Chap007 Detailed

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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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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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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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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

Stage

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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.

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Chap007 Detailed