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Conflict Managment

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Conflict Management ­HRM624
VU
Lesson 19
TRUST AND ITS SIGNIFICANCE II
Quotations
"A verbal contract isn't worth the paper it's written on".
Samuel Godwyn
If you'll believe in me, I'll believe in you.
Lewis Carroll (1832 - 1898) British writer and mathematician.
Believe in yourself, but do not always refuse to believe in others.
Joaquim Maria Machado de Assis (1839 - 1908) Brazilian novelist and short-story writer
In this lecture we will discuss the following points regarding the importance of trust.
·  Trust can be built between and among disputants or parties i.e. individuals, companies, or countries
·  High levels of trust carry distinct advantages.
·  High levels of trust are not always attainable.
·  That a "business relationship" can protect disputants when trust is low or distrust is high.
·  Low levels of trust can be promoted into higher levels of trust.
Advantages of high trust level
Why high level of trust is given importance, it has certain advantages, such as:
·  Less guesswork
·  Fewer formalities; greater efficiency
·  Pleasant feelings and comfortable work environment
·  Fosters cooperation
·  Better quality of life for every one
Origins of trust
Calculus-based trust can come directly from provisions in contracts that give people incentives not to harm
one another as when an agreement specifies penalties for breach.
Since a contract is all that is needed to create this form of trust, it is relatively easy to establish. It can be
created even between hostile adversaries using a penalty system.
Calculus based trust can also come from the course of dealing itself: in a continuing relationship often each
disputant can count on the other disputant to preserve the course of dealing because of its intrinsic
advantages for those involved.
Knowledge based trust comes from any situation in which people become well and so on.
Knowledge-based trust need not be based on intimate knowledge of the other disputant: it may be relatively
narrow and based on a course of dealing. The cooperation cycle can promote knowledge-based trust easily.
Knowledge based trust can also come from any situation in which it is clear that interests are not in conflict.
Regular communication can also promote knowledge-based trust.
Identification-based trust is hardest to establish. It is commonly found among intimate partners of families.
It is also created in situations involving a joint venture that both disputants care about deeply. However
certain companies (MNCs for example) build this trust through inculcation of company specific values.
Some Japanese companies make their employees sing loyalty promoting poems/songs every morning.
Effects of trust
It is very useful to operate with high levels of trust, particularly with identification based trust. It is seen that
the higher the level of trust, greater the chances of perpetuating cooperation cycle.
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Conflict Management ­HRM624
VU
Typical situations in which there is little or no trust include brand new relationships, such as transactions
between strangers, situations in which an intimate relationship goes bad, and situations in which a betrayal
of trust occurs in a cooperative relationship. The effect is to move the disputants into a competition cycle
and toward a state of active mistrust.
On contrary low levels of trust can trigger a cycle of competition. High levels of trust produce good feelings
and generate good quality of human life. Mistrustfulness creates a perception of contrient inter-dependence.
Mistrust creates the impetus to hide information and duplicate effort, which escalate competition cycle.
Building of trust
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 security whereas a breach of trust unleashes our strongest emotions that
frequently lead to conflict.
CBMs (confidence building measures) with India provide good example of building trust. As a consequence
of these measures trade between India and Pakistan is increasing now.
Business Relationships
A 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.
·  Explicit and detailed agreements
·  Formal, preferably written communication
·  No sharing of emotion
·  Balanced, neutral assessment methods
Achieving a Business Relationship through Effective agreement Drafting
Nothing destroys trust quite as fast as the belief that the other disputant has flagrantly violated a hard-won
settlement agreement. Unfortunately poor agreement drafting can lead to misunderstanding over the terms
of a settlement. In a climate of low trust or mistrust, a difference of interpretation can be perceived as a
betrayal. Effective agreement drafting consists of the following goals.
. Accuracy and completeness
. Clarity and certainty
. Flexibility
. Legal enforceability
. Relationship preservation
Accuracy and completeness
The resulting agreement should correctly and completely set down the agreement of the parties. It is critical
to represent the settlement with complete faithfulness and accuracy and not to expand upon or alter the
results of negotiation.
Clarity and certainty
The agreement should make all rights, responsibilities and procedures clear, including minutiae such as the
manner of payment due date, delivery date, responsibility for shipping goods, and risk of damage during
shipment.
Flexibility
The agreement should be workable despite unforeseen developments that might occur in the future.
Flexibility and certainty are often traded against one another in a case­by­case balancing process.
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Conflict Management ­HRM624
VU
Legal enforceability
The agreement should preserve or attain the legal status of a contract, and the limits of legal enforceability
should be specified where necessary. The appropriate signature line, seals, and acknowledgement forms
should be used as required.
Relationship preservation
The resulting agreement should avoid damaging relationship by preserving fairness, by avoiding
inflammatory, insulting or demeaning language and by minimizing the likelihood of misinterpretation.
Low trust situation
Following are some of the situations where level of trust is low
·  New transactions and relationships
·  Breakdown in close relationships
·  Historical enemies
·  Apparent betrayal of trust
Dealing with low trust situations
In intimate relationships, preserving identification-based trust is the whole point. In other situations, create
calculus-based trust.
Easier a trust is established, the lower its scope
Broad
Moderate
Narrow,
Limited
Easy
Moderate
Hard
Ease of Establishing
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Conflict Management ­HRM624
VU
Building trust
Identi-
Broad
fication
Moderate
Knowledge
Narrow,
Calculus
Limited
Easy
Moderate
Hard
Ease of Establishing
Key Points to Remember
Following points should be kept in mind for developing a trusting environment.
·  Be a model of calm and control
·  Don't give in to emotional outbursts
·  Don't assume people are being difficult intentionally
·  Find a quiet place in to resolve breaches of trust quietly and privately
Set some ground rules for the discussion:
­  No raising of voices
­  This is not a debate
­  Speak only for yourself..."I" phrases
­  Confront the issues, not the people
-  Maintain or enhance self-esteem
Summary
Trust can be built with an appropriate strategy between or among individuals, companies, or countries.
Confidence building measures (CBMs) between India and Pakistan present a good example to build trust
between the two nations. In present day environment and in increasingly controlled world, trust can be built
with explicit tactics and strategies.
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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
  8. RECURRENT THEMES IN CONFLICT DIAGNOSIS II:Themes of Conflict Diagnosis
  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
  12. SOURCES AND CAUSES OF CONFLICT II
  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