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Conflict Managment

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Conflict Management ­HRM624
Lesson 18
Don't trust anyone over thirty.
Jerry Rubin (1938 - 1994) U.S. activist and author.
Complexity and trust go together...the more firms downsize and outsource, the more they need
partnerships, alliances, and joint ventures.
Peter Keen U.S. business executive.
"It takes years to build up trust, and only seconds to destroy it."
Author unknown
According to one prominent theory, there are three levels of trust: (i) calculus-based trust, (ii) knowledge-
based trust, and (iii) identification-based trust. In this lecture we study and analyze these three levels of
What is Trust?
Trust can be defined as a state of mind in which a person believes that another person intends to be helpful
and, accordingly, that it is appropriate to take risks in the relationship.
Trust can be described as a basic component of human relationships. It plays vital role in the improvement
of quality of every relationship. Different people define the phenomenon of trust according to their own
perspectives. The behaviors essential to maintaining a constructive or cooperative relationship involves an
element of risk. To risk the open communication and altruistic behavior that makes cooperative sharing of
tasks possible, each disputant must believe that the other will not exploit the situation. The attitude that
allows this risk taking behavior is called `trust'.
Trust: But such a trust may not be good
Conflict Management ­HRM624
What is Mistrust?
You may be deceived if you trust too much, but you will live in torment if you don't trust enough.
Frank Crane
Mistrust is not the absence of different forms of trust. It is a separate and distinct phenomenon. Disputants
in a state of mistrust are actively motivated to protect themselves from the other disputant. Lack of trust is
like having uncertainty while mistrust is considered as a state in which one individual actively believes that
the other is likely to harm him or her.
Trust is difficult to establish when mistrust is present. Lack of trust entails uncertainty whereas mistrust
operates to make disputants believe that they will harm each other. Mistrust is associated with aggressive
behavior and the escalation of destructive conflict.
Trust and business
Business relationship is designed for people who must be involved in a relationship but who have very low
levels of trust in each other.
A business relationship has following components:
1. Explicit and detailed agreement
2. Formality
3. Restraint of emotional expression
4. Balanced, neutral facilitating and evaluation
If you succeeded in building mutual trust with your business partner, it will serve as a strong foundation that
will free you to respond together to the unexpected, which is essential for mutual creativity in conflict
Business is too complex to expect ready agreement on all issues, and trust, thus, does not imply easy
harmony. "However, in a trusting relationship, conflicts motivate you to probe for deeper understanding
and search for constructive solutions.
Trust creates good will, which sustains the relationship when one firm does something the other dislikes.
Having trust gives you confidence in a relationship and makes it easier to build even more.
Trust and conflict
When one puts faith and trust in another, and that confidence is broken, it can create an emotional response
that elevates to conflict.
To trust someone is to place a high confidence level that the relationship will not be compromised in any
way...that I can expect you to do what you say. A trusting relationship leads to feelings of confidence and
A breach of trust unleashes our strongest emotions that frequently lead to conflict.
Breach of trust and its consequences
Even a single threat to mutual trust can turn a cooperative relationship into an escalating competition.
When trust is threatened, the mistrustful person suspects that the other may harm or exploit him or her,
and risky behaviors, such as information and effort sharing, are abandoned as dangerous. Moreover, a
mistrustful person in a conflict is likely to see his or her own well being as dependent on self-defense.
Mistrust is therefore associated with aggressive behavior and the escalation destructive.
Conflict Management ­HRM624
Trust, mistrust and conflict
Three levels of trust
The levels of trust are given below
(1) Calculus-based trust
(2) Knowledge-based trust
(3) Identification-based trust
Some forms of trust are hard to establish
Some forms of trust are more useful than others.
Calculus-based trust
The first and most basic level of trust is called calculus-based trust. It is based on knowledge of the
consequences of compliance or noncompliance. In legal disputes, the calculus-based trust is more
commonly used. It is used in settlement agreements and court judgments.
The incentives that can produce calculus-based trust are as varied as the individuals involved in the conflict,
and they do not always involve money.
Disputants are made aware of the fact that refusal to comply with settlement provisions can mean being
hauled into court made to produce information about assets and enforced to sell property.
These threats of inconvenience and penalty are usually enough to promote compliance and to create
minimal levels of peace of mind in those insisting on their inclusion.
