Trust development and sustainment between group members within midlevel organizational groups

The purpose of this dissertation was to examine the quick formation and sustainment of trust between group members within midlevel organizational groups to improve group performance, and to determine if a midlevel manager assigned to lead such groups can influence the quick trust development and sustainment among group members. An evidence-based research (EBR) approach was used to evaluate, synthesize and integrate known scholarship into the dissertation, in order to respond to the dissertation’s research questions. A conceptual framework was proffered that depicts how trust is rapidly formed and sustained within groups. It was found that trust improves group performance. Within organizations, midlevel groups become the collective bodies, facilitated by midlevel managers, where cooperative behavior and the engagement of members leads to improved group performance, heightened productivity and organizational success. The rapid formation and sustainment of trust within groups isRunning head: DEVELOPMENT AND SUSTAINMENT OF TRUST IN GROUPS Trust Development and Sustainment between Group Members within Midlevel Organizational Groups by John Berthold A Dissertation Submitted to the Graduate Faculty of University of Maryland University College in Partial Fulfillment of the Requirements for the Degree of Doctor of Management Doctoral Committee: Kathleen F. Edwards, Ph.D. James P. Gelatt, Ph.D. Leslie D. Dinauer, Ph.D. DEVELOPMENT AND SUSTAINMENT OF TRUST IN GROUPS 2 Abstract The purpose of this dissertation was to examine the quick formation and sustainment of trust between group members within midlevel organizational groups to improve group performance, and to determine if a midlevel manager assigned to lead such groups can influence the quick trust development and sustainment among group members. An evidence-based research (EBR) approach was used to evaluate, synthesize and integrate known scholarship into the dissertation, in order to respond to the dissertation’s research questions. A conceptual framework was proffered that depicts how trust is rapidly formed and sustained within groups. It was found that trust improves group performance. Within organizations, midlevel groups become the collective bodies, facilitated by midlevel managers, where cooperative behavior and the engagement of members leads to improved group performance, heightened productivity and organizational success. The rapid formation and sustainment of trust within groups is advantageous because trust improves group performance and its early formation can lead to increased group performance over time. Swift trust, a type of trust that is generally associated with the temporary environment, is proposed as the catalyst for the quick formation of trust within midlevel organizational groups. Swift trust also is sustainable in groups over time through the influences provided by the manager / facilitator Key Search Terms: Trust, Swift Trust, Trust Development, Trust Sustainment, Groups. DEVELOPMENT AND SUSTAINMENT OF TRUST IN GROUPS 3 Contents Chapter One: Introduction and Overview of Relevant Literature .................................................. 7 Statement and Significance of the Problem ................................................................................ 7 Purpose of the Dissertation ......................................................................................................... 8 Importance to Management ......................................................................................................... 8 Swift Trust ................................................................................................................................ 10 Manager / Facilitator ................................................................................................................. 10 Research Questions ................................................................................................................... 11 Definitions ................................................................................................................................ 11 Research Propositions ............................................................................................................... 13 Organization of the Dissertation ............................................................................................... 14 Chapter Two: Systematic Review of the Literature ...................................................................... 16 Purpose of the Dissertation and Research Questions ................................................................ 16 Chapter Organization ................................................................................................................ 16 Trust Formation and Sustainment ............................................................................................. 17 The Individual....................................................................................................................... 17 Collectivism and the Group Dynamic ................................................................................... 20 Group Formation ................................................................................................................... 25 Group Size ............................................................................................................................. 28 Dyadic Relationships in Groups ............................................................................................ 35 Quick Trust Formation in Groups ......................................................................................... 41 Trust Development and Sustainment in Groups .................................................................... 52 The Midlevel Manager and Midlevel Management .................................................................. 58 DEVELOPMENT AND SUSTAINMENT OF TRUST IN GROUPS 4 Selected Roles of Midlevel Managers ................................................................................... 59 The Manager as a Facilitator of Trust ................................................................................... 61 Theoretical Lens ........................................................................................................................ 68 Psychosocial Development Theory ....................................................................................... 68 Small Group Development Theory........................................................................................ 70 Research Propositions............................................................................................................ 71 Summary of Chapter Two ......................................................................................................... 72 Chapter Three: Conceptual Framework ........................................................................................ 74 Graphical Analysis and Synthesis ............................................................................................. 75 The Group Entity ................................................................................................................... 