CONFLICT MANAGEMENT The Psychology of conflict and conflict ...

11. ORGANIZATIONAL DISPUTE RESOLUTION SYSTEMS 327
perceptions of fairness by individuals who have used ODR systems as
well as those who have not. Similarly, measures of perceived post-ODR
system consequences, both positive (e.g., justice) and negative (e.g., reprisals)
would arguably be measures of whether the ODR systems do, in fact,
provide fair opportunities to address disputes in organizations while protecting
disputants from recrimination. Assessing the reactions of various
constituent groups (e.g., managers, union officials) is also relevant, particularly
since determinants of perceived ODR system effectiveness may
be quite divergent across groups (cf. Boroff, 1991).
ClassiC theoretiCal anD CorresPonDinG eMPiriCal researCh
Classic Theoretical Approaches
The classic theoretical roots of ODR systems research stem from two
main approaches: the labor economics literature that emphasized ODR
systems as a form of voice in exit-voice-loyalty theory (Hirschman, 1970;
Freeman & Medoff, 1984) and the labor relations literature that emphasized
the concept of due process (e.g., Kuhn, 1961; Peach & Livernash, 1974)
in ODR systems.
Hirschman’s Exit-Voice-Loyalty Model. Hirschman (1970) argued that a
business firm would learn about “an absolute or comparative deterioration
of the quality of the product or service provided” (p. 4) in two major ways:
exit or voice. Hirschman argued that exit, when consumers stop buying the
product or service, is economic in nature because it is an indirect, anonymous
signal that is gleaned from the market. On the other hand, Hirschman
equated voice, when consumers communicate the deterioration to the organization,
as “political action par excellence” (p. 16) because it is direct. As
explained by Hirschman, while exit is straightforward (either you leave or
you do not), voice is not as clear-cut as it can range “from faint grumbling to
violent protest” (p. 16). Voice can be positively framed as well. For example,
a restaurant customer might suggest a new or modified item as a way to
retain customers. Hirschman further argued that voice is more desirable
to organizations because it allows organizations to learn about the specifics
of a problem directly and quickly. In addition, his theory asserted that
more loyal consumers are likely to choose to voice a deterioration in the
relationship with the organization. Thus, his theory essentially argued that
more loyal consumers would result in economic gains for the organization
because they would provide more specific information about problems so
that the organization could solve them more quickly and efficiently.
Freeman and Medoff (1984) extended Hirschman’s (1970) theoretical
arguments to the employment context. They argued that organizations
could learn about workplace problems from employees quitting (exit) or
complaining about the problem in some way (voice). That is, if an employee