1972_ Zand_Trust and Managerial Problem Solving

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    aleE Zand

    This paper presents

    a

    model of trust and its interaction with information flow,

    influence, and control, and reports on an experiment based on the model to test

    several hypotheses about problem-solving effectiveness. The subjects were man-

    agers and the independent variable was the individual manager s initial level of

    trust. G roups of business executives were given identical factual information about

    a difficult manufacturing-marketing policy problem; half the groups were briefed

    to expect trusting behavior, the other half

    to

    expect untrusting behavior. There

    were highly significant differences in effectiveness between the high-trust groups

    and the low-trust groups

    in

    the clarification

    of

    goals, the reality

    of

    information

    exchanged, the scope of search for solutions, and the comm itment of managers to

    implement solutions. The findings indicate that shared trust or lack of trust ap-

    parently are a significant determinant of m anagerial problem-solving effectiveness.^

    There is increasing researeh eyidenee that INTRODU TION

    is a salient faetor inde termining the j ^ ^ . (^gg^ f ^ ^ j ^ ^ effeetiye

    ofman y relationships, such as helping relationship, one participa nt (coun-

    andchild (Baldwm selor, therapist, help er) behaye d in ways tha

    al, 1945), psychotherapist and elient deyelop ed trust and the other experienc ed an

    53; Seeman , 1954 ), and mem bers i^^.^ease in trust, and concluded tha t the de -

    and ^elopmentoftrust is a crucia l initial factor

    .^^^^

    neeessary co ntinuing eleme nt

    in

    such

    ofexpression, ^relationship. H e summ arized extensiye re

    istrust eyokes interperson al rejec- .^^^ch in which an increase in trust app eare d

    on and arouses defensive beha vior (G ibb , ^^ ^^ eausalK- related to mo re rap id intellec-

    ^

    tual deyelopment, increased originality,

    in-

    Du ring the past fifteen years ma n)' man - c e a se d em otional stabilit)% increased' seH-

    to

    programs,

    ^oj^^j.^

    ^nd deereased physiological arousa

    ously called sen sitivity tra ining (Bra d- ^o defend against threa t.

    et al, 1964 ), grid laboratories (Blake j h ^ ig,,gi f^^^.tin arelatio nsh ip affeets

    or

    group workshops

    he

    degree

    of

    defensiveness. Gibb (1961 )

    n and Bennis, 1965 ), to improve their f^^nd tha t m em bers of small groups tha

    indeveloping trust and thus, presuma- developed a "defensive elimate," had diffi

    It has ^ulty eoncentrating onmessages, perceiv ed

    to show a direet j e mo tives, values, and emotionsof other

    and managerial i^^s aeeurately, and increased the distortion

    in a wo rking organization ^f messages. Oth er studies suggest tha t some

    and Campbell , 1968;House, interpersonal trust is required for effeetiy

    is aneedtoclarify the problem solying in a group. Parloffand

    for assertions abou t trust Ha ndlo n (1966 ) found tha t intensiye, pe

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    230 ADMINISTRATIVE SCIENCE QUARTERLY

    in problem-solving effectiveness. They found information he provides will be low in ac

    that groups penalized for poor ideas and ad- racy, comprehensiveness, and timeliness; a

    monished to produce only good ideas while therefore have low congruence with real

    working on early problems produced poorer He will also resist or deflect the attempts

    solutions to later problems when these restric- others to exert influence. He will be sus

    tions were removed than groups that were cious of their views, and not receptive

    not penahzed and admonished during their their proposals of goals, their suggestions

    earlv problem assignments. reaching goals, and their definition of crite

    This paper: (1) analyzes the concept of and methods for evaluating progress.

    trust, (2) presents a model of the interaction though he rejects the influence of others,

    of trust and problem-solving behavior, and will expect them to accept his views. Fma

    (3) reports the results of an experiment that one who does not trust will try to mmm

    attempted to test several hvpotheses derived his dependence on others. He will feel

    from the model. cannot rely on them to abide by agreeme

    and will try to impose controls on their

    N LYSIS OF C O N C E P T

    havior when coordination is necessary

    Trusting behavior, following Deutsch attain common goals, but will resist and

    (1962), is defined here as consisting of alarmed at their attempts to control

    actions that (a) increase one s vulnerability, behavior.

