Describe three types of psychological contracts and the two basic kinds of trust that play a role in work relationships.

Learning Objectives:

1. Describe three types of psychological contracts and the two basic kinds of trust that play a role in work relationships.
2. Describe organizational citizenship behavior and ways in which it may be encouraged.
3. Identify ways in which cooperation can be promoted in the workplace.
4. Describe the causes and effects of conflict in organizations along with techniques that can be used to manage conflict in organizations.
5. Explain why deviant organizational behavior can produce positive as well as negative effects.
6. Describe the major forms of workplace deviance, both constructive and destructive.

Chapter Overview

The chapter starts by considering the two processes that play a role in all interpersonal relationships: developing psychological constructs and building trust. These processes are important because they often affect the extent to which people choose either to work with or against one another. First, the chapter examines prosocial behavior—the tendency for people to help others on the job, sometimes even when there doesn’t appear to be anything in it for them.
Following this, the situations in which people help one another and receive help from them—that is, the tendency to cooperate—will be discussed. In the world of business, people and entire companies don’t always work with each other; they also compete against each other—that is, as one tries to win, it forces the other to lose. Under such circumstances, it is not unusual for conflict to emerge, breeding ill will. And, when taken to the extreme, this may result in deviant behavior—extreme acts such as stealing from the company or even harming another person; the final topic for the chapter.

Chapter Outline

I. PREVIEW CASE: Nascar: The Ettiquette of Drafting
A. Suggested In-Class Discussion Questions:
1. What do you think this statement means, “to win races, drivers also must know how to compete by cooperating”?
2. Why is trust of other drivers so important to the sport of racing?
3. What is meant by the statement “one hand washed the other” and how does it apply to behavior?
II. VARIETIES OF INTERPERSONAL BEHAVIOR
A. Interpersonal Behavior: a variety of behaviors involving the ways in which people work with and against one another.
B. The Five Major Forms of Interpersonal Behavior. On the continuum between working with and working against others there are five general forms that will be discussed this chapter (moving from most to least willing to help others):
1. Prosocial Behavior. Acts that benefit others.
2. Cooperation. Situations in which people help one another and receive help from one another.
3. Competition (midpoint of the spectrum). As one tries to win, the other has to lose.
4. Conflict. The ill will bred from competition.
5. Deviant Organizational Behavior. Extreme acts such as stealing for the company or even harming another person.
III. PSYCHOLOGICAL CONTRACTS AND TRUST: BUILDING BLOCKS OF WORKING RELATIONSHIPS
A. Psychological Contracts: Our Expectations of Others
1. Psychological Contract. A person’s beliefs about what is expected of another in a relationship. These informal, unwritten, and often unspoken contracts guide one’s expectations of others. By their very nature, these psychological contracts can be easily misinterpreted, leading to disagreements and interpersonal friction.
2. Two Dimensions of Psychological Contracts. These determine the three kinds of psychological contracts.
a. Timeframe. These contracts vary based on how long they are expected to last.
b. Performance Requirements. How close a relationship is between performance demands (what employees are expected to do) and the rewards they receive. This relationship is not defined purely by economic terms as employees expect emotional and social support from their companies as well as pay.
3. The Three Basic Types of Psychological Contracts.
a. Transactional Contract. Psychological contracts in which the parties have a brief and narrowly defined relationship that is primarily economic in focus.
b. Relational Contract. Psychological contracts in which the parties have a long-term and widely defined relationship with a vast focus. Personal relationships in this type of contract are close and personal; they are not tied to pay or other awards. There tends to be a greater sense of commitment toward the organization and the job.
c. Balanced Contracts. Psychological contracts that combine the open-ended, long-term features of relational psychological contracts with the well-specified reward-performance contingencies of transactional contract. In this contract, each side receives some benefit from the other.
4. Effects of Psychological Contracts.
a. Voluntary Assistance. Relational and balanced contracts tend to encourage individuals to go beyond the basic requirements of their jobs and help others or their companies on a voluntary basis.
b. Personal Characteristics and Contracts. People that are emotionally stable are normally highly sensitive to being treated fairly and are inclined to form transactional contracts. Individuals high in conscientiousness and self-esteem prefer relational contracts.
c. See the sidebar on page 379 to start an in-class discussion on psychological contracts in China and the United States.
B. Trust in Working Relationships.
1. Trust. A person’s degree of confidence in the words and actions of another. Trust is more important in relational contracts than in transactional ones.
a. Calculus-Based Trust. A form of trust based on deterrence; whenever people believe that another will behave as promised out of fear of being punished for doing otherwise. This type of trust is typically found in business relationships.
b. Identification-Based Trust. A person behaves as promised because he or she has the best interests of the other person at heart. It is based on accepting and understanding another person’s wants and desires.
2. Swift Trust
a. Outcomes are interdependent.
b. Time constraints exist.
c. Group members focus on task and professional roles.
d. A trust broker is in place.

