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INTRODUCTION
The significance of trust within organizations has been expressed by both researchers and practitioners. Drawing a consensus from the available literature, Cook and Wall (1980:39) conclude that "trust between individuals and groups within organizations is a highly important ingredient in the long term stability of the organization and the well being of its members." The significance of this variable in noted by organizational theorists like Argyris (1973), McGregor (1967), and Likert (1967) who see the development of mutual trust, confidence, and interaction as the integrative force in organizations (Dwivedi, 1983). Renewed interest in the concept of trust in organizations has come from the recent trend in the United States from control to commitment strategies of management (Walton, 1985).
Claims for the significance of trust within organizations have been voiced by organization consultants and practitioners of behavioral science. Organization consultants, Culbert and McDonough (1985) state:
In our "work as consultants, we see management spending more and more time promoting trust and emphasizing the importance of trusting relationships. To us this makes perfect sense, for we've long contended that the trusting relationship is the most effective management tool ever invented. We know of no other management device that saves more time or promotes more organizational effectiveness...In short, trusting relationships create the conditions for organizational success.
Another organization consultant, Gordon Shea (1984), claims that the less trust there is in a company, the less productive that company will be.
Management and human resource publications are scattered with organization success stories which state trust to be a central element. For example, in an 1983 Harvard Business Review article, Thomas Melohn credits North American Tool's substantial earning record to a carefully designed strategy of building trust between employees and owners.
Robert Rehder (1986) has described the remarkable turnaround of the General Motors plant in Freemont, California, which in 1982 had one of GM's worst labor relation climates as well as low productivity and quality records. The turnaround followed a joint venture agreement between Toyota and GM in which Toyota took over the management of the plant. Rehder states that the Japanese established corporate values with particular emphasis on trust. This emphasis on mutual trust has been credited with facilitating the establishment of a favorable labor-management climate.
Unfortunately, as with...