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Trust in financial institutions has been eroded through the collapse of mortgage-related securities, with confidence further denuded through well publicized cases of rogue traders and rate fixing cases, such as with the Lehman brothers, the Libor rate-fixing scandals, and the hypo real estate breakdown. In response to these events, governments have introduced a range of distinct policy initiatives designed to restore trust in this sector. Thus, the question arises: are these regulations and control mechanisms sufficient in isolation, or are there other elements that this sector needs to pay attention to in efforts to build and sustain customers’ trust? The paper aims to discuss these issues.

There is a compelling agenda for both financial organizations and academics to understand better organizational trust in this context especially the role and impact of regulatory mechanisms in its development and repair. The paper therefore examines the special facets of the financial services sector in comparison to other sectors, such as manufacturing, to consider whether trust is fundamentally different in this context than others, and thus address how far there are special challenges concerning trust and the banking industry. The paper analyses, by using a meta-analytical design, 93 studies (N=38,631), of which 20 empirically investigate organizational trust in the financial sector with a combined N of 11,224 respondents.

The paper shows that the banking sector is heavily affected by two distinct forces: first, customers’ perception of an organization's level of compliance and conformity with laws and regulations is a necessity for banks’ sociopolitical legitimization, and second it is also related to how non-compliance is dealt with. Importantly, this meta-analysis indicates that regulation is just one of a suite of devices that organizations need to deploy in their efforts to restore trust. The paper identified two further elements of significance: customers require direct evidence, derived either from their own or others’ satisfaction with the goods or services provided, and customers do take note of the external endorsement of the firm, especially in Asia, where customers place huge emphasis on the firm's reputation.

First, meta-analysis is inherently reliant on the earlier studies and therefore retains their weaknesses. Some of the relationships included self-report variables collected at the same point in time and therefore may be inflated by common method bias. Second, due to the focus and because of the limited number of studies in this sector, and a paucity of attention on some key topics, such as perceptions of regulation, second-order sampling error may also be a limitation. Third, some relationships were not investigated frequently enough in studies to enable us to include them in the review, such as cooperation, opportunistic behaviour or quality. Finally, despite calls for trust scholars to include propensity to trust measures within their studies, many of these studies do not include this measure and therefore it is more difficult to identify and control individual difference factors.

The results show the merit of multi-strand trust development strategies. There is a striking paucity of financial institutions, which have examined how far their trust deficit may be related to their internal culture, and whether recent corporate corruption could be the product of bonuses and the internal short-term individualized reward systems. The analysis reveals that although external regulations and controls are an effective and powerful devise for organizational trust, over the last two periods of significant crisis, their impact appears to be warning; Yet reassuring customers of their expectations of the other party's future behaviour is central to trust. Alternative remedies need to be considered, such as the establishment of a more effective regulator, or board of governors who oversee and assure compliance. Monitoring and surveillance offer a further external means of reducing the possibility of future misbehaviours. However, as the analysis indicates, other strands are required to build trust, including greater attention by firms on customers’ direct experiences, which in turn would enhance the third part endorsement of their competence and goodwill intentions of organizations.

Significantly, the results indicate the potentially partial erosion of credence factors, and thus confidence, in this sector over the last 20 years, during what has been a period of repeated exposure to trust breaches. The paper shows that single strand solutions, such as improvements to customer communication, are no longer sufficient, nor, more importantly, do they have the same impact. Instead, the paper shows the necessity to utilize more effectively and target attention towards three distinct antecedents: external regulations and their enforcement; third party and expert endorsements, and therefore external reputations; and customer satisfaction in terms of the effective delivery of customer expectations.

Organizational trust has been shown as critical in positively affecting and repairing broken relationships through uncertainty reduction and confidence enhancement. In the past, different meta-analyses of trust have been undertaken, but this, to the authors knowledge, is the first meta-analytic study measuring trust on an organizational level in the context of the financial services sector and its regulatory environment. This meta-analysis indicates that regulation is just one of a suite of devices that organizations need to deploy in their efforts to restore trust. The paper identified two further elements: customers require direct evidence, and do take note of the external endorsement of the firm.

To outline changes in selection attraction, search and assessment processes and examine and compare, using a surveillance perspective, the privacy and equity issues for applicants, organisations and testers.

The paper begins by reviewing briefly the role of surveillance and identifying the key issues of privacy, control and purpose of data collection and dissemination in an HR context. Through reviewing recent publications (1998‐2004) contrasts are made between earlier and new processes in applicant attraction, search and assessment. The impact of these potential changes on privacy and equity is then examined for three stakeholders: applicants, organisations, and testers.

