Chap7Trust Justice&Ethic

Agenda  FB Homework Due, Review Motivation  OB in music  Lecture  Trust Exercise page 245  Nucor Case, Motivating without money  Homework

Why are some employees more motivated than others? Any concern or important issue?

Trust, Justice, and Ethics Trust is defined as the willingness to be vulnerable to an authority based on positive expectations about the authority’s actions and intentions. • Person-based • Organization-based Justice reflects the perceived fairness of an authority’s decision making. Ethics reflects the degree to which the behaviors of an authority are in accordance with generally accepted moral norms. Slide 7-3

“America’s Most Admired Companies” What about Thai Companies? Slide 7-4

Trust Disposition-based trust means that your personality traits include a general propensity to trust others. Why are some Cognition-based trust means that trust is authorities rooted in a rational assessment of the more trusted authority’s trustworthiness. than others? Affect-based trust means that it depends on feelings toward the authority that go beyond any rational assessment. Slide 7-5

1.Disposition-Based Trust  Has less to do with the authority and more to do with the trustor.  Some trustors are high in trust propensity —a general expectation that the words, promises, and statements of individuals and groups can be relied upon.  Shaped from both genetics and environment  Do you think that the level of propensity depends on culture or country? Slide 7-6

Trust Propensities by Nation Slide 7-7

2.Cognition-Based Trust  Our trust begins to be based on cognitions we‘ve developed about the authority, as opposed to our own personality or disposition.  Trustworthiness is defined as the characteristics or attributes of a trustee that inspire trust.  Driven by the authority’s “track record.”  Competence, character, and benevolence Slide 7-8

The Track Record  Competence is defined as the skills, abilities, and areas of expertise that enable an authority to be successful in some specific area.  Doctor, lawyer  Character is defined as the perception that the authority adheres to a set of values and principles that the trustor finds acceptable.  Integrity  Benevolence is defined as the belief that the authority wants to do good for the trustor, apart from any selfish or profit-centered motives.  Mentor-protégé Slide 7-9

3.Affect-Based Trust  Often more emotional than rational.  Affect-based trust acts as a leap of faith in the face of uncertainty about trustworthiness.  Affect-based trust sometimes acts as a supplement to the types of trust discussed previously.  An emotional bond develops, and our feelings for the trustee further increase our willingness to accept vulnerability. Slide 7-10

Types of Trust Over Time What if you don’t have time? Slide 7-11

Factors that Influence Trust Levels How do we increase trust level? How do we restore trust? Slide 7-12

Justice 1.) Distributive justice reflects the perceived fairness of decision-making outcomes.  Employees gauge distributive justice by asking whether decision outcomes, such as pay, rewards, evaluations, promotions, and work assignments, are allocated using proper norms. 2.) Procedural justice reflects the perceived fairness of decision-making processes.  Fostered when authorities adhere to rules of fair process. Slide 7-13

Procedural Justice Rules  Voice concerns giving employees a chance to express their opinions and views during the course of decision making.  Improves employees reactions to decisions.  Correctability provides employees with a chance to request an appeal when a procedure seems to have worked ineffectively.  Consistency, bias suppression, representativeness, and accuracy rules help ensure that procedures are neutral and objective, as opposed to biased and discriminatory.  Interview questions, compensation practices Slide 7-14

Combined Effects of Distributive and Procedural Justice Does procedural justice really matter—don’t people just care about the outcomes that they receive? When outcomes are bad, procedural justice becomes enormously important. Procedural justice tends to be a stronger driver of reactions to authorities than distributive justice. OB in sport Slide 7-15

Justice, Cont’d 3.) Interpersonal justice reflects the perceived fairness of the treatment received by employees from authorities.  Interpersonal justice is fostered when authorities adhere to two particular rules.  Respect rule pertains to whether authorities treat employees in a dignified and sincere manner.  Propriety rule reflects whether authorities refrain from making improper or offensive remarks. Slide 7-16

Justice, Cont’d 4.) Informational justice reflects the perceived fairness of the communications provided to employees from authorities.  Informational justice is fostered when authorities adhere to two particular rules.  The justification rule mandates that authorities explain decision-making procedures and outcomes in a comprehensive and reasonable manner.  The truthfulness rule requires that those communications be honest and candid. Slide 7-17

The Effects of Informational and Interpersonal Justice on Theft During a Pay Cut Slide 7-18

The Four Dimensions of Justice Which one is the most difficult to maximize? Slide 7-19

Ethics  Research on ethics seeks to explain why people behave in a manner consistent with generally accepted norms of morality, and why they sometimes violate those norms.  Whistle-blowing occurs when employees expose illegal actions by their employer.  76 percent of employees have observed illegal or unethical conduct on the job within the past 12 months.  Does ethical decision vary by country?  What’s the unethical incident you’ve seen? Slide 7-20

The Four Component Model of Ethical Decision Making I) Moral awareness occurs when an authority recognizes that a moral issue exists in a situation or that an ethical standard or principle is relevant to the circumstance.  Ethical sensitivity reflects the ability to recognize that a particular decision has ethical content.  Moral intensity captures the degree to which the issue has ethical urgency. Slide 7-21

The Six Facets of Moral Intensity Slide 7-22

The Four Component Model of Ethical Decision Making Stages of Cognitive Moral Development II) Moral judgment is when the authority accurately identifies the morally “right” course of action.  Cognitive moral development theory argues that as people age and mature, they move through several stages of moral development— each more mature and sophisticated than the prior one. Slide 7-23

The Four Component Model of Ethical Decision Making, III) Moral intent reflects an authority’s degree of commitment to the moral course of action.  The distinction between awareness, judgment, and intent is important, because many unethical people know and understand that what they do is wrong—they just don’t really care.  One driver of moral intent is moral identity —the degree to which a person sees him- or herself as a “moral person.”  Strong moral identity increases ethical behaviors because failing to act morally will trigger a strong sense of guilt or shame. Moral Moral Moral Ethical Awareness Intent Behavior Judgment Slide 7-24

Why Are Some Authorities More Trusted than Others? Slide 7-25

How Important Is Trust?  Trust relates to performance because it increases an employees ability to focus.  Trust also influences citizenship behavior and counterproductive behavior because it allows employees to develop social exchange relationships instead of economic exchange relationships with their employers.  Economic exchange relationships that are based on narrowly defined, quid pro quo obligations that are specified in advance and have an explicit repayment schedule.  Social exchange relationships are based on vaguely defined obligations that are open-ended and long- term in their repayment schedule. Slide 7-26

Effects of Trust on Performance and Commitment Slide 7-27

Corporate Social Responsibility  Corporate social responsibility is a perspective that acknowledges that the responsibility of a business encompasses the economic, legal, ethical, and citizenship expectations of society.  A company’s obligations do not end with profit maximization.  Organizations have an obligation to do what is right, just, and fair and to avoid harm.  Wal-Mart Exercise page 245 Slide 7-28

Nucor Steel 1. What’s the story about? 2. What motivation concepts that Nucor use? How does the company implement those concepts? 3. Any suggestion for intrinsic motivation? 4. What do you think about buy American? Is it ethical? Beneficial to trade?

Homework  Chapter 8  Exam Thursday July 30, 2009

Chap7Trust Justice&Ethic

by AjOb on Jul 14, 2009

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