3. Developing trustworthiness. There are three main factors that influence the development of trust:
a. Ability
b. Benevolence
c. Integrity
IV. ORGANIZATIONAL CITIZENSHIP BEHAVIORS (OCB): GOING ABOVE AND BEYOND THE FORMAL JOB REQUIREMENTS
A. Organizational Citizenship Behavior (OCB). An informal form of behavior in which people go beyond what is formally expected of them to contribute to the well-being of their organization and those in it.
B. Forms of OCB. There are five different forms that OCB can take: altruism, conscientiousness, civic virtue, sportsmanship, and courtesy (see Table 11.1). OCB can also be separated based on whom the behaviors are directed toward:
1. OCB-O. Behaviors directed toward the organization. This includes behaviors such as speaking favorably about the organization to outsiders, being tolerant of temporary inconveniences without complaining, and expressing loyalty toward the organization.
2. OCB-I. Behaviors directed toward an individual. This includes doing favors for someone, assisting coworkers, and sending birthday cards to others in the office.
C. Why Does OCB Occur? The critical factor appears to be people’s belief that they are being treated fairly by their organization and especially by their immediate supervisor. If workers hold this belief, OCB is more likely to occur. There are however secondary factors that may cause OCB:
1. Employees holding positive attitudes toward their organization.
2. People in the organization having good relationships with their supervisors.
3. When the workers have the proper personality characteristics (highly conscientious and highly empathic).
D. Does OCB Really Matter? OCB appears to be related to job satisfaction and organizational commitment. It may also aid in recruitment efforts.
E. See the sidebar on page 386 to start an in-class discussion on promoting OCB in the workplace.
V. COOPERATION: PROVIDING MUTUAL ASSISTANCE
A. Cooperation. A pattern of behavior in which assistance is mutual and two or more individuals, groups, or organizations work together toward shared goals for their mutual benefit. When two or more organizations cooperate, it is known as an interorganizational alliance.
B. Cooperation between Individuals. Cooperation between individuals can only occur when their goals are compatible: that is, they can be shared.
1. Competition. A pattern of behavior in which each person, group, or organization seeks to maximize its own gains, often at the expense of others. In this situation, goals are incompatible and cooperation is unlikely to occur.
2. Social Dilemmas. Situations in which each person can increase his or her individual gains by acting in a purely selfish manner, but if others also act selfishly, the outcomes experienced by all will be reduced. People in these dilemmas have mixed motives, there may be reasons to cooperate but there are also reasons to compete.
3. The Reciprocity Principle. The tendency to treat others as they have treated us; popularly referred to as “the golden rule.” This describes the way people behave when they cooperate with others. The difficulty with cooperation is merely getting it started. Once it is started, it tends to be self-sustaining because of the reciprocity principle.
4. Personal Orientation. Some people are more cooperative by nature, others are more competitive. There are four different categories of people in terms of their natural predispositions toward working with or against others. These differences are stable and difficult to change.
a. Competitors. People whose primary motive is doing better than others; beating them in open competition.
b. Individualists. People who care almost exclusively about maximizing their own gain, and do not care whether others do better or worse than they do.
c. Cooperators. People who are concerned with maximizing joint outcomes, getting as much as possible for their team.
d. Equalizers. People who are primarily interested in minimizing the differences between themselves and others.
5. Organizational Reward Systems. Organizational reward systems may be inadvertently built in such a way as to inspire competition rather than cooperation. Reward structures can also affect the speed and accuracy of task performance. Higher speeds are achieved with competitive reward structures and greater accuracy is achieved with cooperative reward structures.
C. Cooperation between Organizations: Interorganizational Alliances
1. Partnering with Suppliers. Historically, organizations considered their suppliers interchangeable and competitors for precious resources. Today’s organizations consider suppliers to be partners and tend to cooperate very closely with them.
2. Research and Development (R&D) Partnerships. In some industries, it makes sense to pool the risk and later share the profits of R&D because of the staggering costs involved.
3. Interorganizational Alliances and Social Dilemmas. Research has shown that as the number of participants in the interorganizational alliances increase, the likelihood of any one of the partners defecting and then taking competitive action increases. To avoid this, ensure the level of payoff for universal cooperation is greater than it is for universal defection, focus on the long-term aspects of the alliance, increase the level of communication among members, and establish a high level of identification with the alliance. The object, as it is for all cooperation, is that there are larger rewards for persons or groups to be gained through cooperation than they could obtain if they went it alone.