Identifies the potential for misuse of data through these systems and the possibility of the perpetuation of discrimination for traditional marginalised groups. Raises the increased power brought about through such processes for organisations through data assemblage and for testers via increased control of their tools.

Calls for more critical work to examine the impact of new attraction, search and assessment practices on applicants to reveal whether the improved equity of access new technology affords is translated into increased equity of participation.

A very useful source of information about current processes and concerns they raise. Outlines future research agendas in these three areas.

This paper updates one's understanding of current practice and reveals genuine concerns about the potential applications of surveillance techniques within an HR context.

This paper explores the development and maintenance of trust and distrust in an organization undergoing a merger. Using a longitudinal study we examined the sense‐making of retained staff by comparing two sets of in‐depth interviews with six survivors and detailed field notes. Four central themes were identified revealing differences between trust and distrust. The themes included: the importance of perceived changes to the psychological contract, organizational justice, reputations of individuals and risk management. By analysing the sense‐making the need for congruence between what was done and how it was done was revealed. As distrust grew staff balanced this disequilibrium through their trust in the familiar, however, this finding calls into question the role of rationality as the basis for risk management. We discuss the implications of these findings for the successful management of mergers.

Adverse cyber events, like death and taxes, have become inevitable. They are an increasingly common feature of organisational life. Their aftermaths are a critical and under-examined context and dynamic space within which to examine trust. In this paper, we address this deficit.

Drawing on pertinent theory and reports of empirical studies, we outline the basis of two alternative subsequent trajectories, drawing out the relationships between trust, vulnerability and emotion, both positive and negative, in the aftermath of an adverse cyber event.

We combine stage theory and social information processing theories to delineate the dynamics of trust processes and their multilevel trajectories during adverse cyber event aftermaths. We consider two response trajectories to chart the way vulnerability arises at different levels within these social systems to create self-reinforcing trust and distrust spirals. These ripple out to impact multiple levels of the organisation by either amplifying or relieving vulnerability.

The way adverse cyber events aftermaths are managed has immediate and long-term consequences for organisational stakeholders. Actions impact resilience and the ability to preserve the social fabric of the organisations. Subsequent trajectories can be “negative” or “positive”. The “negative” trajectory is characterised by efforts to identify and punish the employee whose actions facilitated the adverse events, i.e. the “who”. Public scapegoating might follow thereby amplifying perceived vulnerability and reducing trust across the board. By contrast, the “positive” trajectory relieves perceived vulnerability by focusing on, and correcting, situational causatives. Here, the focus is on the “what” and “why” of the event.

We raise the importance of responding in a constructive way to adverse cyber events.

The aftermaths of cyber attacks in organisations are a critical, neglected context. We explore the interplay between trust and vulnerability and its implications for management “best practice”.

The purpose of this study was to investigate the role of grace in the aftermaths of adverse cybersecurity incidents. Adverse incidents are an inescapable fact of life in organizational settings; consequences could be significant and costly. Increasingly, the cause may be a cybersecurity exploit, such as a well-targeted phishing email. In the aftermath, line managers have a choice in responding to the individual who caused the incident. Negative emotions, such as shame and regret, may deliberately be weaponized. Alternatively, positive emotions, such as grace, forgiveness and mercy, may come into play.

We detail a study with 60 participants to explore attribution differences in response to adverse incidents, both non-cybersecurity and cybersecurity. We examined the stages that occur in the aftermath of such adverse incidents where grace may be observed.

Our participants generally believed that grace was indicated toward those who triggered an adverse cybersecurity incident, pointing to situational causes. This was in stark contrast to their responses to the non-cybersecurity incident, where the individual was often blamed, with punishment being advocated.

The role of positive emotions merits investigation in the cybersecurity context if we are to understand how best to manage the aftermaths of adverse cybersecurity incidents.

Organizations that mismanage aftermaths of adverse incidents by blaming, shaming and punishing those who make mistakes will harm the individual who made the mistake, other employees and the long-term health of their organization in the long run.

To the best of the authors’ knowledge, this is the first study to reveal the grace phenomenon in the cybersecurity context.

Using the concept of disconfirming communication to define interpersonal mistreatment, the purpose of this paper is to explore the impact of specific negative managerial communication behaviors on employee emotions, while taking into account both leader-member exchange (LMX) and employee trait negative affect (NA).

In all, 275 working adults completed surveys about their managers’ confirming and disconfirming communication and their own emotional responses to these communications.