Calculus based trust is the easiest type of trust to create. Calculus-based trust is not required if other higher
levels trusts are attainable and appropriate for the situation.
Calculus based Trust at a glance
·  Trust based on knowledge that the other person won't want to incur the consequences of betrayal
·  Narrow applicability to the action for which consequences are in place
·  Easiest type of trust to establish (you just need a contract)
Knowledge based trust
The second level of trust is known as knowledge based trust. It is on one disputant's knowledge and
understanding of the other disputant.
Conflict Management ­HRM624
For example if a woman needs to leave her children with their regular baby sitter while she attends a
business meeting she can trust that the baby sitter will keep them safe because of her long standing history
of having them so in the past. Mother may also have knowledge of the baby sitter's background, skills,
education, and apparent values, as displayed in numerous social contexts in which the mother has observed
in the past. Knowledge-based trust is usually unwarranted in new relationships, in very short relationships,
and in relationships that are caught-up in competition cycle. It can be understood by the example of a
reliable employee.
After a period of effective functioning, we may convert calculus-based trust into knowledge-based trust.
This type of rust is based on knowledge of the other person's habits, traits, attitudes, principles, and values.
Knowledge based Trust at a glance
·  Trust based on knowledge of the other person's habits, traits, attitudes, principles, and values
·  Applicability to all actions about which relevant characteristics of the person are known
·  Establishment depends on knowing the other person well enough to acquire relevant knowledge.
Identification based trust
The highest level of trust is identification-based trust. It is founded on the disputant's sense of identification
with one another because the disputants identify with one another, they tend, as do all groups with a sense
of solidarity to see themselves as being "as one" in their goals, values, and needs. Thus it is intrinsically
satisfying to a disputant in a relationship characterized by an identification based trust to meet the perceived
needs of the other disputant. In intimate relationships such as those between family members, preserving
identification based trust is more important than the specific substantive agreements reached. For example
two spouses who are arguing over the best color to paint a bed room generally have a much greater need to
preserve their mutual sense of identification with one another than to resolve the issue of the paint color.
Business organizations (some MNCs for example) that indoctrinate their new employees into the company,
and devote resources to building company spirit, are exploiting the advantages of this type of trust. In
intimate relationships, this is the most important trust.
Sometimes, the desire to establish identification-based trust may be damaging (for example, the divorcing
couple). Establishing identification based trust is very difficult; it requires a period of intimacy, partnership
during a crisis, or another intense interconnection.
Identification based Trust at a glance
·  Trust based on a sense of identification, or "oneness," with the other person
·  Broad applicability to entire relationship.
·  Establishment is very difficult: requires a period of intimacy, partnership during a crisis, or another
intense interconnection.
Trust is an important behavioral character of individuals and companies. It can enhance efficiency and can
reduce undue formalities. It creates pleasant feelings among participants in a conflict or among those who
are in business partnerships.
As there are three levels of trust (calculus-based trust, knowledge-based trust, and identification-based
trust), the first one is easiest to establish and the last one is the most difficult to establish. However, higher
the level of trust between individuals, companies, or even countries; higher the outcome of the
relationships. It is an important personal attribute and also a great social asset. If people trust each other in a
system or society, the life becomes joyous and happy for all of us.
