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Diversity  in  Teams  

The  Activation  process  of  a  Faultline  and  the  Effect  on  Team  

Conflict  During  an  Organisational  Change  

 

16  May,  2014  

 

Master  thesis,  MSc  Business  Administration  –  Change  Management  

University  of  Groningen,  Faculty  of  Economics  and  Business  

 

 

 

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ABSTRACT  

This  study  examines  the  relationship  between  objective  and  activated  faultlines,  and  the  effects  of  an   activated  faultline  in  an  organisational  change  context.  A  faultline  is  a  relatively  new  concept  in  the   diversity   literature   it   is   defined   as   an   hypothetical   dividing   line   that   splits   a   group   into   relatively   homogeneous   subgroups   based   on   group   members   demographic   alignment   among   different   attributes.  The  attributes  for  the  faultline  in  this  study  are  resistance  to  the  organisational  change   and  age.  Fautlines  can  be  objective  or  activated.  An  objective  faultline  is  a  potential  faultline  based   on  demographic  attributes  and  an  activated  faultline  is  that  team  members  perceive  the  potential   faultline  based  on  the  demographic  attributes.  The  relationship  between  the  objective  and  activated   faultline  is  hypothesized  to  be  moderated  by  the  organisational  change.    

The   effects   of   activated   faultlines   are   investigated   by   measuring   team   conflict.   Team   conflict   is   divided  into  three  different  types:  relational,  task  and  process  conflict.    

Results   indicate   that   the   organisational   change   does   not   moderate   the   objective   faultlines   to   be   perceived  by  team  members.  Although  it  is  found  that  teams  who  perceive  more  activated  faultlines   will  face  relational  conflict.  This  results  in  negative  outcomes,  because  team  members  are  distracted   from  their  tasks.    

 

Keywords:      

Diversity,   Teams,   Faultlines,   Subgroups,   Activation   Process,   Team   Conflict,   Task   Conflict,   Relational   Conflict,  Process  Conflict  

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CONTENT  

CONTENT  ...  3   1.  INTRODUCTION  ...  4   1.1  DIVERSITY  ...  4   1.2  FAULTLINES  ...  4   1.3  RESEARCH  ...  6   2.  THEORY  ...  7   2.1  DIVERSITY  ...  7   2.2  FAULTLINES  ...  7  

2.3  TRIGGERING  PROCESS  OF  FAULTLINES  AND  FAULTLINE  BASE.  ...  9  

2.4  ACTIVATED  FAULTLINES  AND  TEAM  CONFLICT  ...  12  

3.  METHODOLOGY  ...  15  

3.1  DATA  COLLECTION8  ...  15  

3.1.1  Data  sources  ...  15  

3.1.2  Data  procedure  ...  16  

3.2  MEASUREMENTS  ...  16  

3.3  DATA  ANALYSIS  METHOD  ...  18  

3.4  DATA  ANALYSIS  ...  18   3.5  FACTOR  ANALYSIS  ...  19   4.  RESULTS.  ...  22   4.1  CORRELATION  TEST  ...  22   4.2  HYPOTHESIS  TESTING  ...  23   5.  DISCUSSION  ...  25   5.1  KEY  FINDINGS  ...  25   5.2  THEORETICAL  IMPLICATIONS  ...  25   5.3  MANAGERIAL  IMPLICATIONS  ...  26  

5.4  RESEARCH  LIMITATIONS  AND  FURTHER  RESEARCH  ...  27  

5.5  CONCLUSION  ...  28  

REFERENCES  ...  30  

APPENDIX  ...  35  

APPENDIX  1  QUESTIONS  SURVEY  ...  35  

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1.  INTRODUCTION  

1.1  Diversity  

 

                                  “If  we  cannot  end  now  our  differences,  at  least  we    

                                                                                                                            can  help  make  the  world  safe  for  diversity”      

This  quote  of  John  F.  Kennedy  (1963)  shows  that  diversity  is  everywhere.  Not  one  single  person  is  the   same,   we   are   all   unique   and   because   of   that   we   all   think   in   different   ways.   According   to   Kennedy   (1963)  diversity  results  in  an  unsafe  world,  because  of  the  different  thoughts  and  views  of  everyone.   Looking   at   organisations   the   same   issues   can   arise   regarding   diversity.   Because   of   the   changing   environment   companies   have   to   adapt   and   change   to   stay   competitive   (Klang   &   Hacklin   2012).   Thatchers   and   Patel   (2012)   argue   that   working   with   diverse   teams   is   essential   in   adapting   to   the   challenging   environment.   Williams   &   O’Reilly   (1998)   stress   that   due   to   the   globalising   world   and   significant  demographic  changes,  teams  are  more  diverse.    

  Organisations   want   teams   to   be   as   effective   and   efficient   as   possible   (Michael,   2012).     Literature  shows  mixed  results  about  diversity  in  teams  (Williams  &  O’Reilly,  1998).    Some  state  that   more  diverse  teams  are  more  effective  then  less  diverse  teams  (Caudron,  1994;  Sullivan,  1974).  They   argue  that  with  more  diverse  team  members,  more  different  views  are  generated  and  eventually  this   will  lead  to  a  better  outcome  than  teams  with  less  diverse  members.  Milliken  &  Martins  (1996)  as   well  as  Watson,  Kumar  &  Michaelsen  (1993)  argue  that  diversity  in  teams  provides  opportunities  for   creativity  and  competitive  advantages.    

  On  the  other  hand,  diversity  in  teams  can  have  negative  effects.  Zhou,  Zhang  and  Sung  (2013)   argue   that   gender   diversity   has   negative   effects   on   team   outcomes.   Jehn   (1995)   concluded   that   diverse   teams   face   problems   in   communication,   which   resulted   in   misunderstandings   and/or   inefficiencies.    According  to  O’Reilly  et  al.  (1989)  highly  diverse  teams  are  expected  to  face  barriers  to   social  interaction,  leading  to  reduced  group  cohesion.  So  as  shown  here,  literature  has  mixed  results   regarding  diversity  in  teams.    