The positive relationship between disconfirming managerial communication and employee negative felt emotion was reduced when LMX was high and was increased for employees with high trait NA personalities.

While the cross-sectional design exposes the study to potential common method bias, a priori and post hoc procedures minimized this risk, confirming it has a negligible impact on the results.

Study insights and the new instrument, the confirming/disconfirming managerial communication indicator can be used to train managers to be better communicators, thereby improving organizational effectiveness.

Drawing attention to the nature and emotional impact of disconfirming managerial communication may reduce its occurrence and lead to improved employee mental health with resultant positive effects for society.

Unlike previous studies of interpersonal mistreatment and managerial communication, the authors focus explicitly on the effect on employee emotion and explore confirming and disconfirming communication, and the moderating roles of LMX and trait NA.

The present study purports to unravel the mechanism in relationship among leadership behaviour integrity, organisational career development and employee engagement. Further, it also aims to understand if the employee feedback self-efficacy has any moderating influence on the relationship between leader behavioural integrity and organisational career development.

Pre-existing questionnaires are used for collecting data from a total of 417 employees working in the information technology industry operating within India. Analysis of the data is done using structural equation modelling technique.

Results of the study show that organisational career development partially mediates the relationship between leadership behavioural integrity and employee engagement. It is also found that feedback self-efficacy plays a moderating role in the relationship between leadership behavioural integrity and organisational career development.

The study helps to understand the mechanism of the relationship between leadership behavioural integrity and employee engagement through organisational career development with the support of ethical theory and social exchange theory. It also shows the moderating role played by feedback self-efficacy in the relationship between leadership behavioural integrity and organisational career development using social learning perspective.

Interpersonal trust is often considered as the “glue” that binds supervisors together with their subordinates, and creates a positive organisational climate. The purpose of this paper is to investigate factors affecting subordinates’ trust to their supervisor, and the consequences of such a trusting relationship.

The authors conducted a qualitative meta-analysis of the trust literature between 1995 and 2011, to identify 73 articles and review 37 theoretical propositions, 139 significant model parameters and 58 further empirical findings.

Four distinct clusters of trust antecedents are found: supervisor attributes; subordinate attributes; interpersonal processes and organisational characteristics. Similarly, the authors identify three categories of trust consequences: subordinates’ work behaviour; subordinates’ attitude towards the supervisor; and organisational level effects.

The authors find a bias towards studying supervisor attributes and interpersonal processes, yet a dearth of attention on subordinate attributes and organisational characteristics. Similarly, the conceptual attention on trust between supervisors and subordinates has been limited, with empirical work reporting predominantly significant findings. Social exchange has dominated as the theoretical perspective, and cross-section as the main research approach. In order to advance this important field more heterogeneity is needed, utilising a range of different theoretical schools and employing different methodologies.

This seems to be the first qualitative meta-analysis explicitly directed to understanding trust between supervisors and subordinates. The authors contribute to the field of trust by revealing current gaps in the literature and highlighting potential areas of future research.

Major demographic trends are affecting the work schedules of U.S. employees with likely consequences for health and quality-of-life outcomes. These trends include long work hours, at least for some groups of employees, and an increasing proportion of employees in the U.S. and other countries who are working nonstandard work schedules. This chapter contains a review of the empirical literature linking the number of hours worked and the distribution of those hours at the individual and couple level to a variety of outcomes, cross-sectionally and longitudinally. In addition, because the majority of U.S. workers live in dyads (Jacobs & Gerson (2004). The time divide: Work, family and gender inequality. Cambridge, MA: Harvard University Press), major attention is given to the impact of work hours on the employee's spouse as well as on the employee. It is also noted that the relationship between work hours and outcomes might be different among employed single women with children. Data are presented from two new studies conducted by my research team to fill some of the critical knowledge gaps. Finally, I suggest some directions for future research.

This paper examines medical managers' beliefs about the impact reduced‐hour career paths for physicians has on organizational effectiveness. The findings of this exploratory inductive study of 17 medical managers at nine medical organizations in the Boston area suggest that managers believe the benefits of reduced‐hour physicians (RHPs) far outweigh the disadvantages. However, many of their reasons appear to be exploitative of RHPs. In particular, managers believe that employing RHPs results in increased managerial control and that RHPs should: work more than they are compensated for; do a disproportionate share of the undesirable work; and remain extra flexible and available to the organization. An interpretation of the findings based on psychological contract theory is offered, and may help to illuminate other results reported in the literature, including some controversial findings that reduced‐hour workers tend to have poor health outcomes.