    (b) to another whose behavior is not under When others encounter low-trust behav

    one s control, (c) in a situation in which the initially they will hesitate to reveal mtor

    penaltv (disutilitv) one suffers if the other tion, reject influence, and evade control. T

    abuses that vulnerabihty is greater than the short cycle feedback will reinforce the o

    benefit (utility) one gains if the other does inator s low trust, and unless there

    not abuse that vulnerability. For example, a changes in behavior, the relationship

    parent is exhibiting trusting behavior in stabiHze at a low level of trust,

    hiring a babv sitter so he can see a movie. All of this behavior, following from a

    The action significantly increases his vulner- of trust, will be deleterious to informa

    abilit^ since he cannot control the baby exchange, to reciprocity of influenc>e an

    sitte/s behavior after leaving the house. If the exercise of self-control, and w ill dimm

    the baby sitter abuses that vulnerability, the the effectiveness of joint problem-sol

    penalt\^ mav be a tragedy that may adversely efforts.

    affect the rest of his Hfe; if the baby sitter To the objective uncertainty mherent

    does not abuse that vulnerability, the benefit problem, for example, unavailable facts

    will be the pleasure of seeing a movie. Thus unknown causal relationships between

    trust as the term wiU be used in this paper, tions and results, low trust will add s

    is not a global feeling of warmth or affection, uncertainty- that

    is

    uncertainty^ introduce

    but the conscious regulation of one s dcpen- individuals wdthholding or distorting rele

    dence on another that will vary with the task, information and concepts,

    the situation, and the other person. Persons lacking trust attempting to so

    problem jointly will attempt to minim

    MO EL their vulnerability. There will be an incr

    The following model, based on Cibb, in the likelihood of misunderstanding or

    (1964) conceptualizes the transforming of interpretation. The social uncertainty

    one s inner state of trust (or mistrust) into duced by their low trust will increase

    behavior that is trusting (or mistrusting) probability that underlying problems ma

    through (1) information, (2) influence, and undetected or be avoided, and that inap

    (3) control. priate solutions may be more difficu

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    and PROBLEM SOLVING

    231

    , comprehensive, aecu rate, and timely dance w ith agreem ents, an d therefore wdl

    less fear th at the ir exposure yyill be

    have less need to impose controls on others

    (see Figure 1). Consequently they will con-

    tribute to a decrease in social uncertainty

    and be less likely to misinterpret the inten-

    tions and the beha\dor of others. As a result

    endence because of confidenee tha t underlying problems are mo re likely to be

    s will control their behavior in accor- identified and examined, and solutions more

    TRUST

    Increase one s

    vulnerabilit)

    to others whose

    behavior one

    cannot control

    \

    CONTROL

    Accept more inter-

    dependence with others.

    Impose less procedure

    to c>ontrol others.

    Greater confidence

    others will do what

    they agree to.

    Greater commitment to

    do what one agreed to.

    INFORMATION

    Disclose more

    accm-ate, rele-

    vant, and

    complete data

    about the prob-

    lem, one s

    thoughts and

    one s feelings.

    INFLUENCE

    Accept more influence

    from others in

    selection of goals,

    choice of methods,

    evaluation of progress. 1, Initial level of

    trust predisposes

    information flow,

    influence, and

    control.

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    ADMINISTRATIVE SCIENCE QUARTERLY

    likely to be appropriate, creative, and long-

    range.

    Hypotheses

    It

    is not assumed here that trust alone will

    solve a technical problem; it is assumed that

    group members collectively have adequate

    knowledge, experience, and creativity to de-

    fine and solve a complex problem. It is also

    assumed that it is possible to increase or de-

    crease trust in members of a problem-solving

    group.

    On the basis of the model described, the

    following differences can be predicted in the

    problem-solving behavior of groups with

    high and low trust.

    An increase in trust will increase the ex-

    change of accurate, comprehensive, and

    timely information. Problem-solving groups

    with high trust will:

    Hypothesis 1 Exchange relevant ideas and

    feelings more openly.

