Trust relations in management of change

Trust is essential for the success of change, but transformational change challenges trust. This paper analyses how trust dynamics develop over time in two Danish manufacturing firms affected by major change programmes. The results show that change creates uncertainty among employees, thereby provoking intense scrutiny of management intentions and a tendency to make interpretations that exaggerate management intentions—with the end result of reduced trust. Management then react similarly with negative interpretations of employee reactions, creating a vicious cycle of reduced trust. The paper proposes a model for how change and trust interact and suggests a managerial strategy for trust repair: Strong management actions that symbolise integrity, competence and benevolence may counteract reduced trust, but if low trust turns into distrust, the result may be a deadlock that both parties find difficult to break.

► Two case studies illustrate trust dynamics during transformational change.
► Change challenge trust, which jeopardize possibilities for reaching intended goals.
► Uncertainty provokes intense scrutiny of management intentions and can reduce trust.
► If low trust turns into distrust, the result is a vicious circle difficult to break.
► Strong actions symbolising integrity, competence and benevolence may repair trust.