Trust in the employer: the role of high-involvement work practices and procedural justice in European organizations

Despite the central role of trust in the organizational sciences, we know little about what makes people trust the organizations they work for. This paper examines the antecedents of employees' trust in their organizations drawing on survey data from over 600 European professional workers and managers. The results revealed direct as well as indirect relationships of both human resource (HR) practices and procedural justice with trust. The relationships of both HR practices and procedural justice with trust were partially mediated by perceptions of organizational trustworthiness (in terms of perceived ability and trustworthy intentions of the organization). Justice and HR practices were also found to interact such that justice forms a stronger predictor of trust in organizations when HR practices are less developed. In addition, employees' dispositional propensity to trust explained significant variance in employee trust in their organization, even when it was controlled in our analysis. The implications of these findings for research and practice are discussed.

[1]  Steven L. Blader,et al.  Identity and Cooperative Behavior in Groups , 2001 .

[2]  J. Barney,et al.  Trustworthiness as a Source of Competitive Advantage , 1994 .

[3]  A. Abdel-Khalek Measuring happiness with a single-item scale , 2006 .

[4]  D. D. Hartog,et al.  Performance management: A model and research agenda , 2004 .

[5]  G. Dietz,et al.  Commonalities and contradictions in HRM and performance research , 2005 .

[6]  J. H. Davis,et al.  An Integrative Model of Organizational Trust: Past, Present, and Future , 2007 .

[7]  Hettie A. Richardson,et al.  The Impact of High Involvement Work Processes on Organizational Effectiveness , 1999 .

[8]  John E. Delery Issues of fit in strategic human resource management: Implications for research , 1998 .

[9]  J. Brockner Understanding the interaction between procedural and distributive justice: The role of trust. , 1996 .

[10]  Georg Simmel Soziologie: Untersuchungen Über Die Formen Der Vergesellschaftung , 2009 .

[11]  John Paul Macduffie Human Resource Bundles and Manufacturing Performance: Organizational Logic and Flexible Production Systems in the World Auto Industry , 1995 .

[12]  John E. Delery,et al.  Modes of theorizing in strategic human resource management: Tests of universalistic, contingency, and configurational performance predictions , 1996 .

[13]  J. Rossiter,et al.  The Predictive Validity of Multiple-Item versus Single-Item Measures of the Same Constructs , 2007 .

[14]  D. A. Kenny,et al.  The moderator-mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations. , 1986, Journal of personality and social psychology.

[15]  Sirkka L. Jarvenpaa,et al.  Communication and Trust in Global Virtual Teams , 1999, J. Comput. Mediat. Commun..

[16]  S. Grover,et al.  WHO APPRECIATES FAMILY‐RESPONSIVE HUMAN RESOURCE POLICIES: THE IMPACT OF FAMILY‐FRIENDLY POLICIES ON THE ORGANIZATIONAL ATTACHMENT OF PARENTS AND NON‐PARENTS , 1995 .

[17]  Casey Ichniowski,et al.  The Effects of Human Resource Management Practices on Productivity , 1995 .

[18]  G. Leventhal,et al.  The Distribution of Rewards and Resources in Groups and Organizations , 1976 .

[19]  Tom R. Tyler,et al.  Trust within organisations , 2003 .

[20]  Trudy Govier,et al.  Is It a Jungle Out There? Trust, Distrust and the Construction of Social Reality , 1994, Dialogue.

[21]  R. H. Waterman,et al.  Toward a career-resilient workforce , 1994 .

[22]  Dale E. Zand Trust and Managerial Problem Solving , 1972 .

[23]  Mark A. Huselid The Impact of Human Resource Management Practices on Turnover, Productivity, and Corporate Financial Performance , 1995 .

[24]  P. Sweeney,et al.  Distributive and procedural justice as predictors of satisfaction with personal and organizational outcomes. , 1992 .

[25]  D. Cremer,et al.  Perceived Support as a Mediator of the Relationship Between Justice and Trust , 2006 .

[26]  J. Cook,et al.  New work attitude measures of trust, organizational commitment and personal need non‐fulfilment , 1980 .

[27]  P. M. Podsakoff,et al.  Self-Reports in Organizational Research: Problems and Prospects , 1986 .

