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Trust or not: Heuristics for making trust-based choices in HR management

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  • Hu, Zhan
  • Wang, X.T.

Abstract

The present two studies examine how the participants (i.e., 150 managers) make trust-based employee selection in hypothetical situations, based on five cues of trustworthiness derived from previous surveys. In Study 1, each executive participant is presented with a pair of candidates with different cue profiles so that the choice would favor one of them based upon each of the four following heuristics: Franklin's rule, likelihood expectancy, take-the-best (TTB), and minimum requirement (MR). Study 2 adopting a within-subject design jointly compares the four heuristics. The results show that simple heuristics (MR and TTB) outperform the more complex strategies (Franklin's rule and likelihood expectancy) in their predictive accuracy. The MR heuristic, a heuristic tallying the frequency of passes against a set of minimal rather than optimal or satisfactory requirements, performs even better than the TTB heuristic, particularly when the number of the cues identified as MRs is small.

Suggested Citation

  • Hu, Zhan & Wang, X.T., 2014. "Trust or not: Heuristics for making trust-based choices in HR management," Journal of Business Research, Elsevier, vol. 67(8), pages 1710-1716.
    • Handle: RePEc:eee:jbrese:v:67:y:2014:i:8:p:1710-1716
    DOI: 10.1016/j.jbusres.2014.02.017
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    References listed on IDEAS

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    1. Jiing-Lih Farh & Anne S. Tsui & Katherine Xin & Bor-Shiuan Cheng, 1998. "The Influence of Relational Demography and Guanxi: The Chinese Case," Organization Science, INFORMS, vol. 9(4), pages 471-488, August.
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    Cited by:

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    3. Mahmood B. Ridha, 2015. "The Role of Heuristic Methods as a Decision-Making Tool in Aggregate Production Planning," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 6(2), pages 68-76, March.
    4. Ogbonnaya, Chidiebere & Dhir, Amandeep & Maxwell-Cole, Alexander & Gorny, Tomasz, 2022. "Cost-cutting actions, employment relations and workplace grievances: Lessons from the 2008 financial crisis," Journal of Business Research, Elsevier, vol. 152(C), pages 265-275.
    5. Reza Kheirandish & Shabnam Mousavi, 2018. "Herbert Simon, innovation, and heuristics," Mind & Society: Cognitive Studies in Economics and Social Sciences, Springer;Fondazione Rosselli, vol. 17(1), pages 97-109, November.
    6. Allen, Mathew R. & George, Bradley A. & Davis, James H., 2018. "A model for the role of trust in firm level performance: The case of family businesses," Journal of Business Research, Elsevier, vol. 84(C), pages 34-45.
    7. Loock, Moritz & Hinnen, Gieri, 2015. "Heuristics in organizations: A review and a research agenda," Journal of Business Research, Elsevier, vol. 68(9), pages 2027-2036.

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