VI. CONFLICT: THE INEVITABLE RESULTS OF INCOMPATIBLE INTERESTS
A. Conflict. A process in which one party perceives that another party has taken or will take actions that are incompatible with one’s own interests.
B. Types of Conflict:
1. Substantive Conflict. Conflict that occurs when people have different viewpoints and opinions with respect to a decision they are making with others. This type of conflict can be beneficial in helping groups make decisions that are more effective because it forces the various sides to clearly articulate their ideas.
2. Affective Conflict. Conflict that results when people experience clashes of personality or interpersonal tension, resulting in frustration and anger.
3. Process Conflict. Conflict that results from differences of opinion regarding how workgroups are going to operate, such as how various duties and resources will be allocated and with whom various responsibilities will reside. Generally, the higher level of process conflict, the lower the level of group performance.
C. Causes of Conflict
1. Grudges. People who have “lost face” in their dealings with someone will attempt to “get even” by planning some form of revenge.
2. Malevolent Attributions. To the extent that someone believes that the harm suffered by him or her is due to an individual’s malevolent motives means conflict is inevitable. Harm caused by outside forces is less likely to cause conflict.
3. Destructive Criticism. Feedback that angers recipients instead of helping him or her do a better job. Constructive criticism may deflect this conflict.
4. Distrust. The more a person is distrusted, the more conflict there will be in his or her relationships.
5. Competition over Scarce Resources. Whenever resources are insufficient for everyone’s needs, there will be competition and therefore conflict over the distribution of those resources (often due to the self-serving tendency in people’s perceptions over their own worth).
D. Consequences of Conflict. Conflict yields strong negative emotions, which both increases stress levels and diverts people’s attention from the task at hand. Communications may also suffer which can detract from coordination efforts and lower performance.
1. See sidebar on page 394 to start an in-class discussion on the benefits promoting conflict.
E. Managing Conflict through Negotiation
1. Bargaining (Negotiation). The process by which two or more parties in dispute with one another exchange offers, counteroffers, and concessions in an attempt to find a mutually acceptable agreement. This is the most common way for people to resolve conflicts. For bargaining to be effective, both parties must be willing to adjust their stances on the issues at hand.
2. Tips for Negotiating Win-Win Solutions. These are resolutions to conflicts in which both parties get what they want: they both “win.”
a. Avoid Making Unreasonable Offers. Extreme offers tend to anger one’s opponents, sometimes ending the negotiation process on a sour note.
b. Seek the Common Ground. It is more effective to focus on areas of agreement in negotiations than it is to focus on areas where the goals may be incompatible. By reaching agreement on the majority of points, the parties are more likely to offer concessions on the remaining points of dispute.
c. Broaden the Scope of Issues Considered. It may be better to bargain from a “big picture” stance than trying to negotiate each individual issue independently.
d. Uncover “The Real” Issues. Conflict may exist at several levels, some of which may be hidden. Negotiators must determine what the driving issue in the process is and bring that to the table.
F. Alternative Dispute Resolution (ADR). A set of procedures, such as mediation and arbitration, in which disputing parties work together with a neutral party who helps them settle their disagreements out of court.
1. Mediation. A process in which a neutral party (known as a mediator) works together with two or more parties (sides) to reach a settlement on their conflict.
a. Integrative Agreement. A type of solution to a conflict situation in which the parties consider joint benefits that goes beyond a simple compromise.
b. Mediator Focus. The focus of mediators is on conflict resolution not assessing who is wrong or right. Mediators have no formal power and cannot impose any agreements. As a result, mediation often proves to be ineffective and simply underscores the depth of the differences between the two sides.
2. Arbitration. The process in which a third party (known as an arbitrator) has the power to impose, or at least to recommend, the terms of an agreement between two or more conflicting parties. There are four common types of arbitration:
a. Binding Arbitration. Both sides agree in advance to accept the terms set by the arbitrator, whatever they may be.
b. Voluntary Arbitration. The sides retain the freedom to reject the recommended agreement.
c. Conventional Arbitration. The arbitrator can offer any package of terms he or she wishes.
d. Final-Offer Arbitration. The arbitrator chooses between final offers made by the disputing parties themselves.
3. ADR Today. ADR is very popular because it helps disputants reach agreements more privately, rapidly, and inexpensively than if the dispute were taken to court.
VII. DEVIANT ORGANIZATIONAL BEHAVIOR
A. Deviant Organizational Behavior. Actions on the part of employees that intentionally violate norms of organizations or the formal rules of society.
