Trust and Philosophy Flashcards

1
Q

trust in the organizational literature

A

Trus is

  • the truster’s behavior
  • occurs in interdependent relationships
  • element of uncertainty about future outcome
  • vulnerability of the truster’s interests,
  • is difficult to enforce by the trustee
  • (…)
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2
Q

Trustworthiness in organizational literature

A
  • is a behavioral disposition of the trustee. It is associated with:
  • integrity (reputation for honesty and truthfulness)
  • consistency (reliability, predictability, good judgement)
  • loyalty (benevolence, willingness to protect, support, courage)
  • openness (willingness to share control, ideas and information freely)
  • reciprocity (not harming other who have helped the trustee)
  • Competence (technical knowledge and interpersonal skill needed to perform the job)
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3
Q

Importance of trust and trustworthiness

A
  • important in social relationships,
  • lower transaction costs in economic transactions
  • determinants of economic success and stability
  • can create competitive advantages

Different theoretical approaches:

  • deterrence-based, calculus -based, knowledge-based, institution-based, identification-based trust
  • trustworthiness vs. reciprocity
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4
Q

Bases of Trust in Organizations:

Dispositional Trust

A

People differ in general predisposition to trust other people,
- they seem to extrapolate from trust-related experiences, developing into a personality characteristic

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5
Q

Bases of Trust in Organizations: History-Based Trust

A
  • individuals’ perceptions of personalized trustworthiness of others are largely history dependent
  • trust between interdependent actors is “a function of cumulative cooperative interaction”
  • individuals’ judgements about others’ trustworthiness are anchored (in part) on their previous expectations
  • expectations can change in response to the subsequent experience
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6
Q

Bases of Trust in Organizations: Third Parties as Conduits of Trust

A
  • third parties can diffuse trust-relevant information, e.g. via gossip
  • problem: third parties often prefer to communicate information consistent with what others want to hear, thus tend to make partial/skewed disclosures about others
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7
Q

Category-Based Trust

A

= Trustworthiness based on a trustee’s membership in a social or organizational category

  • the shared membership defines boundaries of low-risk interpersonal trust
  • In-group bias causes attribution of trustworthiness,
  • need for personal knowledge is thus bypassed
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8
Q

Bases of Trust in Organizations: Role-Based Trust

A
  • Trusting a person based on her particular role, rather than one’s knowledge about her capabilities, dispositions, incentives and motives
  • the trust is sustained by people’s common knowledge regarding
    > barriers to entry into organizational roles
    > training and socialization process of role occupants
    > accountability mechanism
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9
Q

Bases of Trust in Organizations: Rule-Based Trust

A
  • Shared understandings regarding the system of use
  • rules can demonstrate management’s trust in cooperativeness of employees (“open-door policy”) which can increase beliefs about organizational members’ honesty and trustworthiness
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10
Q

Managers as Initiators of Trust: Agency Theory

A
  • Analysis of principal-agent relationship, e.g. design of the contract
  • information asymmetry between principal and agent, clashing with conflict of interest between the parties.
  • formal and extrinsic incentives used
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11
Q

Managers as Initiators of Trust: Social Exchange Theory

A
  • social element in principal-agent relationships
  • the individuals provide benefits to another voluntarily
  • social exchange process and development over time
  • typically informal and intrinsic incentives
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12
Q

Managers as initiators of trust: further development by Whitener 1998

A
  • theory builds upon social exchange and agency theory
  • basic idea: trust within the organization is a function of the manager’s trustworthiness (NO longer employee’s perception of manager’s trustworthiness as focus)
  • principal’s (trustee) trustworthiness enhances the agent’s (truster’s) trust
  • the principal’s trustworthiness reduces asymmetric information and conflicts of interest, e.g. by being more transparent and delegating tasks
  • Result: agent is motivated to act in the interest of the principal
  • Circular relationship of trust and trustworthiness between agent and principal
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13
Q

Whitener: Factors enhancing mutual trust within organizations -
Individual factors

A
  • principal’s propensity/disposition to trust is high
  • principal’s efficacy regarding his knowledge, skills, and abilities is high, i.e. he is able to delegate control
  • the principal has self-transcendent and not self-enhancing values
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14
Q

Whitener: Factors enhancing mutual trust within organizations - Relational Factors

A
  • agents are effective in fulfilling role requirements (e.g. principal communicates more openly)
  • a principal’s expectation concerning an agent’s reciprocity is high (e.g. principal will share control)
  • the costs for the principal are associated with unreciprocated exchanges among them are low (e.g. the principal will delegate tasks)
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15
Q

Whitener: Factors enhancing mutual trust within organizations - Organizational Factors

A
  • organizations are decentralized, less formal, less hierarchical and focused on effectiveness
  • procedural justice principals are applied (e.g. principal gives regular and timely feedback)
  • risk taking, inclusiveness, and valuing people are key parts of the organization (e.g. principal communicates openly)
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