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