[28]  J. Wagner,et al.  Percept-Percept Inflation in Microorganizational Research: An Investigation of Prevalence and Effect , 1994 .

[29]  A. Giddens The consequences of modernity , 1990 .

[30]  Terry C. Blum,et al.  Work-family human resource bundles and perceived organizational performance , 2000 .

[31]  J. Lewis,et al.  Trust as a Social Reality , 1985 .

[32]  Donald E. Conlon,et al.  Justice at the millennium: a meta-analytic review of 25 years of organizational justice research. , 2001, The Journal of applied psychology.

[33]  David G. Carnevale,et al.  Trust in the Public Sector , 1992 .

[34]  D. H. Mills The Logic and Limits of Trust , 1983 .

[35]  Brent A. Scott,et al.  Trust, trustworthiness, and trust propensity: a meta-analytic test of their unique relationships with risk taking and job performance. , 2007, The Journal of applied psychology.

[36]  J. Pfeffer,et al.  Putting people first for organizational success , 1999 .

[37]  Yehuda Baruch,et al.  The consequences of emerging HRM practices for employees' trust in their managers , 2004 .

[38]  Ellen M. Whitener,et al.  The impact of human resource activities on employee trust , 1997 .

[39]  Anne-Wil Harzing,et al.  Response rates in international mail surveys: Results of a 22-country study , 1997 .

[40]  J. P. Wanous,et al.  Overall job satisfaction: how good are single-item measures? , 1997, The Journal of applied psychology.

[41]  Roderick M. Kramer,et al.  Trust and distrust in organizations: emerging perspectives, enduring questions. , 1999, Annual review of psychology.

[42]  J. Gould-Williams The importance of HR practices and workplace trust in achieving superior performance: A study of public-sector organizations , 2003 .

[43]  D. Ferrin,et al.  Trust in leadership: meta-analytic findings and implications for research and practice. , 2002, The Journal of applied psychology.

[44]  K. Legge Human Resource Management: Rhetorics and Realities , 1995 .

[45]  Kathleen Boies,et al.  Antecedents Of Trust: Establishing A Boundary Condition For The Relation Between Propensity To Trust And Intention To Trust , 2005 .

[46]  D. Bowen,et al.  Understanding HRM–Firm Performance Linkages: The Role of the “Strength” of the HRM System , 2004 .

[47]  D. Ferrin,et al.  The Role of Trust in Organizational Settings , 2001 .

[48]  E. Lind Fairness heuristic theory: Justice judgments as pivotal cognitions in organizational relations. , 2001 .

[49]  D. Rousseau,et al.  Guest editors' overview: Psychological contracts and human resource practices , 1994 .

[50]  Rosemary L. Batt,et al.  MANAGING CUSTOMER SERVICES: HUMAN RESOURCE PRACTICES, QUIT RATES, AND SALES GROWTH , 2002 .

[51]  S. Tzafrir The relationship between trust, HRM practices and firm performance , 2005 .

[52]  M. Konovsky,et al.  Citizenship behavior and social exchange. , 1994, Academy of Management journal. Academy of Management.

[53]  Paul E. Spector,et al.  The Role of Justice in Organizations: A Meta-Analysis , 2001 .

[54]  M. Korsgaard,et al.  Trust in the face of conflict: the role of managerial trustworthy behavior and organizational context. , 2002, The Journal of applied psychology.

[55]  David G. Carnevale Trustworthy government : leadership and management strategies for building trust and high performance , 1995 .

[56]  Adams Js Towards an understanding of inequity , 1963 .

[57]  L. Porter,et al.  Alternative Approaches to the Employee-Organization Relationship: Does Investment in Employees Pay Off? , 1997 .

[58]  J. H. Davis,et al.  The effect of the performance appraisal system on trust for management: A field quasi-experiment. , 1999 .

[59]  Colin Camerer,et al.  Not So Different After All: A Cross-Discipline View Of Trust , 1998 .

[60]  Charles J. Kacmar,et al.  Developing and Validating Trust Measures for e-Commerce: An Integrative Typology , 2002, Inf. Syst. Res..

[61]  R. Bies Interactional justice : communication criteria of fairness , 1986 .

[62]  J. S. Adams,et al.  TOWARD AN UNDERSTANDING OF INEQUITY. , 1963, Journal of abnormal psychology.