1.2  Faultlines  

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more  atributes,  for  example:  gender,  age  and  race.  Another  aspect  is  that  the  literature  of  faultlines   focuses  on  the  alignment  of  multiple  attributes  instead  of  the  dispersion  view  of  group  composition.   (Thatcher  &  Patel,  2012)  The  faultline  concept  is  tested  empirically  by  several  researchers  (Phillips  et   al.   2004;   Polzer   et   al.   2006;   Mannix   &   Neale,   2005;   Jehn   &   Bezrukova,   2010)   this   is   just   a   small   selection  of  literature  that  agrees  on  the  existence  of  subgroups  within  a  diverse  team.    

  A  faultline  can  be  distinguished  in  dormant  and  activated  faultlines  (Jehn  &  Bezrukova,  2010).   Dormant   faultlines   are   potential   faultlines   based   on   demographic   characteristics   like:   age,   gender,   education,  race  etc.  An  activated  faultline  refers  to  group  members  who  actually  perceive  subgroups   based   on   the   demographic   characteristics.   Riordan   (2000)   makes   the   same   distinction,   only   this   definition  is  putting  it  in  other  words:  objective  (e.g.  actual)  diversity  and  perceived  diversity.    

    According  to  Jehn  &  Bezrukova  (2010)  activated  faultlines  are  more  likely  to  lead  to  coalitions   and  have  conflicts  among  the  team.  This  results  in  lower  level  of  satisfaction  and  performance  of  the   team   in   comparison   to   groups   with   a   dormant   faultline   (Jehn   &   Bezrukova,   2010).   The   activated   faultlines  affect  the  overall  group  satisfaction  in  a  negative  manner,  because  members  of  faultline-­‐ based  subgroups  are  likely  to  identify  and  feel  a  strong  connection  to  one  another  but  have  negative   affect   toward   members   who   are   not   part   of   their   subgroup   (Hornsey   &   Hogg,   2000).   Mannix   and   Neale   (2005)   argue   that   faultlines   have   negative   effects   on   the   ability   of   a   team   to   function   effectively.   Also   Van   Knippenberg   &   Schippers   (2007)   and   Lau   &   Murnighan   (1998)   agree   that   diversity   faultlines   are   generally   believed   to   have   a   negative   impact   on   group   processes   and   performance.  When  different  dimensions  of  diversity  converge  (e.g.,  when  all  team  members  with   technical  expertise  are  male  and  those  with  knowledge  about  marketing  and  sales  are  female),  so-­‐ called  diversity  faultlines  emerge,  can  disrupt  group  processes  and  can  have  effect  on  performance  in   a   negative   way.   Pearsall   et   al.   (2008)   concluded   that   in   a   team   working   with   an   activated   gender   faultline,  this  negatively  affected  the  creativity  in  comparison  to  a  team  with  gender  faultlines  that   were  not  activated.    

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research  when  faultlines  are  triggered  and  change  from  objective  into  activated  fautlines  and  result   in  team  conflict.    

1.3  Research  

This   research   extends   past   research   through   taking   a   closer   look   at   when   faultlines   are   triggered.   Chrobot-­‐Mason  et.  al  (2009)  describe  triggering  as  ‘an  external  force  is  present,  such  as  an  event  that   serves  to  polarize  or  highlight  differences  based  on  gender,  race,  religion,  etc.,  faultlines  may  become   activated’.  The  external  force  in  this  research  is  an  organizational  change.  Organizational  change  is   defined   as   understanding   alterations   within   organizations   at   the   broadest   level   among   individuals   and   groups   (Burnes,   2009).   During   this   research   a   closer   look   is   taken   at   the   triggering   process   of   faultlines  during  an  organizational  change  and  if  this  results  in  team  conflict.    

  The  next  chapter  will  give  more  insights  on  what  existing  literature   states  about  faultlines,   the  triggering  process  of  faultlines  and  the  link  between  faultlines  and  conflict.    

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2.  THEORY  

In   this   section   the   existing   literature   about   faultlines   will   be   discussed,   resulting   in   a   conceptual   model  for  this  research.    

2.1  Diversity  

As  explained  in  the  introduction  diversity  is  a  very  important  aspect  in  organizations  currently.  In  this   research   the   definition   of   diversity   is:   “any   attribute   people   use   to   tell   themselves   that   another   person  is  different”  (Williams  &  O’Reilly,  1998).  This  is  a  very  broad  definition,  but  the  advantage  is   that   this   definition   is   suitable   for   multiple   categories   that   are   relevant,   salient,   and   critical   for   the   group  members  (Merton,  1972).      

  Diversity  is  very  important  in  today’s  global  and  challenging  world.  According  to  Gratton  et  al.   (2007)  diversity  is  the  standard  at  large  companies  in  Europe  and  the  United  States,  because  diverse   teams  have  a  range  of  experience  and  attitudes  to  tackle  problems  that  are  very  difficult.  Thatcher   and  Patel  (2012)  also  state  that  diverse  groups  and  teams  are  essential  in  meeting  economic,  social,   and  technological  challenges.  Other  research  of  Lau  &  Murnighan  (1998);  Knippenberg  &  Schippers   (2007);  Mannix  &  Neale  (2005)  and  Pearsall  et  al.  (2008)  conclude  that  diversity  in  teams  can  have   negative   effects.   This   is   a   large   contrast,   because   diverse   teams   are   needed   to   be   competitive   nowadays,   but   negative   effects   can   arise   due   to   the   diverse   teams.   Because   of   this   contrast   some   researchers  took  another  angle  of  incidence  the  last  decade.    Thatcher  and  Patel  (2012)  argue  that  in   the   past   three   decades   group   diversity   has   been   researched   over   and   over   again,   most   of   these   researches   on   group   diversity   focused   on   the   role   of   group   composition   in   assessing   group-­‐level   outcomes.   In   past   research   only   one   attribute   such   as   race,   sex   or   age   was   investigated.   Lau   and   Murnighan  (1998)  researched  diversity  in  a  different  way.  They  focused  on  the  alignment  of  multiple   attributes  and  provided  insights  to  understand  the  cumulative  effects  of  group  member  attributes  on   group  outcomes  (Thatcher  &  Patel,  2012).  This  view  of  Lau  and  Murnighan  (1998)  is  known  as  the   faultline  theory.  A  faultline  can  be  defined  as:  “a  hypothetical  dividing  line  that  splits  a  group  into   relatively   homogeneous   subgroups   based   on   group   members   demographic   alignment   among   different  attributes”  (Lau  &  Murnighan,  1998).  This  is  the  definition  used  during  this  research.  The   next  paragraph  will  elaborate  more  on  the  faultline  literature.    

