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What Is Trust And Evaluate Why Trust?

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Trust, is a belief in responsibility, truth, or ability of someone or something; it is also an acceptance in the truth even without evidence or investigation; and a state of being responsible for someone or something (Oxford Dictionary, 2017). Nowadays, trust is becoming more important as we live in a time that is full of uncertainty. However, trust in government and business has a breakdown in the result of the global financial crisis and the collapse of high profile banks, with the failure of government recue plan (Hope-Hailey et al, 2012). The CIPD Megatrends report published in 2013 in the UK claimed ‘ Trust in many organisations is weak – the latest survey findings show that just 29% of employees think trust in senior management is …show more content…

In short, direct reciprocity is “fair but weak”; but indirect is “strong but unfair”(Conell and Mannision, 2017), as if a seller on eBay refuse to lower the price in trader’s favour, trader could “punish” the seller by giving negative feedback, and this feedback can be seen publicly for other buyers before they engage biding (Bolton and Ockenfels).
Why trust is important
Robinson (1996) claimed trust is an important factor affecting employee’s behaviour, because trust in employer influence employee’s belief in the likelihood of employer’s future actions will be beneficial, agreeable, and not harmful to employee’s own interest (Alfes, Shantz, and Truss). Additionally, the psychological contract that focuses on the exchange of perceived promises and commitments has been increasingly in use in studying employment relationship. Herroit and Pemberton (1997) defined psychological contract as the perceptions of both organisation and individual relationship of the mutual promises and obligations implied in the relationship. Not only does the management of psychological contract face issues of the way to conceptualise and manage employment relation, it also influence organizational culture and climate (Guest and Conway, 2002), as Guest (1998) suggested organisational culture and climate of high involvement and partnership, HR

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