Table of Contents:
  1. INTRODUCTION TO CONFLICT:Dispute, Legal Dispute, Call the police
  2. DISPUTE RESOLUTION 1:Positive affect in Negotiation, Alternative Dispute Resolution
  3. DISPUTE RESOLUTION II:Adjudication, Litigation, Mediation-Arbitration
  4. PRECONCEPTIONS ABOUT CONFLICT I:Pedagogical development, Pressures against Innovation
  5. PRECONCEPTIONS ABOUT CONFLICT II:Cultural beliefs about interpersonal conflict, Why strategies of change fail
  6. CONFLICT DIAGNOSIS:Who Needs to Know About Conflict Diagnosis?, Steps in Conflict Diagnosis
  7. RECURRENT THEMES IN CONFLICT DIAGNOSIS I:The Seven Steps of Social Behavior, Seven steps to diagnose conflict
  9. DESCRIBING THE CONFLICT I:Description of Conflict, Identifying Interpersonal Conflict
  10. DESCRIBING THE CONFLICT II:Step 1 for Conflict Diagnosis, interpersonal or intrapersonal
  11. SOURCES AND CAUSES OF CONFLICT I:Main Sources of Conflict, Discussing major sources of conflict
  13. INTEREST ANALYSIS I:Analyzing your interests, Analyzing the other disputant’s interests
  14. INTEREST ANALYSIS II:What are interests?, Tips for Interest Trees
  15. INTEREST ANALYSIS II:Principles and values, Basic Human Needs
  16. ASSESSING THE CHARACTER OF THE CONFLICT I, Premises of Deutsch’s Theory
  17. ASSESSING THE CHARACTER OF THE CONFLICT II:Techniques to transform competitive conflict into cooperative
  18. TRUST AND ITS SIGNIFICANCE I:What is Mistrust,Trust and business,Three levels of trust
  19. TRUST AND ITS SIGNIFICANCE II:Advantages of high trust level, Building of trust
  20. ASSESSING IMPEDIMENTS TO RESOLVE THE CONFLICT I:Motivation to seek vengeance, Mistrust
  21. ASSESSING THE IMPEDIMENTS TO RESOLVING THE CONFLICT II:Disempowered Disputant, Unpleasant Disputant
  22. ASSESSING THE NEGOTIATING STYLE I:Dual Concern Model, Dominating or competition style
  23. ASSESSING THE NEGOTIATING STYLE:Dual Concern Model, Tactics Used In Integrating
  24. ASSESSING POWER AMONG DISPUTANTS:Conflict and Power, Kinds of power in the Relationship Domain
  25. ASSESSING POWER AMONG DISPUTANTS II:Sources of Relationship Power, Context and Power
  26. POWER, CONFLICT, AND BATNA III:Role of Third Party in BATNA, Dealing with Power Imbalance
  27. STEREOTYPES, DIVERSITY, AND CONFLICT I:Stereotyping, Stereotyping in Interpersonal Conflict
  28. STEREOTYPES, DIVERSITY, AND CONFLICT:Categories of Diversity Issues, Seven Mental Processes to Prove Stereotypes
  29. STEREOTYPES, DIVERSITY AND CONFLICT III:Individual Difference and Social Category, Cultural differences in values
  30. MEDIATION I:When is mediation required, Processes Related to Mediation, Product of Mediation
  31. MEDIATION II:Important distinguishing factors, More Advantages and Disadvantages of Pure Mediation
  32. ADVANTAGES AND DISADVANTAGES OF MEDIATION I:Efficiency Consideration, Conflict Management and Prevention
  33. ADVANTAGES AND DISADVANTAGES OF MEDIATION II:Quality of Consent, Effects on the parties to mediation
  34. PROCESS OF MEDIATION:Stages of Mediation, Facilitative tactics in mediation
  35. LAW AND ETHICS OF MEDIATION I:Characteristics of mediation, Confidentiality
  36. LAW AND ETHICS OF MEDIATION II:Role of ethics in mediation, 8 Dimensions of Ethics in Mediation
  37. ARBITRATION I:Ways to Resolve Conflict, Advantages of Arbitration, Disadvantages of Arbitration
  38. ARBITRATION II:Varieties of Arbitration, Process of Arbitration, Contents of Arbitration Act
  39. NON BINDING EVALUATION:Disadvantage, Varieties of Non-binding Evaluation
  40. NON BINDING EVALUATION II:Varieties of Non-binding Evaluation, Advantages and disadvantages of Non-binding Evaluation
  41. MIXED AND MULTIMODAL DISPUTE RESOLUTION:Six System Design Principles, Extensions of Dispute Systems Design
  42. POWER TOOLS AND MAGIC KEYS I:Introduction, Necessity of conflict diagnosis, Using conflict diagnosis
  43. POWER TOOLS AND MAGIC KEYS II:Proposed Contents of a Clients’ Interview, Impediments to use facilitative mediation
  44. PANCHAYAT, LOCAL GOVERNMENT SYSTEM, AND ADR, Definitions of Panchayat, Definition of Jirga
  45. SUMMARY AND MESSAGE OF THE COURSE:Definitions of conflict, Negotiation, Meditation, Adjudication