    Hypothesis 2

    Develop greater clarification

    of goals and problems.

    Hypothesis 3

    Search more extensively

    alternative courses of acti

    HypotJiesis 4 Have greater influence

    solutions.

    Finally, an increase in trust will incre

    willingness to control one's own behavi

    will increase confidence in the reliability

    others, and will decrease efforts to control

    behavior of others, all of which will c

    tribute to increased satisfaction and moti

    tion. Hence, problem-solving groups w

    high trust will:

    Hypothesis 5

    Be more satisfied with th

    problem-solving efforts.

    Hypothesis 6 Have greater motivation

    implement conclusions.

    Hypothesis 7 See themselves as closer a

    more of a team.

    Hypothesis 8 Ha ve less desire to leave th

    group to join another.

    ynamics of Trust

    Trust takes form in the interaction of t

    (or more) people, and the dynamics of t

    interaction is illustrated in Figure 2.

    P's intention s &

    expectations

    Not

    trusting

    O

    iintrustwortliv

    P's belmvior

    Restricts information

    Resists

    influence

    Seeks

    to impose controls

    P's conclusion

    O\s behavior confiiTns

    P's expectation and

    justifiesP s lack of trust

    P s

    perceptir

    O s behavior seen as

    untiTJSting

    O's perception

    P's b(>havior seen as

    untrusting

    O's conclusion

    P's behavior confirms

    O's expectations and

    justifies O's lack of tiust

    O's behavior

    Restricts information

    Resists

    influence

    Seeks

    to impose controls

    O's intentions 6c

    expectations

    Not trusting

    P

    untnistwortlu '

    F I G U R E 2 . A M O D E L O F T H E I N T E R A C T I O N O F T W O P E R S O N S W I T H S I M I L A R I N T E N T I O N S A N D

    P E C T A T I O N S REGARDING TRUST

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    and PROBLEM SOLVINC 233

    t to control O. (3 ) Assume O also laeks trust, but this study did not focus on a tes

    (4 ) pereeiyes P s initial beh ayio r as of the spiral reinforcement mo del. Th e aim o

    ly untrusting, an d (5 ) concludes he this study was to examine the relation be

    righ t to expeet P to be untru stw orth y; twee n trus t and problem-solying effectiyenes

    6 ) he will feel justified in his mistrust as formu lated in the eigh t hypothese s,

    f P. Sinee (7 ) P sees O s beh avior as un - To test the hypotheses deriyed from the

    he (8 ) will b e confirmed in h is mo del, the research was designed so th at half

    tial expectation that O wo uld not be trust- of the experime ntal groups started work on a

    and (2) P will beh aye with less trust business-managem ent problem with a me nta

    wh en he entered . set toward low trust and half with a men ta

    The interaetion will eontinue around the set towa rd high trust. M ental set, as used

    indu cing O an d P to beh ay e with less here , ineludes intentions as to one s beh ayior

    ess trust un til they arriye at an e quilib- expectations as to the beha yior of others, feel

    um leyel of low tru st, eaeh atte m ptin g to ings such as anxiety^ or diseomfort, and cogni

    yuln erability and to maximize tiye frame used to interp ret eyents and form

    s control of the other. In the proeess the pereep tions. In this researeh trust was no

    eetiyeness of pro blem solying will dec rease , exam ined as a personalit)^ ya riab le; that is

    er interaetion has continu ed, each will an element of indiyidu al cha racter, bu t as an

    nd to hold more firmly to his entering indueed attitude, one that the indiyidua

    iefs. Th ey will no t hay e a reliable basis for eould alter in a situation in which he w as led

    or sharing inffuenee, an d the mu- to intend and to expect trust (or m istru st)

    resistan ce to inffuenee will arouse feel- from others as he atte m pte d to solye a

    s of frustration in both . If they hay e a problem . Beeause trust as a person ality trai

    hne , each wdll attem pt to impose con- was not releyant, and to ayoid alerting th e

    ols on the other. If P is O s organ izational subjects to the issue of trust, no prior me a

    or, he may com ma nd O s com pliance, sures we re taken of the subjects attitu de

    will reinforce O s mistrust. Usually, by tow ard trust.