[63]  Freda Kemp Applied Multiple Regression/Correlation Analysis for the Behavioral Sciences , 2003 .

[64]  D. Guest Human Resource Management, Corporate Performance and Employee Wellbeing: Building the Worker into HRM , 2002 .

[65]  S. Robinson Trust and Breach of the Psychological Contract , 1996 .

[66]  M. Nagy Using a single-item approach to measure facet job satisfaction , 2002 .

[67]  Jeffrey B. Arthur,et al.  Effects of human resource systems on manufacturing performance and turnover , 1994 .

[68]  D. Skinner,et al.  Policies, promises and trust: improving working lives in the National Health Service , 2004 .

[69]  H. W. Kee,et al.  Conceptual and methodological considerations in the study of trust and suspicion , 1970 .

[70]  John K. Butler Toward Understanding and Measuring Conditions of Trust: Evolution of a Conditions of Trust Inventory , 1991 .

[71]  Yuen J. Huo,et al.  Trust in the Law , 2002 .

[72]  John O. Whitney,et al.  The Trust Factor: Liberating Profits And Restoring Corporate Vitality , 1994 .

[73]  M. Sobel Asymptotic Confidence Intervals for Indirect Effects in Structural Equation Models , 1982 .

[74]  N. Gillespie,et al.  Trust Repair After An Organization-Level Failure , 2009 .

[75]  R. Bies,et al.  Beyond distrust: "Getting even" and the need for revenge. , 1996 .

[76]  R. H. Moorman,et al.  JUSTICE AS A MEDIATOR OF THE RELATIONSHIP BETWEEN METHODS OF MONITORING AND ORGANIZATIONAL CITIZENSHIP BEHAVIOR , 1993 .

[77]  J. H. Davis,et al.  An Integrative Model Of Organizational Trust , 1995 .

[78]  L. Zucker Production of trust: Institutional sources of economic structure, 1840–1920. , 1986 .

[79]  Adrian Thornhill,et al.  Trust and mistrust in organizations: An exploration using an organizational justice framework , 2004 .

[80]  B. Nooteboom,et al.  Effects of trust and governance on relational risk. , 1997 .

[81]  R. Folger,et al.  Effects of Procedural and Distributive Justice on Reactions to Pay Raise Decisions , 1989 .

[82]  A. Zaheer,et al.  Does Trust Matter? Exploring the Effectsof Interorganizational and Interpersonaltrust on Performance , 1998 .

[83]  Richard A. Guzzo,et al.  Human resource practices as communications and the psychological contract , 1994 .

[84]  J. Rotter Interpersonal trust, trustworthiness, and gullibility. , 1980 .

[85]  R. Whitley Taking Firms Seriously as Economic Actors: Towards a Sociology of Firm Behaviour , 1987 .

[86]  Amy L. Pablo,et al.  Reconceptualizing the Determinants of Risk Behavior , 1992 .

[87]  R. Cummins On the trail of the gold standard for subjective well-being , 1995 .

[88]  D. Skinner,et al.  Policies, promises and trust: Improving working lives in the NHS , 2004 .

[89]  Christopher S. Mabey,et al.  HRM Practices and Employee Commitment: Possibilities, Pitfalls and Paradoxes , 1990 .

[90]  J. Child,et al.  Repairing the Breach of Trust in Corporate Governance , 2004 .

[91]  C. Johnson-George,et al.  Measurement of specific interpersonal trust: Construction and validation of a scale to assess trust in a specific other. , 1982 .

[92]  J. Darley,et al.  Trust in Organizations: Frontiers of Theory and Research , 1998, Business Ethics Quarterly.

[93]  R. Mayer,et al.  IN MANAGEMENT , 2006 .

[94]  D. Rousseau,et al.  Violating the psychological contract: Not the exception but the norm , 1994 .

[95]  Guido Möllering,et al.  Trust: Reason, Routine, Reflexivity , 2006 .

[96]  Larry E. Toothaker,et al.  Multiple Regression: Testing and Interpreting Interactions , 1991 .

[97]  J. March,et al.  Managerial perspectives on risk and risk taking , 1987 .

[98]  R. Payne,et al.  Dispositional and situational determinants of trust in two types of managers , 2003 .

[99]  Blair H. Sheppard,et al.  Equity, equality, and need: Three faces of social justice. , 1995 .