Conflict in the boardroom: a participant observation study of supervisory board dynamics

Abstract

We develop a conflict-oriented model of board task performance and argue that a common framework, that is, a shared understanding of its role, helps boards to perform well. Conflict is the mediating effect through which this plays out. We posit that a common framework increases board task performance because it reduces intragroup relationship conflicts, increases task conflicts within the board, and reduces conflicts in the relationship between board and CEO. We explore the model through a comparative participant observation study of 11 supervisory boards in action. The results show that while low levels of relationship conflict are typically considered a sign of a well-functioning board, the avoidance of relationship conflict negatively impacts board task performance and may lead to 'cognitive blindness'. Boards of directors should manage-rather than avoid-relationship conflict. Based on our findings, we suggest an extended model of conflict in boards that takes into account the negative effect of conflict avoidance.

Inside the Black Box of the Board: Towards a Global Comparative Model of Board Effectiveness for Listed Companies

“…Minichilli et al (2012) also found no direct meaningful relationship between cognitive conflict and board effectiveness, pointing at a common unwillingness of boards to engage in frank and open discussion. Heemskerk, Heemskerk and Wats (2015), in their participant observation study of 11 Dutch supervisory boards, found that although high cognitive (task) conflict can be positive for board effectiveness, it can also bring about affective (relationship) conflict, which can decrease board effectiveness. This interaction may explain part of the empirical and theoretical confusion.…”

The Role of the Personnel Committee in Largest Internationalized Brazilian Companies

“…The Board should therefore incorporate actions of social and environmental concerns in defining business and operations, covering the sustainable management of companies. Furthermore, they should develop rules to enhance the diagnosis and counseling of higher management in decision making, working as consultative bodies (Heemskerk, Heemskerk, & Wats, 2016;IBGC, 2009b;Oliva & Albuquerque, 2006).…”

Efetividade das decisões em conselhos de administração de empresas familiares: uma abordagem configuracional.

“…Contextual. Esta corrente considera a influência das contingências e perspectivas dos múltiplos stakeholders sobre os conselhos, examinando como a atuação do órgão depende do contexto em que a empresa está envolvida (Heemskerk et al, 2017;Minichilli, Zattoni, Nielson, & Huse, 2012;Pugliese et al, 2014). Os estudos contextuais observam a governança corporativa em um ambiente institucional e social amplo, em que o poder do conselho é relativo e depende de diversos fatores, como o setor em que a empresa atua, o desenvolvimento das relações entre as várias coalizões internas e externas com interesse na empresa, os regramentos legais, entre outros (Aguilera, Filatotchev, Gospel, & Jackson, 2008).…”

“…Algumas pesquisas têm tentado atender a esse chamado ao explorarem os processos inerentes às atividades dos conselhos e os seus diferentes papéis (Heemskerk, Heemskerk, & Wats, 2017;Minichilli et al, 2009;Nicholson & Kiel, 2004;Pugliese, Minichilli, & Zattoni, 2014;Wan & Ong, 2005;Zattoni et al, 2015). Essa visão se baseia no fato de que os conselhos podem ser caracterizados como grupos que tomam decisões complexas, porém esporádicas.…”

“…Nesse sentido, estudiosos da governança corporativa foram buscar conceitos da psicologia, como a dinâmica de grupos de trabalho (Cohen & Bailey, 1997;Wageman, 1995), para entender como os conselhos, enquanto grupo, estabelecem os processos que pautam seu trabalho (Gabrielsson & Winlund, 2000;Heemskerk et al, 2017;Payne et al, 2009). Além disso, ao invés de utilizar a performance financeira como proxy para medir a efetividade do conselho, começouse a adotar medidas para aferir o quanto o conselho é capaz de desempenhar suas tarefas de controle e aconselhamento, visto que o produto do trabalho de um conselho é cognitivo (Forbes & Milliken, 1999).…”