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Trust and Organizational Rumor Transmission

Rumor psychology: Social and organizational approaches.

Abstract
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This study examines the relationship between trust and rumor transmission within an organizational context. Drawing from a longitudinal investigation of a company facing downsizing, the researchers analyze how varying levels of trust affect the spread of rumors. Findings indicate that distrust is strongly associated with increased rumor activity, suggesting that trust plays a significant role in influencing how individuals communicate and interpret information within organizations.

Key takeaways

  • In chapter 2 (this volume) we introduced this study and reported the correlates of hearing rumors; in this chapter we address a different question: "How does trust in the organization affect rumor transmission?"
  • In regard to the moderating effect, low levels of trust may lead to much rumor transmission regardless of uncertainty and anxiety; under high levels of trust, however, uncertainty and anxiety should predict transmission.
  • We specifically addressed the following questions: What are the main effects of uncertainty, anxiety, and trust on LOT?
  • Trust during one time period also moderated the relationships between anxiety from the same time period and both current and future rumor transmission.
  • When trust in the company is low, employees may be especially prone to engage in rumor discussions regardless of their levels of uncertainty or anxiety; when trust is high, such rumor discussions are necessary only under conditions of high uncertainty or anxiety.