Effects of self-efficacy on objective and subjective outcomes in transactions and disputes.

Purpose – This paper aims to examine the relationship between self-efficacy and the outcomes that individuals achieve when they manage conflict at work. The authors propose that self-efficacy is related to performance following a positive linear or curvilinear model depending on the outcomes assessed (objective versus subjective outcomes) and the conflict setting considered (transaction versus dispute). Design/methodology/approach – Two studies were conducted. Study 1 was a face-to-face transaction in which self-efficacy was measured using a survey. In study 2, participants were involved in a dispute and their self-efficacy was manipulated using a false feedback technique. Findings – Results suggest that high self-efficacy participants obtain better objective (economic/substantive) outcomes. However, there is a curvilinear relationship, in a U-inverted shape, between self-efficacy and subjective (relational) outcomes, indicating that an increase in self-efficacy improves subjective outcomes, but there are certain levels at which self-efficacy may be dysfunctional. Originality/value – Recent controversial findings in research into the relationship between self-efficacy and performance are addressed in these studies. The present paper is one of the first to explore the role of self-efficacy in a dispute and to consider the effects of self-efficacy on subjective outcomes. Practical implications are discussed in light of the results. [ABSTRACT FROM AUTHOR]