75 The Manager / Facilitator ...................................................................................................... 75 Group Size ............................................................................................................................. 76 The Individual Employees ..................................................................................................... 76 Dyad Relationships ................................................................................................................ 77 The Rapid Formation of Trust ............................................................................................... 77 The Role of the Manager / Facilitator in Trust Formation and Sustainment ......................... 79 Adjustments ........................................................................................................................... 80 Conceptual Model ..................................................................................................................... 81 Summary of Chapter Three ....................................................................................................... 83 Chapter Four: Methodology .......................................................................................................... 84 Introduction to the Methodology............................................................................................... 84 The Theory and Practice of Evidence-based Research ............................................................. 84 Information Overload ............................................................................................................ 85 DEVELOPMENT AND SUSTAINMENT OF TRUST IN GROUPS 5 Objectivity and Research Bias ............................................................................................... 86 Research Effectiveness and Applicability ............................................................................. 88 Evidence-based Research and Evidence-based Management ................................................... 88 Evidence-based Research Applied to This Dissertation ........................................................ 90 The Systematic Review Process ................................................................................................ 91 Weight of Evidence (WoE) ................................................................................................... 91 Stages of an Effective Systematic Review Process ............................................................... 92 The Systematic Review of the Literature Applied to This Dissertation ................................... 95 Discussion of the Systematic Review Process and This Dissertation ................................... 97 Expert Panel Review ............................................................................................................... 102 Input from Panel Members .................................................................................................. 103 Summary of Chapter Four ....................................................................................................... 103 Chapter Five: Analysis and Discussion ...................................................................................... 104 Purpose of the Dissertation ..................................................................................................... 104 Presentation, Summary, and Analysis of the Findings............................................................ 105 Dissertation Question 1 ....................................................................................................... 105 Dissertation Question 2 ....................................................................................................... 108 Conclusions ............................................................................................................................. 109 Alternative Perspectives .......................................................................................................... 110 Chapter Summary .................................................................................................................... 110 Chapter Six: Conclusions, Implications, and Trends .................................................................. 112 Overall Conclusions ................................................................................................................ 113 Implications for Management and Practitioner ....................................................................... 115 DEVELOPMENT AND SUSTAINMENT OF TRUST IN GROUPS 6 Implications of Emerging Trends ............................................................................................ 117 Limitations and Areas for Future Research............................................................................. 118 Limitations of the Literature ................................................................................................ 118 Areas for Future Research ................................................................................................... 119 Chapter Summary .................................................................................................................... 119 Appendix A: Sample Expert Panel Questionnaire ..................................................................... 121 Appendix B: Expert Panel Biographies ...................................................................................... 123 References .................................................................................................................................. 125 DEVELOPMENT AND SUSTAINMENT OF TRUST IN GROUPS 7 Chapter One: Introduction and Overview of Relevant Literature Statement and Significance of the Problem Organizations are social entities, goal directed and designed as deliberately structured and coordinated activity systems. Ultimately, since organizations are made up of people, the stability and success of any organization will depend largely on the people within that organization to collectively collaborate and interrelate at a group level in order to achieve the common organizational goals that will help the organization succeed. Midlevel management and midlevel working groups are critical components of organizational design (Mintzberg, 1979). The midlevel managers are the mediators between top management and the technical core, disseminating rules and information up and down the hierarchy of an organization. The midlevel managers are responsible for ensuring the proper implementation and coordination of activities at the working-group level of an organization. As such, the midlevel groups become the collective bodies, managed by the midlevel managers, where cooperative behavior and the engagement of their members lead to improved group performance, heightening productivity and organizational success. Trust is essential to the success of any organization or group since trust improves group performance and ultimately benefits the organization (Davis, Schoorman, Mayer, and Tan 2000). An understanding of how trust is formed and sustained within midlevel organizational