The present study is designed to examine the change in the degree of mutual trust in pre- and post-privatization period of a public sector. For this purpose, one public sector organization was selected which has been privatized a few years ago. Mutual trust was measured by using a four point rating scale ranging from quite false to quite true. Data were analyzed employing Z test for measuring difference in means. Results indicated that this organization has shown significant difference in the degree of mutual trust in pre- and post-privatization period (Mean in pre-privatization period=27.5500 and Mean in post-privatization period=29.3583). Findings can be explained in the light of privatization, shared responsibility and empowerment of team.

According to Cohen and Bailey (1997) “Teams are groups of two or more people who interact and influence each other, are mutually accountable for achieving common objectives, and perceive themselves as a social entity within an organization”. Generally people perceive a group as a team, but there is a vast difference between work group and work teams. Robbins (2001) has made this distinction very clear. He stated that a work group is a group that interacts primarily to share information and to make decisions to help each member perform within his or her area of responsibility. Work groups have no need or opportunity to engage in collective work that requires joint effort. So, their performance is merely the summation of each group member’s individual contribution. There is no positive synergy that would create an overall level of performance that is greater than the sum of the inputs. On the other hand, a work team generates positive synergy through coordinated effort. Their individual effort results in a level of performance that is greater than the sum of those individual inputs.

Sekaran (2004) defined team as groups of people who work together and are accountable for achieving the goals set for them. teamwork involves members working in a coordinated manner, utilizing a variety of skills to accomplish the job and assuming collective responsibility for getting it completed successfully and on time.