2.2  Faultlines  

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whereby  a  work  team  is  a  group  (e.g.,  project  team  or  management  team)  whose  membership  and   task   are   formally   recognized   by   the   organization   (Cohen   &   Bailey,   1997;   Bell   &   Kozlowski,   2002).   Another   aspect   of   a   subgroup   is   that   all   members   in   a   team   have   some   basic   level   of   interdependence.  A  subset  of  members  can  be  considered  as  a  subgroup  only  if  it  is  characterized  by   a  form  or  degree  of  interdependence  that  is  unique  when  compared  to  that  of  other  members.  For   example,  a  subgroup  exists  if  a  set  of  members  interacts  differently  with  each  other  than  with  other   team  members  because  these  members  share  a  cultural  value,  scarce  resource,  or  knowledge  frame   that   is   unique   from   that   shared   by   other   team   members.   So,   subgroups   are   based   on   having   the   same  goal  in  a  group  and  have  a  basic  level  of  interdependence.    

  The  other  element  in  the  definition  of  Lau  and  Murnighan  (1998)  is:  “demographic  alignment   among   different   attributes”.   Demographic   attributes   are   for   example   race,   sex,   nationality,   age,   functional  background,  education  etcetera  (Thatcher  and  Patel,  2012).  But  Lau  and  Murnighan  (1998)   also   distinguish   non-­‐demographic   attributes   were   faultlines   can   be   based   upon,   for   example:   personality  type  or  dispositional  resistance.  Lau  and  Murnighan  (1998)  developed  the  faultline  theory   based  on  different  theoretical  mechanisms.  These  different  mechanisms  are:  

  -­‐  Self-­‐categorization  (Turner,  1985;  Turner  et  al.  1987)     -­‐  Social  identity  (Tajfel  and  Turner,  1986)  

  -­‐  Similarity  attraction  (Byrne,  1971)    

These  mechanisms  explain  how  faultlines  are  formed  within  a  group.  The  self-­‐categorization  theory   describes   how   team   members   classify   themselves   and   other   members   based   on   salient   characteristics  (Thatcher  &  Patel,  2012).  Tajfel  and  Turner  (1986)  describe  that  social  identity  is  about   team  members  who  have  assumptions  about  which  social  group,  with  the  same  emotional  and  value   significance,   he/she   belongs   to.   The   similarity   attraction   (Bryne,   1971)   is   a   theory   explaining   that   team   members   that   share   similar   characteristics   are   attracted   to   each   other   to   form   a   subgroup   within   a   team.   Research   shows   that   demographic   attributes   accommodate   one   means   for   determining   similarity,   classification,   and   identification   (Harrison,   Price,   &   Bell,   1998;   Horwitz   &   Horwitz,  2007;  Tsui,  Egan,  &  O’Reilly,  1992).  Here  the  alignment  of  the  different  attributes  result  in  a   faultline  (Bezrukova,  Jehn,  Zanutto,  &  Thatcher,  2009).  Resulting  in  a  homogenous  subgroup  (Lau  &   Murnighan,  1998).  

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example  there  is  a  very  strong  faultline,  because  there  are  differences  based  on  four  demographic   attributes   (occupational   roles,   gender,   age   and   nationality)   and   the   two   different   groups   (females   and  males)  have  high  alignment  between  the  attributes.  Thathcher  and  Patel  (2012)  argue  that  age  is   the   strongest   attribute   when   looking   at   faultline   strength.   Followed   by   race,   gender,   tenure,   functional   background   and   education.   Stronger   faultlines   can   result   in   more   team   conflict   (Li   &   Hambrick,  2005).  This  relation  will  be  elaborated  in  paragraph  2.4.  

  The  other  aspect  of  faultlines  is  faultline  distance:  ‘Faultline  distance  is  the  extent  to  which   subgroups   diverge   as   a   result   of   accumulated   differences   between   subgroups’   (Bezrukova   et   al.,   2009).  When  looking  at  the  previous  example  and  zooming  in  on  the  attributes  age  and  gender.  It  will   influence  the  behaviour  regarding  the  faultline  if  the  males  are  around  the  age  of  35,  instead  of  50,   which  is  closer  to  the  age  of  the  females  (Bezrukova  et  al.,  2009).  The  faultline  distance  score  would   be  lower  in  the  second  example  in  comparison  to  the  first  example.  

2.3  Triggering  process  of  faultlines  and  faultline  base.  

Before  elaborating  on  the  triggering  process  of  faultlines  an  important  difference  has  to  be  clarified.   Fautlines   can   be   dormant   or   activated.   Jehn   &   Bezrukova   (2010)   extended   research   on   dormant   faultline   to   activated   faultlines.   A   dormant   faultline   is   a   potential   faultline   based   on   demographic   attributes  and  an  activated  faultline  is  that  group  members  perceive  the  potential  faultline  based  on   the  demographic  attributes.  

  Chorbot-­‐Manson,  Ruderman,  Weber  and  Ernst  (2009)  argued  that  until  2009  there  was  very   little  research  conducted  on  what  type  of  events  or  situation  can  activate  faultlines.  For  managers   this  can  be  valuable  information,  because  faultlines  can  also  lead  to  team  conflict.  If  team  leaders   know  which  type  of  events  result  in  activated  faultlines,  they  could  take  into  account  the  effects  of   an  event  or  take  action  before  the  event  takes  place  (Chorbot-­‐Manson  et  al.,  2009).    

