IABC Research Foundation Unveils New Study on Trust.

Highlights from 'Measuring Organizational Trust: A Diagnostic Survey and International Indicator'

Organizational trust is related to profits, innovation, successful international business, organizational survival and a variety of crucial worker perceptions and behaviors.

The research on the topic "Measuring Organizational Trust" was performed with a grant from the IABC Research Foundation and performed by professor-consultants and researchers based in Colorado and Italy. The purpose of the research was to identify specific organizational attitudes, values and norms that influence perceptions of organizational trust and distrust; to create an index that measures organizational trust; to empirically examine the relationships among organizational trust/distrust, perceived organizational effectiveness, and job satisfaction; and to identify similarities and differences in trust models for organizations and industries located in various parts of the world. Results of the "Measuring Organizational Trust," include:

* a model describing the relationships of trust to job satisfaction and to perceived organizational effectiveness,

* a survey for communicators and leaders to gather data about trust in their organizations,

* the Organizational Trust Index (OTI), allowing communicators to measure their organization's trust against all others internationally,

* a tool to analyze data and identify areas of weakness and strength and

* a step-by-step guide to facilitate survey feedback and structure team efforts to prioritize issues and develop action plans.

The Importance of Organizational Trust

Today's business environment, driven by a global economy, increased competition, emerging technologies and rapid product development, brings constant change and places new emphasis on organizational effectiveness. One important contributor to this effectiveness is organizational trust among employees, within international departments, among clients, customers or shareholders. We must make sound judgments about trusting others and make efforts to be trusted. We are faced daily with creating "on-the-spot" agreements and relationships with coworkers, leaders, customers and other organizations. The ability of organizations to develop relationships of "spontaneous sociability," the ability to form trusting relationships with diverse strangers, predicts whether an organization will compete effectively.

Research shows that high levels of trust are associated with effective teams and leadership. In addition, literature reviews show that organizations with high levels of trust continually benefit from more:

* adaptive organizational structures 

* strategic alliances

* responsive virtual teams

* effective crisis management

* reduced transaction and litigation costs.

What is Organizational Trust?

Although we often know intuitively when there is and when there isn't trust in an organization, we may define and describe trust differently. Because it can be based on different values, organizational trust has a complex nature. While many definitions exist for organizational trust, some key words recur. Building upon the Mishra Model for Organizational Trust, organizational trust is defined as:

The organization's willingness, based on its culture and communication behaviors in relationships and transactions, to be appropriately vulnerable if it believes that another individual, group or organization is competent, open and honest, concerned, reliable, and identified with common goals, norms and values.

Organizational trust is no longer seen as a one-dimensional concept. Many experts now describe it as:

* multi-leveled, meaning that trust results from interactions that span coworker, team, organizational and inter-organizational alliances.

* culturally rooted, meaning trust is closely tied to the norms, values and beliefs of the organizational culture.

* communication-based, meaning trust is the outcome of communication behaviors, such as providing accurate information, giving explanations for decisions and demonstrating sincere and appropriate openness.

* dynamic, meaning trust is constantly changing as it cycles through phases of building, stabilizing and dissolving.

* multi-dimensional, meaning that trust consists of multiple factors at the cognitive, emotional and behavioral levels, all of which affect a person's perception of trust.

The idea of organizational trust is closely associated with a range of concepts, from distrust to optimal trust. Optimal trust requires a willingness to choose to trust even when there are calculated risks connected with a particular situation. Organizational trust varies from fragile to resilient. Fragile trust develops out of perceptions of short-term and low-cost consequences, whereas resilient trust is based on history and long-term memory of integrity between two parties. Trust can vary in depth, ranging from shallow to deep levels of involvement. When there is less at stake, shallower levels of trust exist. In contrast, when the risk levels are high, deeper levels of trust form.

The Organizational Trust Model

Organizational trust is not a simple and unified concept. It requires us to take multiple factors into consideration. To measure organizational trust, we need to assess five distinct dimensions. Four of these come from the Mishra Model for Organizational Trust. They include the concepts of competence, openness and honesty, concern and reliability. The fifth dimension, contributed by this study, is called "identification." The Organizational Trust Index measures these five dimensions, defined here:

Competence, as it relates to organizational trust, involves the extent to which we see not only our coworkers and leaders as effective, but also our organization as a whole. It measures how strongly we believe that our organization will compete and survive in the marketplace.

Openness and Honesty are the words used most often when people are asked what contributes to organizational trust. This dimension involves not only the amount and accuracy of information that is shared, but also how sincerely and appropriately is it communicated.

Concern for Employees includes the feelings of caring, empathy, tolerance and safety that are exhibited when we are vulnerable in business activities. Sincere efforts to understand feelings contribute to high trust levels in any relationship.

Reliability is determined by whether or not a coworker, team, supplier or organization acts consistently and dependably. In other words, can we count on them to do what they say?

Identification measures the extent to which we hold common goals, norms, values and beliefs associated with our organization's culture. This dimension indicates how connected we feel to management and to coworkers.

The model tested in this research illustrates strong relationships among these five dimensions and trust, job satisfaction and perceived organizational effectiveness. Relationships among them were statistically significant.

Developing the Survey and Organizational Trust Index

To create internationally valid research and a tool to help organizations measure and improve trust, the team of researchers developed a survey and compiled the data to create an Organizational Trust Index. The OTI assists organizations of any size in understanding the crucial dimensions of trust in particular settings.

The survey was translated into English, Italian, Spanish and Chinese. Validation studies were conducted via the World Wide Web and on paper. A total of 53 organizations are represented in the database in industries including banking, telecommunications, manufacturing, computer software and hardware, education, and sales/customer service. Normative comparisons were made from the database, which includes data from the U.S. (25 states), Italy (11 cities), Sydney, Singapore, Hong Kong, Tokyo, Bombay and Taiwan. The database contains responses from approximately 4,000 supervisory and non-supervisory employees. Company sizes ranged from approximately 100 to 146,000.

About the researchers: Pamcla Shockley y-Zalabak, Ph.D. is vice chancellor for Student Success and professor of communication at the University of Colorado at Colorado Springs, and a consultant and author, Kathleen Ellis, Ph.D. is assistant professor of communication at the University of Colorado at Colorado Springs, and a consultant. Ruggero Cesaria is a senior researcher at the Istituto RSO, a leading research and consulting organization in Rome, Italy.