1. Destructive Organizational Deviance. A form of behavior that violates both organizational and social norms, resulting in negative consequences. This includes workplace aggression and violence.
a. Cyberloafing. The practice of using a company’s
e-mail or Internet facilities for non-work-related activities. This is a costly problem for which little has been done. Monitoring may help the situation, but it does create conflict over employee privacy rights.
2. Constructive Organizational Deviance. Behaviors that violate norms of a particular company which can produce beneficial effects if, at the same time, they are consistent with other norms, and those of the broader society or culture. This includes whistle-blowing behaviors.
a. Whistle-Blowing. Disclosure by employees of illegal, immoral, or illegitimate practices by employers to people or organizations able to take action. Although this behavior is seen as negative deviance within the organization, for society as a whole it is deemed to be a constructive action. However, the high personal cost for such behavior (such as being fired) makes whistle-blowing relatively rare if those involved cannot remain anonymous.
b. Cyberloafing. Deviant Behavior Goes High-Tech. The practice of using a company’s email and/or internet facilities for personal use.
c. Workplace Aggression and Violence.
1) Workplace Aggression. Acts of verbal and physical abuse toward others in organizations, ranging from mild to severe.
2) Forms of Workplace Aggression. Many forms of workplace aggression are covert, that is the acts are hidden to avoid retribution toward the perpetrator. However, there are three categories of overt aggressive behavior in the workplace:
a) Incivility. Behaviors demonstrating a lack of regard for others, denying them the respect they are due. These acts are often verbal or symbolic in nature and include activities such as spreading rumors.
b) Obstructionism. Behaviors designed to obstruct or impede the target performance. These behaviors normally take the form of failing to provide necessary information or failing to respond to requests.
c) Overt Aggression. Acts that are outwardly intended to harm other people or organizations such as physical assaults, destruction of property, threats of physical violence, and direct verbal abuse.
3. Workplace Aggression: Its Causes. It appears the primary driver for this behavior is perceived unfairness in the workplace. Additionally, the likelihood of a specific individual engaging in workplace aggression is influenced by the overall level of aggression in his or her work group or organization. Other potential triggers include downsizing, layoffs, and the increased use of contingent workers.
4. Who Engages in Workplace Aggression? People most likely to engage in workplace aggression may have the following traits but research has not given a clear picture on exactly who is most likely to engage in these forms of aggression.
a. High Anger Traits. The tendency to respond to situations in a predominately-angry manner.
b. Positive Attitude toward Revenge. The belief that it is justifiable to get back at others who caused one harm.
c. Past Experience with Aggression. A history that involves exposure to aggressive behavior.
d. Tendency toward Overt Expressions. The tendency to express anger overtly rather than suppress it.
5. What Job Characteristics Put People at Risk for Violence or Aggression? People whose jobs lead them to exercise control over others or to handle various weapons, or to have contact with people on medication, or take physical care of others were most likely to experience violence on the job.
6. Managing Workplace Aggression. There are a number of things organizations can do to reduce the chance of workplace aggression.
a. Norms. Establish clear norms against abusive treatment of employees and clear procedures for ensuring they are followed.
b. Training. Train managers in interpersonal skills.
c. Assessment. Conduct periodic assessments of employee satisfaction and commitment.
B. Abusive Supervision: Workplace Bullying
1. Abusive Supervision. A pattern of supervision in which a boss engages in sustained displays of hostile verbal and nonverbal behaviors. These are individuals with an unhealthy need to control others, to the point of needing psychological counseling.
a. Workplace Bullying. The repeated mistreatment of an individual at work in a manner that endangers his or her physical or mental health. Most often done by supervisors, this form of abusive supervision is repetitive and vengeful.
b. The Results of Abusive Supervision. Because of the ease with which supervisors can exact retribution on complaining employees, most reactions involve leaving the organization and follow-up litigation.
C. Employee Theft. Most employee theft is not considered to be so by the employee (such as taking a pencil home) but it is still a cost to the company.
1. Why Do Employees Steal? Although there may be some employees who have gambling or drug habits they are trying to support, most employees steal for different reasons.
a. Everyone’s Doing It. When the majority of coworkers are seen engaging in theft, it is more likely for an employee to steal something.
b. Informal Norms Support Theft. In some companies, employees must steal to feel accepted by their coworkers.
c. Need to Even the Score. Employees who believe their employers have mistreated them or taken advantage of them will attempt to redress this situation through theft (as explained by equity theory).
