Organization: Contemporary Principles and Practice, 2nd Edition

CHAPTER 15

Generating and Utilizing Trust¹

WHAT THIS CHAPTER COVERS

This chapter is concerned with the role that trust plays in the creation and maintenance of effective organizational relationships. After signaling the importance of trust in the modern business world, the chapter discusses the nature of this subtle and complex concept. It then identifies two major sources of trust. One is traditional and this is where trust arises from close personal relationships. Another basis for trust is institutional, where trust is underwritten by formal safeguards. These two foundations offer insights into the ways in which trust in business collaborations can develop through calculation, mutual understanding, and bonding.

The chapter reviews the benefits that accrue from trust in and between organizations, with reference to two areas of collaboration that are of particular importance in modern business. These are teamwork and partnerships between organizations. Its benefits make it imperative to generate, maintain, and even repair organizational trust, and the chapter closes with guidelines for so doing.

Introduction

The modern global economy is characterized by a need for people with different skills and backgrounds to collaborate. Forms of collaboration range from cross-functional teams to alliances and other networks crossing organizational and national boundaries. As we have seen ...