Affective Conflict In Mena

5142 Words21 Pages

Abstract

The role of the board of Directors is evolving and has become more important in the wake of corporate scandals resulting in the collapse of large corporations and massive losses to shareholders. Accordingly, the role of the board, leadership, information, the quality of board relationship with the management, and decision collectively influence strategic decision-making. Meanwhile, poor governance can lead to wrong decision-making which might destroy organizations, particularly during times of environmental turbulence. The Arab Spring that sparked popular uprisings throughout the MENA region is one of many factors that created a turbulent economic and political environment for organizations in this region for the past three decades; …show more content…

According to Parayitam and Dooley (2011, p. 347) affective conflict pertains to interpersonal associations or incompatibilities. This type of conflict stems from emotions and typically results in unfavourable outcomes on organizational or board related outcomes. Elbanna (2009, p. 793) states that affective conflict is dysfunctional as it negatively interferes with cognitive processes. Ul Haq (2011, p. 296) highlights that affective conflict significantly reduces the inclination of leaders being able to accept opposition. When board members are a part of affective conflict, they are less likely to be receptive to the viewpoints of those around them. Ul Haq (2011, p. 296) further elaborates that affective conflict interrupts effective collaboration and communication between these …show more content…

1). In some cases, the chairman is perceived as a trusted colleague to steer the decision-making process, but in others, the chairman develops blind faith in the CEO and expunges himself from the decision-making process. In others, the CEO may perceive the board chairperson as the obstacle to progress instead of a person who adds value (Nadler, 2004, p. 2). Under difficult times, some members of the council may take a front seat while others may fail to participate in the decision-making process actively. Thus, the CEO plays a leading role in decision-making. For some boards, they allow the CEO to make the final decision (Rajagopalan and Datta, 1996, p. 196). However, the influence of the CEO on the board depends on his or her relationship with the board members (McDonald et al., 2008, p. 453). The problem arises when the board demonstrates overconfidence in the CEO by failing to consider the information

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