral development argues that as people age and mature, they move through several stages of moral development.
Each stage is more mature and sophisticated than the prior one.
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Stages of Cognitive Moral Development
6-23
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The Four Component Model of Ethical Decision Making
Moral intent – authority’s degree of commitment to the moral course of action.
Many unethical people know what they do is wrong.
What influences moral intent?
Moral identity (degree to which a person sees himself as moral person)
Situational pressures (e.g., rewards, incentives)
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Why Are Some Authorities More Trusted than Others?
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Effects of Trust on Performance and Commitment
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Takeaways
Trust: willingness to be vulnerable to an authority.
Justice: perceived fairness of an authority’s decision making.
Ethics: degree to which an authority’s behaviors are in accordance with accepted moral norms.
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Takeaways
Trust can be disposition-based, cognition-based, or affect-based.
Trustworthiness is judged along three dimensions: ability, integrity, and benevolence.
The fairness of an authority’s decision making can be judged along four dimensions: distributive justice, procedural justice, interpersonal justice, and informational justice.
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Takeaways
The four-component model of ethical decision making argues that ethical behavior depends on three concepts: moral awareness, moral judgment, and moral intent.
Trust has a moderate positive relationship with job performance and a strong positive relationship with organizational commitment.
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Confirming Pages
INDIVIDUAL OUTCOMES
MECHANISMS INDIVIDUAL
INDIVIDUAL CHARACTERISTICS
GROUP MECHANISMS
ORGANIZATIONAL MECHANISMS
Organizational Culture
Organizational Structure
Teams: Processes &
Communication
Motivation
Teams: Characteristics &
Diversity Learning & Decision Making
Ability
Personality & Cultural Values
Stress
Leadership: Power &
Negotiation
Job Satisfaction
Leadership: Styles & Behaviors
Job Performance
Trust, Justice, & Ethics
Organizational Commitment
chapter Trust, Justice, and Ethics 7
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