2. Reducing Employee Theft. It takes more than security cameras:
a. Involve employees in the creation of a theft policy that defines what theft is.
b. Communicate the costs of stealing.
c. Treat people fairly.
d. Be a good role model.
VIII. SUMMARY AND REVIEW OF LEARNING OBJECTIVES
1. Describe three types of psychological contracts and the two basic kinds of trust that play a role in work relationships.
One type of psychological contract is the transactional contract. It is characteristic of relationships that have an exclusively economic focus, last for a brief period of time, are unchanging in nature, and have a narrow, well-defined scope. Another kind is the relational contract. It applies to relationships that are longer-term in scope and go beyond basic economic issues such as pay for performance. A third type is the balanced contract; this involves elements of both transactional and relational contracts. With respect to trust, one type is known as calculus-based trust. It is a form of trust based on deterrence, whenever people believe that another will behave as promised out of fear of being punished for doing otherwise. A second type is identification-based trust. It is based on understanding another person plus the acceptance of this person’s wants and desires.
2. Describe organizational citizenship behavior and ways in which it may be encouraged.
Organizational citizenship behavior consists of acts that go above and beyond one’s formal job requirements in helping one’s organization or fellow employees. It is influenced by many factors, including employees’ beliefs about whether they are being treated fairly, their relationships with their supervisors, their attitudes toward their company, and several personal characteristics (e.g., conscientiousness).
3. Identify ways in which cooperation can be promoted in the workplace.
Although by nature some people are more cooperative than are others, interpersonal cooperation may be promoted by following the reciprocity principle and by adopting reward systems that encourage cooperation with others.
4. Describe the causes and effects of conflict in organizations along with techniques that can be used to manage conflict in organizations.
Conflict is caused by a wide variety of factors, including grudges, malevolent attributions, destructive criticism, distrust, and competition over scarce resources. Conflict can be not only a source of negative emotions, but it also can lead to a lack of coordination, which can make performance suffer in organizations. But conflict also can have beneficial effects. These include: bringing out into the open problems that have been previously ignored, motivating people to appreciate one another’s positions more fully, and encouraging people to consider new ideas. Bargaining is the single most effective technique for resolving conflicts. Many factors influence the course and outcomes of bargaining, including specific tactics used by bargainers (e.g., the “big lie” technique), their overall approach to the situation (win-win versus win-lose), cognitive factors such as faulty beliefs and perceptions on the part of negotiators (e.g., the belief that keeping deadlines secret is best), and the motives and emotions of the negotiators. Alternative dispute resolution is another approach to resolving conflicts. It involves mediation (in which a neutral third party works with the conflicting parties to find a mutually satisfying solution to the conflict) and arbitration (in which a neutral third party proposes solutions for conflicting parties).
5. Explain why deviant organizational behavior can produce positive as well as negative effects.
Deviant organizational behavior (sometimes termed workplace deviance) involves actions on the part of employees that intentionally violate the norms of organizations or the rules of society. Depending on whether such actions violate one or both of these sets of norms, they can result in beneficial or harmful effects for both the organization and society. For instance, if an employee’s behavior is consistent with organizational norms but violates societal ones (e.g., dumping toxic chemical wastes into a nearby river), it produces positive effects for the organization but negative ones for society. If it violates organizational norms but is consistent with societal norms, then the opposite occurs (as occurs in the case of whistle-blowing).
6. Describe the major forms of workplace deviance.
Workplace aggression is usually covert (i.e., hidden) in nature. Direct physical or verbal assaults by one employee against another are much rarer than indirect attacks, such as spreading malicious rumors about another person or withholding important information from them. Workplace aggression stems from many different factors including employees’ beliefs that they have been treated unfairly, their personal characteristics, and the general level of aggression in a work group or organization. Abusive supervision is a style of supervision involving sustained displays of hostile verbal and nonverbal behaviors by a supervisor. Cyberloafing is a form of deviance in which employees “goof off” by using their computers for nonwork activities. Employee theft, another form of deviant organizational behavior, occurs when employees take company property for personal use. It can be reduced by involving employees in the creation of a theft policy, communicating the costs of stealing, and having managers act as a good role model by not stealing themselves.

