wk 6 Procurement Trust Flashcards
three parts of trust
vulerability
expectation
willingness
what is vulnerability in trust
passing control from one party to another
what shows vulnerability in the case study
vulnerable choosing RS since they were a relitvely new design company.
May not have the experience or funds to complete design
may run off with idea
what are the expectations in the case study
crown willing to give RS a chance at a cheaper price
However did not gather evidence of their capabilities - trust in RS
what shows willingness in the case study
crown had low expectations at the start as they bargained on the price
“easiest sell going”
five types of trust
deterrence based trust
knowledge based trust
indentification based trust
calculus based trust
personality based trustwh
what is deterrence based trust
where expectations are low - written in contract
lack of trust
what does knowldge based trust arise from
past relationships, reputation and relationships
what is identification based trust
shared value
what is personality based trust
highly individual. shared past expericnes. willingness to be vulnverable
what types of trust are in the case study
knowledge and calculus - only gave $750 for first design
became personality based as they were both passionate about having a high quality design
what is the spiral of trust
trust develops over time, can increase or break down
what types of trust exist in procurement
partner performance
partner pemeability
relationship bonding
system based trust
what is partner performance
trust based on competance aligment and unity
what is partner permeability
openess and communication
what factors are important in the case study for partner performance?
RS produce award winning designs
however degraded as they became slow
crown relied heavily on RS performance
what factors are important in partner permeability in the case study
continous communication between the two. Worked as a single organisation sharing information
what factors are impartnat in the relationship bonding in the case study
grew as a company together
compatible with each other
what factors are important in systems based trust in the case study
dispute resolution was easy as they had a close bond “A lot of give and take”
no clear line of contractual agreement, very imformal
no trust in method of communication
