It is essential to state that the paper "Do High Levels of Trust Between Management and Workers Lead To Better Performance" is a perfect example of management coursework. Over 10 years, trust has been recognized as a central category in explaining the dynamics and structure of business relationships. Recent developments in organizational science ad HRM reflect the importance of interpersonal trust for sustaining organizational and individual effectiveness (Clases et el, 2004). Many studies have recognized the influence of trust on control and coordination at the interpersonal and institutional levels of organization (Clases et el, 2004).
Many researchers agree that trust is the most important factor of a successful workplace, according to Fink and Kessler (2010). Organizations whose staffs trust them to tend to have a high-efficiency work environment and a more engaged workforce. On the other hand, companies that have lost employee trust tend not to be successful (Roger et al, 2005). This essay begins by discussing if trust between management and employees can lead to better performance. The second part of the essay will discuss the consequences of management high trust in its employees.
Finally, a conclusion will be made in relations to the above discussion. Importance of Trust Employee’ s trust is an important consideration for the stability and growth of communities and markets because trust has been found in many studies to guide decisions about interactions between organizations and humans (Audun and Glenn, 2010). Several studies have found that organizations that have high levels of trust tend to develop high-quality goods and services at a lower cost because these organizations are found to recruit and retain highly motivated workers (Morga and Zeffane, 2003).
Employees in these organizations that motivate them have been found to enjoy their work, make their own decisions, take the time to do their jobs correctly, innovate; take risks; embrace the organization’ s mission, vision, and values; and display organizational citizenship behavior such as helping a co-worker. As a result, employees are free to do other tasks. Theories of trust have indicated that highly trusting person in a workplace environment believe that other persons are at all the time trustworthy, regardless of the situation (Clases et el, 2004). Many researchers have approached the issue of trust from two different perspectives.
Researchers outside of the criminal world argue that interpersonal trust should be maximized. For example, Morga and Zeffane (2003) have highlighted the importance of interpersonal trust in the development of both large organizations and closely affiliated smaller organizations. Morga and Zeffane (2003) argued natural sociability is promoted in some societies by the development of professional, social, religious and political organizations. Association in these corporations enables employees to develop a trusting business relationship that encourages growth and help the organization to produce wealth (Rose and Jacob, 2010).
Individual organizations that can maximize constituents’ interpersonal trust in their employees have been found to garner competitive advantage over those organizations which don’ t trust their employees (Roger et al, 2005). In this regard, Audun and Glenn (2010) have argued that interpersonal trust can be used to solve many of contracting problems emphasized in economic scholarship and traditional law. Where interpersonal trust can be harnessed (Clases et el, 2004), it can considerably reduce inefficiencies or problems that are associated with both team production and agency relationships. “ Interpersonal trust allows transactions to be carried out on the basis of a handshake rather than a complex formal contract” (Gustafson et el, 2010).
In other words, trust in a workplace will reduce the need to use organizational resources on constant monitoring of staffs (Fink and Kessler, 2010). Trust avoids the expense and uncertainty associated with trying to enforce informal and formal agreements in the court of law (Roger et al, 2005). Further, Roger et al (2005) have argued that employee’ trust reduces losses from other unpunishable or undetectable opportunistic looses, behavior that could discourage the formation of team production relationship and valuable agency in the first place.