A company's profit booms when it has loyal and trustful employees and leadership of integrity. To succeed in today's competitive business scenario of diverse workforce, it is essential that employers take initiatives to establish and preserve trust among their employees. This is even more crucial in organizations where the trust is injured or eroded. In a nutshell, it is a prerequisite for a management that it constantly practices trust management and prioritizes trustworthiness in order to gain competitive advantage and profits through workforce performance excellence.

In the current business scenario of cut-throat market competition and transformation of organizations from the traditional bureaucratic type to more diverse, flexible, and informal one, building and maintaining trust has become an essential criterion for smooth and effective functioning of a business organization. This is even more important in team work/project-based organizations where the search for diverse talent is rapidly growing, e.g., software companies. Trust is the confidence or belief a person feels towards a particular person or group and in today's business there is an increased prerequisite to develop trust in an organization as business is built through fruitful relationships. Trust forms the strong base of such effective relationships.

Trust motivates workers to perform at their maximum potential and helps increase their loyalty and retention and corporate goal achievement that make the organizational actions beneficial to the employees (Kim and Mauborgne, 1993). Trust is developed through social exchange processes which facilitate the employees to perceive management actions and respond to them in different ways. Building workplace trust is imperative for an enduring, gratifying, rewarding and winning relationship. Example, Jack Welch of GE, Azim Premji of Wipro, and Narayan Murthy of Infosys are a few leaders who followed the principle of trust and integrity in their leadership which set them apart from others in the business world.

Employers providing a trusting environment in the workplace gain the employees' confidence in the credibility of their leadership, effective employee engagement, improved team work and cooperation. It leads to increased employee commitment and loyalty that results in competitive advantage for the organization in the marketplace and increased ROI. Employee trust, especially from diverse workforce, plays a major role in gaining organizational excellence. It helps to outperform competition in the marketplace through improved workforce performance, increased productivity and organizational profitability. Watson Wyatt's People at Work Survey has revealed that companies with highly-committed employees and high trust outperform companies of low-commitment by 200%. Hence, building and nurturing trust between the employees and the management/leaders is an indispensable responsibility of a leader.

HRM Review Magazine, Employee Trust, Trust Management, Corporate Goals, Mergers and Acquisitions, M&A, Organizational Culture, Employee Relationship Management, Human Resource Development, HRD, Corporate Strategies, Organizational Downsizing.