  Chorbot-­‐Manson   et   al.   (2009)   link   the   social   identity   theory   described   in   the   previous   paragraph  to  triggering  faultlines.  They  argue  that  an  event  makes  group  members  vigilant  about  the   influence  on  behavior  regarding  the  social  identity  of  other  group  members.  Such  an  event  can  be   the  trigger  for  dormant  faultlines  to  be  activated.  Hall  (2013)  states  that  the  trigger  or  activation  of   faultlines  depends  on  the  task  context  a  team  is  in.  Because  if  a  team  has  two  subgroups,  one  with   team  members  who  work  at  a  firm  for  more  than  20  years  and  a  subgroup  with  members  who  have   much  less  tenure  a  faultline  could  be  activated  by  for  example  seniority  privileges.    

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operational  and  the  strategic  level”.  Furthermore  Burnes  (2009)  argues  that  for  any  organization,  its   ability  to  identify  where  it  needs  to  be  in  the  future  and  how  to  manage  the  changes  required  for   getting  there,  are  of  primary  importance.  According  to  various  studies  70%  percent  of  organizational   change  result  in  failure,  this  statement  can  be  seen  as  confirmation  of  the  statement  made  by  Burnes   (2009)  which  states  that  successful  change  is  difficult  to  accomplish.    

When  organizations  are  implementing  a  change,  employees  will  respond  to  this.  Employees   differ   in   how   they   respond   to   change   according   to   Oreg   et   al.   (2008).   Some   employees’   act   very   positive  to  change,  others  tend  to  avoid  it  if  possible  or  even  resist  to  the  change  (Oreg  et  al.,  2008).   In  this  research  the  focus  is  on  resistance  during  an  organizational  change.  But  how  does  resistance   link  to  faultlines?  As  mentioned  in  2.1  a  faultline  is  a  homogenous  subgroup  based  on  attributes  (Lau   &   Murnighan,   1998).   Within   this   research   is   conducted   if   resistance   can   be   an   attribute   to   form   a   subgroup.   For   example   in   a   team   of   seven   there   can   be   three   employees   who   score   high   on   dispositional  resistance  to  change  and  four  who  score  low  on  this  concept.  Then  there  is  an  objective   faultline,   which   probably   no   one   is   aware   of.   Because   of   the   change   the   three   employees   can   perceive  that  they  are  all  against  change  and  form  a  subgroup  on  this  basis.    

  Before   elaborating   on   resistance   of   employees   towards   change   it   is   important   to   mention   that  this  topic  got  very  little  attention  in  previous  studies  according  to  Oreg  &  Berson  (2009).  From   2008   there   has   been   a   surge   of   studies   demonstrating   a   key   role   of   employees’   attitude   towards   change.   (e.g.   Fugate,   Kinicki,   &   Prussia,   2008).   This   is   because   before   2008   studies   had   a   macro   perspective,   which   means   they   only   focused   on   factors   like   organization   structure,   strategy   or   environment  (Oreg  &  Berson,  2009).  In  the  conclusion  of  these  studies  often  is  mentioned  that  the   actions  of  leaders  are  reflecting  the  success  of  a  change  (Oreg  &  Berson,  2009).  Later  studies  looked   more  at  the  micro-­‐level,  which  mean  that  they  focused  more  on  reactions  of  employees  towards  a   change.  (Fugate,  Kinicki  &  Prussia,  2008).    

  As   mentioned   before   approximately   70%   of   changes   in   organisations   fails   (Burnes,   2009).   Employees’  resistance  to  change  is  often  cited  as  the  reason  why  change  fails  (Ford,  Ford  &  D’Amelio,   2008).  Piredit  (2000)  argues  that  resistance  to  change  can  strictly  hamper  the  change  process.  So  if   different  sources  conclude  that  resistance  to  change  can  lead  to  failure  it  is  important  to  know  how   this  resistance  arises.    

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scale   to   measure   the   resistance   to   change.   This   scale   identified   four   factors   that   determine   if   an   employees  is  dispositional  resistant  to  change.  These  four  factors  are  the  following:    

-­‐   Routine   seeking,   employees   want   well   defined   and   familiar   tasks   and   have   reluctance   to  

give  up  old  habits  (Watson,  1971).  These  employees  like  familiarity,  because  it  makes  them   feel   comfortable.   This   is   why   the   prefer   routine   and   it   is   reasonable   to   expect   that   these   employees  resist  to  an  organisational  change.    

-­‐  Emotional  reaction  to  imposed  change,  researchers  suggest  that  organisational  change  is  a  

stressor  and  that  only  resilience  employees  can  cope  with  a  the  stress  involved  with  a  change   (Ashforth   &   Lee,   1990).   Less   resilient   employees   are   more   reluctant   to   make   changes,   because  in  this  way  they  admit  that  in  the  past  they  worked  inefficient.  Therefore  a  change   means  loss  of  face  for  them  and  that  is  why  they  will  resist.    

-­‐   Cognitive   rigidity,   research   suggests   that   the   cognitive   processes   underlying   employees  

response  to  organizational  change  might  be  predicted  by  the  trait  of  dogmatism  (Rokeach,   1960).   Dogmatic   employees   are   characterized   by   rigidity   and   close-­‐mindedness   and   they   might  be  less  comfortable  with  new  situations  and  will    resist  to  organisational  change.    

-­‐  Short-­‐term  focus,  an  organisational  change  does  not  come  naturally.  Employees  have  to  put  

effort  into  an  organizational  change  to  make  it  work.  Kanter  (1985)  argues  that  employees   can   resist,   because   it   often   involves   more   work   in   the   short   term   to   learn   new   tasks   for   example.  After  the  short  term  investment  employees     will   normally   have   advantages,   but   they  resist  putting  extra  effort  in  the  short-­‐term.    