Answers to Points to Ponder Exercises

Questions for Review

1. What are psychological contracts and why do different kinds develop in various working relationships?
A psychological contract is a person’s beliefs about what is expected of another in a relationship. They guide behavior much the way a legal contract does—but are perceptual in nature. What one person expects may not be what the other expects—making interpersonal relationships challenging. One type of psychological contract is the transactional contract. It is characteristic of relationships that have an exclusively economic focus, last for a brief period of time, are unchanging in nature, and have a narrow, well-defined scope. Calculus-based trust—trust based on deterrence—is associated with transactional contracts. A second type of contract is the relational contract. Such contracts are based on friendship. They exist in relationships in which the parties take a long-term perspective. Such relationships are characterized by identification-based trust—that is, trust based on accepting and understanding one another.
2. What is the difference between calculus-based trust and identification-based trust?
Calculus-Based Trust: a form of trust based on deterrence. Whenever people believe that another will behave as promised out of fear of being punished for doing otherwise. This type of trust is typically that found in business relationships. Identification-Based Trust: a person behaves as promised because he or she has the best interests of the other person at heart. It is based on accepting and understanding another person’s wants and desires.
3. What forms does organizational behavior take? Why do people engage in it?
There are five different forms that OCB can take: altruism, conscientiousness, civic virtue, sportsmanship, and courtesy (see Table 11.1). They can be separated based on whom the behaviors are directed toward. OCB-O are behaviors directed toward the organization. These include behaviors such as speaking favorably about the organization to outsiders, being tolerant of temporary inconveniences without complaining, and expressing loyalty toward the organization. OCB-I are behaviors directed toward an individual. These include doing favors for someone, assisting coworkers, and sending birthday cards to others in the office.
Why Does OCB Occur? The critical factor appears to be people’s belief that they are being treated fairly by their organization and especially by their immediate supervisor. If workers hold this belief, OCB is more likely to occur. There are, however, secondary factors that may cause OCB: (1) employees holding positive attitudes toward their organization, (2) people in the organization having good relationships with their supervisors, and (3) when the workers have the proper personality characteristics (highly conscientious and highly empathic).
4. What are the major determinants of cooperation between individuals and between organizations?
Their goals must be compatible, there should be minimal social dilemmas or competition in the situation, the people involved should be cooperative by nature (cooperators and equalizers), and the rewards systems should be aligned with the desire for cooperation. The object, as it is for all cooperation, is that there should be larger rewards for persons or groups to be gained through cooperation than they could obtain if they went it alone.
5. What are the major causes and consequences of organizational conflict?