    Subjects

    Because of their high potentia

    ll be lower than the initial leyel. for top man ageme nt, upp er-midd le m anagers

    Cib b (1964 ) offers supp ort for the dyn a- from all functions and pro du ct diyisions of a

    cs of this interaetion . In obserying small large, internation al electronics com pany we r

    beh ayior he noted th at the defensiye periodically seleeted by their superiors, afte

    f a listener genera ted cues whieh discussion with the corpo rate person nel staff

    ntly inereased t he defensiveness of to attend an off-site, four week, in-residence

    e comm unicator, resulting, if unehecked, in program in man agem ent developm ent given

    circular pa ttern of esealating defensiyeness. seyeral times a year tha t accep ted sixteen

    The p atte rn of spiral reinforcemen t illus- m anage rs at a time. Eig ht m anag ers in each

    ed in Figure 2 wou ld operate eonstrue- program, were randomly chosen to be sub

    yely if it is assumed tha t bo th P and O en- jeets and distribu ted into two problem

    the relationsh ip with trust in the other, solying groups, each with four m em bers. Th

    b (1964) obseryed that wh en defensiye- remaining eight m anagers were obseryers

    ss was reduce d, memb ers were better able eaeh was randomly assigned to a group with

    o eoncen trate on the content and me aning of four m embers and each group ob seryed on

    message, beeam e more problem o riented, problem-solying group. Da ta were gathered

    w ere less eonc erned abo ut imposing con- in eight program s proyid ing a total of sixty

    ols on each other s behay ior. four subjeets in sixteen prob lem-solying

    groups and fifty-nine obseryers (fiye pro

    M THO

    grams were short one manager) in sixtee

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    234 ADMINISTRATIVE SCIENCE QUARTERLY

    ment, which was designed asalearning event to resign. Furth erm ore, he wastold t

    embeddedinthe program . expansion wasnot feasible becauseitwo

    Problem Thecentral problems involved redu ce short-term profits, take more tha

    (1) developingastrategy toincrease short- yeartobuildandstartupa new plant,a

    term profits without undermining long-term theboard wasnot likely toapproveth

    growth

    of a

    medium-sized electronics com- nancing,

    so as a

    first step toward increas

    pany with very lowreturn on inve stme nt, profits,he would haveto announce his d

    ou tda ted ma nufa cturing facilities, w hose sion against expansion. Thevice preside

    labor force hadbeen cut 25percent and ha d no know ledge of the president's dilem

    whosetopmanagem ent personnelhadbeen when they started their thirty-minute pr

    changed andreorganized twoyears before, lem-solving m eeting.

    and 2) obtaining commitment to implement

    Induction

    of

    conditions

    of

    trust

    The ind

    such a program despite strong man agerial tion of thetwolevels of trust wasacc

    disappointment because expectations ofim- plishedbyoperatingonthe following en

    mediate investment forexpansion andmod- ing beliefs of subjects: 1) the

    emization would not be met. The situation,a competence of others, 2) norms onin

    variation

    of

    one

    described

    by

    Maier

    et al

    ducing information and new ideas,

    3)

    no

    (1959),

    involved four executive roles: presi- onattem ptstoinfluence ma nag ers outsid

    dent and vice presidentsforma rketing , man - one's prim ary responsibility, 4) likelih

    ufacturing , and personn el. Subjects we re ran- tha t others w ould abuse trusting behav

    domly assigned totheroles. and 5)competitivenessorcollaborativen

    Procedure All subjects and observers were forrewards.

    givenawTitten descriptionofthe production. Inahigh-trust group,a manager's ente

    marketing, financial,

    and

    perso nne l difficul- m en tal

    set

    toward trust w as shaped

    by

    tiesofthe company. following para grap h, which followed

    In thepresenceoftheobservers, subjects factual information inthe role statemen

    were told they were

    to

    conduct

    a

    m ee ting you have learned from your experiences du

    lasting thirty minutesmthe president

    oihce ^^e past two years that you can trust tbe

    to mak e app ropriate ma nagem ent decisions, membersoftop management. You and the o

    Ostensibly, they w^ereto dem onstrate their topmanagers openly express your differe

    decision-making competence tothe ir fellow andyour feelings ofencouragement or of

    managers,theobservers. appointment. You andtheothers shareall

    Each subject was then givenanad di tiona l vant information andfreely explore ideas

    w ritten statem ent with factual and attitud inal feelings that maybe in oroutof your def

    information relevanttohis function. He had responsibil^y. The resulthasbeena high l

    1 1 J r .1 1 r . of give and take and mutual coniidence m

    no knowledgeortherole lnrorm ation given , , _ j V-T,.

