A Brief Glimpse of Trust in Organizations: A Colloquium Presented To

A Brief Glimpse of Trust in Organizations
A Colloquium presented to
Dr. Christopher J. Evans

Introduction
Background
Introduction To examine issues of trust and decision making in organizations by examining:

Interpersonal and organizational trust Key studies on trust Instruments and methodologies to study trust How trust affects human decision processes
Studies
Applications

Introduction
The time is ripe
Background
Studies
Applications

Introduction
Background
Studies
Three flip charts to guide and remind us Our definitions and assumptions today What is trust? Why is trust important between people? Why is trust important in organizations?
Applications

Introduction
Background
Studies
Applications
Definitions Trust: the willingness of a party to be vulnerable to the actions of another party based on the expectations that the other will perform a particular action important to the truster, irrespective of the ability to monitor or control that other party (Mayer et al., 1995)
Trust is the mechanism by which risks associated with social complexity are transcended (Luhmann, 1988)

Introduction
Background
Studies
Applications
Definitions Dispositional Trust: a consistent tendency to trust across a broad spectrum of situations and persons (Lewicki et al., 1998) Situational Decision to Trust: the extent to which one intends to depend on a nonspecific other party in a given situation
(McKnight & Chervany, 1996)

Introduction
Background
Studies
Definitions Interpersonal Trust: an expectancy held by an individual or group that the word, promise, verbal, or written statement of another individual or group can be relied upon (Rotter, 1967)
It is conceptualized as ones generalized expectancy to rely on another
Applications

Introduction
Background
Definitions Organizational Trust: the degree of trust between units of an organization or between organizations (Cummings & Bromiley, 1996)
It has been conceptualized as a matrix of dimensions of belief (keeps commitments, negotiates honestly, and avoids taking excessive advantage) and types of beliefs (affective state, cognitive state, and intended behavior)
Studies
Applications

Introduction
Background
Definitions Distrust: confident negative expectations regarding anothers conduct (Lewicki et al.,
1998) The reciprocal of trust, through separate but linked dimensions (not opposite ends of a continuum) Probably a matrix construct of affect, behavior, and cognition often conceptualized by behaviors opposite those of trusting behaviors
Studies
Applications

Introduction
Background
Studies
Definitions Trustworthiness: the degree to which the truster evaluates the trustees perceived ability, benevolence, and integrity and of the trusters propensity to trust in a specific situation (Mayer et al., 1995)
It is measure of the perceived trust-related characteristics of the referent trustee
Applications
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Introduction
Background
Studies
Applications
Trust Most often conceptualized as an expectancy or belief A conceptual confusion exists Little consensus has developed on the meaning of trust in common usage Trust is always situational and highly personal to the perceptions and predispositions of the truster
Which trust and when? (Bigley & Pierce, 1998)
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Introduction
Background
Trust Cognitive/affective trust versus behavioral manifestations of trust The trustee referent
Personal - includes organizational referents and reputation System - generalized well-being, e.g., trust in a CPA, a lawyer, the government
Studies
Applications
12

Introduction
Trust Trust and risk: Two sides of the same coin

Willingness to trust constitutes both a cognitive and affective series of processes, that a person feels secure (affective) with respect to his or her willingness (cognitive) to depend (McKnight & Chervany, 1996)
Background
Studies
Applications
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Introduction
Trust versus trustworthiness

Situation
Background
+
Trust-related Characteristics of Trustee (Subject) Outcome
Studies
Trusters Willingness to Trust
Applications
An Evaluation
Perceived Trustworthiness of the Subject

14
Trust

Introduction
Distrust Seen as concerning:

Lack of confidence That the other may act so as to harm That the other does not care about ones welfare or intends to act harmfully, or is hostile
Background
Studies
Applications
Seen also as:

A rational choice A practical response to perceived threats
15

Introduction
Background
Studies
Applications
Distrust and suspicion Suspicion is a psychological state where the perceivers actively entertain multiple, possibly rival, hypotheses about the motives or genuineness of a persons behavior. (Fein and Hilton, 1994) Distrust and suspicion are linked with common elements Significant body of work exists on trustbuilding and trust-destroying antecedents
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Figure 1 Integrating Trust and Distrust: Alternative Social Realities
Introduction
High Trust High-value congruence Interdependence promoted Opportunities pursued New initiatives Opportunities pursued and down-side risks/vulnerabilities continually monitored Trust but verify Relationships highly segmented and bounded
Background
Characterized by Hope Faith Confidence Assurance Initiative
Studies
Low Trust Characterized by No hope No faith No confidence Passivity Hesitance Casual acquaintances Limited interdependence Harmful motives assumed Bounded, arms-length transactions Professional courtesy Interdependence managed Preemption; best defense is a good offense Paranoia Undesirable eventualities expected and feared
Applications
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Lewicki et al., 1998
Low Distrust
High Distrust

Introduction
Trust instruments and methodologies Ah, what to measure?