The common causes of organizational conflict are: (1) Grudges. People who have “lost face” in their dealings with someone will attempt to “get even” by planning some form of revenge. (2) Malevolent Attributions. To the extent that someone believes that the harm suffered by him or her is due to an individual’s malevolent motives conflict is inevitable. Harm caused by outside forces is less likely to cause conflict. (3) Destructive Criticism. Feedback that angers recipients instead of helping him or her do a better job. Constructive criticism may deflect this conflict. (4) Distrust. The more a person is distrusted, the more conflict will be in his or her relationships. (5) Competition over Scarce Resources. Whenever resources are insufficient for everyone’s needs, there will be competition and therefore conflict over the distribution of those resources (often due to the self-serving tendency in people’s perceptions over their own worth).
Consequences of Conflict. Conflict yields strong negative emotions, which both increases stress levels and diverts people’s attention from the task at hand. Communications may also suffer which can detract from coordination efforts and lower performance.
6. In what ways can organizational conflict be managed effectively?
Managing Conflict through Negotiation: The process by which two or more parties in dispute with one another exchange offers, counteroffers, and concessions in an attempt to find a mutually acceptable agreement. This is the most common way for people to resolve conflicts. For bargaining to be effective, both parties must be willing to adjust their stances on the issues at hand. Tips for Negotiating Win-Win Solutions. These are resolutions to conflicts in which both parties get what they want: they both “win.” (1) Avoid Making Unreasonable Offers. Extreme offers tend to anger one’s opponents, sometimes ending the negotiation process on a sour note. (2) Seek the Common Ground. It is more effective to focus on areas of agreement in negotiations than it is to focus in areas where the goals may be incompatible. By reaching agreement on the majority of points, the parties are more likely to offer concessions on the remaining points of dispute. (3) Broaden the Scope of Issues Considered. It may be better to bargain from a “big picture” stance than trying to negotiate each individual issue independently. (4) Uncover “The Real” Issues. Conflict may exist at several levels, some of which may be hidden. Negotiators must determine what the driving issue in the process is and bring that to the table.
Another possibility is to use Alternative Dispute Resolution (ADR). A set of procedures, such as mediation and arbitration, in which disputing parties work together with a neutral party who helps them settle their disagreements out of court. Mediation is a process in which a neutral party (known as a mediator) works together with two or more parties (sides) to reach a settlement on their conflict. The focus of mediators is on conflict resolution, not assessing who is wrong or right. Mediators have no formal power and cannot impose any agreements. As a result, mediation often proves to be ineffective and simply underscores the depth of the differences between the two sides. Arbitration is a process in which a third party (known as an arbitrator) has the power to impose, or at least to recommend, the terms of an agreement between two or more conflicting parties. ADR is very popular because it helps disputants reach agreements more privately, rapidly, and inexpensively than if the dispute were taken to court.
7. Why can deviant organizational behavior result in negative consequences for an organization but positive consequences for society?
The situation can occur because organizations often have different goals and norms than society as a whole. One example of a deviant behavior that is negative to the organization but helpful to society is whistle-blowing. This is the disclosure by employees of illegal, immoral, or illegitimate practices by employers to people or organizations able to take action. Although this behavior is seen as negative deviance within the organization, for society as a whole it is deemed to be a constructive action. However, the high personal cost for such behavior (such as being fired) makes whistle-blowing relatively rare if those involved cannot remain anonymous.
Experiential Questions