Based   on   the   above   the   link   in   this   research   with   dispositional   resistance   and   faultlines   is   that   dispositional   resistance   can   be   a   non-­‐demographic   base   for   an   activated   faultline.   But   as   Lau   and   Murnighan   (1998)   state,   a   faultline   divides   a   group   on   the   basis   of   one   or   more   attributes   into   subgroups.   The   first   attribute   is   resistance   and   the   second   attribute   used   during   this   study   to   measure  faultlines  in  a  team  is  age.  Weiss  and  Maurer  (2004)  state  that  older  employees  are  more   resistant   to   an   organisational   change   than   younger   employees.   Due   to   an   aging   population   and   relatively  low  birth  rates  in  most  industrialized  nations,  firms  will  see  an  increase  of  the  average  age   of   their   personnel   (Peeters   &   van   Emmerik,   2009).   Burnes   (2009)   states   that   organisations   are   continuously  changing  due  to  the  rapid  changing  environment.  This  can  be  conflicting  if  organisations   face  an  older  workforce  that  has  to  change  more  often.  This  is  why  age  is  chosen  to  be  the  next  base   for  the  faultline  in  this  research.    

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employees,  but  that  hard  evidence  cannot  be  found.  The  same  accounts  for  the  resistance  to  change,   the   assumption   is   that   older   employees   are   seen   as   more   resistant   to   change   than   younger   employees   (Weiss   and   Maurer,   2004).   Kunze   et   al.   (2013)   researched   if   this   perception   of   the   negative  relation  of  age  and  to  resistance  to  change  is  true.  In  this  research  Kunze  et  al.  (2013)  used   the  Pogson  et  al.  (2003)  stages  of  a  career  to  define  older  employees.    

-­‐  Stage  1:  trial  stage,  <  31  years  old,  employees  of  this  age  are  less  routine  seeking,  because   they   have   less   experience   compared   to   older   employees.   These   employees   are   changing   more  often  of  employer.    

-­‐  Stage  2:  stabilization  stage,  31  -­‐  44  years  old,  employees  of  this  age  have  mostly  found  what   kind  of  work  is  appropriate  to  them  and  are  changing  as  little  as  possible.    

-­‐  Stage  3:  maintenance  stage,  45  years  and  older,  these  employees  want  to  keep  their  habits   during  their  work  and  do  not  want  to  change  the  job  they  have.      

Older  employees  are  the  ones  who  are  in  their  maintenance  stage.  Kunze  et  al.  (2012)  used  the  same   scale   for   resistance   to   change   as   this   study   does,   namely   the   resistance   to   change   scale   of   Oreg   (2003).  The  stereotype  view  on  elderly  employees  is  that  they  are  more  routine  seeking,  more  short-­‐ term  focused  and  more  cognitively  rigid.  Kunze  et  al.  (2012)  studied  German  firms  and  after  reducing   the   data   set,   2.981   participants   were   analysed.   The   result   of   the   study   is   that   younger   employees   were  more  resistant  to  change  than  their  elderly  colleges.  So  again  the  stereotype  view  is  not  in  line   with  the  findings.  But  this  research  show  that  age  and  resistance  are  interrelated  to  each  other.  This   results  in  the  first  hypothesis  that  is  presented  below:  

 

H1:   An   organisational   change   moderates   the   relationship   between   the   objective   faultline   and   activated  faultline  based  on  resistance  and  age.    

2.4  Activated  faultlines  and  team  conflict  

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subgroups.   This   results   in   conflict   among   subgroups   that   are   formed   during   the   activation   of   the   faultline.    

Jehn  en  Mannix  (2001)  categorized  team  conflict  into  three  different  types:      

-­‐   Relationship   conflict:   This   is   when   a   team   member   feels   tension,   friction,   annoyance,   frustration,  irritation  or  dislikes  another  member  within  the  team.  Or     that   a   team   member   is   aware   that   he   or   she   has   interpersonal   incompatibilities   (Amason,   1996;   Pinkley,   1990).   These  are  all  interpersonal  issues,  which  distract  team  members  from  the  task  (Jehn,  1997).   -­‐  Task  conflict:  This  is  when  team  members  are  aware  that  there  are  different     thoughts   and   views  to  a  group  task.  So  this  is  conflict  about  how  to  get  the  work  done.  These  are  issues   that  are  related  to  tasks.    

-­‐  Process  conflict:  Jehn  (1997)  identified  a  new  type  of  conflict,  named:  process  conflict.   This   is   when   there   is   awareness   of   differences   among   team   members   about   how   task   are   completed.   For   example   if   team   members   have   conflict   about   how   resources   are   divided,   who  should  do  what  or  what  the  responsibilities  are  of    individual  members.    

 

On   one   hand   conflict   can   be   seen   as   a   negative   outcome   and   something   that   has   to   be   avoided   (Stone,  1995).  On  the  other  hand  there  are  studies  that  show  benefits  regarding  group  performance.   Jehn  (1995)  argues  that  task  conflict  on  moderate  level  improves  the  decision  quality,  because  there   is  discussion.  Instead  of  one  individual  perspective  a  team  makes  a  combination  of  more  perspectives   to  complete  a  task  (Schwenk  1990).  Rispens  (2012)  endorses  Jehns’  (1995)  findings  that  task  conflicts   may  be  beneficial  for  team  performance.  In  contrast  negative  issues  may  pop  up  during  conflict  such   as:  lack  of  coordination,  cooperation  and  cohesion  (Brewer,  1996).  Moreover  task  and  relationship   conflict  correlated  within  team,  so  if  a  team  has  the  ‘benefit’  of  task  conflict  they    may  also  have  the   negative   influence   of   relationship   conflict   (Rispens,   2012).   Research   indicates   that   relationship   conflict   has   a   negative   effect   on   team   performance   (Huang,   2012;   Rispens,   2012).   De   Dreu   and   Weingart   (2003)   show   that   all   conflict   types   are   detrimental   to   group   outcomes.   Jehn   (1995)   endorses   these   outcomes,   because   she   states   that   conflict   is   detrimental   to   individual   and   group   performance  and  member  satisfaction.  This  is  why  a  closer  look  is  taken  to  team  conflict,  because  it   can  lead  to  less  performing  teams.    

Based   on   the   above   the   following   hypotheses   regarding   activated   faultlines   and   team   conflict   are   developed:  

 

H2a:  The  more  faultlines  are  perceived,  the  higher  the  degree  of  relationship  conflict  within  this  team.     H2b:  The  more  faultlines  are  perceived,  the  higher  the  degree  of  task  conflict  within  this  team.    

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All  the  literature  is  summarized  in  the  conceptual  model  presented  below.    

