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A Brief Glimpse of Trust in Organizations A colloquium presented to

A Brief Glimpse of Trust in Organizations A colloquium presented to. HAP 873 Topics in Health Administration. Dr. Christopher J. Evans. A Brief Glimpse of Trust in Organizations. Introduction To examine issues of trust and decision making in organizations by examining:

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A Brief Glimpse of Trust in Organizations A colloquium presented to

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  1. A Brief Glimpse of Trust in Organizations A colloquium presented to HAP 873 Topics in Health Administration Dr. Christopher J. Evans

  2. A Brief Glimpse of Trust in Organizations • 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 2

  3. A Brief Glimpse of Trust in Organizations The time is ripe Introduction Background Studies Applications 3

  4. 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 4

  5. 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 5

  6. 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 6

  7. 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 7

  8. 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 8

  9. 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 9

  10. 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 10

  11. A Brief Glimpse of Trust in Organizations • 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) Introduction Background Studies Applications 11

  12. A Brief Glimpse of Trust in Organizations • 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 Introduction Background Studies Applications 12

  13. A Brief Glimpse of Trust in Organizations • 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) Introduction Background Studies Applications 13

  14. Situation + Trust-related Characteristics of Trustee (Subject) An Evaluation Outcome Trust Perceived Trustworthiness of the Subject A Brief Glimpse of Trust in Organizations Trust versus trustworthiness Introduction Background Truster’s Willingness to Trust + Studies Applications 14

  15. A Brief Glimpse of Trust in Organizations • 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 Introduction Background Studies Applications 15

  16. A Brief Glimpse of Trust in Organizations 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 Introduction Background Studies Applications 16

  17. A Brief Glimpse of Trust in Organizations Introduction Background Studies Applications 17 Lewicki et al., 1998

  18. 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 18

  19. 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 19

  20. 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 20

  21. 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 21

  22. Distribution of Trust Scores N = 123 22 20 19 16 16 11 11 3 2 2 1 0 11 12 13 14 15 16 17 18 19 20 21 22 Trust Score Median = 17 Mean = 17.43 A Brief Glimpse of Trust in Organizations Yamagishi trust scale in action Introduction Background Studies Applications 22

  23. A Brief Glimpse of Trust in Organizations • Noteworthy and seminal studies on trust • Rotter, 1967 • Interpersonal Trust Scale • Gabarro, 1979 • Trust in leadership • Mayer, Davis, Schoorman, 1995 • Trust as risk & vulnerability • Cummings & Bromiley, 1996 • Organizational Trust Index (OTI) • Mayer & Davis, 1999 • LMX, higher level of trust empirically linked to profits Introduction Background Studies Applications 23

  24. A Brief Glimpse of Trust in Organizations 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 Introduction Background Studies Applications 24

  25. A Brief Glimpse of Trust in Organizations 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? Introduction Background Studies Applications 25

  26. A Brief Glimpse of Trust in Organizations • 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 Introduction Background Studies Applications 26

  27. A Brief Glimpse of Trust in Organizations • 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 Introduction Background Studies Applications 27

  28. A Brief Glimpse of Trust in Organizations 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 Introduction Background Studies Applications 28

  29. A Brief Glimpse of Trust in Organizations 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 Introduction Background Studies Applications 29

  30. Group 1 A Brief Glimpse of Trust in Organizations • 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? Introduction Background Studies Applications 30

  31. A Brief Glimpse of Trust in Organizations • 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 Introduction Background Studies Applications 31

  32. or some combination of these three dimensions Group 2 A Brief Glimpse of Trust in Organizations • 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? Introduction Background Studies Applications 32

  33. Group 3 A Brief Glimpse of Trust in Organizations 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? Introduction Background Studies Applications 33

  34. Bonus A Brief Glimpse of Trust in Organizations • 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 Introduction Background Studies Applications www.christopherevans.org 34

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