    4U

    u- .. T-u

    u ^

    i. 1 J

    others support

    and

    ability,

    to other subjects. The subjects privately read

    ^

    and absorbed this problem information

    for

    Subjects

    in

    low-trust groupshad

    a

    sim

    twenty-five minutessothere wouldbemini- paragraph in their role information,

    mal needtorefertoitduring the meeting. worded to induceadecreaseintrust.

    Treatments Subjects were randomly as- The reward system wasoperated o

    signed tooneoftwogroup conditions: an information placed only in the presid

    entering mental set toward highorlow trust, statement. In thehigh-trust condition,

    The factual data about production, market- president wasled to see hisrelation t

    ing, finance,and so onwas identicalinboth vice presidents as collaborative. His

    conditions,and allvice presidents we re led statem ent said that although the Bo

    to expect tha t the president wou ld annou nce decision considered

    you

    specifically, s

    approvalof a long-stu died plan t expansion, y^ou app ointed thecurrent topmanagem

    In both conditions the presiden t's state- team it is likely that the Board willgo

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    Zand:PROBLEM SOLVING 235

    as potentially competitive. His role in Table 1, with the chi-square value for each

    said that since the board's ultima- item.

    m pertained to him, it was possible that The subjects' rating of level of trust con

    might appoint one of the vice presidents firms that the induction of high and low trus

    his successor. The vice presidents in both was successful (

    p

    < .001) after one-half hou

    ditions were given no information about of problem discussion. This result, although

    on to the president was not a direet test of the spiral reinforcemen

    competitive or collaborative. model, does offer support for it.

    All subjeets were told that "whenever in- Since the observers used only their per

    ation is incomplete, introduce whatever sonal standards for their ratings, it is note

    ets and experiences seem reasonable under worthy that they had little difficulty recog

    circumstances." nizing the behavior indicative of low or high

    Observers.

    In addition to reading the writ- ^

    P ^

    , ,. ,

    general description of the company's ^he hypotheses about differences between

    s, before observing the problem- groups with high or low trust were confinned

    the

    observers were told

    of

    ^>\*^^f ,^P ^ t

    ft^^ ^^

    o^^ ^'

    m^

    for seeking P

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    ADMINISTRATIVE SCIENCE QUARTERLY

    TA BL E 1. FREQ UEN CY OF RESPONSE TO EACH ITE M BY SUBJECTS AND OBSERVERS UNDER

    HIGH TRUST AND LOW TRUST WITH CHI-SQUARE VALUES FOR DIFFERENCES

    1.

    2 .

    3 .

    4.

    5.

    6.

    Y_

    8.

    9.

    Item

    Trust

    Openness about feelings

    Clarification of

    problems and goals

    Search

    Influence

    Satisfaction

    Motivation to imple-

    ment conclusions

    Closeness as a team

    Desire to take a job

    in another company

    * p < .001 for all X values

    p < .001 for all X- values

    Subjects

    Condition

    High

    Response trust

    Much

    Little

    Much

    Little

    Much

    Little

    Much

    Little

    Much

    Little

    Much

    Little

    Much

    Little

    Much

    Little

    Much

    Little

    in this

    in this

    30

    2

    31

    1

    24

    8

    21

    11

    29

    3

    28

    4

    30

    2

    27

    5

    8

    24

    Low

    trust

    9

    23

    15

    17

    10

    22

    6

    26

    6

    26

    2 5

    10

    22

    9

    23

    22

    10

    column,

    column except item 2 for

    28.1

    26.4

    10.8

    13.8

    30.8

    25.6

    26.6

    19.1

    10.8

    which p