  Figure  1:  Conceptual  Model  

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3.  METHODOLOGY  

The   following   chapter   of   this   thesis   presents   how   this   research   is   designed.   The   methodology   is   divided  into  three  parts:  the  data  collection,  measurement  and  data  analysis  for  this  study.    

3.1  Data  collection  

This  study  will  use  quantitative  research  to  look  at  faultlines  during  or  after  an  organizational  change.   A  quantitative  study  has  the  advantage  that  opinions,  attitudes  and  behaviour  can  be  measured  in  an   objective   manner.   In   this   research   it   is   important   to   find   out   how   a   team   perceives   the   subgroup/faultlines   and   the   processes   in   a   team   during   an   organisational   change.   Because   of   the   literature  gap  with  faultlines  during  an  organisational  change  quantitative  research  is  used  to  obtain   a  lot  of  data  and  to  see  what  is  happening  in  teams.  Further  advantages  of  this  cross  sectional  study   is  that  the  data  can  be  gathered  quickly  and  in  a  reliable  way  by  using  a  standardized  questionnaire   so  the  data  is  easy  comparable.    

  As  mentioned  before  the  data  is  collected  with  a  survey  that  is  distributed  among  teams  of   organizations   in   the   Netherlands.   The   organisations   are   mainly   of   my   own   network.   Organisations   were   contacted   through   e-­‐mail   and   most   of   the   time   a   face-­‐to-­‐face   meeting   followed.   In   this   conversation   the   objectives   of   the   research   are   explained   and   explored   if   the   team   that   was   researched   meets   the   criteria.   This   is   because   all   the   teams   in   this   research   have   to   meet   three   criteria.  The  first  is  that  they  are  a  team  according  to  the  criteria  of  Hackman  and  Wageman  (2005).   These  criteria  are  that  two  or  more  individuals  have  the  same  goal(s)  and  interact  interdependently.   The   second   criterion   is   that   the   teams   consisting   of   three   to   seven   members   are   ideal   for   this   research.  Carton  and  Cummings  (2012)  state  that  people  strongly  prefer  groups  composed  of  two  or   three  members,  so  in  groups  of  three  to  seven  persons  it  is  more  obvious  that  there  are  faultlines.  It   is  not  reliable  to  research  larger  groups,  because  Levine  &  Moreland  (1998)  argue  that  people  rarely   try   to   integrate   in   groups   of   more   than   six   members.   So   larger   groups   are   more   likely   to   contain   subgroups   and   because   this   research   also   looks   at   the   triggering   process   during   an   organisational   change  it  is  not  reliable  to  look  at  larger  teams,  because  despite  of  the  change  they  could  contain   subgroups.  The  last  criterion  of  a  team  to  fill  in  the  survey  is  that  they  are  in  an  organisational  change   or   faced   one   maximal   a   year   before   filling   in   the   survey.   In   this   way   the   team   members   still   have   notion  of  what  the  change  was  about  and  how  it  affected  their  team.      

 

3.1.1  Data  sources  

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two  different  data  sources  are  collected  and  can  be  compared.  By  using  two  different  sources  the   effect  of  common  method  bias  is  less  than  only  using  one  source  (Hirunyawipada  and  Vahie,  2005).     So  in  this  way  the  research  is  more  valid  and  reliable  than  only  having  one  source  of  data.  Further  on   a   managerial   grid   was   collected   of   all   team   members   with   this   demographic   information:   gender,   age,  function,  education  and  tenure.  Because  for  measuring  the  faultlines  in  a  group  it  is  important  to   have   data   from   every   team   member.   If   one   team   member   is   missing   the   faultline   strength   and   distance  could  still  be  calculated,  because  of  the  information  in  the  managerial  grid.    

 

3.1.2  Data  procedure  

The  survey  starts  with  an  introduction  about  the  purpose  of  the  research  and  it  is  mentioned  that  it  is   on   an   anonymous   base   to   prevent   that   team   members   are   not   completely   honest,   for   example   if   they  are  having  problems  with  other  members  or  their  team  leader.  Most  questionnaires  are  handed   out  on  paper,  because  in  this  way  the  response  is  higher  than  using  the  online  survey  according  to   Semler   (2010).   The   questionnaires   were   handed   out   on   the   desks   of   the   team   members   and   they   could  fill  it  in  whenever  they  wanted.  A  deadline  was  set  within  two  or  three  days  after  distributing   the  surveys  to  prevent  that  the  survey  ended  at  the  bottom  of  the  to  do  list.  As  mentioned  before  it   is  very  important  to  let  all  team  members  participate,  because  if  a  team  consist  out  of  six  members   and  only  four  respond  than  it  is  really  difficult  to  have  reliable  results.  The  two  members  that  are   missing  could  form  a  faultline  and  by  missing  the  data  of  those  two  members  it  will  not  make  sense   to   use   that   team.   So   if   the   response   is   low   a   second   deadline   is   set   to   gather   as   much   data   as   possible.    

  Some   teams   preferred   to   participate   via   the   online   variant   of   the   survey.   These   teams   received   an   e-­‐mail   with   an   introduction   to   the   research   and   a   code   that   they   had   to   fill   in   before   answering   the   questions.   In   this   way   it   is   clear   which   team   did   fill   in   they   survey.   To   increase   the   response  a  reminder  was  send  to  the  teams  one  week  after  the  first  e-­‐mail.    

  The  managerial  grid  was  collected  was  collected  when  visiting  the  organisations  to  hand  out   the  surveys.  Together  with  the  team  leader  the  grid  of  the  team  was  filled  in.  With  the  organisations   of  the  online  surveys  the  grid  was  collected  by  e-­‐mail.    

3.2  Measurements  

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because  the  survey  is  only  conducted  among  Dutch  teams.  All  questions  elaborated  on  below  can  be   found  in  appendix  1.    

