Trust and Its Impact on Effective Leadership

Table of Contents

1. Table of Contents 1

2. Executive Summary 2

3. Introduction 3

The Research Problem 3 The Report Structure and Organization 3 Source and Method of Data Collection 3 Limitations of the Report 4 Acknowledgements 4

4. Discussion 5

Organization and its Need of Leadership 5 Qualities of a Leader 5 Trust 7 Influence of Trust on Motivation 7 Influence of Trust on Learning 8 Trust and Team Management 9 Communication and Trust 10 Trust and Change Management 10 Influence of Trust on the Performance 11

5. Conclusion 13

Recommendations for Winning Trust 13

6. Bibliography 15

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

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 2 5. DuBrin, Andrew J. (2005), Fundamentals of Organization Behavior, South-Western Thompson 6 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 8 9. Manning, George and Vurtis, Kent (1943), The Art of Leadership, McGraw-Hill/Irwin, New Yourk, USA 10 11. Mayer, Roger C., James H. Davis, & F. David Schoorman (1995), An Integrated Model of Organizational Trust, Academy of Management Review, 709-34 12 13. Robbins, Harvey A. and Finley, Michael (2000), Why Teams Don’t Work, Berrett-Koehler Publishers, San Francisco, USA 14 15. Strebel, Paul (May-June 1996), Why Do Employees Resist Change, Harvard Business Review, USA 16