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Global Ceo Magazine:
Trust in management : A literature review
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Trust is an important part of strategic choice and managers who develop optimal trust in relationship with workers will improve their firm's performance. Trust tends to encourage risky behaviors, such as proposing creative alternatives in a decision-making group. A review of literature reveals that trust can assume many different forms and may be affected by a number of factors within the context of interpersonal relations. In the light of these factors, this article tries to explore the concept and importance of trust in management in organizations. It also tries to study the factors that affect or determine the level of trust towards management by the members of the organizations.

 
 

Trust refers to a mutual understanding between the management and the employees. According to authors Porter, Lawler and Hackman (1975) where there is trust, there is a feeling that others will not take advantage of me. Recognition of the importance of trust in the organization has grown dramatically in recent years, evidenced by an abundance of published work attempting to understand the phenomenon from a variety of perspectives. Trust in management reflects employees' loyalty towards corporate goal attainment which in return will prove beneficial for the employees. Like perceived organizational support, trust develops through a social exchange process by which the employee interprets the actions of management.

Human resource practices and trust may provide two avenues that corporate executives can use to increase the commitment of their workforce. Academic research conducted at the organizational level suggests that human resource practices affect organizational outcomes by shaping employee behaviors and attitudes (Wood and de Menezes, 1998). Trust might be envisioned as an evolutionary process that develops as it progresses from its self-interested stage to its more advanced socially- oriented stage. In fact, Lewicki and Bunker (1996) equate trust building to gardening. They suggest that as you still soil each year, you come to understand which vegetables to grow in the sandy sections and which in the moist sections.

 
 
 

Trust in management, Organization culture, Trust management in distributed systems, Human resource practices, Organisation behavior, Organizational change management, Porter, Lawler , Hackman, Strategic leadership, Corporate strategy, Organizational development, Organization goals.