chap007 detailed
TRANSCRIPT
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Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
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Chapter
Copyri ght © 2011 by the McGraw-H il l Companies, Inc. Al l r ights reserved. McGraw-Hill/Irwin
7 Trust, Justice and
Ethics
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Learning Goals
What is trust, and how does it relate to justice
and ethics?
In what three sources can trust be rooted?
What dimensions can be used to describe the
trustworthiness of an authority?
What dimensions can be used to describe the
fairness of an authority’s decision making?
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Learning Goals, Cont’d
What is the four-component model of
ethical decision making?
How does trust affect job performanceand organizational commitment?
What steps can organizations take to
become more trustworthy?
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Trust, Justice, and Ethics
Reputation reflects the prominence of its brand in the
minds of the public and the perceived quality of its goods
and services.
Trust is defined as the willingness to be vulnerable to atrustee based on positive expectations about theauthority’s actions and intentions.
Justice reflects the perceived fairness of an authority’sdecision making.
Ethics reflects the degree to which the behaviors of anauthority are in accordance with generally acceptedmoral norms.
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“World’s Most Admired Companies”
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Discussion Questions
Why are some authorities more trusted
than others?
Would you be willing to let that person have
significant influence over your professional
or educational future?
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Trust
Disposition-based trust means that yourpersonality traits include a general propensityto trust others.
Cognition-based trust means that trust isrooted in a rational assessment of theauthority’s trustworthiness.
Affect-based trust means that it depends onfeelings toward the authority that go beyondany rational assessment.
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Disposition-Based Trust
Has less to do with the authority and more todo with the trustor.
Some trustors are high in trust propensity —a
general expectation that the words, promises, andstatements of individuals and groups can be relied
upon.
Shaped from both genetics and environment
Trust propensity levels are actually relatively highin the United States, especially in relation to
countries in Europe and South America.
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Trust Propensities by Nation
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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.” Ability, benevolence, and integrity
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The Track Record
Ability is defined as the skills, competencies, and areas of expertise that enable an authority to be successful in some
specific area. Doctor, lawyer
Benevolence is defined as the belief that the authority wantsto do good for the trustor, apart from any selfish or profit-centered motives. Mentor-protégé
Integrity is defined as the perception that the authorityadheres to a set of values and principles that the trustor finds
acceptable. “Walk the talk”
OB on Screen Slumdog Millionaire
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Affect-Based Trust
Often more emotional than rational.
We trust because we have feelings for the person in
question; we really like them and have a fondness for
them. Affect-based trust sometimes acts as a supplement
to the types of trust discussed previously.
An emotional bond develops, and our feelings for thetrustee further increase our willingness to accept
vulnerability.
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Types of Trust Over Time
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Factors
that
Influence
TrustLevels
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Justice
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 usingproper norms.
Procedural justice reflects the perceived fairness of
decision-making processes.
Fostered when authorities adhere to rules of fair process.
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Procedural Justice Rules
Voice concerns giving employees a chance to expresstheir opinions and views during the course of decisionmaking.
Correctability provides employees with a chance to
request an appeal when a procedure seems to haveworked ineffectively. Improves employees reactions to decisions.
Consistency , bias suppression , representativeness ,and accuracy rules help ensure that procedures areneutral and objective, as opposed to biased anddiscriminatory. Interview questions, compensation practices
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Some of the 50 Best Companies for
Minorities
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Procedural Justice
Does procedural justice really matter —don’t
people just care about the outcomes that they
receive?
Distributive justice and procedural justicecombine to influence employee reactions.
When outcomes are bad, procedural justice
becomes enormously important.Procedural justice tends to be a stronger driver of
reactions to authorities than distributive justice.
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Combined Effects of Distributive and
Procedural Justice
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Justice, Cont’d
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 adignified and sincere manner.
Propriety rule reflects whether authorities refrain from making
improper or offensive remarks.
When taken to the extremes, interpersonally unjust actions
create abusive supervision, defined as the sustained display
of hostile verbal and nonverbal behaviors, excluding physical
contact.
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Justice, Cont’d
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.
Th Eff f J i Th f D i
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The Effects of Justice on Theft During a
Pay Cut
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The Four Dimensions of Justice
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Ethics
Research on ethics seeks to explain whypeople behave in a manner consistent with
generally accepted norms of morality, and
why they sometimes violate those norms.Two primary threads
Prescriptive
Descriptive
Whistle-blowing occurs when employees expose
illegal or immoral actions by their employer.
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The Four-Component Model of Ethical
Decision Making
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INSERT ONCE REVISED
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The Four Component Model of Ethical
Decision Making
Moral awareness occurs when an authorityrecognizes that a moral issue exists in asituation or that an ethical code or principle is
relevant to the circumstance.Moral intensity captures the degree to which the
issue has ethical urgency.