Which trust construct, and when? - revisited Affective (dependability, emotional bonding, expectancy, faith) Cognitive (game theory, social expectancy, strategic choice) Behavioral manifestations (the behavior-belief question)
Background
Studies
Applications
18

Introduction
Trust instruments and methodologies, cont So what scales are being used?
Wrightsman (1964) Philosophies of human nature Rotter (1967) - Interpersonal trust scale Thornton & Kline (1982) - Belief in human benevolence scale Mayer et al. (1995, 1999) - scales on trust and trustworthiness Cummings & Bromiley (1996) - OTI Yamagishi (1986)- various scales on generalized trust, social values orientation
Background
Studies
Applications
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Introduction
Background
Trust instruments and methodologies, cont Most scales examine dispositional (or generalized) trust, a general belief in human benevolence
That [the referent] will do what is right, is loyal, not manipulative, and will not act opportunistically
Studies
Applications
Most methodologies are laboratory-based (chiefly rational models), though field and quasi-field approaches are increasing
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Introduction
Background
Yamagishi trust scale Measures dispositional trust and propensity (willingness) to trust
Developed by factor analysis beginning with 60 items Validated and used in approximately one dozen published studies No normative data Most often used to dichotomize subjects into high and low trusters
Yamagishi, T. (1986). The provision of a sanctioning system as a public good. Journal of Personality and Social Psychology, 51, 110-116
Studies
Applications
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Introduction
Yamagishi trust scale in action

Distribution of Trust Scores N = 123
22 19 20 16
Background
Studies
11 11
16
Applications
2 0 12 13 14 15 16 17 18 19 20 21 22 3 2
1 11
Trust Score Median = 17 Mean = 17.43

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Introduction
Noteworthy and seminal studies on trust Rotter, 1967

Interpersonal Trust Scale
Background
Gabarro, 1979
Trust in leadership
Studies
Mayer, Davis, Schoorman, 1995

Trust as risk & vulnerability
Applications
Cummings & Bromiley, 1996

Organizational Trust Index (OTI)
Mayer & Davis, 1999

LMX, higher level of trust empirically linked to profits
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Introduction
Background
Studies
Applications
Study: Mayer & Davis, 1999 Can trust in senior leadership be improved? Manufacturing industry Pre-and post-test methodology, 6 month interval Intervention: Revised personnel management policies and compensation systems Results: Trust level of employees improved
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Introduction
Background
Studies
Applications
Study: Evans, 2003 Trust and decision making in hospitals Self-response survey of 123 hospital CEOs in NC and SC, predominantly males Did hospital CEOs make changes in their financial operations as a result of the reported wrongdoings of public corporations and financial services firms? Was trust level of the CEO a factor?
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Introduction
Background
Study: Evans, 2003, cont. Results: 51.2% made changes reflecting confident negative expectations
19% changed accountants or auditors 42% changed internal policies CEOs in NC were more likely to make changes than CEOs in SC
Studies
Applications
Trust level was not a factor - high trusters were not significantly different from low trusters
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Introduction
Study: Evans, 2003, cont. Other findings:

CEOs reported that the relative importance of dimensions of trustworthiness was integrity, ability, and benevolence CEOs reported that they had a clear tendency to trust in an individual in matters of routine business importance, but preferred to trust in a professional service firm in matters of potential personal volatility No difference was found for gender, organization size, or years of experience
Background
Studies
Applications
27

Introduction
Background
Studies
Applications
Study: Evans, 2004 Organizational trust, decision making, communication, and collaboration in hospital managers: A quasi-field experiment Pre- and post test methodology - 96 midlevel managers over a 9 month interval Intervention: Leadership development program for 120 managers administered in small groups
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Introduction
Study: Evans, 2004, cont. Results: All measures (trust; decentralization of

decision making processes; openness, fullness, and fairness of communications; and level of collaborative activities) were highly positively
Background
Studies
correlated with each other Trust level increased
Applications
29

Introduction
Background
Studies
Applications
Discussion Prompt - Trust and Distrust Generalized trust frames our outlook Strong social norms influence behavior Communication is a large part of meaningmaking Question: How can leaders influence a culture of trust as it influences engagement in the organization?
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Introduction
Background
Studies
Discussion Prompt - Trustworthiness Situational variables can influence the order of importance of the dimensions of trustworthiness Gabarro (1978) found from executives:
Integrity valued more than competence The relative importance of dimensions of trustworthiness was based on the relative positions of the truster & trustee
Applications
31

Introduction
Background
Studies
Discussion Prompt - Trustworthiness Question: Integrity, ability, benevolence how can leaders engage discussion with subordinates on these issues and their relative importance to improve trust?
Applications
32

Introduction
Background
Studies
Applications
Discussion Prompt - Trust & Decision Making Decision making styles are learned and habitual, with a habit-based propensity to react in a certain way in a specific decision context (Scott & Bruce, 1985) Question: How can leaders engage discussion with subordinates on these issues and their relative importance to each party to improve trust?
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Introduction
Background
Bonus Tracks for staying with me The following resources are available by emailing me or visiting my website:
Literature review on trust, organizational trust, trustworthiness, and trust in the healthcare industry Bibliography on trust Advice on (perhaps) the 12 best articles on trust for research purposes Detailed PowerPoint summaries of my two studies on trust in organizations
www.christopherevans.org
Studies
Applications
Bonus
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A Brief Glimpse of Trust in Organizations

Dr. Christopher J. Evans