Trust

Types of Trust

There are five primary levels of trust within organizations, which vary according to the party being trusted (i.e., the referent):

• Organizational trust. Trust placed in the system that the organization represents
• Trust in management (also trust in leadership or superiors). Trust placed in the collective people that are near the top of the hierarchy within an organization
• Trust in supervisor (also trust in leader). Trust that focuses on a one-to-one interaction between an employee and his or her direct supervisor
• Coworker trust (also trust in peers or teammates). Trust placed in an employee's same-level peers, typically ones with whom she or he interacts regularly
• Trust in subordinates. Trust placed in people the employee directly manages

Global factors are expected to influence trust in higher-level referents, whereas more specific factors are expected to influence trust in lower-level referents. For example, organizational-level constructs, such as perceptions of organizational justice, are more likely to be associated with trust in organizations, whereas more specific constructs, such as perceptions of supervisor integrity, are more likely to be associated with trust in supervisor.

Another broad categorization of types of trust is rational or relational trust. Overall, rational trust (also cognitive-based or conditional trust) is based on expectancy theory, which suggests that individuals weigh risks and outcomes to determine the appropriate level of trust. In contrast, relational trust (also affective-based or unconditional trust) is based more on social identity theory, which emphasizes the interpersonal component of trust: being in a trusting relationship is a pleasant affirmation of shared values.

Outcomes of Trust

Trust is expected to reduce the costs associated with transactions between the person doing the trusting and the party being trusted. Recent studies have demonstrated that trust within organizations is directly related to a number of outcomes, such as increased satisfaction, increased commitment, decreased intentions to quit, and improved performance. In keeping with the notion that trust is associated with appropriate risk-taking behavior, trust within organizations has been shown to be predictive of extra-role behaviors related to change, citizenship, and innovation. Finally, trust has been shown to facilitate certain relationships. For example, only when there is high trust in teammates does individual motivation lead to group performance. In low-trust situations, individual motivation is directed toward individual goals instead.

Formation and Evolution of Trust

A handful of models exist describing the initial formation of trust, often with an aim of explaining employees' tendencies toward high initial trust. What these models have in common is that trust arises based on a variety of individual, interpersonal, and situational factors. In general, proximal factors based on experience with the party being trusted are weighted more strongly in the formation of trust, but in the absence of these experiences, more distal factors, such as word-of-mouth accounts of trustworthiness, are more likely to be influential.

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