Trust and Its Impact on Effective Leadership

Topics: Leadership, Maslow's hierarchy of needs, Management Pages: 13 (3548 words) Published: March 17, 2009
Table of Contents

1. Table of Contents1

2. Executive Summary2

3. Introduction3

The Research Problem3
The Report Structure and Organization3
Source and Method of Data Collection3
Limitations of the Report4

4. Discussion5

Organization and its Need of Leadership5
Qualities of a Leader5
Influence of Trust on Motivation7
Influence of Trust on Learning8
Trust and Team Management9
Communication and Trust10
Trust and Change Management10
Influence of Trust on the Performance11

5. Conclusion13

Recommendations for Winning Trust13

6. Bibliography15

Executive Summary

All successful organizations have one common trait; they have high level of trust between the organization, management and employees. Leaders play a very import role in building and maintaining the trust of the employees. Integrity, compassion and achievement of personal goals help the leaders to win the trust of the employees.

A large part of the research focuses on understanding the impact of trust on effective leadership from the organization behavior perspectives. The research found that organization with high level of trust has highly motivated staffs that produce high level of performance output. Learning objective of an organization works on mutual trust between employees and organization. An organization’s growth depends a lot on the trust that the employees will be able to achieve the learning objectives and contribute to the growth. Communication is one area that is most prone to causing loss of trust. Open and honest communication from the management can ensure that the trust will always be maintained with the employees.

The research also covers the importance of trust in handling change management. Employees show resistance to change as it would require changing their usual habits. Trust is the only tool that the managers can use to convince the employees to change. During the time when company is not doing too well, keeping the employees loyal is the biggest challenge that the managers faces. During bad times, managers use their charisma and trust to build the confidence back into employees.

The research recommends that a leader can win the trust of the employees by leading with example, showing integrity in action as well as communication and showing compassion for the employees. It is not easy to win trust of the employees but once it is earned it should be maintained to achieve the organizational goals.


The Research Problem

Trust is the key to the success of any organization and a leader/manager plays an important role in building the trust within the team to achieving the organizational objectives. Significant amount of cautious efforts must be exerted by the managers to build the trust and maintain it. The managers should monitor employee that show eroding trust behavior and take actions to maintain the trust and not lose it. Once trust is lost, it is very difficult to gain it back.

The objective of the report is to research and analyze the subject of trust and its impact on effective leadership. The discussion will provide the readers an insight of trust and its impact on organizations behavior concepts like motivation, learning, team work and communications.

The Report Structure and Organization

The report is illustrated in accordance with the unit outline. There is an introduction, followed by the discussion section, which outlines the key headings that relate to the topic and case study. The report is then concluded with a recommendation, conclusion and references to validate the researcher’s points.

Source and Method of Data Collection

The topic was researched using various books and journals from credible authors. The discussion emphasizes on the leadership and its importance in the organization. The text book resources were...

Bibliography: 1. Barker, Carolyn and Coy, Robyn (2005), Understanding Influence for Leaders at All Levels, Australian Institute of Management, McGraw-Hills Australia Pty Ltd, NSW Australia
5. DuBrin, Andrew J. (2005), Fundamentals of Organization Behavior, South-Western Thompson
7. Kouzes, J. M. and Posner, B. Z. (1993), Credibility: How Leaders Gain and Lose it, Why People Demand it, Jossey-Bass Inc, San Francisco, California, USA
9. Manning, George and Vurtis, Kent (1943), The Art of Leadership, McGraw-Hill/Irwin, New Yourk, USA
11. Mayer, Roger C., James H. Davis, & F. David Schoorman (1995), An Integrated Model of Organizational Trust, Academy of Management Review, 709-34
13. Robbins, Harvey A. and Finley, Michael (2000), Why Teams Don’t Work, Berrett-Koehler Publishers, San Francisco, USA
15. Strebel, Paul (May-June 1996), Why Do Employees Resist Change, Harvard Business Review, USA
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