groups is therefore important for organizational success. The lack of trust can lead to the disintegration of group cohesion and may cause organizations to fail (Creed & Miles, 1996). This means that the processes used by management are critical in determining how trust is formed and how trust is sustained within organizations and groups (Creed & Miles, 1996). As a result, the study of a manager’s role in influencing the rapid formation and sustainment of trust is also important, DEVELOPMENT AND SUSTAINMENT OF TRUST IN GROUPS 8 since a manager’s actions can facilitate or hinder the creation and continuation of trust within groups. Purpose of the Dissertation The purpose of this dissertation was to examine the quick formation and sustainment of trust between group members within midlevel organizational groups to improve group performance, and to determine if a midlevel manager assigned to lead such groups can influence the quick trust development and sustainment among group members. Importance to Management Trust is important at an organizational level and has been referred to as the “social glue” that binds organizations together (Atkinson & Butcher, 2003). Trust promotes individual creativity, improves productivity, and can reduce individual anxieties, for the betterment of both the organization and the individual. Creed and Miles (1996) placed the importance of trust into perspective by illuminating the consequences of trust failure in various organizational structures. According to Creed and Miles (1996), “in functional forms, trust failures reduce efficiency; in divisional forms, they reduce effectiveness and raise costs; in matrix forms, they cause the form to fail; and in networks, they cause the firms to fail” (p. 26). Trust also is important at a group level in organizations. Within the social context of an organization, the development of trust within a group leads to cooperative behavior within the group, a commitment towards achieving group objectives by its group members, and loyalty toward each other within the group (Tyler & Kramer, 1996). The formation of trust within a group, formed from the interdependence and collective perception of its members, is credited with improving individual creativity and productivity within groups (Goodman & Goodman, DEVELOPMENT AND SUSTAINMENT OF TRUST IN GROUPS 9 1976). Further, scholars suggest that the creation of an environment of trust at a group level is instrumental in overcoming individual issues of vulnerability, uncertainty, risk, or predetermined expectations in order to accomplish the goals of the group (Meyerson, Weick, & Kramer, 1996). The study of midlevel organizational groups also is important because midlevel groups are the working bodies within organizations where most organizational strategy is implemented (Raman, 2009) and where cooperative behavior and the collective engagement of group members leads to greater organizational productivity. The formation of trust in groups improves group performance and the positive effects of trust on group performance can be sustained over time (Jong &Elfring, 2010). Group performance is defined as “the extent to which the productive output of a team meets or exceeds the performance standards of those who review and/or receive the output” (Hackman, 1987, p. 323). The effects of trust on performance are likely to be more pronounced as time passes because long term groups tend to be more focused on interpersonal relationships, which increases the impact of trust on member interactions (Saunders &Ahuja, 2006).Over time, “we expect team performance to be positively affected by intra-team trust, because trust allows team members to interact with one another as if their uncertainty and vulnerability were favorably resolved” (Jong &Elfring, 2010, p. 536). As such, the earlier trust can be formed in an organizational group, the better groups will perform over time (Jong &Elfring, 2010) and “Swift trust,” which is normally associated with temporary groups, also can be used to promote and reinforce later trusting behaviors that lead to greater performance in all types of groups (Crisp & Jarvenpaa, 2013). DEVELOPMENT AND SUSTAINMENT OF TRUST IN GROUPS 10 Swift Trust Swift trust, as defined by Meyerson, Weick, and Kramer (1996), is a type of trust that is generally created in temporary groups, where a unique form of collective perception develops, capable of managing vulnerability, uncertainty, risk, and expectations within a group to accomplish group goals. Although swift trust is generally associated with temporary teams or groups, this is not always the case. Theorists have demonstrated that the early trusting beliefs established by swift trust are extendable beyond the temporary environment and can lay the foundations for later trusting behaviors within all groups. Crisp and Jarvenpaa (2013) demonstrated that swift trust, as a temporary condition, can be sustained over time through member reinforcement, group interaction, and reinforcements supplied by the actions of the manager / facilitator and the authors also suggested that trust sustainment behaviors can be seen in longer term groups, as well. Manager / Facilitator The midlevel manager assigned to lead a group plays a central role in determining how trust is formed and sustained. The manager establishes expectations for the group, assigns tasks, and defines goals. The manager controls the flow of information and becomes the focal point for the sharing of information between group members and the outside entities (Creed & Miles, 1996). Individual group member decisions about whether to cooperate with a newly appointed manager or to trust others within a group are based on individual perceptions and estimates of the probability that the newly assigned manager will reciprocate their cooperation (Hardin, 2006). Other authors, such as Goodman and Goodman (1976), demonstrate the power of the manager as a facilitator or hinderer of individual professional growth in organizational groups. Additionally, Bradach and Eccles (1989) suggest that trust can also be used as a mechanism or tool of DEVELOPMENT AND SUSTAINMENT OF TRUST IN GROUPS 11 organizational control. Thus, an understanding of how trust is formed and sustained within groups becomes a critical attribute for any manager assigned to lead a midlevel organizational group. Research Questions 1. How can trust be formed quickly and then sustained among group members within midlevel organizational groups in order to improve group performance? 2. Can the midlevel manager influence the quick development and sustainment of trust among group members? Definitions Of the literature reviewed to date for this dissertation, it has been noted that different authors use different phraseology and definitions when referring to trust, teams and groups. Thus, a review of the literature has provided the definitions below, which this dissertation author will use in answering the research questions. 1. Calculus-based trust is a type of trust based on deterrence, developed because each party fears the consequences of not doing what the other party says he or she will do. Consequently, this form of trust assures a consistency of behavior between parties (Lewicki & Bunker, 1996). 2. Category-base