Moral attentiveness captures the degree to which
people chronically perceive and consider issues of morality during their experiences.
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The Dimensions of Moral Intensity
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The Four Component Model of Ethical
Decision Making, Cont’d
Moral judgment reflects the process people
use to determine whether a particular course
of action is ethical or unethical.
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.
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Ethical Dilemma Used to Assess Moral
Development
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The Four Component Model of Ethical
Decision Making, Cont’d
Moral judgment, cont’d
People begin their moral development at the
preconventional stage.
At this stage, right versus wrong is viewed in terms of the consequences of various actions for the individual.
As people mature, their moral judgment reaches
the conventional stage.1
At this stage, right versus wrong is referenced to the
expectations of one’s family and one’s society.
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The Four Component Model of Ethical
Decision Making, Cont’d
Moral judgment, cont’d
The most sophisticated moral thinkers reach the
principled (or postconventional) stage.
At this stage, right versus wrong is referenced to a setof defined, established moral principles.
Philosophers have identified a number of
moral principles that serve as prescriptiveguides for making moral judgments.
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Moral Principles Used in the Principled
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The Four Component Model of Ethical
Decision Making, Cont’d
Moral intent reflects an authority’s degree of
commitment to the moral course of action.
The distinction between awareness or judgment on the
one hand and intent on the other is important, because
many unethical people know and understand that whatthey’re doing is wrong—they just choose to do it anyway.
One driver of moral intent is moral identity —the degreeto which a person self-identifies as a moral person.
Moral identity “moderates” the effects of moral judgment onethical behavior.
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Why Are Some
Authorities
More TrustedThan Others?
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How Important Is Trust?
Trust relates to performance because it increases anemployees ability to focus.
Trust also influences citizenship behavior andcounterproductive behavior because it allows
employees to develop social exchange relationshipsinstead of economic exchange relationships withtheir employers.Economic exchange relationships that are based on
narrowly defined, quid pro quo obligations that are
specified in advance and have an explicit repaymentschedule.
Social exchange relationships are based on vaguelydefined obligations that are open-ended and long-term intheir repayment schedule.
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Effects of Trust on Performance and
Commitment
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Application: Social Responsibility
Corporate social responsibility is aperspective that acknowledges that theresponsibility of a business encompasses the
economic, legal, ethical, and citizenshipexpectations of society.
A company’s obligations do not end with profit
maximization.
Organizations have an obligation to do what isright, just, and fair and to avoid harm.
Nike
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Takeaways
Trust is the willingness to be vulnerable to an authority based on positiveexpectations about the authority’s actions and intentions. Justice reflects
the perceived fairness of an authority’s decision making and can be used to
explain why employees judge some authorities as more trustworthy than
others. Ethics reflects the degree to which the behaviors of an authority
are in accordance with generally accepted moral norms and can be used to
explain why authorities choose to act in a trustworthy manner.
Trust can be disposition-based, meaning that one’s personality includes a
general propensity to trust others. Trust can also be cognition-based,
meaning that it’s rooted in a rational assessment of the authority’s
trustworthiness. Finally, trust can be affect-based, meaning that it’s rooted
in feelings toward the authority that go beyond any rational assessment of
trustworthiness.
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Takeaways, Cont’d
Trustworthiness is judged along three dimensions. Ability reflects the
skills, competencies, and areas of expertise that an authority possesses.
Benevolence is the degree to which an authority wants to do good for the
trustor, apart from any selfish or profit-centered motives. Integrity is the
degree to which an authority adheres to a set of values and principles that
the trustor finds acceptable.
The fairness of an authority’s decision making can be judged along four
dimensions. Distributive justice reflects the perceived fairness of decision-
making outcomes. Procedural justice reflects the perceived fairness of
decision-making processes. Interpersonal justice reflects the perceived
fairness of the treatment received by employees from authorities.Informational justice reflects the perceived fairness of the
communications provided to employees from authorities.
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Takeaways, Cont’d
The four-component model of ethical decision making argues that ethical
behavior depends on three concepts. Moral awareness reflects whether
an authority recognizes that a moral issue exists in a situation. Moral
judgment reflects whether the authority can accurately identify the
“right” course of action. Moral intent reflects an authority’s degree of
commitment to the moral course of action.
Trust has a moderate positive relationship with job performance and a
strong positive relationship with organizational commitment.
Organizations can become more trustworthy by emphasizing corporate
social responsibility, a perspective that acknowledges that the
responsibilities of a business encompass the economic, legal, ethical, and
citizenship expectations of society.