1. Think of individuals whom you trust and those you do not trust. In what key ways do your relationships with these people differ?
Student answers will vary based on their experiences. Ideas for promoting trust in working relationships includes: always meet deadlines, follow through as promised, and spend time sharing personal values and goals.
2. What are the major sources of conflict at work within the company at which you are employed? How do you think these conflicts may be resolved?
Student answers will vary based on their experiences. Resolving conflict means looking for strategies for a win-win outcome. Ideas include: avoid making unreasonable offers, seek the common ground, uncover the “real” issues, and broaden the scope of issues considered.
3. Have you ever been the target of some form of workplace aggression? Why do you think this happened? What did you do to deal with it?
Answers will vary depending on the student experience but all answers need to be handled with concern. Care should be taken in assessing the student’s manner of dealing with the aggression: helpful suggestions are more powerful than critiques in this instance.
Questions to Analyze

1. Do you agree or disagree with the following statement? People are inherently good, but are forced into behaving in negative ways by virtue of compelling forces they encounter within their organizations.
Student answers will vary based on their worldview.
2. What would you say are the major barriers to interpersonal cooperation within the workplace?
Student answers will vary based on their experiences. But these answers should still focus on the key areas brought out in the text: goal compatibility, the presence of social dilemmas, the personalities involved, and the reward systems in the organization.
3. What do you think you would do if faced with a situation in which obeying the norms of your organization would lead you to perform actions you considered illegal or unethical? Would you resist? What would be the consequences of resisting or “going along”?
These answers will vary dramatically depending on the personalities of the students.

Suggested Answers to Experiencing OB Exercises

Individual Exercise: Assessing Your Personal Orientation toward Others
1. What did this exercise reveal about you?
This exercise should give students a rough idea of their personality type. How much is actually “revealed” will depend on the student self-awareness and their honesty in giving the answers.
2. Were you surprised at what you learned, or was it something you already knew?
The answer will vary.
3. Do you tend to maintain the same orientation most of the time, or are there occasions on which you change from one orientation to another? What do you think this means?
Because these differences are personality based, and therefore relatively stable and long-lived, there should not be a lot of “jumping” from one type to another. However, students may be able to change their overt behaviors to better fit in the situation (meaning the orientation does not change, but the outward behaviors do).
Group Exercise: Negotiating the Price of a Used Car

1. Did you reach an agreement? If so, how easy or difficult was this process?
Answers will vary depending on how easily the students moved from a win-lose to a win-win mindset.
2. Which side do you think “won” the negotiation? What might have changed the outcome?
Answers will vary but the hope is that both sides believe they “won” the negotiation.
3. How might the negotiation process or the outcome have been different had this been a real situation?
There could have been strong pressures on the salesperson to make the sale, perhaps even at almost any price. Or the salesperson could have been directed not to go below a certain price. There may also have been pressure on the buyer to immediately purchase (say if the original car just died) or a total lack of pressure if the buyer was simply window-shopping.
Additionally other options may have been brought into play by the dealer: financing, accessories, trade-in values, alarm systems, and extended warranties all of which would have made negotiating a price easier for the dealer but more confusing for the buyer.

Answers to Case in Point Questions
Southwest Airlines: Profits from People

1. What forms of trust are involved in this case and how were they violated?
2. Previous CEO Kelleher exhibited Identification-Based Trust. This appears to have been violated when Parker resigned and in this resignation speech stated that he never found the job fun and Southwest deserved a leader who could take the company to the next level. How are issues of cooperation and competition involved in this case?
3. CEO Parker reached out to former CEO Kelleher and asked him to come out of retirement to help resolve a bitter dispute that involved Parker. Kelleher agreed and was able to quickly resolve the dispute. This was less competition and more cooperation. To what extent might the excellent state of labor relations at Southwest have contributed to the company’s record of financial success—especially in a challenging business environment?
The answers to this will vary based on the students’ opinions of Southwest and their assessments of its motives.

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