CONFLICT MANAGEMENT The Psychology of conflict and conflict ...

326 OLSON-BUCHANAN AND BOSWELL
PurPoses anD effeCtiveness Measures of DisPute resolution systeMs
Purposes
The research literature has noted several possible purposes for implementing
ODR systems in nonunion organizations. These reasons include
ensuring fair governance (Aram & Salipante, 1981) and fair treatment (Colvin,
2003b), minimizing the costs or threat of litigation (Aram & Salipante,
1981; Colvin, 2003a), encouraging voicing of organizational problems (Aram
& Salipante, 1981), and avoiding unionization (Berenbeim, 1980). Although
these various purposes may be quite diverse, several of them could easily
fall under McCabe’s (1988) two major goals for ODR systems: to correct the
company’s mistakes and to fulfill an “ethical obligation” to employees.
Effectiveness Measures
Similarly, researchers have proposed and used a number of different
effectiveness measures of ODR systems. Several of these measures are
organizational-level outcomes, but process measures as well as individuallevel
effectiveness measures are increasingly being examined and used.
Organizational Outcomes. Organizational outcome effectiveness measures
can take several forms. These have included organizational measures such
as higher firm productivity, fewer absences, and lower turnover rates. ODR
system usage rates have also been considered a measure of effectiveness
(for a review, see Peterson & Lewin, 2000). Arguably, an organization’s legal
costs on issues that could have been addressed in an ODR system may be a
reasonable indicator of ineffectiveness. Similarly, one could argue that the
extent to which the organization remains union free (relative to the industry
norms) may indicate whether an ODR system effectively meets the needs of
employees who might otherwise be served by a union.
Process Measures. Labor relations research has often focused on process
variables as appropriate effectiveness measures of ODR systems in
union contexts, but these variables are arguably important in nonunion
contexts as well. Such measures would include the timeliness with which
disputes are resolved, the hierarchical level at which they are resolved
(lower is generally considered better), and whether the final settlements
are balanced with respect to which side (e.g., employees and management)
prevailed (Lewin, 1987). More recent measures would include perceived
fairness of the dispute resolution system.
Individual Outcome Measures. As noted, some research has examined
individual outcome measures associated with ODR system usage, such
as absences, performance ratings, and employee turnover. Individual perceptions
are also important effectiveness measures. These would include