  This  research  attempts  to  conduct  if  an  organisational  change  activates  a  faultline  in  teams   based   on   age   and   resistance   and   if   this   activated   faultline   does   have   effect   on   team   conflict.   To   measure  this,  first  an  objective  faultline  score  has  to  be  obtained.  This  is  measured  by  the  faultline   construct  of  Thatcher  et  al.  (2003).  Thathcher  et  al.  (2003)  developed  the  following  algorithm  (figure   2)  that  measures  the  faultline  strength.  This  algorithm  presents  a  score  between  zero  and  one  where   1  implicates  a  really  strong  faultline.    

             

 In   this   algorithm   the   dispositional   change   questions   of   Oreg   (2003)   are   used.   This   in   combination   with  the  age  of  team  members.  By  combining  these  two  variables  a  score  of  the  possibility  of  forming   subgroups   based   on   those   two   attributes   is   obtained.   Which   is   the   start   of   the   conceptual   model:   objective  faultline.    

  Before   elaborating   on   the   activated   faultline   a   moderating   variable   is   presented   in   the   conceptual  model:  the  scope  of  the  organisational  change.  The  scope  of  the  organisational  change  is   measured  by  the  scales  of  Balogun  and  Haily  (2008).  The  definition  of  the  scope  of  an  organizational   change   is:   ‘The   degree   that   an   organisational   change   affects   the   organisation’   (Balogun   and   Haily,   2008).   The   scope   of   the   organisational   change   is   an   moderating   variable,   because   it   effects   the   relation  between  the  objective  and  activated  faultline  as  assumed  in  the  theory.    

  The   activated   faultlines   are   measured   with   the   scales   of   Jehn   and   Bezrukova   (2010)   and   Rupert  and  Jehn  (2008).  These  scales  are  about  the  perception  team  members  have  of  their  team   contains  a  faultline(s).  First  there  are  four  questions  about  faultlines  in  general  and  than  two  about   faultlines  based  on  resistance  and  one  about  a  faultline  based  on  age.    

  Finally  team  conflict  have  to  be  measured.  This  is  done  with  the  items  provided  by  Jehn  &   Mannix  (2001).  Team  conflict  is  divided  into  three  types  as  mentioned  in  the  theory:  task,  process   and  emotional  conflict.  All  different  types  have  three  different  items  to  measure  the  concept.    

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3.3  Data  analysis  method  

Multiple   steps   have   to   be   taken   to   test   the   hypotheses   of   this   study.   The   data   obtained   with   the   questionnaire  is  analysed  with  the  statistical  software  program:  SPSS.  First  the  descriptive  statistics   are   calculated   to   give   some   basic   information   about   the   dataset.   Second,   a   factor   analyses   is   conducted   to   indicate   if   items   load   on   the   same   variable.   Based   on   the   factor   analysis   scales   are   computed   and   the   reliability   of   these   scale   is   tested   with   the   Chronbach   Alpha   score.   Third,   a   correlation  analyses  is  conducted  to  analyse  if  there  are  relationships  among  the  different  variables.   Finally  the  hypotheses  are  tested  using  a  linear  regression  and  multiple  regression  analysis.    

3.4  Data  analysis  

In  total  71  teams,  representing  433  respondents,  were  selected  for  this  study.  All  teams  with  more   than  30%  missing  data  were  deleted.  Next  to  that,  the  teams  where  no  objective  faultline  score  could   be  calculated  on  the  base  of  resistance  were  also  deleted.  After  this  selection  the  dataset  consisted   of   22   teams   with   a   total   of   164   team   members.   So   on   average   a   team   has   approximately   seven   members.  The  average  age  is  41,98  years  with  a  standard  deviation  of  11,58  and  52,1%  is  man  and   47,9%  is  woman.  Most  respondents  have  a  Dutch  nationality,  respectively  95,7%  and  in  table  1  below   the  different  sectors  are  presented  were  the  teams  are  operating  in.    

Sector     Teams   Percent  

Education   5   22,7%   Government   4   18,2%   Healthcare   4   18,2%   Food   2   13,6%   Industry   2   9,1%   Retail   1   4,6%   Missing  data   3   13,6%   Total   22   100%        

Table  1:  Sectors  Teams  Are  Operating  In  

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3.5  Factor  analysis  

To  obtain  insight  in  the  dataset,  a  factor  analysis  is  conducted.    The  factor  analysis  analyses  which   items   measure   the   same   concept.   In   this   way   it   is   measured   if   the   items   are   valid   and   can   be   combined   into   one   scale.   Items   can   be   combined   if   they   load   higher   than   0,30   on   the   same   component.   If   items   score   a   double   loading   than   the   difference   between   the   loadings   should   be   more  than  0,20.  In  appendix  2  the  scores  of  the  first  factor  analysis  are  shown  of  all  the  items  with   ‘eigenvalue’   set   on   1.   This   factor   analysis   is   showing   that   the   scales   are   almost   all   measuring   the   same  concept  as  literature  encountered.  Only  item  4  of  the  dispositional  resistance  scale  loads  on  a   totally   different   component   as   the   other   3   items   of   that   scale.   This   item   is   therefore   deleted   on   account   of   statistical   reasons,   because   this   item   loaded   0,01   on   the   component   where   the   other   three  items  score  all  higher  than  0,75.  Because  the  0,01  is  not  even  near  0,30  and  the  item  scores   really   high   (0,89)   on   a   totally   new   component,   this   item   is   deleted.   Furthermore   the   ninth   item   measuring  conflict  has  a  double  loading  on  different  components.  The  question  in  the  survey  for  this   item  is:  How  often  do  you  disagree  about  resource  allocation  in  your  work  group?  It  is  assumed  that   this   question   is   interpreted   in   different   ways.   Team   members   could   have   had   different   knowledge   about  the  allocation  of  resources.  For  example  a  team  member  close  to  the  team  leader  knows  more   of  this  topic  than  other  team  members.  Or  the  hierarchy  within  a  team  is  distributed  unequally  and   some  members  have  nothing  to  say  about  the  allocation  and  interpreted  this  question  in  a  way  that   there  never  is  disagreement.  But  other  members  higher  in  the  hierarchy  can  have  tough  discussions   about  the  allocation.  Based  upon  these  assumptions  this  item  is  deleted  and  a  new  factor  analysis  is   presented  on  the  next  page  in  table  2.    

