A Brief Glimpse of Trust in Organizations
A colloquium presented to
Dr. Christopher J. Evans
HAP 873Topics in
HealthAdministration
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
Introduction
Background
Studies
Applications
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A Brief Glimpse of Trust in Organizations
A Brief Glimpse of Trust in Organizations
Introduction
Background
Studies
Applications
The time is ripe
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A Brief Glimpse of Trust in Organizations
Three questions 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?
Introduction
Background
Studies
Applications
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A Brief Glimpse of Trust in Organizations
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
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A Brief Glimpse of Trust in Organizations
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 non-specific other party in a given situation (McKnight & Chervany, 1996)
Introduction
Background
Studies
Applications
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A Brief Glimpse of Trust in Organizations
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 one’s generalized expectancy to rely on another
Introduction
Background
Studies
Applications
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A Brief Glimpse of Trust in Organizations
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)
Introduction
Background
Studies
Applications
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A Brief Glimpse of Trust in Organizations
Definitions
Distrust: confident negative expectations regarding another’s 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
Introduction
Background
Studies
Applications
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A Brief Glimpse of Trust in Organizations
Definitions
Trustworthiness: the degree to which the truster evaluates the trustee’s perceived ability, benevolence, and integrity and of the truster’s propensity to trust in a specific situation (Mayer et al., 1995)
It is measure of the perceived trust-related characteristics of the referent trustee
Ability: They are competent and able to do what is asked of them
Benevolence: They will do what is right, are loyal, not manipulative, and will not act opportunistically
Integrity: They have sound and moral principles
Introduction
Background
Studies
Applications
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A Brief Glimpse of Trust in Organizations
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)11
A Brief Glimpse of Trust in Organizations
Introduction
Background
Studies
Applications
Trust
Cognitive/affective trust versus behavioral manifestations of trust
The trustee referentPersonal - includes organizational referents and reputation
System - generalized well-being, e.g., trust in a CPA, a lawyer, the government
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A Brief Glimpse of Trust in Organizations
Introduction
Background
Studies
Applications
Trust
Trust and risk: Two sides of the same coinWillingness 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)
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A Brief Glimpse of Trust in Organizations
Introduction
Background
Studies
Applications
Trust versus trustworthiness
AnEvaluation
TrustOutcome
PerceivedTrustworthiness
of the Subject
Truster’sWillingness
to Trust+
Situation
Trust-relatedCharacteristics
of Trustee(Subject)
+
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A Brief Glimpse of Trust in Organizations
Introduction
Background
Studies
Applications
Distrust
Seen as concerning:Lack of confidence
That the other may act so as to harm
That the other does not care about one’s welfare or intends to act harmfully, or is hostile
Seen also as:A rational choice
A practical response to perceived threats
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A Brief Glimpse of Trust in Organizations
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 person’s behavior.” (Fein and Hilton, 1994)
Distrust and suspicion are linked with common elements
Significant body of work exists on trust- building and trust-destroying antecedents
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A Brief Glimpse of Trust in Organizations
Introduction
Background
Studies
Applications
High Trust High-value congruence Trust but verify
Characterized by Interdependence promoted Relationships highly segmentedHope and boundedFaith Opportunities pursuedConfidence Opportunities pursued andAssurance New initiatives down-side risks/vulnerabilitiesInitiative continually monitored
Low Trust Casual acquaintances Undesirable eventualitiesexpected and feared
Characterized by Limited interdependenceNo hope Harmful motives assumedNo faith Bounded, arms-lengthNo confidence transactions Interdependence managedPassivityHesitance Professional courtesy Preemption; best defense is a
good offense
Paranoia
Low Distrust High Distrust
Characterized by Characterized byNo fear FearAbsence of skepticism SkepticismAbsence of cynicism CynicismLow monitoring Wariness and watchfulnessNo vigilance Vigilance
Integrating Trust and Distrust: Alternative Social Realities
Lewicki et al., 199817
A Brief Glimpse of Trust in Organizations
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)
Introduction
Background
Studies
Applications
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A Brief Glimpse of Trust in Organizations
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
Introduction
Background
Studies
Applications
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A Brief Glimpse of Trust in Organizations
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
Most methodologies are laboratory-based (chiefly rational models), though field and quasi-field approaches are increasing
Introduction
Background
Studies
Applications
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A Brief Glimpse of Trust in Organizations
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
Introduction
Background
Studies
Applications
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A Brief Glimpse of Trust in Organizations
Yamagishi trust scale in actionIntroduction
Background
Studies
Applications
Distribution of Trust Scores N = 123
12
0
11 11
16
22
1920
16
32
11 12 13 14 15 16 17 18 19 20 21 22
Trust Score
Median = 17 Mean = 17.4322
A Brief Glimpse of Trust in Organizations
Introduction
Background
Studies
Applications
Noteworthy and seminal studies on trustRotter, 1967
Interpersonal Trust ScaleGabarro, 1979
Trust in leadershipMayer, Davis, Schoorman, 1995
Trust as risk & vulnerabilityCummings & Bromiley, 1996
Organizational Trust Index (OTI)Mayer & Davis, 1999
LMX, higher level of trust empirically linked to profits
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A Brief Glimpse of Trust in Organizations
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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A Brief Glimpse of Trust in Organizations
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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A Brief Glimpse of Trust in Organizations
Introduction
Background
Studies
Applications
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
Trust level was not a factor - high trusters were not significantly different from low trusters
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A Brief Glimpse of Trust in Organizations
Introduction
Background
Studies
Applications
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
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A Brief Glimpse of Trust in Organizations
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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A Brief Glimpse of Trust in Organizations
Introduction
Background
Studies
Applications
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 correlated with each other
Trust level increased
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A Brief Glimpse of Trust in Organizations
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
meaning-making
•Boundary-spanning is a critical
competency of effective cultures
Question: How can leaders influence a culture of trust as it influences engaging across organizational boundaries?
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Group 1
A Brief Glimpse of Trust in Organizations
Introduction
Background
Studies
Applications
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
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A Brief Glimpse of Trust in Organizations
Introduction
Background
Studies
Applications
Discussion Prompt - Trustworthiness
•Issues of trustworthiness in human interactions may be related to
–Integrity–Ability–Benevolence
• or some combination of these three dimensions
Question: Integrity, ability, benevolence - how can leaders engage discussion with subordinates on these issues and their relative importance to improve trust?32
Group 2
or some combination of these three dimensions
A Brief Glimpse of Trust in Organizations
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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Group 3
A Brief Glimpse of Trust in Organizations
Introduction
Background
Studies
Applications
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
Detailed PowerPoint summaries of my two studies on trust in organizations
Bonus
www.christopherevans.org34