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Table  2:  Factor  analysis    

This   factor   analysis   has   a   KMO   score   of   0,82   and   is   significant   at   0,00   on   the   Barlett’s   Test   of   Sphericity.  Based  on  the  results  of  the  factor  analysis  items  can  be  combined  into  scale  to  reduce  the   data   and   make   it   suitable   to   test   the   hypotheses.   First   the   scale   of   dispositional   resistance   can   be   made  by  combining  the  three  items.  This  scale  has  a  Cronbach  Alpha  of  0,78.  To  be  reliable  a  scale   has  to  have  a  Cronbach  Alpha  higher  than  0,70,  so  this  scale  is  reliable  and  can  be  used  to  measure   the  objective  faultline  score.  The  next  variable  is  the  scope  of  the  organizational  change,  these  six   items  are  combined  into  one  scale  and  are  reliable  according  to  the  Cronbach  Alpha  with  a  score  of   0,91.   To   combine   items   to   measure   the   activated   faultline   the   general   items   (FAULT1-­‐4)   about   faultline  perception  and  the  items  about  the  perception  of  faultlines  based  on  age  (FAULT_AGE)  and   resistance   (FAULT_RESIS1-­‐2)   are   taken   together   to   obtain   a   good   measure   of   activated   faultlines   based   on   age   and   resistance.   There   are   some   double   loadings   on   the   items   of   faultlines   based   on  

Rotated  Component  Matrix  

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resistance  and  age,  but  the  differences  are  more  than  0,20  so  the  items  can  be  combined  into  one   scale.  Also  this  scale  is  reliable  approved  by  the  Cronbach  Alpha  with  a  score  of  0,83.    

  According  to  the  theory  conflict  has  three  different  types.  In  the  first  factor  analysis  this  is   not  shown.  This  is  in  contrast  with  the  theory,  because  according  to  Jehn  &  Mannix  (2001)  there  are   three   types   of   conflict:   task,   relationship   and   process.   This   is   way   a   second   factor   analysis   is   conducted   and   forced   into   three   components.   This   factor   analysis   has   a   KMO   score   of   0,87   and   is   significant  at  0,00  on  the  Barlett’s  Test  of  Sphericity.  The  results  are  shown  in  table  3.    

 

Rotated  Component  Matrix  

  Component   1   2   3   CONFLICT1   ,854   ,242   ,273   CONFLICT2   ,781   ,411   ,256   CONFLICT3   ,817   ,329   ,321   CONFLICT4   ,479   ,725   ,193   CONFLICT5   ,258   ,893   ,235   CONFLICT6   ,312   ,806   ,389   CONFLICT7   ,282   ,278   ,888   CONFLICT8   ,314   ,271   ,879  

Table  3:  Second  factor  analysis    

Before  combining  the  items  into  scales,  the  reliability  of  these  scales  are  tested.  Relational  conflict  is   measured   with   the   first   three   items   and   has   an   Cronbach   Alpha   of   0,92,   which   means   it   is   a   very   reliable  scale.  Task  conflict  is  measured  with  the  next  3  items  and  is  reliable  as  well  with  an  Alpha  of   0,92  and  process  conflict  is  measured  with  the  last  two  items  and  has  an  Alpha  of  0,94.  

  Now  that  is  proven  that  the  scales  are  validated  and  reliable,  the  items  are  combined  into   scales.   The   combined   items   are   presented   in   appendix   1.   After   combining   the   scales   the   data   is   aggregated  on  team  level.  Until  now  the  analysis  was  on  individual  level,  but  the  measurement  of   Thatcher   (2003)   is   used   to   obtain   the   objective   faultline     (faultline   strength)   of   a   team.   This   measurement  is  on  team  level  and  van  Aken  et  al.  (2012)  argue,  preferably  all  measurements  have  to   be  aligned  at  the  same  level.    

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4.  RESULTS.    

 

Before  testing  the  hypotheses  of  this  study  the  relationship  between  the  variables  are  analyzed  with   a  correlation  test.    

4.1  Correlation  test  

A  Pearson  correlation  test  is  conducted,  the  results  are  presented  in  table  4  below:    

  Table  4:  Pearson  Correlation  Test  

 

The  correlation  test  shows  that  there  is  a  relationship  between  the  perceived  faultline  and  relational   conflict.    This  correlation  is  between  the  perception  of  a  faultline  based  on  resistance  and  age  and   relationship  conflict  r  =  0,490  p<0,021.  The  positive  relations  between  these  two  variables  indicates   that  when  a  team  perceives    more  of  the  faultline  there  is  a  higher  degree  of  relational  conflict.         Further   on   task   conflict   and   relation   conflict   do   correlate.   This   is   the   strongest   correlation   with  r  =  0,636,  p<0,001.  There  is  a  positive  relation  between  the  two  scales,  which  means  that  if  one   conflict  arises,  the  other  type  of  conflict  also  is  perceived.  The  same  accounts  for  process  conflict  in   relation  to  relationship  conflict  (r  =  0,608,  p<0,003)  and  task  conflict  (r  =  0,439,  p<0,041).  

  One   unexpected   correlation   did   arise   between   process   conflict   and   the   scope   of   the   organisational   change   (r   =   0,523,   p<0,021).   This   relation   can   be   clarified   in   a   way   that   an   organisational   change   can   mean   that   tasks   or   responsibilities   alter   within   a   team.   If   this   changes   process  conflict  can  arise.    

    Mean   SD   N   1   2   3   4   5   6   1.  Objective_Faultline   0,763   0,021   22   -­‐   -­‐0,09   0,28   0,08   0,33   0,14    2.  Scope_Change   4,045   1,355   22   -­‐   -­‐   0,17   0,33   0,36   ,523*   3.  Activated_Faultline   3,180   0,769   22   -­‐   -­‐   -­‐   ,490*   0,16   0,28   4.  Relational_Conflict   2,418   0,748   22   -­‐   -­‐   -­‐   -­‐   ,636**   ,608**   5.  Task_Conflict   2,962   0,887   22   -­‐   -­‐   -­‐   -­‐   -­‐   ,439*   6.  Process_Conflict   2,942   1,154   22   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐  

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